Monday, August 31, 2015

Jeb has a soft spot for Mexicanas, says Trump

BB News:
Trump previously accused his competitor of being easily influenced regarding illegal immigration because Bush’s wife is from Mexico. “I mean, look, I would say that he would,” Trump told CNN. “If my wife were from Mexico, I think I would have a soft spot for people from Mexico.”

America!

Picked up from the Lonely Libertarian:

Trump on taxes

Trump One the Issues:

One-time 14.25% tax on wealth, to erase national debt

Trump wants to soak the rich, including himself. He proposed a 14.25% tax yesterday on the net worth of wealthy Americans.
    He said the one-time tax package would:
  • Raise $5.7 trillion to erase the nation’s debt and save $200 billion in annual interest payments
  • Use the savings to save Social Security and slash taxes for the middle class
  • Increase his personal tax bill by at least $725 million.
Source: (X-ref Tax Reform) Boston Globe, p. A19 , Nov 10, 1999

Now yhis was 1999, before lil Bush ran up the national debt and crashed the economy. Interesying nonetheless.

Sunday, August 30, 2015

Saturday, August 29, 2015

Block Chains and Banks



FT: Banks and exchanges are all taking a keen interest in applying the blockchain, the record of asset ownership that underpins bitcoin, to financial markets. It mixes Silicon Valley and Wall Street and could represent a radical departure from longstanding financial networks.
How does it work?
At present, when one bank sends money to another, no physical currency changes hands. Banks and settlement systems use central electronic ledgers to track assets. But they can be slow and inefficient, often relying on faxes or manual input. That not only wastes time but racks up fees. The system is also open to hacking and fraud.

Great idea. But let's simplify.  

The hashtags are hardware embedded encryption keys, inside the smartcard chip.. The smartcards are keys; oriented in a block chain, with masking. And the smart cards themselves make a block chain from the hashtags.  But cards roll in and out of the block chain as hardware keys expire.  

Counterfeit proof, tamper proof:

Then, we have hardware tamper proof exchanges,, anything inside the block chain, from card to card, is a safe, tamper proof honest exchange. The Holy Grail, and CardLogix will make this happen, go talk to them.

Here is a patent that I own:

Every smart card must verify its place in the block chain, say, every week. If verifiation ils, the card stops until returned to banker.  I can sell this patent for banker coins, who has them?

Untouched by human hands:

The hadware key is embedded in the chip gate arays. It is generated at the fab shop, and photoed into the chip with sufficient dead ends. WSe get a communications systems, undecodable by humans. I mean, what a friggen brilliant idea, I must say.

Friday, August 28, 2015

Watch the New York Fed chase Obamacare

Looking at the Tresuries held by the fed, according to maturity.  The short term bills, the bottom green line, starts rising as Treasury dumps Obamacare bills on the short term debt market.  The red line is the one to five years, and it suddenly jumps as Treasury keeps filling the short end with debt.  The Fed, Treasury and GS all colluding to get the Obamacare bills paid up, and the one year debt rate has jumped anyway, now at .35; it was .12 at the start of the episode in 2014.


It's is all about Obamacare, and the fear is that Obamacare is seriously unstable.

Can a SmartCard actually act, physically, like a paper bill?

An important concept, and yes. Start with the actual paper, Print on it with old powdered wig people and government buildings, in green.. Except the printing proess leaves a flexible LCD in the corners for display of the bill denomination.  Get the chip itself in the paper center, but you cannot fold it. And there, you have it, the intelligent, degenerate, paper bill in a nearly complete duplication. You can actually swap it out with others of its kind, if the banker programmed it so.  Or you can use it just like any smart card; peer to peer exchange. In this case its entire user interface is paper bill based. You get the 'Fold Interface'

Millennials and 130% debt/GDP

Italian day is coming up in December when deficit loving Republicans agree to raise the debt ceiling.  Next step up is Itslian level debt, and low growth  It means millennials will roll over 130% of GDP three times in their career. The Federal inerest cost burden goes from 2% to 3% of GDP.  That is a one percen paycut for  millennials, and they do not even remember what we bought with all that debt! Some of us can remember our first bailout, the Texas Savings and Loan  disaster, one of those Bush family things, that was 20 Trillion Swamp Cookies ago.

Money is mostly about the ratio function

Those big numbers on each and every cash bill have to obey a ratio formula. A ten is two fives and a twenty is two tens. The currency banker can only keep those ratios approximate, because prices need imprecision to adapt.  Digital currency does not help, digital coins still quantize. So money theory assumes a cotangent space, money is about smooth enough surfaces with reasonably defined perpindicuars  in a quantized integer field.

Thursday, August 27, 2015

Somebody raised rates

 The blue line is the one year treasury yield. It's up to .35, triple the .10 when this chart starts.  Who raised rates? Well the Fed bought short term reasuries, the green line, right axis. The red line are the total treasuries held, unchanged, so the Fed moved 160 billion from long to short term debt.

Rates are up. the fed did not raise rates.

Treasury raised rates, it is using short term debt to cover short term healthcare costs. Sudden onset Obamacare has added three points to a four point health price index. The Fed cannot keep up with Obamacare.

Decemer is the meeting on the debt ceiling, the topic? Italian debt levels, and lower potential growth to nearly 1.5%.  But worse, New York, the fourth most insolvent state, will start its down spiral, and be on the politician's mind. How to vote on Italian Day? Hmm...

The Fed is lost in a maze.
Member banks are owned or associated with the primary dealers who run the Treasury adisory committe. Treasury owns the government sponsored lending entrerprise,some in receivership. But the Fed owns assets from these lenders, and owns 2.4T in Tresury debt. The Fed also takes deposits from these GSEs, who also bank with member banks. The Fed cannot deal wih the loops and instability.