Saturday, December 31, 2016

Magic Walrus blunders strike again

The multiplier effect posting seem lame.
But the government doesn’t face the same constraints as the private sector (which is why it could bail out the private sector in 2008-2010). Once you recognize that U.S. assets are huge, that U.S. debts are also private wealth, and that the debt will, as always, just need to be serviced and never be zeroed out, then today’s debt shrinks into the manageable problem that it is and not a source of panic. (Paying down the national debt—in effect, deleveraging the government—would be disastrously deflationary; that’s a topic for another article.)
He is wrong about zeroing out debt, we do it about once a generation   This author has no history.  In 1972, we zero out some liabilities, in 1932 we did it, and going back again and again, we zero out debt, this guy is clueless.

He gets inflation and deflation mixed up.  When did we have inflation? After the Nixon shock, when we zero out a bunch of gold liabilities,  Since then we have been getting disinflation, until now, with the except of medical and housing, we are in a outright deflation.

Nothing can service debt indefinitely at a positive interest rate, it is mathematically impossible.  Debt result in interest payments, which result in a net infinite flow of cash from the economy to the currency banker, that is less money in the economy.

The claim is that Uncle Milt fouled everyone up on this as hr supposedly claimed that borrowing too much causes a price rise.  Complete horseshit, borrowing too much causers a slight price distortion, then we get a down turn.  The helicopter is necessary to maintain price stability.

Jeff Bezos caught faking news, gets booted from Facebook

Washington Post Caught Spreading More Fake News About "Russian Hackers

OK, the image anove is what really happened.  But Jeff put out a story in the WA Post that this was an attempt to start a nuclear war, and Jeff demanded martial law.  Jeff wrote this opinion piece in the WA Post, telling us how he would make a really great dictator, even better than Zuckerberg.

But he got busted, he will have to be honest, like me.

Your typical Magic Walrus blunder

Project Syndicate:
In some senses, that is true. Rising Chinese leverage will not produce a 2008-style financial crisis. Most of the debt is owed within the state system – for example, by state-owned enterprises (SOEs) to state-owned banks – and the government could simply write off bad debts and recapitalize banks, financing the operation with either borrowed or printed money. Alternatively, the banks could perpetually roll over existing debt, forever extending new loans to repay old debts.
No, debt casn not be rolled over indefinitely without causing deflation.  

In the case of China, the positive interest payments flow from state owned enterprises to the central bank, a gain and withdrawal of bit error from the economy.

To avoid deflation, the gains from the flow have to be lent out, but to where? Either back to the SOE, and their debt increase; or into another sector in which case we have loss making SOE pay rates to profitable sectors. The SEW goers bankrupt.

What about prices?

If the central bank loans to the SOE at zefro, the  the SOE is disconnected from the pricing ring, prices for their goods is undetermined.  All of these error do not involve quantization, which will happen, and the flows get jammed, the whole system re-quants atround  the central bank.  Helicopter time, and we know its coming.

Dallas mayor to resign over pension fiasco

He has been the mayor since 32011, his cops busted the pension; I blame the  mayor. And  think a bunch of socialist politicians will go begging to Trump and cause the economic collapse. Texas voters are uneducated nuts.
Mayor Mike Rawlings is right to ask for a state criminal investigation into shady practices by the Dallas Police and Fire Pension System's prior management. The fund is on the verge of a potentially catastrophic collapse that could leave public safety workers, taxpayers and the City of Dallas on the hook for billions of dollars. And the reason stems from abuses under the former administrator Richard Tettamant, who was ousted in 2014. (Stunningly, Tettamant is still working in investments in the DFW area, according to his LinkedIn page.)  The fund's former managers bet heavily on risky investments such as luxury homes in Hawaii, a resort and vineyard in California and Dallas' Museum Tower itself, and promised its hardworking police and fire employees unrealistic returns while enjoying lavish perks. 

A seceded California cannot self govern

LA Times: Violent crime increased in Los Angeles for the third straight year as police tried to stem a rash of homicides and gang-related shootings while dealing with a growing homeless population.With more than 290 people killed in the city this year, homicides also rose for the third year in a row. Still, the city remains far safer than a decade ago, when 480 people were killed and there were 46% more robberies than this year.According to statistics from the Los Angeles Police Department, robberies were up by 13%, aggravated assaults were up by 10% and rapes were down by 4% through Dec. 17, compared with the same period last year. Homicides were up by 5%.Overall, violent crime was up by 10% over last year and 38% over two years ago.
Which means we are all anarchists out here. 

Who pays for all the medical care?

Chicago (AFP) - For a few days in December, no one was shot dead in Chicago. In most US cities, that would be the norm. In the Windy City, where blood has stained the streets all year, it's an aberration.Sure enough, after the mid-month lull, the city tumbled back into a grueling and seemingly endless series of killings, with 15 people gunned down in subsequent days. 

We are supposed to be in a cold war

The West Must Prevent Cold War 2.0

If we don’t resist Russian political warfare, very soon, Putin will win

According to some guy named   .  Let me check the list of countries John McCain declared war on......  Well, yes, I do see that Arizona is sending an expeditionary force to battle Ruskies.

But, I am not sure if Arizona has seceded. So, we don'y know yet, in California is part of the war front. Nor has the newly seceded California figured out how to declare war, we usually leave that up to our judicial overlords.

So move to Caifornia

Trump, Putin, Brown and me; we all agree, boot California from the union.  It is not treason, it is well reasoned secessionism.   Even Xi ping and the commie rats agree.
Business Insider: Liberal activists turned to Twitter to suggest President-elect Donald Trump was nearing the line of treason with his Friday praise of Russian President Vladimir Putin.

"I don't think Trump committed treason with this tweet, but he's in the neighborhood," wrote Judd Legum, the editor of ThinkProgress. Trump said earlier that Putin made a "great move" by choosing not to respond to sanctions leveled by President Barack Obama's administration this week in retaliation for suspected election-related hacking.

The president-elect's message was retweeted by the Russian Embassy in the US, a move that poured gasoline on the already controversial tweet.
"What's the threshold for treason?" wrote DeRay Mckesson, a prominent Black Lives Matter activist who briefly ran as a Baltimore mayoral candidate this year.
"I hope you get charged with treason you melted Hostess snack cake," tweeted an MTV News writer.
Others echoed the sentiment.
"This is borderline treasonous," wrote Jamil Smith, a senior national correspondent at MTV News. "I don't know what Putin has on this cat, but my Lord, it must be incredible. God help us."
"Not helping on this whole treason thing, are you, buddy?" Eric Garland, a research analyst, asked rhetorically.
John Aravosis, a Democratic digital strategist, said Trump was displaying "un-American behavior." When a Twitter user accused him of being overly dramatic, Aravosis replied that he found "skirting with treason pretty dramatic."

That makes Merkel the greatest threat to Germany

Merkel: Islamist terror is 'greatest threat' to Germany

And, by induction, makes Obama a threat to rhe USA

Slow to adapt

Business Insider: Retailers are bracing for a fresh wave of store closures at the start of the new year. The industry is heading into 2017 with a glut of store space as shopping continues to shift online and foot traffic to malls declines, according to analysts."If you are weaker player, it's going to be a very tough 2017 for you, " said RJ Hottovy, a consumer equity strategist for Morningstar. 
Walk in shopping has become difficult for the new generation.

Housing at Fresno Motels

Hotel California residents remain without heat, but Fresno leaders call motel housing a ‘necessary evil’

Fresnan Bee: As Fresnans celebrate Christmas, residents at the rundown Hotel California are wondering when their living conditions will improve as city leaders grapple with how to address all motels that operate as apartments.One resident, 68-year-old Guadalupe Ramos, had to move all of her belongings into a different unit Thursday night after a water leak caused her room to flood.Richard Burrell, who runs an organization called Live Again Fresno, is the residents’ biggest advocate. He visits the motel, near Roeding Park at 530 N. Weber Ave., twice a week to provide hot meals and Bible study. On Thursday, a concerned neighbor called Burrell and he rushed over. What he saw made him take out his phone-video camera and hit record.
The normal Kanosian response is outrage, 'let's  build a choo choo.'  We are attempting it, and the choo choo right of way wiped out three motels just like this. It worked, the residents are now down south in LA. 

Friday, December 30, 2016

Return Taiwan back to the Dutch

The history of Taiwan dates back tens of thousands of years to the earliest known evidence of human habitation.[1][2] The sudden appearance of a culture based on agriculture around 3000 BC is believed to reflect the arrival of the ancestors of today's Taiwanese aborigines.[3] The island was colonized by the Dutch in the 17th century, followed by an influx of Han Chinese including Hakka immigrants from the Fujian and Guangdong areas of mainland China, across the Taiwan Strait. The Spanish built a settlement in the north for a brief period but were driven out by the Dutch in 1642.
Or return it to  Taiwanese aborigines Seems to me the Chinese stole it.

Nudging the teenagers with smart card

Follow the amber road, mostly, and any teenager can invest in penny stocks that track Buffet, almost.  The kid has to know his way around a basic web site with icons for investing.

Otherwise, this is a card that puts the kid inside the sandbox, and it intelligently taps with price beacons, on screen or off. The incentive, every time, is to get a goodie coming down the trail, and the better one taps and watches the light, the more goodies.  Simple possession of the card by an intelligent tapper would realize $150 in goodies per year, with no other auto trades needed.  The kids valuer producing taps for the bots is easily $`150, the bots get a very goo good relative measure of coherence, makes it easier to move goodies at thew smart contract level.

So, for someone like CardLogix, just take 7 billion times a $50 price, every three years for replacement. It is only a hundred billion/year, some what smaller then the trading pit market.

The trivial three color pit

Consider the three distributions traded to be loans, deposit and shares in the bit error.  The bit error is allowed to run free. In the msand box model, loans can be partially recalled, deposits expanded. No time.

In this trivial three color, the traders will degenerate into the standard S&L  In general, three color can be composed of a larger two color graph, there should exist a decomposition of the three to some precision.

But change the model a bit, let the third party be an insurance agent, it maintains a positive bit error relative to the other two, significantly more. Then when a node oes the hard fork, you have an insurance.  End point risk is priceable, not gone. Another three color is the deposit,loan,.stock; allow traders to borrow from the house. The house does not take deposits, it takes bit error plus cycle price. But triple is something a trader bot can understand operationally, and we give everyone the right to make margin loans; subject to priceable end point risk (I want to quit saying that, I want to just say sandbox)..

The sandbox is huge, the largest data entity ever defined, all priceable. So the mechanism by which pis are interconnected is still an infant science, give it five years.

OK, let's do the quark traders

Normally, tree compression would be a binary operation.

In thids model we have the pit boss runs three probability trees, they decompose liquidity event. The three 'markets' are a connect 'ring', not ring in the algebra sense, but ring in the sense the three markets share the same pit boss.  The pit boss always compressdes bets between the two trees out of balane the modt (whatever that means). So the pit boss is a three way check out counter, the store owner, the supply person, and the customer do a three way deal.
So, there.  I had to push this out on asccountof the danger someone  might see the three way as a arbitrage. Well, it is, but this model makes it visible, fair.

In fact, in general, yhe pit boss works from a tree of trees, it is just that the three way is a connected loop, it got rotational flow forcedupon it whenever the pit boss needs to make white. The white limit set by contract, and each of the three pits identified by colors, which will re-quantize..  Risk is the distance from white.

Smart card promises a billion dollar revival of the music industry

Smart card user taps  on artist web site. Peer to peer, transaction costs assumed zero, better security than gold. No third party middle man.

Well, we went over this when we used trading pit to buy our text back from Zuckerberg. The internet middle layer drops, except for smart contracts. The bot concepty an be erxtended yo intelligent texty, semantic networks.  We can buy a bot at Zuckerberg's computer, if it meets his smoothness criteria, we can just run our bot on his machine.  Thaty bot ewill tyakre sany semantic graph and present it on your screen, Zuckerberg need not bother, we can just deposit hordes of digits into his account. He and I can hang out at the beach, I get humongous checks for no apparent reason.

Tri lemonaders is the better term than currency manipulator

Economists have this holy trinity that is impossible for central bankers, manipulate two separate markets at a time and maintain a bit error that is informationless.  The central banker in the currency market, government bond market, and savings and loan market, though economists have a slightly different mix.

When thre pit boss is shifting bit error back and forth through the seigniorage channel, then the model is the baryon, three color quarks.  The bit error is the residual from the combined trade of all three, it has to be white. The pits, right now, do this indirectly, the pit boss re-invests, and entropy and human nature find the connection and make white/.

There is an algebra for the pit boss to do this, a three way conditional probability with combined compression. I don;t know it, I am at a disadvantage, a smart person can take everything I have described, add that secret ingredient, and become a gazillionaire. Get three way solution, the VCs will jump on it, as you out pace this blog and they don;t worry about me blabbing.. They will fund you, and you might get the Swedish banana for economics.

OK, a bunch of baby boomers lied for thirty years and we are in deep doo doo

So what can Narayana Kocherlakota say? He calls it tight fiscal policy, I call it an entitlement trade that hasn't happened fpr 30 years, and we have the big jolt coming.

What is the danger? If Narayana does not like big jolts then he should not have joined the MIT basket weaving crew some 40 years ago. They said, no problem, G has magic.  I said, yes, and the magic is  a requant, a fairly big jolt.  But the danger is folks like Narayana who freak out at jolts and go do something stupid, like kick can..

Let us just have the jolt, if we are too stupid to have money technology ready, then we are too stupid.

A World at Risk: My last day as President of the Federal Reserve Bank of Minneapolis was on December 31, 2015. I began blogging on January 2, 2016... In my first post, I wrote that “economic policymakers can do better. Indeed, I increasingly believe that they must do better.” In my view, the global political events of 2016 show why I wrote those words.
That first post argued that macroeconomic policy remained much too tight around the developed world. It closed with the following warning and admonition:
“We are only beginning to see the impact of tight policy choices on our economies … Given these kinds of macroeconomic outcomes, it should not be surprising that we see increasing signs of social fracturing and disengagement in many developed countries.”
On or about tyhe 1970s, Paul Samuelson published an equation that showed time on the  axis can be stretched, there was no time.  As delusional as that bunch was, they decided to make G count time  Hr missed the bigger picture, time is not relevant, probability is relevant; with respect to price..  In our new model, that means time is handled in the smart contract layer. pits never do time.

Since Paul, most of the effort has been around guessing what index G is using, then matching that to yield probability, which gets you price. Thr new technology dumps time from the trading pits, it gets at the probability surface; the price probability comes from the latest scan of the loan and deposit distribution. Central bankers do time, they will be frigged.

Putin, Trump agree to oust California from the union.

Fellow secessionists

Bitcoin routs central bankers

Zero Hedge
That would be China, India and Venezuela this  year. Euro and yen next year?

Redneck trading pits duplicate this entire process

Financial News: CME Group, which owns the Nymex, said in April that the New York trading floor would close at the end of the year after the share of options volume executed there had dwindled to just 0.3% of the company’s overall energy and metals volumes. Chicago-based CME had already stopped futures trading on the Nymex floor last year.Though long expected, the closure of the 25,000-square-foot Nymex floor has instilled nostalgia in traders who remember its heyday, when more than 1,000 people crowded into its pits to shout, jockey for position and arrange trades through an arcane language of hand signals.
“It was like going to the Super Bowl every day for work,” said David Greenberg, a former Nymex board member and veteran of the crude oil and gold pits.
The jockeying for position, that is Huffman encoding. Thr hand signals? That is bet compression. 1,000 traders? Redneck pits can run  thousands of trade per second, and if that is not enough, the pit will spawn.  Redneck systems, fair, intelligent, and secure. All you have to do is round up the professional python engineers, they know what to do.


ZH: If there is one company that wishes 2016 could be as quickly as possible put away in the history books, it was Apple: with the Apple watch now a confirmed dud, the iPhone 7 a bust relative to Apple's other offerings, demand for Apple's once brilliant creations waning, and the first recorded declines in both iPhone sales and earnings, 2016 was a year Tim Cook would love to never repeat. Alas, according to Japan's Nikkei, 2017 is set to begin with a whimper, not a bang, as Apple will trim production of its iPhones by at least 10% in the first quarter of 2017.
And Timmy also  missed out on the pure cash revolution.

Sounds like pure cash to me

Billionaire investor claims expertise in finding the next big thing:

“Look at edgy products,” said Fertitta. “There are so many young millennial entrepreneurs out there right now coming up with different products…. You’re looking for somebody that can scale up, that has a unique product that people want. It can be anything. Being in casinos, restaurants, hotels, aquariums and amusement parks, we buy everything, so we’re just looking for that one unique product.”

Well, he should be looking for a company that manages keys for pure cash, then maybe buy a hardware wallet vendor, and of course, pure cash cannot happen without the trading pit.  Unfortunately, no one wants to go before this guy and make a three color, as pure cash likes to have bit error go to zero. So, he may be out of luck, in fact, if pure cash is successful, he may lose a chunk of his wealth.

Bitcoin users do not write letters to daddy

ZH: The first time the ECB officially warned about the dangers of virtual currencies in general, and in particular, bitcoin - what was then a mostly unknown currency trading in the single digits (in USD terms) - was in November 2012 when in a report called "Virtual Currency Schemes" it warned that "in an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes)."
Now it comes out in the open. Central banking does not work, this is a plain admission by the ECB .

Let it be known that Bitcoin maintains its own reserve requirements, the hash rate.  No need for the ECB to worry about bitcoin.  Instead the ECB should worry that Magic Walrus is a deranged delusion. 

American voters rejected California

The American Public Against Trump
PRINCETON – The United States, supposedly the world’s beacon of democracy, is practicing a strange form of it nowadays. One presidential candidate won nearly three million more votes than her opponent, who, with a big assist from a hostile foreign power, was nonetheless declared the winner. Anywhere else on earth, such an event would be called a coup d’├ętat. Here in the US, we call it the Electoral College.
This is Alan Binder, lifetime  member  of the Magic Walrus,  He fails to note that that the American and Russian voters think California should be booted becuse we are ignorant ass little brown believers in the Franciscan Divinity,  Rule by divinity is rejected in America. 

If I recall, it was the Supreme court that let anyone participate, and Jerry Brown's decision to let anyone vote. And we discovered the disgust with California is world wide.

Texas may not pay for California's world wide free healthcare

CalWatch: California would suffer major economic consequences if Congress repeals the Affordable Care Act without an adequate replacement, according to a new study by the UC Berkeley Labor Center. Republicans in Washington appear poised to repeal the ACA, better known as Obamacare, some time after Donald Trump is sworn in as president. With premiums on the rise and consistently poor polling, repeal is music to the ears of many, as evidenced by every federal election since the measure was passed in 2010.
Bummer.  Just think, if the California legislature in charge had a clue about American history, they would have discovered, long ago, Texas is not paying for California's world wide free health care. 

Now, Nancy and her favorite skin color can go and locate 20,000 doctors, build ten hospitals, and go get the funds from Zuckerberg.  

Good luck, I suggest a little better American history, not available in California public schools.   Texas, is not likely to jeopardize its economy because some fools in California go  to the Swamp with some delusion.  California legislation is born of ignorance, few of them have more than a sixth grade education from our lousy public school system.

Thursday, December 29, 2016

Funded means tax surplus

Chicago Tribune: The U.S. Census Bureau released new migration data Dec. 20, and it's frightening. Illinois has a massive people problem.From July 2015 to July 2016, the state's population declined by more than 37,000 people. That's the worst population loss in the nation, and will likely mean the loss of a seat in the U.S. House of Representatives. Pennsylvania, which also experienced a net population loss in the Census, is now set to overtake Illinois as the fifth-largest state. Illinois is simply sliding backward faster.
Funded pensions is the equity and safe bond held, already, in reserve.   

The reserve holds value only in so far as the paper is backed by solid commerce, which depends on taxing surplus.  We sill have pay as you go, ultimately, the guarantor of pensions is the earning power of the folks who hired.

Taxpayers leave,Chicago has less funded and more unfunded; they are in collapse, we are at the emergency room.

She's plastic, wears a hula skirt and bounces on your car dashboard

A parish priest in the south of Italy enraged parishioners by dressing the Virgin Mary in a Muslim burqa for his church’s Christmas Nativity scene, adding a boatful of refugees and a rainbow flag in place of the star of Bethlehem.
At least in my version of the New Testament 

Putin takes up dentistry

One of the student patients snapped a pic


Trump says he'll meet with intelligence agencies after new Russia sanctions

Brits know where we get bluegrass

British Blue Grass and 'not so crisp vowel' Association

Trading pits can scale up for the Korean Central Bank

The Bank of Korea is considering the creation of a 'supernode' to help mitigate privacy concerns should it seek to adopt distributed ledger technology.Published as part of an overview of the central bank's future plans, the report titled "Present Status and Key Issues of Distributed Ledger Technology" further details policy issues that it believes could hinder the growth of distributed ledgers.Notably, in a section titled "Application Plan", the report's authors include several "solutions" to four key problems recommended by the Bank of Korea, headquartered in Seoul, South Korea.sSpecifically, the application plan advocates for a "supernode" or central manager that oversees privacy controls by helping protect information about the trading partners recorded on the blockchain.
The Bank of Korea proposes that the supernode would also be responsible for issuing tokens and granting participants (or "token users") access to the shared ledger, and calls for a Merkle root-based implementation of a public blockchain capable of conducting 3,000 transactions per second.

Just a note to the Korean Central baker, this is fine.  We will back you up with thousands of pits, we can break your tokens up and re-constitute micro tokens back into regular tokens, keeping your chain whole.  Re-assembling micro tokens back into block chain compatible tokens is  no brainer in the sandbox.  Redneck has  every possible method, and there will be no patents.. Redneck is compatible with Teechan, and we support 90% of the industry payment protocols. Add that to our fair pit boss, terrific bet compression technology, and Redneck is the name you want for your broker business.

Taleb on a tear

Medium Corp: What we have been seeing worldwide, from India to the UK to the US, is the rebellion against the inner circle of no-skin-in-the-game policymaking “clerks” and journalists-insiders, that class of paternalistic semi-intellectual experts with some Ivy league, Oxford-Cambridge, or similar label-driven education who are telling the rest of us 1) what to do, 2) what to eat, 3) how to speak, 4) how to think… and 5) who to vote for. 
But the problem is the one-eyed following the blind: these self-described members of the “intelligentsia” can’t find a coconut in Coconut Island, meaning they aren’t intelligent enough to define intelligence hence fall into circularities — but their main skill is capacity to pass exams written by people like them. With psychology papers replicating less than 40%, dietary advice reversing after 30 years of fatphobia, macroeconomic analysis working worse than astrology, the appointment of Bernanke who was less than clueless of the risks, and pharmaceutical trials replicating at best only 1/3 of the time,
The artticle is funny throughout. Taleb has this theory that the less turbulence we see, the less fearful we are of the unknown, and we get caught, caught by what he calls a Black Swan, the sudden appearance of a negative shock.

He calls the inner elite:  The Intellectual Yet Idiot, IYI,  another term for kanosian.

Rednecks have comrades in the UK:

He [IYI]  thinks people should act according to their best interests and he knows their interests, particularly if they are “red necks” or English non-crisp-vowel class who voted for Brexit.

The None Crisp Vowel Class! , otherwise known as fellow UK Rednecks, hey, welcome to the party, fellow secessionists.

Hardware wallets are great

Bitcoin News: With bitcoin price increasing at a rapid rate and investors rushing in to purchase the digital currency, Jonas Schnelli, a Bitcoin Core developer and co-founder of minimalist bitcoin hardware wallet Digital Bitbox, cautioned users to rely on proper bitcoin storage methods.One basic practice which bitcoin users must always implement is preventing the usage of custodial wallet platforms. That means users should avoid using bitcoin wallet platforms or exchanges which allow third party service providers to hold user funds and bitcoin for the user. If users store bitcoin in a trusted environment, upon potential cases of hacking attacks and data breaches, user funds can be stolen.Thus, at all times, users must develop a habit of storing bitcoin on non-custodial wallets, cold storage and hardware wallets. If possible, for security purposes, cold storage and hardware wallets are recommended to users that hold substantially large amounts of bitcoin.

Hardware Wallets, Cold Storage
Hardware wallets like Trezor, Ledger, and Schnellli’s own Digital Bitbox are perfect alternatives to web or mobile-based wallet platforms. Trezor is the most widely utilized hardware
The new generation wallet can safely auto trade  in the secure trading pits. Need I mention that Redneck has the best pit technology in the market?  

My loudspeaker reports me to the police, my TV sends me a bill

Slate: On Christmas day, a family member of software developer Darren Cauthon received an unwelcome gift. According to Cauthon, that person “downloaded an app to watch a movie” on his or her LG smart TV, and the device froze soon after. When it rebooted, it was stuck on a screen purporting to show a letter from the desk of FBI Director James Comey, one claiming in subgrammatical English that the device had been locked up for “your attendance of the forbidden pornographic sites.” To make good, the letter warned, the device’s owner would have to pay a $500 fine.

How is this progress? Amazon sells a loudspeaker, it will make noise and report you to the cops. A miracle of innovation.  Redneck technologies now offers the passive, paper loudspeaker, guaranteed not to report you to the police, price, $1000.  And, finally, Redneck offers a new technology TV, it show you a movie, but the utility company sends you the electric bill. You too can have technology, the way it used to work before the advent of flying car kids.

This is just the unfunded part

The Chicago Teachers' Pension Fund (CTPF) may be considerably less funded than its trustees claim; as a result, Chicago homeowners’ properties could face significant drops in value.In 2015, the situation was so dire that the law firm of Jones Day recommended -- in a recently released private email to Mayor Rahm Emmanuel -- that the mayor use bankruptcy as a “tool” to escape the Chicago Public School’s pension liabilities.According to public reports by the Chicago Teachers Union and the state of Illinois, the fund’s nearly $9 billion in unfunded liabilities equates to approximately $7,500 of unseen debt for each of Chicago’s 1.2 million households. This invisible liability does not show up on a title, but it has a significant impact on a property’s value.
The funded part is likely another ten grand, and the funded part is causing homeowners and business to evacuate the state. Since the funded part is unaffordable, the unfunded party will only grow until Rahm is the only person left in the city.

California has the same problem, or had.  The funded part was unaffordable and small businesses have to shut down and leave the state.  Our problem is that Texas voters seem a bit nutty, and Texas may no longer be safe for business.  The entire country may simply be bankrupt with no place for business to run.

A pension obligation bond by any other name

Financial Adviser:New Jersey wants to loan money to itself, a move that has not been tried by any other state, according to the sponsor of the bill that would authorize the action.A bill is pending in the New Jersey Legislature that would allow the state’s struggling pension fund to buy bonds issued by the state Transportation Trust Fund.Senate President Steve Sweeney, sponsor of the bill that has bipartisan support, says the creative approach is a win-win situation that gets double duty out of the state’s money. Sweeney, a Democrat, is vice president of the Ironworkers International of North America and is the head of two pension funds, which gives him experience in these types of financial issues.
The transportation bond isissued by the same taxpayer that promises to pay for pensions.  So we have the usual Christie pulling a fast one. This is an accounting fraud used to defer pension obligations, and it will backfire.  In fact, it might land a New Jersey governor in jail.

Well, then Redneck Trading Pits is 4 billion dollar company

Bloomberg: Portfolio managers at hedge funds have another thing to worry about: the $2 million data scientist.Matt Ober, who left WorldQuant for Third Point, will be paid more than $2 million by Dan Loeb’s hedge fund, according to a breach of contract claim filed by his former employer. Ober, 32, who starts next month as Third Point’s chief data scientist, said in a filing that he will be paid a base salary of $200,000, the same as WorldQuant gave him, plus bonuses, and disputed that $2 million in compensation is guaranteed. 

The quant kids mainly remove artificial fixes implanted by delusional humans. Redneck Pits eliminates the ability of humans to deliberately rig the book, a service worth at least a thousand of the unjammer kids. So, just down load Redneck Pits, send me 20 grand a month, and be a happy camper.

Putin, you prey on the ignorance of Republican Communist Idiots

Consortium News: Putin accused unnamed countries — obviously led by the United States — of “nullifying” international agreements on missile defense “in an effort to gain unilateral advantages.”Moscow has reacted to this perceived threat with more than mere words. It is developing new and deadlier nuclear missiles, including the SS-30, to counter U.S. defenses. It has rebuffed new arms control negotiations. And it has provocatively stationed nuclear-capable Iskander missiles in the Russian enclave of Kaliningrad to “target . . . the facilities that . . . start posing a threat to us,” as Putin put it last month.If a new arms race is underway, it’s not for lack of warning. The Russians have voiced their concerns about missile defenses for years and years, without any serious acknowledgment from Washington. From their vantage point, the apparent bad faith of successive U.S. administrations, Democratic as well as Republican, is a flashing red light to which they had to respond.
Here, I am the expert.  

The Ruskies, and Putin have known that strategic missile defense never works, it is easily defeated and is a huge financial dis-advantage for the boneheads who pursue.  Putin, you been faking it, you want bonehead Americans hicks to spend hundreds of billion per year because your scientists told you it is easily defeated with a few hundred million in decoys plus clutter. 

The whole concept came from an old, feeble brain damaged president, who never passed a physics class.  Ever since, the dimwits types, like NRO, have been suckered into the Russian scam.

Don't forget about our standard Q1 slowdown

Our Obamacare taxes go up, and now we have the extra interest expenses. Making it worse, the expectation of a retro active tax cut in Q2. The debt cartel sees this as the critical test, making it through Q1 without a blue bar.

Apple was quick to patent the flying apartment building

Amazon patents show flying warehouses

We’ve known about Amazon’s drone delivery ambitions since 2013.  But patent filings from Amazon, circulated today by CB Insights’ Zoe Leavitt, reveal more details about how the e-commerce titan could make drone deliveries work at scale, namely through “airborne fulfillment centers.” Yes, that’s a warehouse in a zeppelin.
I have the patent on the flying fock. 

Wednesday, December 28, 2016

Nation's chief port dredger torments VladimirPutin

RIGA, Latvia (AP) — Sen. Lindsey Graham says "bi-partisan sanctions ... will hit Russia hard, particularly (President Vladimir) Putin as an individual."

Lindsey wants the US cyber core to spread rumors about Putin, put them up on Facebook. What horrid things can we say about Vladimir?

We normally make them teach calculus

If he signed the diversity waiver then he is probably out of luck.

Texas cops will shoot you in the back

Video Appears to Show Texas Police Shooting Man Walking Away

And we  noticed they rob you and drive Texas cities into bankruptcy.

So, no bailout for Texas, maybe we should raise their Federal taxes.

Teechan, another improvement on bitcoin markets

Here is an excerpt from Teechan.  Teechan is the idea of freely trading slices of bitcoin in a rusted environment.  In this case two parties set up a trusted environment using Intel SGX technology.

But, nothing here requires just two traders, in the truted environment, traders can share a public key and each a private key to verify their accounts, the  they are free to trade in the environment, as long as their bot are contained and well behaved.  But if the hardware supports protected  keys, then the environment supports protected, trusted bots.

Hence, trading bit coins is much easier, drop a bit coin in the collection of pits, then withdraw the equivalent deposit to cash in.  The only net trade in the bitcoin chain are the net losses or gains the various bitcoin betters made in the pits.

Bitcoin Mag: Teechan, which stands for Trusted Execution Environment Channel, is a new payment channel protocol. Like Bitcoin itself, the solution is based on open-source software: transparent and verifiable by anyone.
But to ensure that Alice or Bob can broadcast the latest channel state and onlythe latest channel state, Teechan leverages “trusted execution environments” (TEEs). TEEs are secure hardware components included in Intel CPUs with Software Guard Extensions (SGX); many new computers have them. (See full list here.)
“With SGX TEEs, no one can ‘look inside’ to see what’s going on. Unencrypted data never leaves the chip, and so not even the owner of a computer with an SGX can observe what these chips are doing; they only see the end result,” Eyal explained.
But the endpoint solution is upon us

If I click over to the SGX site, it will list the supporting processors, and we can just assume the telephone processors ate in that list.  Almost certainly the hardware wallets are adopting SGX. So, we have many options for sharing public keys because humans can't observe inside the pit network. I see the scale problem sort of evaporate, but we still need the pits, preferably Redneck systems, they make the best.

The Trump Hump is over

Market down 3/4 a point, bad housing report, and the two small auto layoffs. Inflation went flat recently.  And, the ten year is back to 2.5, that would be my call.

The debt cartel tested the Trump deficit and it won;t fly, time to call in the conservatives and get that spending back down.

More Due Process

From NRO:
And speaking of due-process horror shows, this case from James Madison University shows how universities engineer the results they want. 

After an initial finding that the male defendant was “not responsible” on the charge of sexual misconduct, the female student appealed. The appeals panel reversed the finding and sanctioned the male student. 

The male student sued, and a federal judge ruled in his favor, finding that “no reasonable jury” could find that he was given a “fair process.” The reasons were legion: 

In short, Doe [the male student] was given no opportunity to respond to some of the evidence . . . , was hampered by the rules prohibiting contact with witnesses or limited by time constraints in responding to others . . . , and was not permitted to appear before the appeal board. . . . Additionally, because the appeal board made no finding of responsibility by Doe and provided no reasons for its “Increased Sanction” decision, the appeal board decision and its review . . . were unfair to Doe. Read more at:

Consider this case if here were no federal government.  The voters of the state, we presume, voted to give universities to right autocracy. Voters should leave for another government.

What would Sotomayor rule? She will always rule a Due Process case in favor of her left wing friends, she insists on the judicial right of divinity.

What are we suppose to do? We have the same problem in California, give us our rights, we will immediately give them away.

Multiple exchanges

Financial News: For the first time in at least five years, NYSE Arca’s ETF listings have declined from a year earlier, with more than 30 ETFs defecting this month for Nasdaq Inc. and Bats Global Markets. While NYSE Arca is still the industry leader, with 1,543 listings and $2.3 trillion in assets, the competition is intensifying following high-profile market failures last year and the departure of some of NYSE’s top ETF talent.
The ETF needs sudden high volume capacity. But stock exchanges are easy to dset up with  the  new pit technology. So the large brokers (and ETFs) use the new technology to spread their bid/ask over multiple sites, as do most traders.  The NYSE loses its monopoly.

The stock market has low counterfeit risk, it is hard to trade on line as a fake someone, they make you keep a reserve, make a banker vouch, and so on.  Hence, the sand box assumption can be made, and stock trades from disparate pits can  operate within the sand box without double ownership of a stick, there exists a smart contract.

The set up:' Pit.boss = StockMarket.

It can use the default tax dollar or any other currency, and is really not much more than a flex price retail outlet.  The pit really is composed of a separate pit for each stock.  It cannot compress AT&T against WalMart;  but the good pits knows price history on a per stock basis.  They are designed to see through the index funds.  But, bets must be compressed, on a per stock basis, compressed to some small error, according to the set up. .

The pit delivers a priced transaction to some eternal hold and deliver company. The segmentation allows easy, and casual set up for dark pools who wnt to trade internally and eternally. Next time you see your broker just specify, Redneck trading systems only. Your broker knows what to do.

Raising the cost of Mall shopping

Pymnts: ‘Tis the season to riot. A string of major disturbances at malls nationwide on the day after Christmas has led police to increase patrols and malls to ramp up security guard presence — in case consumers needed another reason to avoid physical stores.Brawls of mostly young people reportedly broke out around malls in Fayetteville, NC, East Garden City, NY, Elizabeth, NJ, Manchester, CT, Aurora, CO, and Tempe, AZ, among others. Hundreds are reported to have been involved in 12 states nationwide, leading to a number of arrests. Some states, including Connecticut and Tennessee, reported multiple incidences.
Predominately young Blacks, I might as well say it. 
How to teach young Blacks the fundamentals of retail? Give them pure cash device with the red/green function.  

My hometown, in the news