Wednesday, November 22, 2017

Alabama police guard little girls from jesus freak child molesters

A retired Alabama police officer said she and her colleagues were told decades ago to “make sure” Roy Moore “didn’t hang around” high school cheerleaders, and confirmed previous reports that the Republican Senate candidate was banned at the time from a local mall for predatory behavior toward teenage girls.

Sooner than 2.75%

If investors are targeting the volatility weighted earning from the stock index against the ten year rate, the what is the option price of the market? The market drops by 15%, according to the analysts, when the ten year makes 2.75%.

But we hit a barrier sooner at 2.5%, a market drop of 7% kills a bunch of pension bound cities and counties and some states.  Even now, at 2.4%, state and local hiring is very sluggish.

Males with the castration panic, beware

‘Weinstein Effect’ Impacting Companies’ Holiday Party Plans

Companies plan to offer designated parents to the castration hysteric men during holiday parties.  

Males who suffer the embarrassment will register their condition and be assigned a designated nanny.  They will wear the patch of panic, warning all ladies to beware the 'Trumpster Grope', a medical name.

The logistics of -iLog(i)

The Shannon formulation for the share of a constrained channel to some message happening at rate i, where the sum of i is one.  The short answer is a hidden assumption, the system is packing the channel such that is follows the shortest path toward packed.  It reaches equilibrium and meet Euler conditions. He inserts this assumption when SNR is required to have bell shaped disributions.

Then, he shows that if he has a fair sample of the oath, a finite set of points from the process, he can walk the shortest path taking finite, and irregular steps. There is an algorithm that will find the optimum stepping spots given a finite sample. The log of something is generically the number of bits needed to encode the value. That is logistically equivalent to a transportation channel.

This is where the natural log comes from, the euler conditions specify a natural packing process.

The finite Huffman encoder

Shannon shows that the optimum decoder can always be a binary system, log base 2, up to a given accuracy. hat led to the Huffman encoding of a single, typical message being sent through the SNR limited channel.

Abstract algebra says there is a dual of the Huffman encoder, a generator which will take a channel packed with a set of integer indices and generate reordered sequences of the original message. his is the generator of the channel. What happens when the original sequence grows in length?

The generator begins to look like the natural log, links and nodes become dense. The uniform index becomes a long integer set and begins to generate more of the real number line. In the sense of a constrained channel, the effective SNR is dropping  rising, matching error is dropping, or the gaussian noise in the original formulation is dropping.

Just to handwave the rest of the story

We have proven, above, an algebra exists on generators, they have a distance measuring property, which can be accomplished in the dual as operations on two (or more) sets of indices, like dividing them and watching the remainder. Hmw many packed deposit queues fit into the oack loan queues, it becomes node by node algebra, we have found common denominators ots between two finite channels.

What has changed in Shannon's original is that we reconstruct the SNR, and bit error becomes the one, as in SNR+1.  Noise has meaning, it is the emptying queues. The 1 is retained bit error variance. We get the matching process assuming all agents pack sphere.

Horsemanure

POLITICO
Trump privately doubted Moore's accusers
No, Trump's problem is the middle school gym where he first compared weenies with his mates, and got quite the shock. 

He has been in denial about his castration anxiety ever since.  He looks like an embarrassment with the condition publically hanging out there.

He already lost about three senators already on taxes, does he really want to publically endorse a bible thumping, child molester? The worst of the male castration complex? 

Get your neuroses straightened out.

Me and Al and even Matt Levine are differently perverted. But you are free to complain. 

Al is one of me, don't care that he is left or right, I care that he sees the hilarity of the Swamp. We are the Yippies of the current times, differently perverted.

Forced buyers!

A big money manager has an agument similar to ine about the suppression of the ten year yield.  Regulations in Europe!

The short-end of the US curve reflects what the Fed has done in terms of hiking rates. But, the long end of the US Curve (10-30) is being driven by very different forces. It has flattened because of interest rate differentials between the ZIRP rest of world and the rate normalising US, but also on the fact external investors effectively drive US rates because they are the forced buyers! Ongoing QE distortions in Europe and Japan are still driving close to Zero domestic interest rates – forcing investors offshore. Global demand for duration partially explains why the US 10-30 curve appears to have flattened.
Using sandbox terminology we can get at the regulation effect right away. The regulations specify that long term liabilities kind of match to long term assets.  They mean that regulated banks have to have a known bound on matching error, we are at bit error again.  The idea is to keep a little more congestion in the flow from in to out, and during volatile time the amount of short term borrowing is limited.

Europe has long term pension problems, as does the Swamp.  All of the long term liabilities denominated in the regulated tax currency. Then dollar, as the monopoly reserve currency, has to be safe, its rate will be fixed low and that is a big problem. The problem being that Congress runs a very fixed inventory cycle with large discrete jumps at the reguant moments.

Tuesday, November 21, 2017

Dealing with the seigniorage loop at the Fed

Economists, like Dean Baker, want to count seigniorage against debt costs for Congress. The problem with this approach is that the seigniorage is take from the treasury market. But yhe large firms have easily closed the loop on this and priced in the real cost of money.  It is the ten year rate.

Actually what is happening is that the forward pricing is setting the ten year rate after the seigniorage stream is priced.  Government still has a term structure, like six and four year elections. Interest payment have to be made. The carel knows the depreciation cycle is ten years, and they make it so.

Look at the Bloomberg Treasury rates. Since Trumpster gained off all the rates are up 80 basis points except the five year up 32 and the ten year up 3. The interest charges are being set to match the natural budget cycles.

It is a pegged system, and will not hold with a 1-19 year slope of 75 basis points.  If Treasury keeps the curve this flat, they will pay bonus points in short term debt as it all rolls over. 

Ned wants to jump on the ten year for debt needs.  There was a tie when Treasury wanted to jump on the short end, rates were 15 basis points. Ties change and Treasury is always a late jumper.

Another

SACRAMENTO (CBS13) — Sacramento Regional Transit is the one being taken for a ride on this night, by a computer hacker.That hacker forced RT to halt its operating systems that take credit card payments, and assigns buses and trains to their routes.The local transit agency alerted federal agents following an attack on their computers that riders may not have noticed Monday.“We actually had the hackers get into our system, and systematically start erasing programs and data,” Deputy General Manager Mark Lonergan.
They got a sleeped virus inside the route scheduler.  How? The server did not have Intel SGX . Nor did the operators use a hardware badge to log in.  All of this is known today, now, and as of a few months ago.  Even being this stupid, they should have backed up the critical files, off site, off network.

We have these sleeper viruses everywhere, there is no sense hunting them down, go directly to sandbox concepts, never let humans, any humans, have access to critical keys.

Naturally

Hackers stole the personal data of 57 million customers and drivers from Uber Technologies Inc., a massive breach that the company concealed for more than a year. This week, the ride-hailing company ousted Joe Sullivan, chief security officer, and one of his deputies for their roles in keeping the hack under wraps.
Uber was passing around customer data and doing searches on the stuff, and never guaranteed the critical numbers were protected. 

Big point

Uber did not need those critical numbers,  addresses, driver ID, financials, or any of the rest, for drivers or customers. Drivers never needed to give that information.  That info could have been passed without delivering the critical numbers.

Since this has been an open issue, on his blog, for over a year, I can see why we would fire the entire dumbshit staff at that company. This is something even dumbshit credit card managers figured out, Walmart made them mistake when they started, then Yahoo.  The whole system is inverted, no one needs to see the critical info, all we need is verification and validation.  This applies across the board, otherwise, forget money, the web till turn it onto a random number.

Off equilibrium

Janet is telling us she might raise rate one more time, even as she franticly buys the short end to keep down rates.  As short treasuries pile up on Jante's sheet, the one year yield keeps rising, now at 1.6.

So, to raise rates means buy less of the one year, and attempt to lower the one year by less then she would have attempted to lower it otherwise.  Whew! But that is off equilibrium, the Fed is circling around the debt cartel, not the economy.

True, she is just twisting the sheet, but Ned is still quite desperate in the short term. using the card.