Lyn Alden Breaks Down Fiscal Dominance, Inflation, and the End of American Middle Class Prosperity Part 1

Tom Bilyeu's Impact Theory

Impact Theory

Education, News, News Commentary, Philosophy, Technology, Society & Culture, Business, Self-improvement

4.7 • 5.1K Ratings

🗓️ 9 September 2025

⏱️ 71 minutes

🔗️ Recording | iTunes | RSS

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Summary

What's up, everybody? It's Tom Bilyeu here: If you want my help... STARTING a business: join me here at ZERO TO FOUNDER: https://tombilyeu.com/zero-to-founder?utm_campaign=Podcast%20Offer&utm_source=podca[%E2%80%A6]d%20end%20of%20show&utm_content=podcast%20ad%20end%20of%20show SCALING a business: see if you qualify here.: https://tombilyeu.com/call Get my battle-tested strategies and insights delivered weekly to your inbox: sign up here.: https://tombilyeu.com/ ********************************************************************** If you're serious about leveling up your life, I urge you to check out my new podcast, Tom Bilyeu’s Mindset Playbook —a goldmine of my most impactful episodes on mindset, business, and health. Trust me, your future self will thank you. ********************************************************************** FOLLOW TOM: Instagram: https://www.instagram.com/tombilyeu/ Tik Tok: https://www.tiktok.com/@tombilyeu?lang=en Twitter: https://twitter.com/tombilyeu YouTube: https://www.youtube.com/@TomBilyeu In this must-hear episode of Impact Theory, Tom Bilyeu is joined by renowned macroeconomist and financial author Lyn Alden for a hard-hitting look at the structural forces impacting your wallet and America’s future. As someone who has built a reputation for cutting through economic jargon to reveal what actually matters for everyday people, Lyn Alden is here to demystify why government debt, reckless fiscal policy, and the mechanics of inflation are rapidly eroding the power and stability of the middle class. Together, Tom and Lyn explain critical concepts like fiscal dominance vs. monetary dominance, why debt ratios matter, and how budget imbalances fuel asset inflation and wealth inequality. They discuss the long-term trends that have quietly shifted America’s economic landscape, delve into the hidden dangers of modern deficit spending, and set the stage for what’s coming as fiscal policy spins out of control. Get ready to rethink the very nature of money and the risks we all face. SHOWNOTES00:00 – Tom introduces Lyn Alden and the reality of fiscal dominance00:17 – Lyn explains monetary vs. fiscal dominance; fiat currency dilution01:52 – The evisceration of the American middle class through inflation02:49 – Why fiscal dominance is more dangerous than monetary dominance04:16 – How the Fed historically controlled inflation—and why that no longer works07:31 – America’s deficit spiral and interest expenses09:22 – What’s different now from past debt scares (debt-to-GDP, demographics, end of low rates)11:18 – Surging deficits outside of crisis times: what’s new and why it matters13:38 – Why Americans are ignoring the debt danger despite mounting consequences15:50 – Populism, currency debasement, and consequences for society18:25 – How debasement fuels wealth inequality and social unrest20:42 – Trump’s diagnosis of the trade deficit, policy responses, and real solutions23:36 – Tariffs, tax policy, and political polarization—why it’s so tough to fix28:38 – How the global reserve currency role both helps and hurts American prosperity FOLLOW LYN ALDEN:Twitter: https://twitter.com/LynAldenContactWebsite: https://www.lynalden.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The U.S. is adding $1 trillion to the national debt every 100 days,
0:04.8	and the interest payments alone now cost more than our entire military budget.
0:10.0	Our rate of debt accumulation has pushed us into something called fiscal dominance,
0:14.8	a runaway spiral where government debt creates so much new money, and thus inflation,
0:20.4	that the Fed can no longer
0:21.7	control the economy. In this environment, if you don't own assets, you are being left behind.
0:27.6	And most people don't own a meaningful amount of assets. Today, I'm joined by Lynn Alden,
0:32.9	one of the sharpest economic minds around. In this interview, she breaks down how fiscal
0:37.3	dominance works,
0:38.6	why the middle class is evaporating, and what you can do to protect yourself from being
0:43.0	steamrolled by a system that is stealing from you. Without further ado, I bring you, Lynn Alden.
0:52.4	The government spends so recklessly that the average person is now stuck in a world
0:58.1	ruled by something called fiscal dominance.
1:00.9	It impacts their lives way more than they realize.
1:04.8	Can you explain it, though, in a way that makes people sit up and realize that they need to do something about it?
1:10.0	I think one way of kind of thinking about it is that if you're in any way involved in a
1:15.9	Fiat currency system, as we all are, you're being diluted.
1:20.9	And it's happening to everyone at different speeds, depending on where they live in the world.
1:24.7	Obviously, this is going to be mostly, I think, American listeners.
1:27.9	We're actually saying right before we started recording that it's a very macro-heavy decade.
1:33.4	And so people can kind of ignore finance, but finance won't ignore them.
1:37.5	To talk about fiscal dominance, it helps to kind of set the stage for like what is the contrast, which is monetary dominance.
	...

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