Thursday, November 10, 2016

Construct the federal flow of goods as a channel, how is it stuffed?

Vermont is a one tiered government, for all practical purposes.
California is really three nations, it is emerging as a four tiered government.
Texas is going full three tiered,
Illinois collapsing from three to two, and the vast majority of states are two.

What is the optimum Huffman bidirectional flow graph, when the Swamp gets top node (no free entry and exit)?  Texas and California will swap a couple of trillion dollars every eight years. The 30 smalls can operate from a common pool of small bi-annual trades.

It is the trillion dollar swap, Texas and California are matched, the Southwest has created a theory of operation.  This is not esoteric, our balance sheets are highly intertwined.  The theroy becomes, 'Oh, expect tyhat semi-reliable flow from California" This appears a lot on Texas sheets, Mexico sheets, visa versa.  Just yhe remits to and from Mexico (they ae bi-directiuonal); all stuffed channel, a firm quantization.

Nothing on the East Coast economy has nearly the liquidity to keep up with the volatile swap. It is not inefficiency, back there, the North East is  bottlenecked by California and Texas, and the deindustrialization wave will sweep through unless the east coast escapes its Magic Walrus delusion.

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