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The Fed Can’t Fix This Inflation | Lyn Alden — Key Takeaways

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The Fed Can’t Fix This Inflation | Lyn Alden

What Bitcoin Did1h 15mSep 8, 2026

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Own Bitcoin and hard assets now — fiscal dominance makes above-target inflation structural for the decade, and rate hikes cannot fix deficit-driven inflation the way they fixed lending-driven inflation in the 1980s.

Key takeaways

Rate hikes can't fix today's inflation — the Fed's tools are designed for the wrong problem

Rate hikes can't fix today's inflation — the Fed's tools are designed for the wrong problem

  • Volcker-era inflation was bank-lending driven with 35% debt/GDP; today's is fiscal-driven at 7% of GDP deficits.
  • Above a debt threshold, rate hikes become inflationary: cash-rich holders earn more and spend more, blowing out deficit interest expense.

Unscheduled Treasury buyback announcement signals fiscal dominance, not routine liquidity ops

Unscheduled Treasury buyback announcement signals fiscal dominance, not routine liquidity ops

  • No liquidity crisis exists: MOVE index is modest, yield curve is normal — intervention is pure yield management at $40T debt / 5%+ long-end yields.
  • Unscheduled announcements (vs. quarterly refunding) are the tell; equivalent signal to a between-meeting Fed action.

Structural inflation above 2% is locked in for the decade as deflationary offsets vanish

Structural inflation above 2% is locked in for the decade as deflationary offsets vanish

  • Moore's Law slowing, globalization plateauing, and AI driving 10x compute demand eliminates the ~3%/yr productivity offset to ~7% money supply growth.
  • Deficit spending flows to pure consumption (entitlements, defense wages) not productive investment, making it more inflationary per dollar spent.

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In this video

  1. 1mIntroduction
  2. 1mTreasury Buybacks & Fiscal Dominance
  3. 9mWhat Treasury Buybacks Actually Mean
  4. 20mWhy Inflation Is Staying Higher
  5. 31mCan the US Fix Its Deficit?
  6. 39mThe Next Decade Will Look Nothing Like the Last
  7. 46mAI, Capital Rotation & Bitcoin
  8. 52mLyn’s Long-Term Bitcoin Thesis
  9. 1h 7mBuying Businesses & Building a Bitcoin Treasury
  10. 1h 11mLyn’s Sci-Fi Novel & What Comes Next

“We don't really have the tools to deal with fiscal driven inflation. Most of our tools are literally inherently designed around lending driven inflation.”

— Lynn Alden

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