Redeye 🀄️

I’m here for future reference & I post/reply for fun/educational purposes *not tax/financial/legal advice.* Dyor ⚖️.

[Redeye 🀄️ @Redeyeforecast]

Back in ‘09, Dr. @judyshel reminded us that we should never say “we can’t” when it comes to resolving a situation we are faced with.

After 55 years of this Fiat monetary system, many people seem to believe that we can’t escape it. However, I believe that we can.

Stay tuned.

[Judy Shelton @judyshel]

Thank you for finding this @Redeyeforecast and I must say that I hold those expressed opinions more strongly than ever and find myself thinking of @elonmusk as an example of what happens when the creators of wealth feel unappreciated by government—where bureaucrats stifle creativity and politicians pile on debt.

[Redeye 🀄️ @Redeyeforecast]

Dr. Magness, first and foremost, I want to thank you for your time and your replies.

However, I understand that your describing the “old Triffin” dilemma during the Bretton Woods system that led to a run on the currency and a flight to gold due to the gold convertibility mechanism for the foreign central banks.

But even @helene_rey, who has been appointed as the economic advisor and head of the monetary and economic department, believes that we are facing a “new Triffin” dilemma.

Are you implying she is wrong?

[Redeye 🀄️ @Redeyeforecast]

The “old triffin” dilemma and the “new triffin” dilemma, explained by @helene_rey.

⬇️

[Redeye 🀄️ @Redeyeforecast]

“The first step toward its identification will come when the world acknowledges that the moment has arrived to lay out the agenda for a new Bretton Woods. And this time, we should get it right.”

—Dr. Judy Shelton, in her book titled “Money Meltdown”.

[Redeye 🀄️ @Redeyeforecast]

@PhilWMagness @JuniperViews Correct, I understand that. However, when you say “particular,” are you implying that the Triffin dilemma is not a current issue?

Even though the United States has a gross external liability, a liquid liability due to the new arrangement of the floating exchange rates.

[Redeye 🀄️ @Redeyeforecast]

@PhilWMagness You're right, Dr. Magness, but wouldn’t you agree that there is a “new (the current Fiat monetary system) Triffin” and an “old (the old Bretton Woods system) Triffin” dilemma?

[Redeye 🀄️ @Redeyeforecast]

The “old triffin” dilemma and the “new triffin” dilemma, explained by @helene_rey.

⬇️

[Redeye 🀄️ @Redeyeforecast]

Patiently waiting.

[Judy Shelton @judyshel]

Thinking something like that. But in 2026. Stay tuned.

[Redeye 🀄️ @Redeyeforecast]

Bitcoin technology is amazing, but the money is horrible.

This is what makes the XRPL's design even more fascinating because it is also the birthplace of stablecoins.

[Redeye 🀄️ @Redeyeforecast]

Back in the early Bitcoin forum days, @bob_way had private messages with Satoshi.

Bob Way also thought the Bitcoin technology is amazing but horrible money.

[Redeye 🀄️ @Redeyeforecast]

The XRPL is currency agnostic, meaning it can be used for various purposes beyond just moving XRP. In contrast, Bitcoin’s primary function is to facilitate the transfer of Bitcoin itself.

[Redeye 🀄️ @Redeyeforecast]

“All you can really do with bitcoin is move bitcoin around” - @JoelKatz .

[Redeye 🀄️ @Redeyeforecast]

We’re just waiting on the world to change.

[Judy Shelton @judyshel]

Worth noting. Why is it a fringe view to recognize this fact? Former Fed chairman Alan Greenspan recognized and praised the monetary foundation that supported growing international trade and investment—and increased shared prosperity—during the era of the classical international gold standard (roughly 1870 to 1914).

[Redeye 🀄️ @Redeyeforecast]

S/o 🏴‍☠️

[Redeye 🀄️ @Redeyeforecast]

“I was waiting for something extraordinary to happen, but as the years wasted on, nothing ever did unless I caused it.”

-Charles Bukowski

[Redeye 🀄️ @Redeyeforecast]

Waiting is the soil where faith grows.

[Redeye 🀄️ @Redeyeforecast]

The Federal Reserve has turned savers into suckers who should instead spend and live in the moment because keeping their money in the bank earns no interest and loses value annually, making them look stupid.

[Redeye 🀄️ @Redeyeforecast]

@GeorgeGammon @jump_ship_bitl @BeantownBitcoin The “old Triffin” dilemma vs. The “new Triffin” dilemma presented by @helene_rey.

[Redeye 🀄️ @Redeyeforecast]

The “old triffin” dilemma and the “new triffin” dilemma, explained by @helene_rey.

⬇️

[Redeye 🀄️ @Redeyeforecast]

Well let’s get this straight, the Bretton Woods system did suffer from the Triffin dilemma and it did come to an end on August 15th, 1971 but it was suppose to be a temporary suspension.

We ended up on this fiat monetary system due to the dollar being so inflated after the Nixon shock that they were never able to catch up to the price of gold and re-anchor it to the Bretton Woods system, which is why we are here today, 55 years later, on this fiat monetary system. You can blame Nixon for this, but it was necessary for him to do so because the U.S. gold holdings depleted from 65% to around 15% due to the convertibility mechanism of the BW system for foreign central banks.

So the answer is that the Nixon shock of 1971 has played into the evolution of the Eurodollar system, which wasn’t really a solution, but the only option because we couldn’t go back to the Bretton Woods system due to drifting too far away with no anchor (pun intended).

We still suffer from a “new Triffin” dilemma as @helene_rey has presented before and can be found in the depths of my page.

[Redeye 🀄️ @Redeyeforecast]

Mr. Gammon, I agree that the Federal Reserve doesn’t have complete control over our money. However, their actions at the Fed have a direct impact on our money, which is undeniable.

I understand your argument that altering the currency would essentially replicate the existing system. However, we currently lack a stable monetary system because there is no reliable anchor for monetary policy. Such as the periods between 1880 and 1914, as well as the Bretton Woods era from 1944 to 1971. Both of these eras experienced productive economic progress and a narrowing of the wealth gap. This is once again undeniable.

It is consumers and real-world businesses that own all the money and generate value. However, can you explain to me why our dollars purchasing power has been debased 31% over the past 8 years? I can; it’s because of the Federal Reserve and their ability to print more money while turning most of the citizens of the United States into suckers because saving is what the middle and lower class were taught to do. Not everyone has the means to invest in financial assets in the same way that the wealthy keep accumulating more wealth (Everyone should research the Cantillon Effect).

Putting the form of money at the center of discussion is what many do because their money (USD) is being debased annually right infront of them. They are taught to ignore it and trust these dullards at the Federal Reserve. With the monetary policy we currently have in place, it shows us that the government and Federal Reserve think the people of the United States are stupid!

What we need to do is solve the modern-day Triffin dilemma and bring back sound money by establishing something similar to the classical gold standard but in a 21st-century manner or even committing to establish a new Bretton Woods, but this time we get it right.

The Fed can keep their new building, but we need to abolish their ability to debase our currency annually by 2% and stop them from destroying our economy with these forced boom and bust cycles caused by them! The Fed is too powerful, too prominent, and too political.

It’s on us to get people’s eyes from focusing on the form of money but to understand monetary economics and the history of monetary policy!

Once we change people’s opinion on the size of government, our job is not finished. It is then that we can focus on how to restore the money to its rightful state.

I will end with this: the Bitcoin technology is amazing, but it is horrible money. This is what makes the XRPL fascinating because it offers a neutral world reserve digital asset that can facilitate trade across the globe and level the international playing field, which can bring global peace and economic prosperity all around the world!

Thanks for reading!

[Redeye 🀄️ @Redeyeforecast]

@PhilWMagness @JuniperViews Correct, but we still suffer from the Triffin dilemma today due to the floating exchange rates derived from the current fiat monetary system, which force the U.S. to print more money as it is still used as the world’s reserve currency for international trade.

Do you agree?

[Redeye 🀄️ @Redeyeforecast]

Bob Way was asked his opinion on CBDCs and whether the token economy will involve banks, government, and retail, etc.

He responds with “so few people understand money as a concept. People understand money as the “I want to have more because that makes me rich and powerful”.

Money was invented for one thing, and that is to facilitate trade between and among humans.

[Redeye 🀄️ @Redeyeforecast]

He’s not wrong — yet.

[CZ 🔶 BNB @cz_binance]

I could be wrong, but Super Cycle incoming.

[Redeye 🀄️ @Redeyeforecast]

“I have long thought that, that kind of monetary policy meant to “stimulate”, it really just made suckers out of savers.”

—Dr. Judy Shelton on the ‘08 crisis, financial assets & the savers.

[Redeye 🀄️ @Redeyeforecast]

@erasurev_v A liquidity crisis is imminent and Bitcoin is the last thing people want their money to be when there is a shortage of food and water.