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Why does the world need an ever-growing supply of dollars? I’ve heard a lot of bitcoiners explain Triffin’s Dilemma like this, but it contradicts other arguments they make about bitcoin. It seems like the problem isn’t that the world needs dollars, but that the US is incentivized to export dollars.

It seems silly to phrase this like it’s the rest of the world’s fault and the US is doing everyone a favor. It was short term thinking on the part of US policymakers, the US gained a lot of free stuff from the trade deficit, and now we’re paying the price.

Am I missing something here?

Lyn Alden 8mo ago

In the fiat system, loans are made with interest. Lending creates money, but doesn’t create enough for the interest to pay it back. A debt-based system is basically a ponzi that has to keep growing. And so very few years, the world gets short on dollars, and ends up having to sell US assets to get dollars, which causes illiquid, broken markets in the U.S. until more dollars are supplied.

It’s not the rest of the world’s fault. The U.S. advocated for this system and collaborated with it.

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Discussion

Community Notes 8mo ago

If nothing stops this train, then where is the train going if not headed for a crash?

Michael Hollomon Jr. 8mo ago

When I realized the US national debt is $36T but M2 is only $21T, and that the US could basically seize every USD in the universe and still be $15T in the hole, it dawned on me the whole economy is a con game. I’ve been all in $BTC ever since