Broken Money with Lyn Alden (SLP518)

This podcast episode features a discussion with macro analyst Lynn Alden about her book "Broken Money." The conversation covers topics such as ledger money, the international gold standard system, debt creation, and the concept of money as a ledger. Alden explores various theories of money and discusses the role of technology, particularly the rise of Bitcoin, in reshaping the future of money. The podcast also delves into the challenges of maintaining a full reserve system in banking and the impact of inflation and debt on economies. Additionally, it examines the consequences of constant currency dilution and the benefits of adopting a Bitcoin standard. The episode sheds light on the complexities of war financing and the hidden costs of forever wars. Overall, it provides insights into the history, evolution, and challenges of different monetary systems, highlighting the importance of transparency, trust, and productivity in the financial world. Main points • Money can be represented as a ledger, with individuals controlling their own ledgers in local communities and central banking using centrally controlled ledgers. • Different theories of money exist, including chartalism, which emphasizes the role of accepting money as payment for taxes and debts in determining its value. • The international gold standard system provided stability in the past, but it had inherent flaws and eventually collapsed due to leverage and conflicts. • Debt creation fuels economic growth but also carries risks, and different types of debt exist, varying in their impact and incentives. • The rise of Bitcoin and related technologies is challenging traditional monetary systems, offering transparency, scarcity, and potential alternatives to the fiat monetary system. • Maintaining a full reserve system in banking is challenging due to state capture, control of money systems, and incentive structures. • Inflation and debt manipulation affect the money supply and can have significant consequences for economies and individuals. • Forever wars have hidden costs and can impact economies and society in various ways. • The concept of constant currency dilution and the benefits of stack SATs (bitcoin units) are explored. • The adoption of a Bitcoin standard would reshape the structure and incentives of debt, focus on high-impact ventures and entrepreneurship, and reward savers.