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Triffin’s Dilemma, Dilution of everything, leads to Bitcoin!

Triffin’s Dilemma is named after Robert Triffin, an economist who discussed (1960), the international monetary system’s problem with USD hedgemony.  This slide below explains it well:

Neutral ATM - Bitcoin ATM’s in Texas - Triffin’s Dilemma, Dilution of everything, leads to Bitcoin!

Triffin’s Dilemma has now lead to cantillionaires being created, due to asset inflation, since 1971.  That is the year President Nixon took the US off the gold standard.  Back then, a single family home sold for $20K to $30K. Now, the average single family home is over $360K in the US.  In many states, that number is much higher. I am a Gen X member. My generation is lucky to have owned homes long enough, that we benefit greatly from asset inflation. Baby Boomers even more so. All generations after Gen X.  Not so much!  It now takes 6 years at an average wage to buy a single family home on average.  In 1971, that was 2 years!  Home ownership is growing out of reach.  Rental prices in Texas, average well over $1,100 per month for a 1 bedroom apartment. They can easily get to $1,900 per month.  

Modern Monetary Theory has led the way for this wealth disparity we experience now.  MMT calls for a dilution of money supply, in order to pay for savings and higher taxes as the GDP grows.  MMT economists say this theory works as long as unemployment is kept low.  However, now that it is 2023, CPI inflation is still 6.4%, real inflation is more like 15% to 18%, and unemployment is still high.  Shadow stats unemployment is 24%.  Official unemployment is 3.4%.  Many people that are very under employed, or no longer looking (early retirement) are not counted in official unemployment.  So, inflation is high and rising slightly, unemployment is high but falling slightly.  

As ESG calls for less reliance on fossil fuels, gasoline will drive inflation up!  We have said this for a year on our blogs. Inflation peaked last summer, and we expect another peak later this summer as the driving season revs up. We expect higher inflation to put pressure on unemployment as well.  It is stagflation!  How do central banks handle staglation?  Answer: dilution!  See Perth mint:

Neutral ATM - Bitcoin ATM’s in Texas - Triffin’s Dilemma, Dilution of everything, leads to Bitcoin!

See federal debt held by the public, notice the 2023 to 2053 projection:

Neutral ATM - Bitcoin ATM’s in Texas - Triffin’s Dilemma, Dilution of everything, leads to Bitcoin!

Thanks to Lyn Alden for the above chart.  

Shrinkflation when it comes to food packaging sizes, we all notice that.  Food diluted with air.  Less food, same price.  

MMT and ESG based governments calling for less nitrogen in farming.  Calling farming a threat to ESG standards and norms. This dilutes the global food supply. It will result in a reduction in meat, eggs, poultry, pork and fresh vegetables!  Heavily processed foods would replace the above.  Hence, dilution.

Men competing in Woman’s sports, changes in eductional norms that have come up since 2020.  This dilutes Woman and their value on society. It dilutes education, and how the younger generations will contribute to society.  
As the money is diluted and loses it’s value.  Strangely, a lot of other things start getting diluted away as well. Food supply, younger generations, woman.  Men as well. That dilution is money supply related, but also in other social areas where the value of men get diluted. If something of value is replaced by or diluted by something that discourages the value that once existed. That is dilution.  The value placed on anything is it’s ability to contribute, divided by it’s scarcity. As we dilute things that contribute to society, they lose value.  We want these values back, we want these standards back!  All of these things have a lot of value, and we need that to project upwards, not downwards, into the future! 

Why is only 20.3% of the global population living free, outside of authoritarianism or outright tyranny?  Why does only 76% of the global population have access to banking?  Many freedoms have been lost since 2020.  

Bitcoin claws back freedom!  How?  It stops dilution.  Central banks, who control the supply of all money globally.  Very few people have control over central bank policies.  Those policies flow down to commercial banks, governments, major corporations, and at the bottom of the pyramid, the people.  This system gives power to the very few, over everyone else.  Bitcoin reverses all of that, and provides an open network.  

Transactions can be completed in minutes globally, restrictions on transacting can be eliminated.  Those restrictions come from central banking authorities.  In some cases they come from governments.  Governments are controlled by private central banks, hence the problem.  If an open network was deployed whereby transactions were on a public ledger (the blockchain).  The poorest countries could have access to banking.  We are also trying to work on gridless energy, whereby energy and power can come to anyone anywhere.  There are limitless possibilities.  However, there is MUCH resistance to this.  Bitcoin allowing anyone to transact anywhere.  It also pushes acquisition towards technologies that allow for gridless power to mine Bitcoin anywhere.  This technology helps us to get freedom for the 79.7% of the world that does NOT have it!  This is not financial advise and we are not financial advisors.  Inflation (second half of the Triffin’s Dilemma) is dilution of money.  Bitcoin solves that dilemma.  Once that is done, energy that is gridless becomes a premium.  Which creates freedom for the 79.7% of humanity who do not have freedom.  It’s a big dream, but we can live it now!  Bitcoin stops dilution!


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