TIP760: Dollar Dominance Decline w/ Lyn Alden

You're listening to TIP. With the US dollar shaping so much of the global economy, it seems timely to explore where the world's reserve currency might be heading. As you learn this episode with always thoughtful Lyn Alden, one thing to keep in mind is that the dollar's dominance may be given way to a more multipolar currency system. At the same time, The US is facing persistent fiscal deficits and questions about the Fed's independence. In this conversation, Lyn and I discuss the dollar's outlook, the impact of sanctions and capital control, and how investors can position themselves in an era of fiscal dominance. If you're a stock investor concerned about the global macro backdrop, this is an episode you don't want to miss. Since 2014 and through more than 180,000,000 downloads, we've studied the financial markets and read the books that influence self made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Stig Brodersen. Welcome to the Investors Podcast. I'm your host, Stig Brodersen. And today I'm back here with Lyn Alden. Lyn, how are you today? Lyn Alden (one zero three:forty one): I'm good. How are you? Stig Brodersen (one zero three:forty two): I'm good. How are you? Stig Brodersen (one zero three:forty two): I'm good. And thank you for making time. It's been way too long since we last chatted. My apologies, I should say. Stig Brodersen (zero twenty seven:forty nine): Well, I'm happy to. Always happy to come back on. Stig Brodersen (zero 20 seven:forty nine): So, Lyn, I'm going to put you a bit on the spot here with the very first question. So, Rudolf came out with this book, Out Dollar Your Problem, and he argues that the US dollar has passed its peak dollar dominance. And so he would be the first to say that it's clear that the US dollar will still be very important, but the footprint is likely to decline. And so he predicts that the Euro and the renminbi will increasingly have a share of global reserve, trade invoicing, fiscal transactions, and so on, and share that more with the U. S. Dollar. And so you can think about this as moving toward a three pole currency system, if you like. Stig Brodersen (zero twenty three:forty nine): So like I said here, I'm going to put you a bit on the spot here whenever I say, Do you agree? But I wanted to paint a purple color around it. I know it's like a not so modest question whenever I ask you, How would the fiat system look like in ten years? But I wanted to use that also to set the scene and tee off the rest of the outline and give a broad overview of what we may be looking at. Yeah. Sounds good. So I I mean, based on the description, I I largely agree with it, but I haven't read his book, but I've I've been …