Saturday, February 25, 2017

The smart card as a design built-in for smart phones

My model is simple.

When an app in the smart phone wants to transact with sandbox security, it calls the security exec function at the hardware level.  The thread immediately enters the hardware protected code, with timeout.  Henceforth, the thread has only one exist point and hardware at the address level forces the thread to stay.  Within the hardware layer, the thread cannot write nor execute unsecured addresses. The protected code will utilize the NFC port, and will exchange data with the OS for secret reasons.

The hardware protected code is simply unreadable from unsecure addresses, that is the ultimate security.  Like one of those California hotels or a black hole; only one way in or out, but leave the baggage. The secure code comes with the human unobservable private key set, burned in with security by master bot at the fab.

The model for traders is simply that the smart card function duplicates paper in every form except that it uses dynamic exchanges; but these are just as protected as the static watermarks on paper cash. The real fear is the mandate for government exchanges, that is optional.  You fear getting ripped off in the pits? Buy Redneck compatible systems, and read my reviews.

Friday, February 24, 2017

It is the ease of use

Bloomberg: Blockchain Capital LLC, which backs startups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first venture fund to do so.
The San Francisco-based company seeks to raise a portion of its third blockchain fund through an initial coin offering, or ICO, of tokens and the larger part from traditional venture-capital investors who typically contribute a minimum, Managing Partner Brock Pierce, who is also chairman of the Bitcoin Foundation, said in an interview.
The ICO could take place “in the next month or two,” he said. The company will more fully describe the tokens, which are expected to trade on secondary markets, in an upcoming offering memorandum, which will be issued through TokenHub in about a month. The company is talking with several exchanges but hasn’t confirmed which it will go with.
The group would otherwise issue limited shares in the fund.

It is the ease of use when specifying a virtual coin instead of  shares. When transaction costs go to zero, the sandbox uses coins to stand in for stocks, shares, ownership, poker chips and pizza slices.. When we add Redneck S&L technology then applications that need congestion management work, like cragslist, Walmart, and government bond defaults, all work dandy in the sandbox.

Exciting times.

What makes Justice Ginsburg a friggen idiot?

Justice Ginsburg reiterated the importance of the free press.

"I read the Washington Post and the New York Times every day, and I think that the reporters are trying to tell the public the way things are," she said.


"Think of what the press has done in the United States," she said citing the Watergate scandal. "That story might never have come out if we didn't have the free press that we do."
Implied in her statement  is the idea that what really happens are events along the DC-NYC region.  She has no clue until she starts reading the Dallas, LA, Chicago etc news.  She thinks the world begins and ends with east coast liberals, she has never heard about much else. 

Let us bet our 401Ks on the Trumpster

WSJPresident Donald Trump’s promises to cut corporate taxes and ease companies’ ability to repatriate overseas cash could help corporate and public pensions close their massive deficits. 
 Investor enthusiasm over the president’s tax proposals is already boosting stocks, benefiting public pension plans. The S&P 500 index has jumped more than 9% since November 9, as investors anticipate more growth from Mr. Trump’s policies. Should Congress and the White House overhaul the tax code, lowering corporate rates from the current 35%, many companies could accelerate payments into their pensions plans, said Gordon Fletcher, a partner at Mercer Investment Management Inc. 
That would a lot of greater fools who will need to be blindsided. 

That is how government does business out here

East BayTimes: The Bay Area’s critical transit district is being run under a cloud of deceit. District officials last year convinced voters to pass a $3.5 billion bond measure for capital projects. They promised that the district would continue to kick in its fair share, but less than three months after the election they are moving to renege on that. 
 They could withdraw as much as $1.2 billion and redirect it to the district’s excessive labor costs. In effect, that means that a large chunk of the money from the bond sales, for which property owners will pay higher taxes for decades to come, will not go for the capital projects that were promised.
They knew they lied We knew they lied.They knew that we knew that they lied. Everyone knew, well almost everyone.  The little browns were reading worthless, free marxist rags; and the marxists miss all this stuff.  But us, the knowledgeable, had three level ring decoders.

The moral of the story? Little browns, read up. Get your decoder rings working.

The craigslist coin, part 2

In a previous post I discussed the craglist coin as a sandbox use case. It solved a problem.

If you need a household appliance that weights more than 25 pounds, the local inventories are sparse because no one wants to pay shipping costs up front. If you buy, say a wall oven, the ting can  have $150 in shipping expenses.  That is the wedge that craigslist lives on.

So, if I am looking to find a wall oven, in the near future, then it behooves me to by $20 of local craigslist coin, and put them on deposit. In the sandbox, that does two things, it signals others who might be remodeling to go ahead and order the new stuff, they got buyers for the old.  Local transportation costs drop to $`10. Then on price, the cragslist S&L offers loans against deposits allowing transaction to have flexible, compressible pricing; the deals can more efficiently take advantage of reduced transportation costs.

The gain is local, the S&L members and coins have to designed local.  Local appliance coins across the country will be coherent because the trip across town in a pick up is the same.  But, the S&Ls have to be local,   There  will be no arbitrage moment across regional craigslist, by design.  Each craiglist can peg the cin by selling access to the S&L distributions, or selling craigslist ads even.  These balancers work in a transaction cost = zero environment.

The inequities of economics and my right to bitch

Peter Thiel was thinking about being gov of California until he got laughed at. Now he is pissed, and he is gonna get back at us by investing in the Indian Sandbox, becoming richer.
Peter Thiel’s Founders Fund has made its first investment in an Indian startup, ClearTax, which aims to make it easier to file taxes through the Internet in India. The $2 million funding, shortly after the startup attracted angel money, was notable too for the participation of Sequoia Capital. Founders Fund made the investment through FF Angel, its seed-stage fund. Founder and CEO Archit Gupta has raised a total of $3.3 million in seed funding in a round tht he was oversubscribed. As India increasingly goes digital, ClearTax is on a major expansion spree in India, hiring engineers away from FlipKart and seeking to have 7 million Indian taxpayers on its tax return platform by the end of 2017, up from 3 million by the end of this year.

I don't mind him running off,  I want to sit in my breakfast nook, bitch and spill coffee on my  keyboard.  

I mind something else.  I should still have the right to make the maximum entropy bet on start up funding in Indian tech, I want my smart card. I want my on screen IndianTech icon now, before Peter runs off.  As soon as I heard the news a few weeks ago, I wanted to tap that icon, drop a few bucks into the pit, take a position.

The hope and why it is real

Compare generational defaults, Roosevelt shock to Nixon shock.  Pricing breaks down, the container algebra breaks, trade degenerates then recovers again as the pricing function returns.

Didwe kill 20 million in a world war ince Nixon? Nuke Japanese cities? Carpet bomb rice farmers?
No, our body count was well under 3 millipn wicne Nixon.  That is improvement.

Go back, how well did Lincoln and Davis do on their generational default? Like wipe out 10%n of the male population in civil war?

We get better at it, our first differential improve because we remember tosave up some second.  It is like learning the manual shift on a car.

Each time we do i, we combine the new information technology into the new monetary technology. The sandbox has arrived, we will have our generational default, and it will be done in a no arbitrage pure cash autotrade world.  The millennials will suffer a 3-5% inflation over an eight year period and kill less than a million, with a random wiener process.  That is not bad for an evolving species.

Thursday, February 23, 2017

An interesting problem brought up by Alt-M

George Selgin says:

Given present, high excess reserve holdings, and their uneven distribution among banks (many more at large and foreign banks), raising required reserves would be a very messy alternative--and one that would dramatically undermine the international competitiveness of U.S. banks, while doing nothing to reduce the Fed's giant footprint!

Now, my emphasis is on foreign banks, it is a kind of Swiss problem, large foreign institutions like the liquidity of the US dollar, and they keep their lisuidity in dollar digits at the Fed demand deposit account/.

Let us assume that Congress can dictate to the Fed, make a rational response as if you used a ratipnal ru;le.  What should the Fed do?

Go solicit foreign loans to balance the foreign deposits so your set of borrowers and savers are about the same.

Second, adopt sandbox rules.

Here is where I get it right and the monotonarians screw it.  The Fed needs to offer large foreign depositers the opportunity to be large foreign borrowers because the Fed can appropriately share currency risk and keep the pricing function working.  That requires competitive currencies so that domestic needs are fulfilled if the Fed has to chase foreign business.

The Fed is a pricing engine, it has to work, it will make itself work with abrupt, sudden requantization, if it has to,. But the Fed must ultimately find the balance between savings and deposits. When the two classes are a complete subdivision, then the monetary zone is defined.  Not the other way around, and governments cannot intervene in pricing, they can only make it abrupt and painful.

Use the basket brigade model on this

There is a collection of baskets, big and small.  When ever the bis empty into the smalls, both parties swipe their cash card.  When, out of typical, the large suddenly empty into the smalls, en mass, then the Fed sees a few large deposits and many small loans, the distributions are out of precision, the queues will back up if this continues. The Fed compresses distributions to precision, and generates the appropriate asynchronous interest exchanges.

Now, let us stick Congress into the mix,. Congress intervenes, tallies up the card swipe for the large baskets, then tells the banks to put it on Congressional tab.  Pricing will not work, not unless you have access to my locked up, Russianmathematician, wait....no, he is still there, in a refrigerated room with stacks of pencil and paper scribbling furiously.

Ned wants to sell infinite currency insurance

Some Real horse shit from Ned:
Secretary of interest payments Ned Ryerson said Thursday he has asked his staff to explore having the U.S. government issue debt maturities as long as 50 years or 100 years. 
 In an interview on CNBC, Ryerson said he was not ready to make a “formal announcement” of a 50-year or a 100-year bond but added, “I’ve already begun to talk to the staff about looking at that.” “I think it is something that is a very serious issue of whether we should explore, whether we can raise 50- or 100-year money at a very slight premium is something that makes sense for Treasury to look at,” he said.
The secretary went on to point out that we cannot borrow anymore money unless millennials and their offspring agree to pay, until infinity, 3% of their income to cover a generation of losses and bonehead budgets in the Swamp.  Included in the law will be a digital tattoo each millennial must wear which guarantees his regular, monthly payment to infinitely wealthy people.