This is not helicopter money

A VOX research report on helicopter money:Abstract: With growth and inflation in Europe remaining low, the idea of helicopter money is slowly gaining traction with politicians and economists alike.

This is a planned distribution of packages, a network and it will be channelized, thus generating asset and balanced liabilities on the government sheet.

We know better how the helicopter works. Under central banking, G is forced to adapt to the new money technology, otherwise it has no estimating ability on the budget. G also generally is broke when the helicopter flies, that is why central bankers hold off on flights except once per generation.

Then, we know some specifics in the new system.

The new tech is a pure cash sandbox which does not bet time. The hard part is for G to float all the old rolled over bonds into a pure cash paradigm where all private credit is asynchronous, non trending deposit payments and loan income.. So G will be forced to float its debt mostly on a probability surface, not a time surface.

How will G tralize iys losses?

All the time based contracts G has suddenly become correctly priced, and deemed unafforable by the new cash technology.  More plainly, the smart cards correctly light red, honestly, when buying time based contracts from G.

So, the Swamp Senators realize they have a problem, and central banking is useless.  But the Senators have one asset, they can still deploy the tax dollar onto the sandbox with initial conditions and become the dominant currency again.  The initial conditions are the payoffs, in tax digits, to cover broken contracts.  That is where the packages get sent out, the bankruptcy proceedings allocate residual assets upon the sudden deployment of the sandbox. All the participants have the new card, they will negotiate until it flashes amber, all parties knowing this is the best deal available.

But the Fed goes away, it just becomes another trading pit in the box, the largest no doubt. But, it will be a long time before the Swamp can credibly bet time again.