Lyn Alden: Debt System ‘Is Breaking’—How High Will Yields Go?

Fiscal dominance and unsustainable U.S. debt levels are fundamentally reshaping the bond market, forcing central banks into a constrained environment where they must support bond prices despite persistent inflation. This dynamic creates a "two-speed" economy: while cash-rich entities and seniors benefit from higher interest rates, small businesses and young families face severe affordability crises. Rather than a sudden bankruptcy scenario, the U.S. is adopting emerging market characteristics, including currency debasement and reduced monetary policy flexibility. Furthermore, while AI offers transformative potential for productivity, current capital expenditure cycles in the tech sector remain speculative and unprofitable. Investors should prioritize profitability and scarcity, as the broader financial landscape shifts away from the zero-interest-rate era toward a more volatile, debt-burdened reality. Lyn Alden, founder of Lyn Alden Investment Strategy, provides these insights on the structural shifts currently impacting global markets and consumer conditions.