Sunday, February 1, 2015

Looking at the instability of DC from the Theory of Everything

Those vibrations since the crash. The variation in DC interest costs, quarterly. They are not going anywhere and getting larger. Obama and Janet are worried. These variations cost about 3/4 of a point in NGDP flows.

These are self sampling agents, there is no market here.  It is Jack Lew and the bond dealers and then Janet selling portfolio to the bond dealers.  They are a connected network, additive and Phi applies, naturally.  They both have to add up the costs of current government.  But you can see them wait, they are trying to sample at 3/2, because Janet does not want to go until Jack has gone. So we have 1 or 2 up in the queue at a time.  The bond dealers are going full causality at twice the rate. The two rates trying to coordinate but never getting to Phi. They need to have a Higgs moment and make themselves into quarks. No can do without help from Banker Bot.

Janet is cashing in current interest rate subsidies by taking sales gain from the market. This causes her to increase the sale size.  The system is not adiabatic, and Janet will exponentially use up the portfio. As she does this she will be pulling liquidity from real goods and we get more deflation, and that deflation is likely causing taxes to drop.  Deflation and taxes probably are the problem here.

What to do?  Sequester or raise taxes; all of  Congress, the derivative industry and the Fed know about this. One can see this blowing up around June, and if it is not fixed, then Obama gets a grey bar.

This actually started under lil Bush, naturally.  But the economists missed this because we did not have the theory of everything ready in time. This is the behavior that Reinhart-Rogoff discovered in their analysis of over indebted governments.  But the real problem is the broken central banking theory.

The Venture industry needs to get on the ball and find a CEO, like Geroge Selgin, who knows what is up and get get banker bot some freedom.  Get your CEO and I can locate about 20 mathematicians who will provide barrier to entry.

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