Thoughtful Money with Adam Taggart Our Addiction To Deficit Spending Is The Greatest Threat To Our Future Prosperity | Lyn Alden
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Sep 28, 2025 
In this enlightening discussion, investment strategist Lyn Alden, author of "Broken Money," unpacks the alarming trend of fiscal dominance. She dissects how current deficit spending compares to post-COVID levels, the impact on inflation, and the intricacies of major sectors like Social Security and defense. Alden also contemplates the challenges of addressing entitlement reform, the risks of a looming recession, and the benefits of certain investments in today's economy, all while emphasizing the need for sound monetary policies.
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Deficits Act As Targeted Stimulus
- Large federal deficits act as ongoing stimulative flows into specific sectors like healthcare, defense, and Social Security recipients.
- This targeted stimulus sustains parts of the economy while masking broader structural weakness.
Tariffs Tend To Tax Americans
- Tariffs mainly function as a tax on American consumers because foreign sellers rarely absorb the cost.
- Tariffs can slow imports modestly but complicate long-term corporate capex decisions and trade dynamics.
Yield Control Has Real Costs
- The Fed can try yield-curve control to lower borrowing costs, but that risks central bank independence and inflationary pressure.
- There are no painless fixes; yield control trades independence for temporary debt service relief.
