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.”


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.

Wednesday, August 26, 2015

President Trump: Deficit Binge Spender

He is another in the tradition of the Bush family and Reagan and Nixon. Run up the deficit,g o binge spending and  pass the consequences on.

Monday, August 24, 2015

Dick 'Deficits don't Matter' Cheney, in the news

Politico : Dick Cheney will speak out against the Obama administration’s nuclear deal with Iran during a speech next month at the conservative American Enterprise Institute.
According to an AEI news release, the former vice president will share his concerns about the deal’s “consequences for the security and interests of the United States and its allies in the Middle East.”
Cheney said on Fox News that the deal would make the use of nuclear weapons more likely.
I am sure his plot involves Republicans going on a deficit fueled spending binge.

Friday, August 21, 2015

California environmentalistws, take from the poor give to the rich

Tax Foundation: “Since 2006, U.S. households have received more than $18 billion in federal income tax credits for weatherizing their homes, installing solar panels, buying hybrid and electric vehicles, and other “clean energy” investments… We find that these tax expenditures have gone predominantly to higher-income Americans. The bottom three income quintiles have received about 10% of all credits, while the top quintile has received about 60%.”

Tax cars and fund gas guzzling rail

Calwach: Democrats have lined up behind new infrastructure spending, drawn from higher gas taxes and automotive fees, and new Medi-Cal spending, fueled by costlier tobacco taxes and health insurance. But Republicans, at least some of whom must throw their weight behind the schemes, have balked. Senate Minority Leader Bob Huff complained that Democrats just negotiated a budget that left those items by the wayside.
The corruption that is California environmentalism. Tax the energy efficient and subsidize the energy inefficient.

Monday, August 17, 2015

Jeff Thomas: Smart card stores wealth

Jeff Thomas pay attention to FinTech!
International diversification of wealth (no matter how large or small) can save your economic freedom. Although most of our readers thoroughly understand this concept, one of the most oft-heard concerns is that, by offshoring assets, one may not be able to get to them as easily as they now can. Here’s the response to that, and some practical advice on what you can do to protect yourself.
Let’s say you presently regard yourself as being economically diversified. You own stocks and bonds, you have some cash, you have a retirement fund and you have a bit of gold stuffed away at home. On the surface, it would seem that you’re covered.
Trouble is, you have all your wealth in one jurisdiction, and should that jurisdiction find itself in an economic crisis, all that “diversification” will be seriously at risk.

Jeff does not keep up.  We hae soved this problem, we store your wealth in tamperproof smart cards.  I have gone though this, in detail.  Jeff, you are a moron, do your homework.

Jerry Brown cheating on energy taxes

What did  Jerry Brown do with energy taxes? Gave them to energy inefficient schools. Straight out corruption.  OK, who was the UC environmanetal professor who said this would not happen?  This is theft, plain and simple and Jerry is the culprit.  Take from the energy efficient and give o the energy inefficient. Shut down UC, it is simply too incompetent.
Yahoo: SACRAMENTO, Calif. (AP) — Three years after California voters passed a ballot measure to raise taxes on corporations and generate clean-energy jobs by funding energy-efficiency projects in schools, barely one-tenth of the promised jobs have been created, and the state has no comprehensive list to show how much work has been done or how much energy has been saved.
Money is trickling in at a slower-than-anticipated rate, and more than half of the $297 million given to schools so far has gone to consultants and energy auditors. The board created to oversee the project and submit annual progress reports to the Legislature has never met, according to a review by The Associated Press.Money is trickling in at a slower-than-anticipated rate, and more than half of the $297 million given to schools so far has gone to consultants and energy auditors. The board created to oversee the project and submit annual progress reports to the Legislature has never met, according to a review by The Associated Press.
Voters in 2012 approved the Clean Energy Jobs Act by a large margin, closing a tax loophole for multistate corporations. The Legislature decided to send half the money to fund clean energy projects in schools, promising to generate more than 11,000 jobs each year.

Jerry Bown engañó impuestos sobre la energía . Se grava la energía eficiente y da el dinero para las escuelas de bajo consumo.

Sunday, August 16, 2015

Ben Carson thinks we have nutty political parties

Hill: GOP presidential candidate Ben Carson said on Sunday that Democrats and Republicans are at fault for America’s runaway debt

The Ponderosa has my vote.

The yield curve is sparse at the long end

That is the key to understanding fluctuations in the economy.  Prescott hinted at the reason why once, but it is an issue with the theory of everything.  Seld adapted statistics have sparse term points at the long end.  Olivier Blanchard once asked why terms and rates do not match in a downturn.  The reason is that the curve shifts right in a down turn and there are fewer points on the curve, thus fewer solutions.  That is why we fluctuate.

So, the test for economists is to explain why the long end is sparse.  But here is a key point. The economist has to explain why this is true for the proton also, and once they get that, then they get the TOE. Another hint.  Why do we have fermion and boson statistics in self adapted systems?  How does this relate to Keevash and his random graphs? Marcolli can answer.

This is going to be fun.  The first economist that gets is will be awarded the Swedish banana.

Why can the vacuum self adapt?

It is still a puzzle. Whatever the theory, string theory or not, all depend on that vacuum having a capacity, some semi-stationary characteristic.  The vacuum must organize itself into boundaries.

Saturday, August 15, 2015

And Jerry did not see this coming?

CalWatch: Its budgetary outlook finally clear, the University of California system has pivoted quickly from planning to spending. With negotiations concluded between UC president Janet Napolitano and Gov. Jerry Brown, the board of regents has ushered in a substantial salary hike for its top brass.

Shut down UC, make them all take a year off.
Los ejecutivos de la UC tomar dinero de los impuestos de la clase media y se alimentan a sí mismos aumentos de grasa. El sistema de la UC es mucho más allá de cualquier usefullnes , y debe ser cerrado .

Friday, August 14, 2015


Should we write banker bot in python?

The thought came up because a data scientist reccomends it. Wite the bot in python. Get one of the new peer to peer vendors to giveup a protocol, in python. Take the  hardward security key system, in python, and it generate the via map  for the chip company.  A complete python package, CardLogix will not refuse.  I dunno, I am going to look at python.  I looked. I like it for a banker progtramming language, it works spreadsheet data very nice. I can see a functional smart card application written in the language. You install he python vacation coin app, just before your holiday. It maximizes your spending p[rofile for destinaytion, tourism, and udget.  The gree and red light on your smart card guide you through your vacation.

Loans encode deposits?

And deposits decode loans. A clue? Bidirectional betting, no patents available, sorry. But it does seem to be fundamental to bipartite graph making.

But this market is exploding with exciting young companies, old merchants and brilliant students.  Our company, Banker Coin, easily worth a billion. Secure banker bot, an historical moment.

Thursday, August 13, 2015

Can Trump stop the Republican deficit machine?

Here I have changed sign on the deficit, so the line goes up whe  deficits increase. For example, Obama inherited the Bush deficit of 10% of GDP, the highest deficit on the chart.

As we see, democrats reduce the deficit, Republicans increase it. And we see Obama reduced the deficit at the fastest rate of any president over the  monetary cycle.

No Republican has ever reduced the defict, ever, over the whole monetary cycle. That makes Republicans responsible for 19 Trillion in  federal debt. A debt to GDP over 100%? That is the reason we have low growth.

Betting the Atlanta GDP Now, for example

The Atlanta processes economic reports and generates GDP growth to the nearest tenth, and the result is generally range bound to 3/4 of a point from the last value..  But there are likely thousands of bets, and thus many duplicates.  Hence, the clustering, of encoding of the bets.  So the Atlanta Fed will generat a 4 bit number, really, and only one of `16 clustered bets will pay off.

Looking at -pLog(p) for the bets p, probability, less than one, will be the number of bets that are clustered, and determine tha pay off. The GDP Now result arrives asynchronously, but its arrival time is known as betters know when economic reports arrive.

Wednesday, August 12, 2015

Closer, but still not right

This is a new start up doing somehing like banker bot.  You can see they almost directly copied this blog in most respects.  But they missed a few points.
Reason: Coming this fall, Augur will allow participants to wager money on any future event of their choosing. Software will set the odds, collect the bets, and disperse the winnings. The price alone should give Nevada sportsbook operators pause; an estimated one percent of every pot will go to keep the system running. The average vig today is about 10 times that.
Augur isn't a full-fledged casino. You can't play roulette or poker, and running lotto on the platform would be tricky. But it'll be great for sports betting.
First, bitcoin is like an infinite precision Huffman encoder, it basically encodes every bet to infinite precision, so the block chain balances all end up a sequence of ever larger prime numbers.  The deal is that a nine bit, run time Huffman encoder will encode enough information for most bets.

Second, why screw around with a half done job?  Why not put the banker bot in the secure smartcard. It is, like, not a secret, ok?  Everyone in Silicon Valley knows the basics, go straight to the full solution.  If not, the  we have a hundred tiny bitcoin like companies causing market confusion. CardLogix is supposed to straighten out the market. CadrLogix is supposed to give us pure cash, locked inside the smart card.

Tuesday, August 11, 2015

A little constrained flow

 Frome Zero Hedge.  But the graph does a ratio. In fact,  inflation changes as the value of growth, and growth changes as the value of inflation. They have a sweet spot, the knee of the curve where the second derivative is maximum.
Goldman Sachs did this? It should be a two sided Black-Scholes.  How much liquidity to they assume? Did they do a Skellam distribution? Mysteries abound, Do a dimensional analysis. Time drops out in the ratio, then percent=x/100, the 100 drops out. The ratio is the one period value. The hyperbolic is growth^2 - inflation^2 = adaption energy.  Inflation is the cost of  maintaing volatile inventories.

I am the amateur. But, you can bet that this graph becomes a probem set in Econ 101 next year.

Your smart card will show you the path to the sweet spot. The bot flashes green when a transaction moves to sweet, red otherwise.

Its called flying the helicopter

Art Cashin: "...they're in a kind of silly loopwhere they did QE expecting a reaction... didn't get it.. and then theydid QE again because it didn't live up to their expectations... but I think they have no other options, if things get negative on the economy, QE is all they can do."

When the Fed has only one option, the Fed is Dead.

Texas Rangers arrest Rick Perry for treason

WA Post: Former Texas governor Rick Perry's presidential campaign is no longer paying its staff because fundraising has dried up, while his cash-flush allied super PAC is preparing to expand its political operation to compensate for the campaign's shortcomings, campaign and super PAC officials and other Republicans familiar with the operation said late Monday. Perry, who has struggled to gain traction in his second presidential run, has stopped paying his staff at the national headquarters in Austin as well as in the early caucus and primary states of Iowa, New Hampshire and South Carolina, according to a Republican familiar with the Perry campaign who demanded anonymity because of the sensitivity of the situation. Perry campaign manager Jeff Miller told staff last Friday, the day after the first Republican presidential debate, that they would no longer be paid and are free to look for other jobs -- and, so far at least, most aides have stuck with Perry -- according to this Republican.

Monday, August 10, 2015

California will enter the world wide free college program

WASHINGTON (AP) -- Calling for a "new college compact," Hillary Rodham Clinton on Monday will unveil a $350 billion plan aimed at making college more affordable and reducing the crushing burden of student debt.
At a town hall meeting in New Hampshire, the state with the highest average student debt in the country, Clinton will propose steps to reduce the cost of four-year public schools, make two-year community colleges tuition-free and cut student loan interest rates, according to campaign aides.
The college affordability plan, a main plank of her policy platform, is an effort to address a major financial stress for many American families and satisfy a central demand of the Democratic party's liberal wing.

The California legislature  has already passed a rule for legal illegal alienship education, along with free Obamacare. Illinois is thrilled to send their taxes out here.

Sunday, August 9, 2015

Silicon Valley Software Stupidity

Business Insider: Hacking has suddenly become a big concern on the car business. Hackers showed a Wired reporter how they could take control of a Jeep, and now another hacker has revealed how to gain access to a Tesla Model S. Hackers have revealed a vulnerability in General Motors' OnStar system. Where will it end?

OK, software project managers at Tesla.  If that Musk guy wants to connect high energy vehicles to the web while running, tell the Musk guy to take a hike.

Who is Musk that wants hackers in our robots?  He thinks rockets fly backwards!  This is your boss. You lose 4k per car you sell, and live off of Jerry Brown socialism.

Rules on Airplanes and race cars:

Do not conect high speed bots to the friggen web, get it?  If my robot needs to get on the web, I have a simple method. I take the robot home, stop it, plug in my SmartCard and my smart card and the company smart card will arrange a secvure software upgrade.  Smart card security is the only hack proof access to the web, use it/ If you do not have a smart card system, call CardLoix, they sell them.

Seriously, the next time I hear a story about some stupid softweare group connecting the robot to the web, I am going be an embarrassed  human.

Thursday, August 6, 2015

Banker bots batch process

Those moments when your card cuts a loan because you are cash short.  It launches and account change into whatever terminal had  the over charge. It will make it to your home account and restore savings to loan balances. These network messages should be asynchonous. Account rebalancing at the home bank should follow the hardware security path. I do not see a complicated protocol, since there is the same intelligence at sender and ecevier, the bot.

Tuesday, August 4, 2015

I am supposed to rise up and kill someone?

Louis Farrakhan: If the Federal Gov’t Does Not Intercede, ‘We Must Rise Up & Kill Those Who Kill Us

“So if the federal government will not intercede in our affairs, then we must rise up and kill those who kill us. Stalk them and kill them and let them feel the pain of death that we are feeling,” he added.

Me? Or someone else? I mean my cat has been a hassle, and one of my tenants is a loudmouth.  I dunno if that is worth killing for.

 Is he alking to Blacks? The reporter thinks so. But that makes no sense, sense the vast majority of black victims have black perps.  And most of thse perps were likely someone who heard the Lousis speech last year.

Sunday, August 2, 2015

Elasticity and bipartite graphing

Now  I work on superposition of bubble elasticity. I want a oryhogonal set of overlap ratios.  Here is my model.

I have a Lucas enerator mking bubbls from the 2 1 kernel. The expnding number of buble add up.  The model can generate the compress/expand set, set size finite. An excess of bubble forces a new bipartitie oundary,  Bubbles can assume an elasticity such that it meets some condition (I select hyperbolic) that requies local conservation of buble.  Then we get yhe Wythoff game of aggregae the cold and hot positions.  The set of superimposed elasticities  adjusts so that he Skellam distribution goes toward some value, like one. So my sphere packing has become a bipartitie, compound stitch,  knitting contest. What ever conditions the bubble meet, they must have a R R' rule to be informed about the state of the Skellam distribution. Adding energy adds another bipartitie layer and forces enormalization.

This sounds like that Shramm-Loewner evolution, makes me hungry for a banana.

In the banking model, the member banks are knitting a bipartite graph desending from the currency banker. That is the decode network.  customer accounts move up make the encoding graph.
We see something. Thus the object obeys Ito's Calculus, thus it oberys equipartion, thus it is a constant knitter of bipartite. There is no other proof., well a nshort one. Since the system drives the Skellam to one, then it is at or approaching maximum entropy. The total number of bipartite nodes should be minimal, or maybe Matilde Macolli can tell us.  But she will define the entropy map.

There he is, Oded Schramm, the originator.

Saturday, August 1, 2015

If bipartite making was a verb

We have these  'elements' always wanting to separate in two colors. I impose a condition on them, I say the bipartite nodes will queue as poisson at equilibrium. The lowest energy semi-stable partitite then is absolute zero. The variance in links, or exchanges, between the two colors is 2, with mean of 1 from the Skellam. The Skellam mean of one is the Shannon optimum. That is the vairiance between the encoding prices and the  decoding prices, taken as a continuing process. The Skellam distribution should identify the groups of cold and hot positions.

Hardware security on the smart card

It uses double sided statistics, encode up and decode down. It is fractal in the sense that Bank of America has access to a very informative key map. They guarantee high  security, their smart card is high flow through. But they can sub-divide their hardware  key, down the graph, and make special consumer and business branches on the graph. They segment the market by hardware on the card. This is just the same business they always had wiyh enhanced security and tamper proof exhanges. Bank of America has a much better credit card, a direct reproduction of cash functionality. Banker bot is the BIOS for cash. The bot company, in partnership with CardLogix is the 'cash' vendor, it sells the ability to make fair coins. Coins are distributed counts.

The real function of banker is to re-sequenced inventory low to  balance shortages and surplus. They have a valuable tool, the intelligent counter in every person's pocket.