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Europe in Crisis with Lyn Alden
What Bitcoin Did with Peter McCormack

Europe in Crisis with Lyn Alden

Oct 10 2022 • 1hr 4m

Show Notes

“This period looks a lot like the 1940s, which is when you have a combination of high debt and high inflation, which is not what you had in the 70s. In the 70s they had low debt and high inflation, which means they had a lot more tools to respond to it…when you have that combination of both…that’s the closest thing that a central bank has to a checkmate scenario, where there’s only bad options.”— Lyn AldenLyn Alden is a macroeconomist and investment strategist. In this interview, we discuss the recent market turmoil that followed the UK government's proposed tax cuts. Why did the market reaction nearly result in the collapse of UK pension funds? What are the underlying issues? Where are we heading? - - - - Liz Truss became the UK’s new Prime Minister on the 6th of September. She immediately worked to develop a financial package that would protect people from unprecedented hikes in energy prices. At the same time, Truss was keen to implement a long-held economic ideology predicated on stimulating growth through low taxes and reduced regulatory burdens.A political judgement was made to prioritise promulgating tax cuts ahead of any assessment of what spending cuts would be required to balance the budget; a huge emergency fiscal package was being combined with reductions in revenue. In the absence of any other information, the market took fright: the government wasn’t deemed to be in control of a burgeoning debt pile.Immediately following the government announcement, the bond interest rates rose sharply whilst the British pound dropped precipitously. Despite government protests that the market response was due to external factors, the messaging was clear: the UK economy is becoming dangerously unbalanced. Within days the Bank of England had to react and start a £65 billion purchase programme to save a number of pension funds from collapse.So, what actually happened? Experts, commentators and politicians have argued about the causes and outlook, whilst mortgage rates have rocketed such that emergency payments for energy costs will be dwarfed by additional mortgage payments. Is the UK economy at risk? If so, why, and what is the outlook? Does history teach us anything? And, fundamentally, can debt be brought back under control? - - - - This episode’s sponsors:Gemini - Buy Bitcoin instantlyLedn - Financial services for Bitcoin hodlersBitcasino - The Future of Gaming is herePacific Bitcoin - Bitcoin‑only event, Nov 10 & 11, 2022Ledger - State of the art Bitcoin hardware walletWasabi Wallet - Privacy by defaultTexas Blockchain Summit - Nov 17-18, 2022 | Austin, TexasBCB Group - Global digital financial Services-----WBD565 - Show Notes-----If you enjoy The What Bitcoin Did Podcast you can help support the show by doing the following:Become a Patron and get access to shows early or help contributeMake a tip:Bitcoin: 3FiC6w7eb3dkcaNHMAnj39ANTAkv8Ufi2SQR Codes: BitcoinIf you do send a tip then please email me so that I can say thank youSubscribe on iTunes | Spotify | Stitcher | SoundCloud | YouTube | Deezer | TuneIn | RSS FeedLeave a review on iTunesShare the show and episodes with your friends and familySubscribe to the newsletter on my websiteFollow me on Twitter Personal | Twitter Podcast | Instagram | Medium | YouTubeIf you are interested in sponsoring the show, you can read more about that here or please feel free to drop me an email to discuss options.
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@nick
5,000 sats
Oct 12 2022
Lyn for Chancellor! 🇬🇧🇬🇧🇬🇧
@xentagz
500 sats
Oct 11 2022
great episode!
@krk723
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@ghostoftronsington
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Oct 10 2022
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@zos
500 sats
Oct 10 2022
Lyn is amazing, as always.
@michaelmatulef
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Oct 12 2022
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@tonyfontana
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Oct 12 2022
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@geneeverett
222 sats
Oct 12 2022
remote is fine, I’m telling ya you will greatly limit ur guest options if u stop doing them all together. respectfully it sounds moronic to make such a big thing about it. it’s just how it is in 2022. why limit guests? obviously I’m person is best! but as long as guest has good set up like today with good sound I vote it’s a huge mistake to state you will never do it again. Joe Rogan it makes sense for: while others like the great Adam Curry does No Agenda remotely with cohost JCD. MyVote
@northofthewall
210 sats
Oct 12 2022
Lyn Alden > Ben Bernanke for the Nobel Price🙏
@galetaire
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@dmtrmrfv
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@godsayshodl
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Oct 11 2022
peter you suck, have a nice day
@user1016428262076066
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@kslim
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Oct 13 2022
👍👍👍Great podcast and explanation as always from Lyn. Thanks!
@darren22
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@darren22
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@fightlessbirds
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@jimblogic
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Oct 13 2022
Kind of glad that I left the UK, but Spain also has it's own challenges 🤣. Very good macroeconomics insights from Lyn as always, great questions too.
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@joewithfish
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Oct 12 2022
love when Lyn is on!
@scmcint
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@geneeverett
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Oct 12 2022
I mean it’s 2022. people can’t always travel to ur location. I agree it’s better in person but if u can only get someone this way as long as it’s good sound quality I think it’s a mistake to stop it. there’s gonna be guests that can’t get to u, ur not Joe Rogan. just do em this way if the guest is good.
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