Lyn Alden, author of "Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better," discusses the impacts of the broken financial system on the average individual, saving vs investing, energy as the arbiter of truth, interest rates, US treasury, and the national debt.
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Quick takeaways
Energy is the arbiter of truth in money and plays a significant role in currency value and stability.
Transitioning to a sound money system could shift focus from investing to saving, benefiting wage earners and favoring the productive class.
In a sound money system, diversification becomes less necessary as saving becomes a viable option and strategic investing replaces widespread necessity.
Deep dives
The Link Between Energy and Truth in Money
The podcast episode explores the concept of energy as the arbiter of truth in money. It discusses how energy is closely linked with the value and truthfulness of money. The guest emphasizes the importance of understanding the history of money and how it has evolved over time, particularly in relation to the energy requirements and technological advancements. By examining the role of energy in the monetary system, listeners gain insights into how energy influences the value and stability of currencies.
The Impact of Sound Money on Saving and Investing
The episode delves into the implications of transitioning to a sound money system. It suggests that in a sound money world, saving becomes more important and investing becomes optional. This shift could lead to a change in consumption behaviors, with individuals focusing on saving instead of investing. The guest believes that under a sound money system, contracts and negotiations would be more favorable to maintaining the status quo, benefiting wage earners and favoring the productive class. The transition to a sound money system could bring about a more efficient monetary framework and shift the focus back to real productivity and wealth creation.
The Importance of Diversification in a Sound Money World
The episode explores the role of diversification in a sound money system. It highlights how individuals are currently heavily concentrated in certain investments due to the devaluation of currencies. In a sound money world, the importance of diversified investments would decrease, with saving becoming a more viable option. The guests discuss the potential shift in investment strategies, where investing becomes more strategic and optional rather than a necessity. Diversification in a sound money system would still be relevant, but it would be viewed as a more specialized and selective practice rather than a widespread necessity.
Energy, Technology, and the Global Monetary System
The episode delves into the impact of energy abundance and technological advancements on the global monetary system. It explores how these factors have improved human well-being but also revealed the system's slow response to keep up with the changes. The guests shed light on the challenges posed by the existing global monetary system, especially in a changing energy landscape. They discuss the need for taking money out of the hands of governments and the potential role of Bitcoin and other emerging technologies in the transformation of the monetary system.
The Challenges of National Debt and Declining Interest in US Treasuries
The episode addresses the concerns surrounding national debt and declining interest in US treasuries. It highlights the increasing debt levels and the potential impacts on the strength of the US dollar. The guests explain the relationship between debt, interest rates, and inflation and discuss the implications of unsustainable debt levels. They also analyze the challenges faced by the US in terms of geopolitical conflicts, potential loose monetary policy, and the need for a potential recapitalization of the monetary system. The evolving dynamics between bonds and Bitcoin are also explored, with Bitcoin emerging as a potential safe haven asset.
Lyn Alden is the author of a brand new book called "Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better." This book is almost 500 pages, and it is a fantastic breakdown of the history of money, why the system is broken, and where we go from here. In this conversation, we talk about how the average individual is being impacted, saving vs investing, diversification, energy as the arbiter of truth, interest rates, US treasury, national debt, and more.
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