#786: The Offshore Dollar Is Being Dismantled with Matt Dines

**John Arnold** (0:07)
You've had a dynamic where money's become freer than free.
When you talk about a Fed just going nuts, all the central banks going nuts. So it's all acting like safe haven. I believe that in a world where central bankers are tripping over themselves to devalue their currency, Bitcoin wins. In a world of fiat currencies, Bitcoin is the victor. I mean, that's part of the bold case for Bitcoin. If you're not paying attention, you probably should be. You probably should be.

**Marty Bent** (0:36)
Matthew Dines. It's a never-ending game, sir.

**Matt Dines** (0:41)
Yeah, that's correct. There's always a tomorrow.

**Marty Bent** (0:46)
There's always a tomorrow, but there's also a yesterday and last week, and it seems like over the last week, things have been heating up. I had to text you over the weekend and get you on because I need the Matt Dines lens on what's happening right now.

**Matt Dines** (1:02)
Well, that's good. I try to put it all together in terms of not just Bitcoin, but the waters in which it swims. So that includes geopolitics, the dollar, treasuries, all of the above. So yeah, happy to be back.

**Marty Bent** (1:15)
Well, MindPrint Hash, you and Cameron have been doing an incredible job with that. I'm sure you've picked up on it, but John Arnold is your biggest fan.

**John Arnold** (1:23)
Thank you. John's awesome.

**Matt Dines** (1:25)
We have a little back thread chat going discussing these things. So yeah, it's fun, but yeah, we're just trying to figure out the world as everybody else. We have our framework.
Don't get too religious in terms of just base level, what would you call them, like hard beliefs, like be willing to update your priors as the facts come in. And yeah, I think ultimately just try to, number one, understand the players involved, what are their incentives, all of that. But then don't get too wedded to your core convictions. And there's only really a couple of them in the Mindprint Hash Framework. Number one, everybody's chasing their own book of business, their profit incentives, all of that. Number two, we're moving towards like a monetary transition. So, it might look a little bit on like, or different than what everybody expected in the 2010s or the 2021 PQE printing cycle. The dominant narrative in the Bitcoin community was, they're just going to print forever. We just try to read the facts, understand what's going on and update and don't get too religious and be willing to kill your heroes from time to time.

**Marty Bent** (2:42)
And so where do you think we should start? I mean, obviously we're starting in in res media here because things have been developing. We've had multiple conversations describing the setup and the potential incentives behind the scene. But obviously in the last week, we've had, I would say, at least three things on the treasury front that are drawing people's attention. Obviously, the increase of the buyback limit from $2 trillion to $2 billion to $4 billion. We had Bessent come out yesterday morning or rumors, sources said that he's willing to save the bond market at all costs, up to a trillion dollars in the TGA, or the rumors that he can plug into that. Then this morning, Wall Street Journal, AI generated op-ed from Stanley Druckenmiller.
Is that K-Fob, him calling out Bessent with these moves? What is happening right now?

**Matt Dines** (3:45)
All right. So just understanding track record in history here, Bessent and Stanley Druckenmiller go way back, as does Kevin Warsh in this circle. So these are people who know each other very deeply.
We'll just start with the Stanley Druckenmiller WSJ op-ed this morning, or it was actually yesterday, as we're recording this. Maybe not the best place to start, but we'll just choose that as our beachhead. And that narrative of beachhead, we'll bring it up later, because I think we're going to touch on it, the operation economic outcast. All right, but to start that, the WSJ article, this is one of those things where when it enters the fit, like what used to be called fin-twit, I don't know what it is on X now, fin-X. It doesn't sound as- It's still fin-twit, still fin-twit. All right, cool. So when we see the discussion of the Druckenmiller op-ed, it's immediately pushed into like, what's the word? Like it's like Paris Hilton type of journalism. Yeah, it's like this guy is attacking this guy. It's Real Housewives of Washington DC and New York. You read what Stan Druckenmiller's op-ed, whether it was AI generated or not or assisted, what stuck out to me was several times, and this is where the lead was buried. He is calling for like a long-term solution to the debt and fiscal problem, which in his assessment, and I would actually agree with this, it's the entitlements problem. Like these public schemes are not economic as currently structured. It doesn't mean that with reform, they can't be extended in their longevity. But the way these systems work right now, that they are fundamentally unsustainable. And I think that's something as we go into every election cycle, no politician can win on that campaign. It's going to be something that's built up over time. And maybe I'll get into a little bit of that. I don't know if the TFTC audience cares about entitlement reform.