Tuesday, February 28, 2017

Sandbox vs regulator part 8

Crypto Coin reporting:
Prominent Bitcoin and Ethereum exchange and wallet Coinbase announced that it is forced to stop supporting customers in Hawaii due to an “impractical” and “untenable” regulatory policy.Citing the reason for indefinitely suspending its business in Hawaii, Coinbase revealed:The Hawaii Division of Financial Institutions (DFI) has communicated regulatory policies which we believe will render continued Coinbase operations there impractical.Coinbase was first notified of the restrictive regulatory policy by the DFI in September, one that makes it “impossible” for the exchange to operate in the state, according to a member of Coinbase’s legal team.Fundamentally, the regulation demands Coinbase or other digital currency operators to hold cash reserves equivalent to the value of the digital currency held for customers.

They arenot using S&L technology, they are a facilitator, like a telephone exchange.  Hawaii is trying toleap out ahead on the bureaucrat race to master sandbox regulation. Moving up in the regulatory world by mastering the new money technology.

But, in the sandbocx we see that regulations are a bit different.  The default situation is complete autotrade and no thumbprint to regulate except the end points,. What are the 'leaves; of the sandbox? Smart cards.

My smart card, in my right hand, is an exchange and my thumb print owns the coins, inside the card. The regulators want to protect my thumbprint from my smart card, so do I (and visa versa) . In the sandbox we have red/green; a mathematical requirement.  The easiest way to regulate a pit is to require bots to limit red/green excursions. That is a workable regulation, but all the cards will know its a regulated site.

Lindsey dear, folks are in danger for a reason...

The Trump administration is proposing to cut spending by 37% for the State Department and U.S. Agency for International Development budget, according to a person familiar with the budget deliberations....One U.S. official said that the State Department is looking at development assistance to other countries as a significant source for the cuts.....“That is definitely dead on arrival,” Sen. Lindsey Graham (R., S.C.) told reporters Tuesday, saying the proposed State Department budget “puts our diplomats at risk.”
because you habitually declare wars. 

We can see the pattern developing. Repubs all have their own Swamp welfare program. Being codependent with Swamp programs means their  default will be  managed by others. Who? Bitcoin, gold, and the trading pits. All groups getting ready.

If our technology is not ready for the default, or visa versa, the  we get a coordination failure, the name economists give it.

If we get sandbox too soon, then we prematurely force the senate default. Like Lindsey, many senators will go hysterical and bomb rice farmers or some other idiocy.

The big bet is tonight

BofA's Institutional Clients Are Suddenly Selling Everything

We want to stay liquid,  ready to jump as Trumpster announces the new line up.  I am betting raw on the massive deficit shutting the process. So expect a bit of a rise in stock prices then the real bear  market as the senators drive rates up, for a while. Then we go blue bar.

The sandbox vs regulator part 7

Business Insider:
The Financial Conduct Authority (FCA) warns in a letter published on its website on Tuesday that finance firms borrowing money from peer-to-peer lenders to fund their own lending activities could be breaking the law.The problem arises if the finance firm borrowing the money doesn't have a licence to take deposits, as the borrowing of money from the peer-to-peer platform to fund lending technically counts as taking a deposit. The FCA's director of supervision Jonathan Davidson, who authored the letter, says such activity "may be a criminal offence."
While the finance firm itself is the one that is technically in breach of the law, the FCA has written to the online lending platforms as they are the ones facilitating the problem. The FCA says that any platform that allows finance firms without deposit licences to borrow money "would not be acting in a manner consistent with our expectations for regulated firms and may be in breach of certain regulatory requirements." 
The lending platform, under current technology, does not use standard S&L technology, so they cannot be breaking law.  But financial firms use the platform to borrow money from implicit depositor elsewhere.  We endup with a conflict. Deposits at traditional regulated banks have restrictions on loan to deposit ratios.  The on line platform allows  financial firms to get those deposits and skirt the regulations.

This is a crossing the boundary regulation, going from making odds to predicting the movement of mass over time and distance. Redneck Trading systems skirt the regulation, or more appropriately, they let the traders decide the regulation and  incorporate it into the bit error function.  It is automated price compression after all, and the bit error functin is a defined, betable random process.

Code word for massive deficit

TRUMP: The $54 billion increase in military spending will come from 'a revved-up economy'

Sandbox effect on finance markets

One of Asia's top trading firms is shutting down a large chunk of its US business

Rick Gould, CEO of CLSA Americas said that the firm had always focused on providing US and global investors "differentiated insights on US stocks."
"While we succeeded in this regard, the economics of providing US equity research have become increasingly challenged," he said. "Our focus now is to continue to provide our clients access to liquidity and best execution.”
Thus is a story of human insight vs bots. The company wants the bot business, they wanna be in the sandbox. 

Monday, February 27, 2017

Not counting the two they are going to blow up

Musk's SpaceX Will Send Two Private Citizens On A Trip Around The Moon In 2018

Put it on a ledger and we trade it in the pits

IZeronHedge reporting:In recent days, the world's second most popular digital currency, Ethereum, has been surging (despite its embarrassing hack last June when some $59 million worth of "ethers" were stolen forcing the blockchain to implement a hard fork to undo the damage), prompting many to wonder if some big announcement was imminent. It appears that yet again someone "leaked" because on Monday, an alliance of some of the world's most advanced financial and tech companies including JPMorgan Chase, Microsoft, Intel and more than two dozen other companies teamed up to develop standards and technology to make it easier for enterprises to use blockchain code Ethereum - not bitcoin - in the latest push by large firms to move toward the holy grail of a post-central bank world in which every transaction is duly tracked: a distributed ledger systems.In total, some 30 companies are set to announce on Tuesday the formation of the Enterprise Ethereum Alliance, which will create a standard version of the Ethereum software that businesses around the world can use to track data and financial contracts. This will be a huge boost to the recently sagging credibility of the technology, which suffered substantial damage during last summer's previously noted hack, when nearly half the value of Ethereum was wiped out overnight.
Great news, more sandbox 

A bit of ignorance

"The big milestone is when computers can read and understand information like humans do. There is a lot of work going on in this field - Google, Microsoft, Facebook, academia," writes Gates. "Right now computers don't know how to represent knowledge so they can't read a text book [sic] and pass a test."
Watson does it, took a medal from Jeapordy 

What Bill wants is a pricing system for words.  That comes in Singularity 2.0 and Silicon Valley should be working on Singularity 1.0.

By the way, Bill, has Microsoft paid its 40 billion tax bill for putting secretaries out  of work? It was your idea, so  write a check good buddy.

When Trump promises deficit spending

Then he gets  rate hikes, stronger dollar, lowerb taxes and bankuptcy followed by drunken helicopter.

More than one answer is needed

George W. Bush On Trump's Alleged Ties To Russia: "We All Need Answers"

  • OK, why was Granpa bush trading with the enemy/ 
  • Why did papa Bush do business deals with the head of WHAMY, the organization that recruits jihadis?
  • Why did the Bin Ladens get  secure flights out of the USA after 911?
  • And more important, why did little Bush and the guy from Wisconsin blow up the budget and crash the economy?
  • Why did the Saudis send 911 bombers to the USA yet remain allies?
  • Why do Republicans always run up the deficit and crash the economy?

We all knew it was a mess

Trump: “Nobody knew that health care could be so complicated.”
But we told Trump it was all fine and dandy. In fact it is a mess the cannot be solved while Trump takes the helicopter ride.

Yes, Kanosians lying to the little browns

California's 'Secure Choice' Retirement Program Is Neither Secure Nor a Choice (op-ed - Jon Coupal / Orange County Register)

The hidden agenda is pension stuffing, and by now the little browns are catching on to  the scam. California  unions are simply going to borrow the funds and tax little browns to cover interest.

Trumpster announces massive deficit

Gavin Newsom, our designated next governor, will make it worse

Dan Walters: Municipal finance analysts see Richmond, an industrial city on San Francisco Bay, as the state’s most likely candidate for insolvency, largely due to sharp increases in pension fund contributions to cover its police and fire personnel.Richmond is spending nearly $50 million a year now for its pension and retiree obligations, 50 percent more than what it was spending six years ago, and anticipates another 50 percent increase in the next half-decade.“It’s a huge mess,” Richmond Mayor Tom Butt told CALmatters, a nonprofit news organization. “I don’t know how it’s going to get resolved. One of these days, it’s just going to come crashing down.”Richmond, like most cities, ramped up its pension benefits after the state Legislature and then-Gov. Gray Davis did it for state workers in 1999 on assurances from CalPERS that its investment earnings, rather than taxpayers, would cover the added costs.
The dem plan is to elect  Newsom and declare bankruptcy 

Read more here: http://www.sacbee.com/news/politics-government/politics-columns-blogs/dan-walters/article134832779.html#storylink=cpy

Sunday, February 26, 2017

The secession failed, so the Franciscans go beg the Swamp

CalWatch: Dams aren’t the only part of California infrastructure on the hot seat. Following a big-ticket Sacramento request for federal building funds, a new report has concluded that the number of state bridges in dangerously inadequate condition reaches into the thousands. “Of the 55,000 bridges across the U.S. that were deemed structurally deficient in a report published by the American Road and Transportation Builders Association, more than 1,300 California bridges fall under that category,” KCRA and the Associated Press reported. “That means that of the 25,431 bridges in the state, 5 percent have one or more key bridge elements – deck, superstructure or substructure – that are considered to be in ‘poor’ or worse condition, the analysis found.”
What happened to my musical, The Franciscans?  We need to revive the idea, the story of our founding in song. 

Only after Rddneck U stole Stanford's smarties

Intellectual Intolerance - Stunning Speech From Stanford University Provost Exposes "The Threat From Within"

But I’m actually more worried about the threat from within. Over the years, I have watched a growing intolerance at universities in this country – not intolerance along racial or ethnic or gender lines – there, we have made laudable progress. Rather, a kind of intellectual intolerance, a political one-sidedness, that is the antithesis of what universities should stand for. It manifests itself in many ways: in the intellectual monocultures that have taken over certain disciplines; in the demands to disinvite speakers and outlaw groups whose views we find offensive; in constant calls for the university itself to take political stands. We decry certain news outlets as echo chambers, while we fail to notice the echo chamber we’ve built around ourselves.
Nah, they only say this on account half the  band members transferred to  Redneck. The provost guy ought not to have been so mean, for just pissing in public.

What is a Rhoder Island anyway?

Sheldon Whitehouse: It rather specifically kept us from getting a majority in the Senate in this election because the Koch political operative group, Americans for Prosperity, had pledged to spend $750 million, and they didn't really like Trump. They didn't get behind him in a big way. So a lot of that money instead went into general fieldwork. They had, for instance, 14 field offices in Florida. Just ready to help whomever. And that stayed in place when Trump became the candidate. They weren't going to go anywhere else. But they couldn't and didn't spend at all in the presidential. So they turned to the swing states, and they spent immense amounts of money in Wisconsin, Ohio, and Pennsylvania.
They got a million folks in the place, it is way over there with the New Englanders.  Founded in a fit is religious freedom from the prudes in Massachusetts, home of fat liberals. The founder was a Rhodes scholar I guess. That  is how they done it back there.

Unlike us civilized Franciscans.

Here we see two native Californians taking a walk and discussing quantum physics.  They solved great problems of economics and built a federation of  economies that remain today. But, they wore dresses, eliminated the need for transgender bathrooms.

Black hole predicted

Stockman: "After March 15 Everything Will Grind To A Halt"

Here is Dave Stockman appearing on Finance today explaining himself

It is not a secret

White House Deputy Secretary:  “We cannot survive under the current system,” Sanders said. “We have to make a massive overhaul to the health care system in America, because it is simply just not sustainable, and everybody agrees with that.”“There is nobody that argues that we’re on a track that we can maintain,” she continued. “So we’re looking at every possible way to do exactly that: repeal a terrible, failed system and replace with something better.”
True, most of the Swamp programs are a mess, and about 80% of voting citizens know this.  
So why go all Kanosian and tell Magic Walrus fables? The was Obama and the Dems problem, they lie too well and the transaction costs of our decoder rings went up. Now we can just admit the foul ups, declares the losses. We do not need to run the curve out to 100 years, no one would believe us anyway.

Optimism up, earnings down

Bloomberg: “Financial market reconciliation lies ahead,” David Kostin, Goldman’s chief U.S. equity strategist, wrote in a note. The “S&P 500 Index will give back recent gains as investors embrace the reality that tax reform is likely to provide a smaller, later tailwind to corporate earnings than originally expected.”Kostin and his team pointed out that while corporate earnings estimates for 2017 have fallen by 1 percent since the election, the S&P has surged 10 percent. Something has to give, they say.
I suggest earnings are mis-measured by dollars. The stock market plays the role of currency insurance these days. 

Saturday, February 25, 2017

A day in the sandbox

Bitcoin News: Over the past few weeks, China has implemented regulations across all bitcoin exchange operations within the country. This, in turn, has caused a significant drop in trading volumes within the region. Some people speculate that Chinese bitcoin traders are now going abroad finding friendlier overseas entrances to bitcoin exchanges.
We call that fermion statistics, change the lattice to match the spin functions Redneck Systems offers spawn enable, and the pits will adapt to the regulations automatically. The Magic Walrus needs to adapt, government bankers need to learn auto trading in python. 

The country preacher leader of islamic belt bombers

From Wiki:  Abū Bakr al-Baghdadi (Arabicأبو بكر البغدادي‎‎; born 28 July 1971 as Ibrahim Awad Ibrahim al-Badri[6][7][8] إبراهيم عواد إبراهيم علي محمد البدري السامرائي) is the leader[9][10][11] of the Sunni militant terrorist organisation known as the Islamic State of Iraq and the Levant,[12] which controls territory in western IraqSyriaLibya and Afghanistan.[citation needed] The group has been designated as a terrorist organisation by the United Nations, as well as by the European Union and many individual states. In June, 2014 he was elected by the majlis al-shura (consultative council or Shura council), representing the ahl al-hall wal-aqd (its people of authority) of the Islamic State, to be their caliph, which he claims to be.[13]On October 4, 2011, the U.S. State Department added al-Baghdadi to the Specially Designated Nationals List[14] and announced a reward of up to US$10 million for information leading to his capture or death.[13][15] On December 16, 2016, the U.S. increased the reward to $25 million[16] equal to the reward being offered for the leader of al-QaedaAyman al-Zawahiri.[17] Authorities within the United States have also accused al-Baghdadi of kidnapping, enslaving, and repeatedly raping an American citizen, Kayla Mueller, who was later killed.[18] Over time, there have been a number of reports of al-Baghdadi's death or injury; however, none have been verified.
The  shia are opposite islamic nuts and don't like the sunni.  The shia are invading the bagdadi guys home in mosul, he is  a sunni. Sounds like an episode of Star Trek I saw once. 

The Trumpster wants to measure deficits

We can count deficit according to the first year in office or the last year, it makes no difference, little Bush and the Republicans are the deficit champions.

Going bythe last year in office, lil Bush added 3.5 points to the deficit, Clinton ran a 5 point reduction, Obama broke even. I can go by the first year in office, and it is much worse.

My suggestion to Trump is that he and the guy from Wisconsin go ahead and celebrate humongous deficits.  You two will do it again for the third time.

Understanding the two level, internet ring decoder

What words does my ring decoder key off of?

Anything measurable, like survey; and anything that is a member of a set like Senator.  The first level of the semantics is what is the event.  The second level is how frequently does that event happen otherwise. But the decoder imposes the no replacement rule, it is estimating frequency of events over a purposefully short backward window. The decoder atyempts to reconstruct the complete flow channel where events like the one stated occur.

Here is an example taken from a comment in a blog.  The discussion was political spending reform, the commentor is from California:

amazing. you have to credit them [local Republican politicians] for relentless effort and working the system for every advantage. I participate with a reform group here in California, called California Clean Money Campaign. Even though I value it, I have to admit the goals are almost pathetically modest. I just completed a survey from our new Senator, Kamala Harris. She listed a lot of worthy goals, but electoral reform was not among them. Honestly, I dont see how we win long term without such reform. Neither do I see enough effort from Dems toachieve it.

I added the brackets to connect this comment to the context.

My decoder keyed on Senator and survey and money  and electorial  and effort.  All imply measurablility, and in the semantics of the web, a convolution with set identification will collect a fair sample of like minded measurable terms,the beginnings of a frequency chart, a histogram.

Hard to do, and my ring decoder needs plenty of human help.  But I read a blog comment or post and can quite systematically generate the proper search phrases to grab the complete 'group' results. Once I have a nearly complete histogram, it is Shannon all the way, like a forensic accountant. I reconstruct the likely distribution net, I follow the money.  My role  is quite systematic, I am clever, not brilliant; easily replaceable in singularity 2.0.

Greater fool investing with Buffet

He re-iterates that retail investors should by the low cost index.  Then a day or so later, explained that it was not in Berkshire interest to hold stocks forever.  What w have is the squeeze exit, get the small guy to rush in momentarily while the big guys rush out.

Zero Hedge has more

So, little browns, watch your 401K. The intsitutionl pension funds have been exiting, smart hedge funds, wealth all exiting the market and pushing the little retail investor to take their place.

"I killedf a Dim Kim Son"

"And have nice boobs."

Leftist immigration plot revealed

According to  of Slate:

Immigration advocates on the left, in contrast, believe that mass less-skilled immigration can benefit the country if taxpayers provide immigrants and their children with the government support they need to lead dignified lives. That’s why they champion causes like providing unauthorized immigrants with subsidized medical care and generous wage subsidies and expanding access to early education programs for the children of poor immigrants who start life at a serious disadvantage relative to their better-off peers. To the pro-immigration left, support for high immigration levels goes hand in hand with support for other egalitarian causes, like a cradle-to-grave welfare state and generous foreign aid.
In fact, he is completely full of shit, this is a repeat of the Stork Theory of immigration  and is only believed by about five people, one of whom is Nancy..

This is inventing theory then not finding any data to back it up. This is the usual horse manure writing we get from Slate, the magazine for hacks.

Obama clearly stated the truth publicly, the leftist immigration plot is mostly California, and it is mostly a debate between the little browns and the national parties. Once the little browns discover that they have invited 3 billion poor and sick to move to LA, at a mere $500 one time air ticket, then things will switch real quickly.

The Slate problem is that us little browns out here do not fit the Doonesbury plastic cartoon history that Slate writers learned in public school.

It is the same as sending the homeless and sick to Los Angeles

Ambrose Evans-Pritchard 

Vast liabilities are being switched quietly from private banks and investment funds onto the shoulders of taxpayers across southern Europe. It is a variant of the tragic episode in Greece, but this time on a far larger scale, and with systemic global implications.
 There has been no democratic decision by any parliament to take on these fiscal debts, rapidly approaching €1 trillion. They are the unintended side-effect of quantitative easing by the European Central Bank, which has degenerated into a conduit for capital flight from the Club Med bloc to Germany, Luxembourg, and The Netherlands. 
 This 'socialisation of risk' is happening by stealth, a mechanical effect of the ECB's Target 2 payments system. If a political upset in France or Italy triggers an existential euro crisis over coming months, citizens from both the eurozone's debtor and creditor countries will discover to their horror...
German banks hold a shitload of Club Med bonds that are unpayable.   Club Med millennials, if they have any, are looking at a fixed sequence of payments to Germany for infinity, courtesy of the inflexible central bank system. German taxpayers have gone through this, they price the risk these days. So soon the road and rubber are going to have a get-together.

It is a war crime, especially labor pricing not working well when a fixed payroll tax is imposed with no future amortization path.

Trading gold in the sandbox

Everything starts by understanding sandbox transactions are  no arbitrage.  

In gold trading, that means a fulfillment contract, generated by the gold pit,  is assumed to be the exact delivery of gold dust to a thumbprint.  If it ain't, its gonna get hedged in the pit. Mass over time and distance, outside.  probability of events, inside. It is an artifact, once again, of auto trade and zero transaction costs.

So, a central bank on the gold standard is approximating the national yield curve with the prior history of actual gold shipments.  The sandbox produces the histogram of gold events, to the precision needed. Just pay the cycle fee and go scan the gold pits.

The smart card as a design built-in for smart phones

My model is simple.

When an app in the smart phone wants to transact with sandbox security, it calls the security exec function at the hardware level.  The thread immediately enters the hardware protected code, with timeout.  Henceforth, the thread has only one exist point and hardware at the address level forces the thread to stay.  Within the hardware layer, the thread cannot write nor execute unsecured addresses. The protected code will utilize the NFC port, and will exchange data with the OS for secret reasons. Access to the NFC port is via exec function only, and the exe will insure the message sent meets a 'cleanliness' bounds.  This mainly means it is sent to a verified and verifiable destination.

Outside of hardware protect mode the system acts like a standard smart phone.

The hardware protected code is simply unreadable from unsecure addresses, that is the ultimate security.  Like one of those California hotels or a black hole; only one way in or out, but leave the baggage. The secure code comes with the human unobservable private key set, burned in with security by master bot at the fab.

The model for traders is simply that the smart card function duplicates paper in every form except that it uses dynamic exchanges; but these are just as protected as the static watermarks on paper cash. The real fear is the mandate for government exchanges, that is optional.  You fear getting ripped off in the pits? Buy Redneck compatible systems, and read my reviews.

Another name for this model?
Hardware protected spreadsheet with built in double entry cell accounting that can be verified by generating a verification token.

Friday, February 24, 2017

It is the ease of use

Bloomberg: Blockchain Capital LLC, which backs startups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first venture fund to do so.
The San Francisco-based company seeks to raise a portion of its third blockchain fund through an initial coin offering, or ICO, of tokens and the larger part from traditional venture-capital investors who typically contribute a minimum, Managing Partner Brock Pierce, who is also chairman of the Bitcoin Foundation, said in an interview.
The ICO could take place “in the next month or two,” he said. The company will more fully describe the tokens, which are expected to trade on secondary markets, in an upcoming offering memorandum, which will be issued through TokenHub in about a month. The company is talking with several exchanges but hasn’t confirmed which it will go with.
The group would otherwise issue limited shares in the fund.

It is the ease of use when specifying a virtual coin instead of  shares. When transaction costs go to zero, the sandbox uses coins to stand in for stocks, shares, ownership, poker chips and pizza slices.. When we add Redneck S&L technology then applications that need congestion management work, like cragslist, Walmart, and government bond defaults, all work dandy in the sandbox.

Exciting times.

What makes Justice Ginsburg a friggen idiot?

Justice Ginsburg reiterated the importance of the free press.

"I read the Washington Post and the New York Times every day, and I think that the reporters are trying to tell the public the way things are," she said.

"Think of what the press has done in the United States," she said citing the Watergate scandal. "That story might never have come out if we didn't have the free press that we do."
Implied in her statement  is the idea that what really happens are events along the DC-NYC region.  She has no clue until she starts reading the Dallas, LA, Chicago etc news.  She thinks the world begins and ends with east coast liberals, she has never heard about much else. 

Let us bet our 401Ks on the Trumpster

WSJPresident Donald Trump’s promises to cut corporate taxes and ease companies’ ability to repatriate overseas cash could help corporate and public pensions close their massive deficits. 
 Investor enthusiasm over the president’s tax proposals is already boosting stocks, benefiting public pension plans. The S&P 500 index has jumped more than 9% since November 9, as investors anticipate more growth from Mr. Trump’s policies. Should Congress and the White House overhaul the tax code, lowering corporate rates from the current 35%, many companies could accelerate payments into their pensions plans, said Gordon Fletcher, a partner at Mercer Investment Management Inc. 
That would a lot of greater fools who will need to be blindsided. 

That is how government does business out here

East BayTimes: The Bay Area’s critical transit district is being run under a cloud of deceit. District officials last year convinced voters to pass a $3.5 billion bond measure for capital projects. They promised that the district would continue to kick in its fair share, but less than three months after the election they are moving to renege on that. 
 They could withdraw as much as $1.2 billion and redirect it to the district’s excessive labor costs. In effect, that means that a large chunk of the money from the bond sales, for which property owners will pay higher taxes for decades to come, will not go for the capital projects that were promised.
They knew they lied We knew they lied.They knew that we knew that they lied. Everyone knew, well almost everyone.  The little browns were reading worthless, free marxist rags; and the marxists miss all this stuff.  But us, the knowledgeable, had three level ring decoders.

The moral of the story? Little browns, read up. Get your decoder rings working.

The craigslist coin, part 2

In a previous post I discussed the craglist coin as a sandbox use case. It solved a problem.

If you need a household appliance that weights more than 25 pounds, the local inventories are sparse because no one wants to pay shipping costs up front. If you buy, say a wall oven, the ting can  have $150 in shipping expenses.  That is the wedge that craigslist lives on.

So, if I am looking to find a wall oven, in the near future, then it behooves me to by $20 of local craigslist coin, and put them on deposit. In the sandbox, that does two things, it signals others who might be remodeling to go ahead and order the new stuff, they got buyers for the old.  Local transportation costs drop to $`10. Then on price, the cragslist S&L offers loans against deposits allowing transaction to have flexible, compressible pricing; the deals can more efficiently take advantage of reduced transportation costs.

The gain is local, the S&L members and coins have to designed local.  Local appliance coins across the country will be coherent because the trip across town in a pick up is the same.  But, the S&Ls have to be local,   There  will be no arbitrage moment across regional craigslist, by design.  Each craiglist can peg the cin by selling access to the S&L distributions, or selling craigslist ads even.  These balancers work in a transaction cost = zero environment.

The inequities of economics and my right to bitch

Peter Thiel was thinking about being gov of California until he got laughed at. Now he is pissed, and he is gonna get back at us by investing in the Indian Sandbox, becoming richer.
Peter Thiel’s Founders Fund has made its first investment in an Indian startup, ClearTax, which aims to make it easier to file taxes through the Internet in India. The $2 million funding, shortly after the startup attracted angel money, was notable too for the participation of Sequoia Capital. Founders Fund made the investment through FF Angel, its seed-stage fund. Founder and CEO Archit Gupta has raised a total of $3.3 million in seed funding in a round tht he was oversubscribed. As India increasingly goes digital, ClearTax is on a major expansion spree in India, hiring engineers away from FlipKart and seeking to have 7 million Indian taxpayers on its tax return platform by the end of 2017, up from 3 million by the end of this year.

I don't mind him running off,  I want to sit in my breakfast nook, bitch and spill coffee on my  keyboard.  

I mind something else.  I should still have the right to make the maximum entropy bet on start up funding in Indian tech, I want my smart card. I want my on screen IndianTech icon now, before Peter runs off.  As soon as I heard the news a few weeks ago, I wanted to tap that icon, drop a few bucks into the pit, take a position.

The hope and why it is real

Compare generational defaults, Roosevelt shock to Nixon shock.  Pricing breaks down, the container algebra breaks, trade degenerates then recovers again as the pricing function returns.

Didwe kill 20 million in a world war ince Nixon? Nuke Japanese cities? Carpet bomb rice farmers?
No, our body count was well under 3 millipn wicne Nixon.  That is improvement.

Go back, how well did Lincoln and Davis do on their generational default? Like wipe out 10%n of the male population in civil war?

We get better at it, our first differential improve because we remember tosave up some second.  It is like learning the manual shift on a car.

Each time we do i, we combine the new information technology into the new monetary technology. The sandbox has arrived, we will have our generational default, and it will be done in a no arbitrage pure cash autotrade world.  The millennials will suffer a 3-5% inflation over an eight year period and kill less than a million, with a random wiener process.  That is not bad for an evolving species.

Thursday, February 23, 2017

An interesting problem brought up by Alt-M

George Selgin says:

Given present, high excess reserve holdings, and their uneven distribution among banks (many more at large and foreign banks), raising required reserves would be a very messy alternative--and one that would dramatically undermine the international competitiveness of U.S. banks, while doing nothing to reduce the Fed's giant footprint!

Now, my emphasis is on foreign banks, it is a kind of Swiss problem, large foreign institutions like the liquidity of the US dollar, and they keep their lisuidity in dollar digits at the Fed demand deposit account/.

Let us assume that Congress can dictate to the Fed, make a rational response as if you used a ratipnal ru;le.  What should the Fed do?

Go solicit foreign loans to balance the foreign deposits so your set of borrowers and savers are about the same.

Second, adopt sandbox rules.

Here is where I get it right and the monotonarians screw it.  The Fed needs to offer large foreign depositers the opportunity to be large foreign borrowers because the Fed can appropriately share currency risk and keep the pricing function working.  That requires competitive currencies so that domestic needs are fulfilled if the Fed has to chase foreign business.

The Fed is a pricing engine, it has to work, it will make itself work with abrupt, sudden requantization, if it has to,. But the Fed must ultimately find the balance between savings and deposits. When the two classes are a complete subdivision, then the monetary zone is defined.  Not the other way around, and governments cannot intervene in pricing, they can only make it abrupt and painful.

Use the basket brigade model on this

There is a collection of baskets, big and small.  When ever the bis empty into the smalls, both parties swipe their cash card.  When, out of typical, the large suddenly empty into the smalls, en mass, then the Fed sees a few large deposits and many small loans, the distributions are out of precision, the queues will back up if this continues. The Fed compresses distributions to precision, and generates the appropriate asynchronous interest exchanges.

Now, let us stick Congress into the mix,. Congress intervenes, tallies up the card swipe for the large baskets, then tells the banks to put it on Congressional tab.  Pricing will not work, not unless you have access to my locked up, Russianmathematician, wait....no, he is still there, in a refrigerated room with stacks of pencil and paper scribbling furiously.

Ned wants to sell infinite currency insurance

Some Real horse shit from Ned:
Secretary of interest payments Ned Ryerson said Thursday he has asked his staff to explore having the U.S. government issue debt maturities as long as 50 years or 100 years. 
 In an interview on CNBC, Ryerson said he was not ready to make a “formal announcement” of a 50-year or a 100-year bond but added, “I’ve already begun to talk to the staff about looking at that.” “I think it is something that is a very serious issue of whether we should explore, whether we can raise 50- or 100-year money at a very slight premium is something that makes sense for Treasury to look at,” he said.
The secretary went on to point out that we cannot borrow anymore money unless millennials and their offspring agree to pay, until infinity, 3% of their income to cover a generation of losses and bonehead budgets in the Swamp.  Included in the law will be a digital tattoo each millennial must wear which guarantees his regular, monthly payment to infinitely wealthy people.

Why we Californians all need to be little browns

Because every other friggen identity we had was stolen. We used to be Franciscans, John Fremont took that. We became hispanics, the mexicans and puerto ricans stole that.  But we have always been the little browns, what does it mean?

We are the original, late colonial period advanced federated city/state system, from the tip of Cabo San Lucas to Santa Rosa.

Our southern brethren: I am learning all the city/sates in my new nation. You can see, in another map with Alta California, that Baja and Alta have a natural transportation bridge, not shared with old Mexico of new Texas. Until we get our full nation back, we are little browns.

LA, a sanctuary city, what does it mean?

Depends on who your are.  When the mayor meets with the little browns he is responding to a foreign invasion of the mission, the US cavalry is chasing indians again.

When the LA Times announces the sanctuary city, they are announcing a refugee home under the non-discriminatory rules of the US government, combined with the informal citizenship of the state of California.

In other words, the mayor of LA invited 3 billion poor people to LA, where they can get free medical care.  Am I kidding? No, governments and non-government organizations have supply chains designed to move millions. They have ships, buses, planes, ready to activate.  They set up collection points deploy resources, move people, millions of poor people to the streets of LA courtesy of the mayor and legislature.

The little brown do not know they are bringing this havoc upon themselves. They just thought they were bitching to the mayor. Is the mayor that stupid, or are the little browns that stupid? Someone should have mentioned the contradiction during the meeting.

Escúchame secesionistas

Soy un poco marrón de California, escúchame.

Demasiado verdaderamente secede Caliufornia necesita volver a sus raíces verdaderas, la filosofía original de la misión del gobierno. Pero vamos a actualizar un poco.

El sistema de la misión se construyó en centros de misiones locales unidos en una federación hacia arriba y abajo de la costa, y hacia el interior. Podemos separarnos y volver a esa postura, pero debemos llevar a baja California a la mesa. Yijuana y Ensenada se están reuniendo con San Diego, mientras hablamos, y la gente en Baja probablemente optaría por salir del viejo Mexicfo. Tenemos que aceptarlos.

Deje que los rusos tengan algo al norte del condado de Marin.

Mi lógica aquí es simple. El sistema original de CXalifornia era tan bueno como el sistema inglés de regreso Este, diferente pero igual de bueno. Los franciscanos eran malos abogados, nadie lo duda. Pero, como organizador económico, fueron segundos a ninguno en ese momento.

California es demasiado grande para jugar el triángulo de comercio en el suroeste, que surgirá, no hay nada que podamos hacer. Desde que Bajawillwants quiere salir, entonces debemos tomar este camino, y llamarlo, "Mi camino que es más especial que tu camino"

Escaping ATM vfees

Time: ATM and overdraft fees cost Americans dearly in 2016.
The nation's three largest banks — JPMorgan ChaseBank of America, and Wells Fargo — collected more than $6.4 billion in such charges last year, according to an analysis from CNN.
The total sum resulted in an average of more than $25 in fees for every American adult. And the cost isn't showing any signs of decline. 2015's CNN report just topped $6 billion, which means ATM and overdraft fees have risen about $300 million in the span of a year.
For customers, finding an ATM that belongs to their bank can sometimes be inconvenient, leaving some users with little choice but to withdraw funds from an "out-of-network" machine. The average ATM fee is now $4.57, according to a survey from Bankrate.

The pits have the equivalent cycle costs, needed for pricing. But otherwise the cost of moving digits is small, There is not such thing as a ATM fee as there is no need to dispense paper.  I would consider the existing ATM fee to be free cash available for smart card development.

Wednesday, February 22, 2017

I learn something

The Schnorr token method. I thought it would work like this.  A schnorr group is the set of remainders among the multiplicative integers when they all have the prime integer designated in secret.  So, each member will be a member of the set of remainders, and can be verified from the prime number that i a factor in them all.

Wiki:  Implementations of protocols that use Schnorr groups must verify where appropriate that integers supplied by other parties are in fact members of the Schnorr group;
And the techno folks working on the sandbox kow about this and it seems to be a prime candidate.  Different token services can set up their own groups of 'remainders' and have them installed in your smart card. Tis means the card can generate tokens that verify aiuthorized trading.  But each app mut now the  verification service appropriate to the token s generated in that prime group.

Nor will this be the only key method, but, they work because the hardwarew vendors generating the flAt chips can have the keys inserted, robotically, and unobserved by humans.  A general set of keys for retail hopping and invewting.  But, keys can be installed, with a person visit.

Redundancy and separation

Specifying a particular key to generate tokens does not oblige you to use a particular ledger service. That can be specified in one of the other fields in the sandbox interface.  Most retailers just accept the standard tokens, the ones generated by factory installed keys. Person to person (looking at each other) transactions have little to hide between the parties, tokens not even needed often since honest accounting is hardware protected.


Using government as a substitute bank

when your central banker gets stuck.
Mish: Data released on Wednesday showed Sweden’s government generated a budget surplus of SKr85bn ($9.5bn) in 2016, with approximately SKr40bn coming from tax overpayments. The government will have to repay more than £3.5bn to businesses and individuals who purposely paid too much tax in 2016.

Sweden's not on the euro, and its currency was in high demand by european savers, They had the Swiss problem.

They made rates negative to discourage foreign krona savers. The better solution was to issue a krona account to all demanders and run a S&L on their behalf.  If savers demand your currency then make it available at your price.

All of  these central bank issues will resolve in the sandbox.


Seems a little fishy to me, like a dose of hyperinflation.

That old familiar tune

Outside the Beltway reporting:
“If there is a temporary increase in the deficit to get our economy growing, I think my fellow Republican members are willing to look at the long game,” said Rep. Chris Collins (R-N.Y.), a Trump loyalist. “A growing economy and growing our way to success and financial stability is what we want to see.”'

The Trumpster is sending his spending list to Congress and we gonna see fireworks. The budget battle will be a worldwide spectacle.


Ned Praises Strong Dollar, Adds To Currency Confusion

The other girl

Superman's home planet discovered

Several Earth-Like Planets Discovered Orbiting Nearby Star

This image captured by Hubble:

Here is a use case, home loans

Our sandbox assumptions reduce everything to their set of independent vectors, is a way to put it.  As long as the rules of odds making prevail, rare is simply rare, time is not measured, everything become simple.

If your town has 20,000 people, that's a lot of people who both have savings or housing needs, and both know the local housing market, very nice indeed. What does a pit boss do in this environment?

Well, first, not a whole lot, this is low traffic.  I suspect the pit boss will be showing ads for hundreds of people looking at estimated rates, emphasis on estimated. The pit boss would be running a database of homes for sale on the side, in its idle moments.

So, to the towns people, what is this savings and home lender? 

A box about the size of a deck of cards, USB interface, and a steel to the core python kernel running the standard Redneck S&L configuration.  All the local realtors know about this box, sometimes the escrow officer in charge will unplug it and have a second office plug it in, usually for vacations.

Otherwise that trusted box will offer fair savings rates and make home loans to any towns person with a device that generates valid tokens.  It will be known, world wide, to be a fair measure of 'estimated after the fact' home loan rates for your town.  

And, with Rednack systems,you get the ad generator add on, easy user interface, a money generator.

The original girl in rebellion

We are, we do, just not Google's flying car kids

Google chairman talking AI:
Still, it hasn't all been mind-blowing. When neural networks discerned the existence of cats from YouTube videos, for example, "I was very upset," said Schmidt. "The event that launched the quest for general AI, you'd think they'd discover set theory. Instead, they discovered cats on YouTube."
Yes indeed, Eric, Redneck trading pits find the 'set model' that are implied in the transaction sequence. Redneck does it by kidnapping a Russian mathematician and kicking the flying car kids out. 

The flying car kids will rethink their pride at doing simple neural net equilibriums and find out Redneck is smarter than neural net, we do Theory of Everything.

ARM has a hankering for Singularity 1.0

CRN reporting:ARM is turning its focus to the connectivity standards driving the Internet of Things, announcing Monday that it has acquired Mistbase and NextG-Com.Both companies specialize in the technology behind narrowband IoT (NB-IoT), a low-power, wide-area connectivity standard for machine-to-machine applications, such as monitoring remote sensors."Combining ARM NB-IoT IP with secure cloud connectivity will allow ARM’s chip partners to create industry-leading products that tie into an end-to-end security system," ARM wireless business general manager Paul Williamson said in a statement. "In enabling NB-IoT compatibility, we will save the industry years of development effort and improve access for developers by reducing the time it takes to get products approved by standards bodies and network operators."
Without a doubt full endpoint security has arrived. But we still need hardware enforcement of forgery and double spending rules at the endpoints. 
And Intel:

Intel Security continued to build on its integrated security strategy vision at RSA 2017, rolling out multiple new solutions and initiatives to bring together fragmented security solutions. The company announced the McAfee Enterprise Security Manager (ESM) 10 and McAfee Virtual Network Security Platform (vNSP), which update the company's SIEM solution with a new user interface, threat intelligence, Foundstone threat researchers and extended protection to AWS and OpenStack cloud deployments. Intel Security also announced 16 new partnerships in its McAfee Data Exchange Layer, new integrations to its OpenDXL initiative and the company's integration with the Cyber Threat Alliance Platform (CTAP).
I am not a fan of McAfee and Redneck Systems only trusts secure steel python,  and the python  vendor will tell us which security monitoring app works best.