#161 - Lyn Alden - The Inevitable Collapse of The Financial System

In this pivotal episode of The Peter McCormack Show, host Peter McCormack sits down with renowned macroeconomist Lyn Alden to dissect the slow, systemic collapse of the global financial system. Alden argues that the current fiat currency model—built on fractional reserve banking, central bank-led money creation, and perpetual debt growth—is inherently unsustainable. She traces the evolution from gold-backed money to today’s digital ledgers, emphasizing how the system’s design ensures that inflation, disguised as 'normal' economic growth, systematically erodes savings and wages, particularly harming those at the bottom of the income stack. The conversation explores how governments and corporations profit by shorting currency while socializing losses, and how the current debt levels—especially in aging societies—create a Ponzi-like dynamic that can only be sustained through continuous money supply expansion. Alden also discusses the role of technology, including AI and Bitcoin, as both a potential productivity booster and a disruptive alternative to the existing system. She concludes with a call for greater financial literacy and personal responsibility, advocating for asset ownership and decentralized money as tools for individual resilience in an era of inevitable monetary debasement.