MacroVoices #525 Lyn Alden: Iran Contagion, Inflation & Private Credit
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Guest: Lyn Alden, founder of Lyn Alden Investment Strategy.
“This week's feature interview guest is Lyn Alden, founder of Lyn Alden Investment Strategy. Erik and Lyn discussed the shift toward a multipolar world, the economic impact of rising energy prices, and the risk of second-wave food inflation.”
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Prepare for a shift toward a multipolar world order as U.S. unipolar dominance declines, leading to increased competition between global power poles.
“We're falling back toward a world that historically is more usual, which is that you have multiple poles of power that are in competition with each other, rather than one central world power.”
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Watch Bitcoin as a 'portable, scarce' asset hedge during geopolitical crises, noting gold’s recent weakness due to its role as a primary source of liquidity.
“Gold is a source of liquidity for many market participants... in this crisis. The other side of the coin is that Bitcoin is kind of held up oddly well in this environment... if people find themselves wanting to move portable, scarce money, it has some certain advantages.”
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Monitor the $200 oil threshold, as a sustained closure of the Strait of Hormuz could push prices to levels that are fundamentally crippling for the global economy.
“If the strait stays closed long enough and or if the shut-ins and, the worst-case scenarios, these severely damaged energy production infrastructure... those 200-plus numbers are quite possible, if not probable. And that does start, I think, become crippling for the economy.”