Tuesday, January 11, 2011

Great chart on debt limit increases

Years in which the limit was raised a single time are noted by squares; years in which the limit was raised twice are noted by triangles. From Economic Policies for the 21st century.  Who is doing the work? Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. 

There is a clear pattern of increasing debt limit events on the radar of Congress and bond holders.  The more often the debt limit  occurs, the greater the bound function that surrounds the acceptable debt levels, and the greater the short term operations Congress has to make to keep the channel operating.

This is the Black Hole effect, quantized down to a short rank, we have a fast quantization happening and slow quantization happening.  As the Bond holders get close to the Black Hole, their time and space dilates; but Congress, on the rim, of the hole works ever faster, their time and space compacting.   I expect Congress to be looking at a Fibonacci spiral as they chase down funding gaps, one after another.

Expand the event list back another 20 years and apply our Huffman entropy test.

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