Tom welcomes back nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a, Founder of Lyn Alden Investment Strategy, to the show to discuss the markets, the Fed, and the concept of fiscal dominance.
Lyn explains that the unusual phenomenon of budget deficits widening despite low unemployment since 2016-2017 is largely due to demographics, leading to the concept of fiscal dominance where large deficits and high public debts can override monetary policy.
She also talks about the two causes of #inflation and the different tools used to combat them, such as fixing supply side bottlenecks, addressing what is causing the elevated rate of money supply growth, and looking at the long-term growth rate of truly scarce goods and services.