Marty's Ƀent - December 28th, 2021 - Issue #1136

Tuesday, December 28th 2021 - Issue #1136

The incentives are screwed: exhibit 21,212

The externalities of unfettered money printing are extremely overweight to the negative side of the spectrum. When the government has the ability to work in conjunction with central banks to print money ex-nihilo to fund an activity, those who are in control of managing that activity are incentivized to be extremely wasteful to justify their budgets funded by the money printer. There is no greater example of this than the US military, which currently boasts an annual budget of $768.2B for 2022. 

Year in and year out the puppets in Washington DC debate about whether or not the military budget should be increased. Inevitably, over the long term, the budget has expanded to obscene levels. Why does this happen? How does this happen? And what does an ever expanding budget do to the incentives of those in charge of the military? 

Those from the Pentagon who hit the Hill to explain just how much they need in any given year to the puppets will tell you that the "why" is that there are ever-growing external threats that America needs to defend itself against and they will need more money to protect against them. In reality, as our friend GodSaysHodl explains above, the "why does this happen" probably has more to do with the fact that bureaucratic entities like having money to spend and they only get more money if looks like they need it.

How exactly does a bigger budget get justified? Again, we'll turn to our friend GodSaysHodl who gives us a peek behind the curtain via memories from his time in the Air Force, which involved blowing money on unnecessary goods at the end of the year to make it look like the military had spent its full budget and was therefore justified when the brass went in for negotiations on the Hill for the next year's budget. It isn't a foreign threat and a need to defend against it that is driving this budget higher, but greedy humans working within a perverse incentive system that prioritizes waste over security. And one could argue this perverse incentive system leads to materially worse things than waste. Does being unnecessarily antagonistic on the global stage lead to more spending and higher budgets? I think one can certainly make the case that it does.

What better way to reap the benefits of the money printer than by going out and antagonizing the world, overpaying defense contractors, and then coming home and claiming that the people you pissed off are now threats that you need more money to "defend" against? You know what they say; where there's smoke, there's fire.

As an American, I am continually dismayed that these budgets keep getting increased when the quality of the service that is being provided has been on a consistent downtrend throughout my life. One could argue that the US military's consistent unnecessary foreign intervention has led to my life being made worse off. Bombing random people in the Middle East only engenders extreme anger from those people, which makes them more likely to attack the US. Putting citizens physical well being at risk. That's just one potential second order effect.

A good way to help justify a higher budget year in and year out is to have a high velocity of military grade equipment flowing through the different branches of the military. Equipment that is a few years old gets replaced by brand new equipment and that not-as-new equipment gets "recycled" via the process of militarizing domestic police forces. The police forces, which now look like occupying forces, tend to take that image to heart and act like it; feeling empowered to trample the civil liberties of the Americans living in the communities they are supposed to be policing. This is exemplified by "no knock" raids, civil asset forfeiture at borders, and the use of intimidating force during legal and peaceful protests. Over the course of my life it seems like the term "innocent until proven guilty" has been completely inverted, and I would not be the least bit surprised if the trickle down effects of overspending by the military enabled by unfettered printing at the Fed has played a part in this.


How would the incentives change if there was no ability for bureaucrats to access a money printer? Would those in charge of the military think twice about foreign intervention as the cost of failure would increase significantly? Would more focus be put on shoring up our defenses at home while attempting to broker peace abroad to stave off any potential physical conflict? I think a strong case can be made that, yes these are likely outcomes. A Bitcoin Standard incentivizes efficient capital allocation, economic cooperation, and more free trade - which has historically led to more peaceful outcomes.

Fix the money, fix the world.

I do hope that this piece doesn't make it seem like I do not respect those who risk their lives to genuinely defend the ideals America was founded on. I am simply attempting to highlight high-level incentives that increase the likelihood of negative outcomes for all involved. 
Final thought...

The almost-two year old is tracking to score an A on this flight home to Austin. "Don't jinx it!" - my wife
Share
Tweet
Forward
Hope you enjoyed today's issue. If you have any friends that are looking to find out more about Bitcoin have them sign up for this newsletter here:
 
Get Ƀent

Ƀent noun 1. direction taken, as by one's interests; inclination.

Thanks for reading Marty's Ƀent, a daily newsletter containing all the information I found interesting in the Bitcoin world in the last 24 hours.

Copyright © 2020  TFTC.io, LLC  All rights reserved. 

Want to change how you receive these emails?
You can update your preferences or Ƀent Over!
 

Key phrases

Older messages

Marty's Ƀent - December 27th, 2021 - Issue #1135

Tuesday, December 28, 2021

Monday, December 27th 2021 - Issue #1135 A few examples of cool things that can be and are being built on Bitcoin Still swept up in the currents of holiday travel and family ping pong, so this is a

The Sat Standard - Bitcoin Weekly - Dec 25 2021

Saturday, December 25, 2021

This week in bitcoin. Straight to the point. No bullshit. Every Saturday. View this email in your browser The Sat Standard This week in bitcoin. Straight to the point. No bullshit. Every Saturday.

Marty's Ƀent - December 22nd, 2021 - Issue #1134

Wednesday, December 22, 2021

Wednesday, December 22nd 2021 - Issue #1134 A clown world check in Even though it is the season to be jolly, your Uncle Marty can't help but feel a bit dismayed at the state of the clown world as

Marty's Ƀent - December 20th, 2021 - Issue #1133

Tuesday, December 21, 2021

Monday, December 20th 2021 - Issue #1133 Media on a Bitcoin Standard Bitcoin is revolutionizing media and very few people are paying attention. Your Uncle Marty is becoming more convinced of this by

The Sat Standard - Bitcoin Weekly - Dec 18 2021

Saturday, December 18, 2021

This week in bitcoin. Straight to the point. No bullshit. Every Saturday. View this email in your browser The Sat Standard This week in bitcoin. Straight to the point. No bullshit. Every Saturday.

EthHub Weekly #199

Tuesday, January 18, 2022

Polygon integrates EIP-1559, Binance supports Arbitrum withdrawals, Set Protocol live on Optimism and much more! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Decentralized Arts #22: Boson Protocol, Metaverse Apparel & Artist Showcase

Tuesday, January 18, 2022

BanklessDAO Weekly NFT and Cryptoart Newsletter ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Cardano Dan's Newsletter - Issue #182

Monday, January 17, 2022

We're Here ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

UNDRGRND DIGS 008

Monday, January 17, 2022

UNDRGRND DIGS 008 Mark Bailey — January 17, 2022 View original post Lugosi's Eyes by Luiz André Gama JANUARY 17TH, 2021 5 Artists From the UNDRGRND Collection UNDRGRND DIGS is a periodical feature

Creative Chronicle # 07

Monday, January 17, 2022

Events, Opportunities, and a new Coinvise event. 😳 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Global Crypto Mining News (Jan10 to Jan16)

Monday, January 17, 2022

1. According to BTC.com, bitcoin mining has reached an all-time high of over 200 EH/s in the last three days after the network was restored in Kazakhstan. Previously it was widely expected that

Opening the Floodgates - The Daily Gwei #417

Monday, January 17, 2022

Layer 2's are now ready to serve you. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

👉 Pakistan Prepares For Heavy-Handed Crypto Ban

Monday, January 17, 2022

We bring you the top stories in crypto every week! Stories like... Monday, January 17th, 2022 Sign Up Your Weekly Update On All Things Crypto In Partnership With: TL;DR Pakistan Prepares for Heavy-

CryptoPage Newsletter - Issue 219

Monday, January 17, 2022

Crypto Daily News - Jan 17, 2021 View on the Web Archives ISSUE 219 January 17th 2022 Crypto News Fidelity expects more sovereign nations to acquire bitcoin this year. Fidelity Digital Assets, a

EOSweekly: Everything EOS, Name Service, EVM+, WAX Swaps, Greymass, UNDRGRND

Sunday, January 16, 2022

Everything EOS is back! EOS names getting a makeover. ENF camp provides ETH-EOS mediation and Defibox reunites WAX-EOS. Greymass progress report. Sub-second finality coming to EOS? Couple of UNDRGRND