Lyn Alden's insights on fiscal dominance suggest that government spending dictates monetary policy. Current uncertainty signals potential discussions around austerity as a means to address swelling debt. Markets are reacting, speculating whether policymakers will act seriously on this front. Historically dismissed, austerity is now being considered alongside other levers: inflation, economic growth, and debt restructuring, as various strategies to tackle national debt. If fiscal dominance persists, tax policy will emerge as a battleground for impactful changes affecting both the economy and individual financial strategies, especially for asset holders like bitcoin investors.
For the first time in years, there’s being hinted at austerity... the conversation has shifted, indicating uncertainty around whether fiscal dominance can continue unchecked.
When a country is drowning in debt, policymakers have four main levers: inflation, economic growth, debt restructuring or default, and austerity.
With fiscal dominance running... the tax policy will be the first place where real, actionable changes show up.
For bitcoin holders, a tax policy change is one area where proactive planning can actually make a difference in your financial life.
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