Lyn 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?
00:00:00 Lyn’s working on a book
00:01:48 UK’s toxic combo: high debt + inflation
00:14:35 Japan’s & Abenomics; could the UK default?
00:22:34 Pension funds, leverage & sovereign debt
00:26:42 Global currency weakness vs the dollar
00:34:00 Echoes of 1940s but with energy shortages
00:43:37 Risks of pivoting into the dollar
00:50:06 The importance of low energy costs
“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 Alden
Lyn 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?
