How the Fed “Went Broke” with Lyn Alden

What Bitcoin Did, Released on 3/6/23

Lyn Alden is a macroeconomist and investment strategist. In this interview, we discuss her latest article: How the Fed “Went Broke”. Lyn explains how for the first time in modern history the Federal Reserve is operating at a loss. We talk about the ramifications in terms of continuing high inflation, the bankruptcy of government agencies, and the impacts on the Fed’s independence.

00:00:00 Fed assets, liabilities, negative equity
00:08:08 Commercial banks
00:17:23 Fractional reserve banking
00:24:41 Central banks; reverse repo
00:31:50 Fed independence
00:39:49 Fed losing money
00:47:07 Decade of inflation; gold renewability (1933)
00:55:12 Govt. bankruptcies; allocating capital; deficit problems

Lyn Alden is the founder of Lyn Alden Investment Strategy. Lyn has a bachelor’s degree in electrical engineering and a master’s degree in engineering management, with a focus on engineering economics and financial modeling. She worked as an electrical engineer at an aviation facility, and over the course of a decade worked her way up from being an intern to being the lead engineer and running the day-to-day operations and finances of the facility, before retiring early at age 33 with financial independence. Since then, Lyn has been a full-time investor and independent analyst.

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