Saturday, July 22, 2017

Janet!

Block chain for home schoolers

This block chain support all standard tests that can be confirmed via the  network, trusted parties.  Student complete a skill and verify the skill and they put their achievement in the block chain, anonymously.  There is no goal, just record keeping such that any prospective ventrue can validate the skill set on permission.

The company that manages the chain really manages the skill tests. It may require it's own home school test agents appear during skill verification.  But the company bonds the achievements by insuring a minimum match between the test description and its verification.

Raising the debt limit is agreeing to higher interest charges

The treasury curve is flat, ten minus one is about 1%. That means the one year can be rolled over once and earns the ten year rate.  So Ned has no more short end debt he wants to issue and is eager to dump new debt at the ten year mark. Once the debt limit hits, the ten year will settle at 2.4-2.5%.  That is a 15% expected rise in interest charges that have to be budgeted. All the other programs are slated for 5-10% increases, they lose out.

The debt limit is not an accounting trick.

Ned has to scrounge around and look for pools of money, and the order in which he does that gets noted. Trump has to read the memo on pay out priority which has interest charges paid first.    A temporary shut down is practice for a full default. Departments which suspect a shutdown slow their hiring.

In monetary system the ledger is a bit more important than we first realize.  The block chain vote on Aug 1 is like the debt limit vote coming a few weeks later.  Central bankers should watch their interplay. What if bitcoin comes through with flying colors and the Swamp goes full bzonkers with debt spending?  Branded sidechains everywhere and bankers huddling about bankers' coin.

As a percent of the federal budget

Interest payments are about 8% or 20% depending on whether we include the liabilities of the SS trust fund.  I include it, as does FRED, mainly because boomers are retiring, the trust fund is the law which hasn't changed.  And we see sudden volatility in interest payments as the Swamp discovers the number of new retirees.

So, the unexpected volatility in interest payments are larger than most of the smaller discretionary spending bills, the life blood of small states.  It has become obvious to small state senators that increasing interest charges are death knell for their programs. They are better off with forced sequester.

Trumpster goes on deficit fueled spending binge

Trump, Aboard New Aircraft Carrier, Urges Military Funds Boost

The senate is a bankrupt organization

An obscure Senate rule just put the GOP healthcare bill in even bigger peril

All the restrictions happen because hey are officially undemocratic and widely skewed in representation. They are a cost, an expense.

'No go zones' have no 'free health care'

Sweden increasingly resembles a failed state: In the 61 "no-go zones", there are 200 criminal networks with an estimated 5,000 criminals who are members. Twenty-three of those no-go zones are especially critical: children as young as 10 years old are involved in serious crimes there, including weapons and drugs, and are literally being trained to become hardened criminals.
Dots left unconnected.  

Europe is being invaded by 50 million entitlement slaves  because  free health care is unaffordable, an adverse selection. 

Friday, July 21, 2017

Sotomayored in Germany

"Everything Will Collapse" German Judge Warns As Refugees Flood System With Appeals

The lightening network for crypto

Lightening ledger network:

The Lightning Network is dependent upon the underlying technology of the blockchain. By using real Bitcoin/blockchain transactions and using its native smart-contract scripting language, it is possible to create a secure network of participants which are able to transact at high volume and high speed.Bidirectional Payment Channels. Two participants create a ledger entry on the blockchain which requires both participants to sign off on any spending of funds. Both parties create transactions which refund the ledger entry to their individual allocation, but do not broadcast them to the blockchain. They can update their individual allocations for the ledger entry by creating many transactions spending from the current ledger entry output. Only the most recent version is valid, which is enforced by blockchain-parsable smart-contract scripting. This entry can be closed out at any time by either party without any trust or custodianship by broadcasting the most recent version to the blockchain.

It is a chained queue for the master block chain.  It is not custodial, sothis is an untrusted system.  Transactions are accumulated and only balances referred to the block chain on check out. So, on check out I guess the bot runs through the chain clearing your IOUs and UOIs; and you should force that now and then.

Lightening came up in a previous post, and I think it cause some coagulation of the network with a few larger channels operating as the custodial holders, and we are back to a trusted network.  In all the the ledger schemes, the ledger congestion risk matches the card not present risk, and side chaining makes sense. The custodial blockchain account yields huge efficiencies.

Trumpocrats

Politico on the debt ceiling:

The reality is that striking a debt agreement will likely take much longer than two weeks. Republicans will need Democrats to carry the legislation because conservatives won’t vote for a debt ceiling increase without steep spending cuts — a proposition at which Democrats scoff.

Add a cash drive to the risk processor

The risk processor gets an internal memory, port addressable via internal access functions.

Internal access functions are set at manufacturing time and bonded by Intel.  The internal flash cash drive is really a secure element. a spreadsheet that is manipulated via defined macros and hardware isolated.

For example, 30 major banks could order a limited supply of Intel chips with their own distributed clearing function, built in, protected.   A limited set allows distributed verification processes to move alongside money.  The built in validation keys allow random checking of neighboring chips, via inter locking groups thrown it at manufacturing time.  The counterfeiting process can be made very complex.

The chips can reveal the uncleared coin counts on a bank basis, allows pricing for ledger congestion. Banks my find themselves suddenly needing to buy back many of their coins, for deposit withdrawals.  The outstanding count of uncleared is observable, hence that risk priced.

Risk pricing works when banks see too many deposits from a ledger congested bank. They raise posted ledger fees for that brand of the coin. Then the weaker coin is cleared at a discount. So, then, all the large banks can operate bitcoin sidechains using existing technology as long as they to interbank clearing through the chip. They suffer the same 'card not present' error, and that shows up in loose deposits from bankers having weaker security.

It is the three color.  Each of the banks maintaining their own loans to deposit accounts, but as they are relatively out of balance with the other banks, a slight ledger fees applies across some accounts. The ledger balance becomes close to 'white', where we assume a three color basis.  White in the context means an unskewed, and small, ledger bit error. It acts like an insurance policy.

Bankers could use the chip for bankers' coin, separate from tax coin.  Bit coin is untrusted, distributed while bankers' coin is trusted distributed. The tax dollar is legally mandated spending. Configure the chip at manufacturing time for multiple monetary standards.

How many cash drives?

The originating bankers only want a hundred with their special key sets, bonded by Intel, finite expiration counts.  But, otherwise, the bankers want their microcode to be public property, freely distributed. The large banks have huge volume, and their clearing volume is huge.  But the element scales to multi-processor by chaining, the volume is managed.  because the banks make it multi-currency, bankers' coin is born, the native clearing function for the bankers association. The bankers win a shit load of side chain business, create a bunch more, and still support central banking.