Friday, March 31, 2017

Let's discuss slop in the pits

The whole point about Eulerism, from my point of view, is that a Euler system ha a perfect two color pricing orbit with no bit error.  The whole thing about the TOE is Hawking radiation is a requirement to maintain quantization,  So,the Euler conditions are never met, they are chased.  In another theory, we never get a Shannon lock. Our Shannon pit bos consumes 1.5 standard units of variance, not 1.0. That take you to local wave functions, self managed congestion.  We undersample Nyquist, so that we are always partially congested so that flow always occurs to maintain quantization.

In the sandbox, the S&L technology does that, it converts flow into the sustainable set of baskets. Having the extra half point of variance goes to the bit error. Hence, the short cut available to time plotters is gone, the baskets having enough variance in fullness to keep imprecision set everywhere. The slop allows agents to detect the necessity of basket size changes.

OK, it is embarrass the Asians Day

"The bill would also make it unlawful for a person to knowingly and willingly make, publish or circulate on a Web site, or cause to be made, published, or circulated in any writing posted on a Web site, a false or deceptive statement designed to influence the vote on any issue submitted to voters at an election or on any candidate for election to public office."


Ed Chau, the guy on the left, makes a blunder that should be above any intelligent Asian. OK, we can get the delusional whites and the little brown racism; but we had hope for the Asians, we thought they knew all the weird hedges and corners in the system. Then this blunder!

Claire McCaskill seems to be the inhuman party

Sen. Claire McCaskill (D-MO) announced Friday that she will vote “no” on confirming President Donald Trump’s Supreme Court nominee Neil Gorsuch after publicly voicing her indecision on the subject early this week.


First, the humanists are the elected representative, like you Claire. Claire thinks herself a delusional idiot unfit to govern and the judicial system has to back her up.

I can see your point Claire, Montana with about 60 times the voting power of California is a dangerous thing to have in a majority rule Senate. Odd, you never mentioned that.

So, Clair, with your kind of short cut thinking, we gotta us problem, we got the Venezuela problem. Why not have the federal courts just remove you the senate delusionals like you from small state America. After all, proportional voting is the human thing to do.

The sandbox in a buzz of delight

A new app which drops the trading fee nearly to zero.  They have a million users, so selling ancillary services is a breeze.
Robinhood launched in December 2014 and quickly became a favorite among younger people looking to invest without paying the $7 per trade demanded by established firms. The app itself is stylish and simple, which helped lure the first-time stock traders that made up Robinhood's first big wave of users.According to TechCrunch, investors were excited by the success of its new Robinhood Gold subscription plan, which launched in September. While the main service does not charge fees to trade stocks, Robinhood Gold subscribers pay $10 a month to get an extra 2.5 hours of trading, an extra line of credit, and bigger instant deposits of up to $2,000 into their bank account. 

This company will need a pricing engine soon.

Set asides, pension stuffing, unions rukle, and diversity costs

Gov. Jerry Brown went to Concord on Thursday to promote a plan to fix the state’s roads and highways, acknowledging that the $52 billion plan may be a “heavy lift” for some motorists but promising he’s motivated only by a desire to improve transportation.
Unfunded pension liabilities are causing cities and town to lay off workers, and the problem is getting worse.  Unfunded liabilities grow, and Jerry will make them grow faster.  

We are talking about a governor who left a bridge unfinished, hanging in mid-air, because the environmental cult decided cars were uncool.  We are also talking about planners who think Fresno California is on the route between LA and SF.  

Bankers and time, in the news

Banks as Secret Keepers
The latest research on how a currency banker has to manage time based debt. And the answer will be that the banker holds secret information about events, otherwise the currency systems drop back down to sandbox and optimum congestion (asynchronous, adjustable  interest flow). 

I didn't read the whole thing, but knew the conclusion once I understood the model assumes all bandwidth limits must be met, which is equivalent to meeting budget over a multiple periods of fixed time.  Authors then discovers a problem, for Eulerism to be true, everyone has correct information everywhere.  Not necessarily infinite bandwidth information, but there must be a complete information set, ergodic and known to all parties for eulerism to work.  

The paper should show that the assumption is false, traders will engage in time plotting. Time plotting is real, go read Einstein.

What does redeem mean?

I have been trying  to understand the redeem, and I finally looked it up.  Redeem means return the principle by some date. Since time is a smart contract problem, let us define redeem for the smart contract layer.  It means to expect some party to complete a ledger service by some date and establish ownership.

In the old system, they always start with the safe rate, then build banking from that.  So, essentially, all the ledger services are time synched, a clear give away for time plotting. So the bank keeps hidden assets it can take or put on the market, counter the time plotters.

Question answers itself

Santa Barbara Independent on pensions:The steady climb of pension payouts (pictured) has been taking bigger and bigger chunks from Santa Barbara Unified School District’s budget as school districts statewide have been required to contribute more to their retiree’s benefit packages since state law was changed five years ago.“It’s mind-boggling to me where we’re going,” said school board president Kate Parker earlier this month. “What it feels like is that we’re heading toward a system where we’re only paying for future retirement and not able to fund cost-of-living increases for people working right now.”
Emphasis mine. The school president has  made herself clueless when she prices wages to inflation in a fessed ratio. Absent a fair traded wage setting, she will remain price clueless.

Why haven't the economists informed government officials that inflation adjustments are a dis-eqiuilibrium that leads to sudden re-quantization.

Asynchronous, adjustable interest swaps


Zero Hedge talking about the interbank lending rate:

“The rate hasn’t climbed above 1% since prior to the financial crisis. Most corporate loans have so-called Libor floors, so the loans wouldn’t reset higher until the 1% mark had been breached. Now that it has, with each rate hike, companies will owe more on their loans. […] And there are a lot more very leveraged companies now than there were even a few years ago.

We don't compound, we re-quantize. 

Duration risk is fine, in the smart contract layer. Sandbox doesn't bet time, as the thumb prints all get deju vu on the second rollover, and go giddy. It is a moral hazard because pure cash has no observable supply chain.  Deja vu implies a supply chain so the S&L extinguishes deju vu with amortization.


Betting time in smart contracts

You are serving a customer who wants his asynchronous interest charges replaced by time synchronous payments.  So your time company bets the ledger points. It will track the current ledgers, make sure ownership is thing spec such that the un-measurable float ot there is within the risk profile.  So, registered ownership plus currency float is mostly less than time synchronous income.

It is a useful service, but you are dealing directly with time plotters. My recommendation is to bet the seasonal adjuster, which at least is time synched nauarally.

Inflation and rates in the new

Raise Rates to Raise Inflation


What happens to prices when rates change?  I get confused about these debates because each party has a different measure of prices.  So, let's just go straight to the sandbox version.

What are price in the sandbox?

They are a containerized algebra made of prime units of 'basket fullnes'.  Supply and demand are met when are baskets are appropriately full, none empty, none overflow. Sandbox S&L technology makes this so when it enforced asynchronous, adjustable rate charges and earning; which it does when the basket fullness measure, the bit error, is out of bounds.  The bankers are happy when I almost always buy something from my basket, and most never let anything fall out. Then it knows change in the economy is adiabatic, i a not swapping out the basket on my bike.
In the sandbox, coins are conserved and the bit error is rally a statistical generator with know properties, everyone knows how much loose change is floating around. Prices orbit along a semi-repeatable path.

So, going back to the old model, what is inflation?  Consumers have too large of a basket, the S&L hardly sees the overflow and has no idea what the basket sizes are.  The store queues are longer.  The best we can do is 0 or 1 queued up at the input docks, and 1 or 2 queued up and the output dock.  That gives enough 'free each and entry' so the banks can signal the typical basket sizes with minimal uncertainty.  So, since coins atre conserved, total prices never have rally changed since the Nixon shock, that was the last time the bit error blew up.  Prices are simply going through this huge orbit, a round about orbit.  So we see consumers suffering high home price from a huge global trade orbit, medical prices rise because of the huge government orbit and consumer stables in actual deflation.

A fed over reach problem
The consumer has to carry a large basket, enough to cover all those federal programs and the long turn around on foreign account balancing. Hence the generational default, the death sequence is shorter than the orbital sequence.  It is insolvable, it is hundred of years before all the price orbit run their course. Hence the true monetary stimulus, get more of the sandbox up and running.

Trading bots do this fairly, and automatically

Laura Keller at Bloomberg look at the new apps that send encrypted messages.  Wall Street is using them to share book, on an ad hoc basis.  Evidently the rules do not  allow this, it is called price fixing.

The sandbox does it differently. We skip the human, and replace with the trading bot.  The 'trade book' is equally observable by all, to the specified precision.  .Then the pit boss is generally profitless but prices are auto compressed to make the market.
Bloomberg: Dirty jokes and NSFW GIFs. Snaps of unsuspecting colleagues on the trading floor. Screenshots of confidential client positions.All that -- and, on occasion, even legally dubious information -- is increasingly being trafficked over the new private lines of Wall Street: encrypted messaging services like WhatsApp and Signal.From traders to bankers and money managers, just about everyone in finance is embracing these apps as an easy, and virtually untraceable, way to circumvent compliance, get around the HR police and keep bosses in the dark. And it’s happening despite the industry’s efforts to crack down on unmonitored communications, according to conversations with employees at more than a dozen of Wall Street’s most recognizable firms.

Thursday, March 30, 2017

Let us go through yet another sandbox use case

We go through as many use cases as we come up with so that we have a feeling that the architecture contains the total collection of possible apps. As a bonus, we get to learn about the various price mechanisms.
Consider wintersales.com, a company that sell winter stuff in he great lakes region.  It sells winter coats, long underwear, snow shovels,snow equipment, tarps, and storm gear.  It may also sell large food stocks.  But Wintersales has done something cute.

Wintersales downloads the Redneck standard S&L and sets up to run dollar deposits and loans. But it modifies the bit error generator. The bit error generator now prices interest charges against the regional seasonal adjuster coefficient putout by the bean counters. We earn on deposits and pay on loans to the extent that we stay in middle amber of the seasonal adjuster.

So, the even money bat is to use the AS&L for all your winter inventory adjustments, use loans and deposits, balance them around the seasonal adjuster. You ar allow to plot and scheme, contrive to hide out all winter and save your do-re-me, because your moving.  Or, even a plot in the visa ersa.  That is OK.  Price scheming induces the pit boss to re-quantize from the typical,the interest charges fairly applied, and there will be currency risk, when a surplus or deficit occurs during the price compression.  Remember, price compression is a loss and gain compression, except the losses and gains conserved collected by the pit boss.   The match is volatile, hence the compression.


In return, the pit boss runs the sales site.  So, he idea is to capture enough winter addicts to keep the S&L site stable, even if ales subsidize the site a bit.  The three color pits should support this.

It is a future Nixonian musical, a broadway hit

Mike Flynn Tells FBI He Will Testify In Exchange For Immunity


I got a better deal for Congress. I will testify for lunch and a beer and I don't want immunity. 

Then I find out Putin has been paying for his fake news, I have been handing it out for free. Putin owes me, I am charging him an ad fee for all my Putin fake news. Let Kevin Drum explain:

"This is a three-headed operation," said one former official, setting out the case, based on the intelligence: Firstly, hackers steal damaging emails from senior Democrats. Secondly, the stories based on this hacked information appear on Twitter and Facebook, posted by thousands of automated "bots", then on Russia's English-language outlets, RT and Sputnik, then right-wing US "news" sites such as Infowars and Breitbart, then Fox and the mainstream media. Thirdly, Russia downloads the online voter rolls.
 We will need some good lyrics for the musical. A tough job even for me. I will put the Redneck U undergrads onto the task.

Ok, Tim, let me ask

Tim Taylor says:
There is considerable concern among economists and social scientists that the Trump administration will take a hatchet to the government statistical programs. I find it difficult to argue for the value of government statistics, because their value seems so obvious to me that it is hard for me to imagine someone who both disagrees with me on this point but is potentially persuadable. However, Nicholas Eberstadt, Ryan Nunn, Diane Whitmore Schanzenbach, and Michael R. Strain have taken on the job a March 2017 working paper, "“In Order That They Might Rest Their Arguments on Facts”:The Vital Role of Government-Collected Data." The authors are from both the Hamilton Project at the Democratic-leaning Brookings Institution and the Republican-leaning American Enterprise Institute. 
They point out that total federal spending on statistics is about 0.18% of the federal budget--and just to be clear, that's not 18%, but rather a little less than one-fifth of 1 percent.  As the authors point out in detail, with examples, the potential benefits of this information are considerable. The federal budget is about $3.6 trillion, and of course the federal regulatory apparatus imposes additional costs. Information helps to direct government spending, taxes, and regulations, and it helps citizens to hold their government accountable. In addition, businesses and households often build on government statistics when making their own plans and decisions, thus allowing the economy to function more smoothly than if this information was only available, in partial chunks, from private providers.

Tim claims that he is happy with the government economic statistics, and it only cost him .18% of his do-re-me.

OK, then Tim, why is your ATM fee typically 1.5%??  Why do banks spend so much money counting shit?  I  give you the answer, banks are required by law to guarantee currency risk, and you pay for that guarantee with 1.5% of your purchases. Goldman-Sachs runs the racket in the senate, and they are about to raise your ATM fees.

Death in the pits

Roger Farmer made a discovery, we die and that effects the equilibriating model, it forces us to become Keynesian once in a while.

What does the sandbox model say?

Well, he is right. The tokenization services begin reporting human not present, but they only report it when the pit managers do their due diligence, check the trading bots against their fingerprint contract. But, we are allowed to drop coin into the pits, tell the coin to make a thousand trades, only over a narrow band in the red/green.  That bot could be sitting there, legally, for year.

So,  yes, Roger is right. There will be a set of dead, or nearly dead thumb prints, and the sandbox likely ends up with retirement pits, the ledger price is high, the ledger service is costly, and loans to deposits are conditional upon triple entry accounting. There will exist an industry that smoothly retires bots suffering human not present. This industry is a mechanical clock ticker in the smart contract layer, a huge risk and will earn its do-re-me as a ledger service for dying thumb prints.  Redneck has it covered, multi-color pits are in the reference architecture.

The secure elements can be required to support triple  entry accounting. But its use is voluntary.  There is no general rule in the sandbox that a thumbprint ha to make regular appearances.  A hermit might just put  $100 on the thing and leave it only for an emergency of dire necessity. The sandbox will never report 'thumbprint no present' because the hermit has never signed any contracts, he has no bots on duty.  There is no automatic death certificate  in the secure element, it is infinitely loyal once activated.

How does the thumb print not present service work?

The thumb print strikes a deal to run a priceable ledger service, and it works like a craigslist.  it matches retirement places, in likelihood, to retirement requests, in likelihood.  But you contract says you plan to die slowly, somewhere in an imprecisely estimated future. You will cover much of the risk planing in ledger fee.  The application keep  a huge block chain of places for the thumb prints to spend time. You slowly empower the Kanosian pit boss over a lifetime of liquidity events, most of which have warn you out.

Sitters, standers, squatters, one leggers, excluded the four legged

Deal reached to flush NC bathroom bill?


Bathroom contractors are giddy with joy.

Junker missed the memo

Junker: In an extraordinary speech the EU Commission president said he would push for Ohio and Texas to split from the rest of America if the Republican president does not change his tune and become more supportive of the EU. The remarks are diplomatic dynamite at a time when relations between Washington and Brussels are already strained over Europe’s meagre contributions to NATO and the US leader’s open preference for dealing with national governments. 
He should update his cartoon history. Texas is the new welfare state, since the election. All the hot secessionist activity moved to California. 

CBO warns on helicopter

CBO: 
Greater Chance of a Fiscal Crisis. A large and continuously growing federal debt would increase the chance of a fiscal crisis in the United States. Specifically, investors might become less willing to finance federal borrowing unless they were compensated with high returns. If so, interest rates on federal debt would rise abruptly, dramatically increasing the cost of government borrowing. That increase would reduce the market value of outstanding government securities, and investors could lose money. The resulting losses for mutual funds, pension funds, insurance companies, banks, and other holders of government debt might be large enough to cause some financial institutions to fail, creating a fiscal crisis. An additional result would be a higher cost for private-sector borrowing because uncertainty about the government’s responses could reduce confidence in the viability of private-sector enterprises.
 There is a limit to the risk that Goldman-Sachs is willing to bear.

The sandbox does it better Dr. Piketty

Here we have some new economic methods in which the household distribution is carried, ratherthan the mean and assumed variance process.  So, throughout the model, the effect of a trade on income distributions can be had via a convolution of two distributions, resulting in a 2-d distribution, but that can be collapsed back to one dimensional with orthogonalization.  So you carry mean, variance and skew along for the ride.  It is a bit like Mankiw's paper on taxing height.
In a recent paper, we attempt to create inequality statistics for the US that overcome the limitations of existing data by creating distributional national accounts (Piketty et al. 2016). We combine tax, survey, and national accounts data to build a new series on the distribution of national income. National income is the broadest measure of income published in the national accounts and is conceptually close to gross domestic product, the broadest measure of economic growth.3 Our distributional national accounts enable us to provide decompositions of growth by income groups consistent with macroeconomic growth.
Anyway, my point is that the sandbox gives all agents the secure element which contains any significant spending,  encapsulated into a histogram, just like the good doctor wants.  Once we have that, then we have half a dozen forensic methods to figure out why some thumb prints are poor and some rich. S&L technology works in the bandbox by inferring the sizes of our consumption baskets, and tells us, soon enough, which baskets are too empty or too full.

Medicaid stampede

Trumpcare's failure has set off a chain reaction of states trying to expand Obamacare's most popular program
But the apparent demise of the AHCA has meant that Obamacare and its Medicaid expansion, in the words of House Speaker Paul Ryan said last week, remains "the law of the land" for the "foreseeable future."That has produced renewed vigor for expansion in Virginia and North Carolina, where Democratic governors have announced plans to to try to push Medicaid either through executive action or legislatures. In Maine, the secretary of state's office certified more than 66,000 signatures collected for an initiative to expand Medicaid. It will be voted on by the public in November. 
This adds, ultimately, abut 50 billion to the currently planned deficit.  But, note the one year is rising, now at 1%, and GS will have a harder time keeping the senators at a 2.5% ten year. The worst stampede mill be wealth,

GS clients who signed up for the price fix.  If GS can't keep the bargain, this money will bet on the shutdown, then default, pushing the senators over the edge. And that triggers the rush to the exits in stocks as pensions exit to pickup yield. This is what GS faces, the debt limit is coming up, the date to cover two years of Obamacare loses is coming up.  These dates happen in succession, and we get another stampede of insurers adjusting to the result.

How long does this go on?
Forever, all federal government programs work this way,this way. No child left behind, that is still a volatile mess,  SDI, nothing but white noise, transportation? haul around empty steel cars.  Most of the Swamp, programs born in the delusion of 50 little obedient Hoovers.

Wall Whoops

"The Rio Grande, what side of the river are you going to put the wall? We're not going to put it on our side and cede the river to Mexico," he [Secretary of Swamp property] said. "And we're probably not going to put it in the middle of the river."
The river is most of the border, except California. There is no natural border between Alta and Baja California  So the Trumpster has a bit of a geography problem, kind of like those folks making the California high speed rail.

Wednesday, March 29, 2017

Busted!

Mexican state attorney general arrested at U.S. border in San Diego on drug trafficking charges
California has a corrupt neighbor. 

Understanding fractional reserve in the sandbox

We should straighten out out concept of fractional reserve.

In money theory, the fractional reserve is really the loan to deposit ratio, it  defines a multiplicative ratio. For the sandbox, in the S&L technology, this is the mis-match between the typical sequence of deposits and the loans events. In the S&L technology, this is about 3% to 15%,  and mostly a bound upper and lower limit. This is the float liquidity at risk, needed for price discovery.

The bit error stream is the S&L pit boss' share of that float risk.That number is likely to be .5%, very low.  It is the ad cost when you look at facebook kitten videos; in the sandbox, the bit error volatility should be priced like ATM fees in the current system, except much cheaper.  Most of the fractional reserve risk is borne by traders betting one set of inside information against some competing side. both innovative and thus bear most of the pricing risk.

So we get this mis-understanding of fractional reserve in current banking system, I mentioned it before.  The basic S to L math still applies, but some of the reserve is hidden in regulatory mandates deposits held elsewhere, or three way trade regulations on capital.  In other words, it is a very lousy implementation of a sandbox, but it is a sandbox.

These semantics go out the window for specialized trading pits configured for hedge funds and exchange funds, and these may be three color.  Redneck systems has multi-color pits in the reference architecture, so some pits have these variable, and high cost ledger fees.

Price discovery is a conserved effort

The change in debt levels indicates price discovery in process.

In this case, all the government baskets from the senate have to be priced, and the debt levels vary by about 3%, as we see on the far right.

Here is the problem, I can do a 3% arrival jitter on my bike trip to the corner store.  I can, ultimately, hedge the government tax man.  I can always arrange to get my regular government cookie, plus avoid much of the cost by sneaking deliveries on my bike.  Tis is specially true if me and my grocer are competing with Jeff Bezos, we always win and my arrival jitter drops below 1%.

But, at 100% of GDP, the Swamp is consuming all the available S&L float at risk needed for price discovery.  So all the markets are conditional on government resolution in the Swamp. Nothing moves forward until the Swamp does a bit more mark to market, and pay an amortization charge or default.

The Trumpster and Committee of Space Cowboys is going to solve this  problem.
Who is on the committee? Timmy, Elon and he flying car kids. They all know where this is headed, to the sandbox, and their kids might actually have figured out fair trading. So, Timmy and the boys have a conflict, they are going to tell the son-in-law the truth, and the copter ride is almost certain during the Trumpster regime.

So, my guess is we have five major players looking to buy hardware wallet vendors, exchange servers, pricing engine technology, tokenization systems software, secure element pre-configured designs. For example, bitcoin, we going to get two of them,  b oth operational and co-existing in the sandbox, and that defines most of the layering standard we need.  Government;s hand is forced, the commitments made.  It is like, technology heaven squared, geekdom to the limt.

How would a secessionist rule

Mises:
San Francisco landlords were getting heated Friday in protest of a State Assembly bill that would repeal limits on rent control that have been in effect since 1995. AB 1506, at least in its current version, which was introduced at the end of last month, would repeal the Costa-Hawkins Rental Housing Act of that year, a law that made units built after '95 free from rent control restrictions, exempted single-family dwellings from rent control, and allows landlords to raise rents to market rates between tenants.San Francisco and San Jose landlords protested at an Assembly Housing and Community Development Committee meeting on Friday, Bay City News reports, since some say the bill would put them out of business and could remove housing units from the market. At the helm of the Assembly Housing and Community Development Committee as its chairman is David Chiu, a State Assembly Member and former San Francisco supervisor. Chiu is also a lead author of AB 1506.
First, in this particular case, the California legislature is involved. Anything they do is not without some huge, hidden secret agenda which is usually more destructive then  the bill. 

Aside from that, leave it up to the cities.  You are better off letting the cities frig things up at random than having the state government frig things up all at once.

Let's plan to be fired all together

Press Democrat;
The city of Santa Rosa paid $11 million in unfunded liability costs last year but is expected to pay $41 million in 2023. From another perspective, the UAL cost is expected to climb from 7.6 percent of the city’s current general fund to 26 percent by 2023. This means the city will need to find $30 million in additional annual revenues over the next six years to cover its UAL cost.

Petaluma paid $4 million in unfunded liability costs last year, but will pay $12 million in 2023. Presented as a percentage of the general fund, the city’s unfunded liability costs are expected to climb from 9.8 percent to 28 percent by 2023. This means Petaluma will need to find $8 million in additional annual revenues over the next six years to cover its UAL cost.

Include the rest of the town in that large county.  All of them will be spending 28% of their budget on pensions. So, brilliant union government has a bunch of public workers laid off in one region at one time causing mass migration, a war crime by the way.

It will end slightly less badly then the last time it ended badly

Jim Rogers:"this is all going to end very, very, very badly...propping up zombie banks and dead companies is not the way the world is supposed to work."
Walk on the slightly more sunny side of the street. 

What the bitcoin industry knows but refuses to formalize

The miner protocol and the bitcoin uses co-adapt. So, it is no accident that the first niche for bitcoin was FX transfer, independent of central banking, it was designed for that.


How do they co-adapt?
The core bitcoin miner protocol gets congested, and that pushes out one set of users and incentivizes another.  The ledger price will settle at the point where the miners and the users are optimally queued, they get the ledger service at the rate and sizes that meet their typical usage; and you get locked, quantized into a niche. You support a stable set of baskets, and the quantization costs to change basket sizes increase. In order to change basket sizes, the users have o see more extremes, they have to measure the edges of congestion.

As long as there is a smart layer moving mass over distance and time

You will have ledger services. It is the smart contract layer because these smart contracts know that mass, time and distance can change, unexpectedly, over the life of the contract.    So, ledger service establish legal completion points in these contracts.

The ledger services are the one color trades, basically take the nearest price on the list and perform the service.  The ledger queue is set by a time/mass/distance machine, it has no measurable market distribution to trade against.

Hot company

 Digital clearing in the old world, from Autotrader Mag:
The Depository Trust & Clearing Corporation has announced that its Omgeo ALERT (ALERT) solution, a global repository for storing standing settlement instruction (SSI) data, has completed enhancements to become the industry's single and centralized 'SSI Utility.' With 6.6 million settlement instructions as of year-end 2016, an increase of 15% over 2015, DTCC remains committed to driving the industry towards automating and replacing onerous, manual processes.
"In a short amount of time, ALERT has become the industry's only SSI Utility - allowing a community of investment managers, broker/dealers and custodian banks to take advantage of multiple benefits," said Paula Arthus, Managing Director and Head of Omgeo and Data Services at DTCC. "These include ensuring the complete automated communication of account and settlement instructions, lowering costs and streamlining trade processing, taking advantage of DTCC's expanded asset class coverage and, more importantly, increasing data quality by establishing levels of firm authorization."
How does this fit into the sandbox?

Well, this company will partner up with a company that does secure element apps, in the sandbox.  Then each hardware wallet can be scripted to generate the proper token and autotrade at the site.  Whatever they are clearing becomes accessible to a potential billion customers instead of their mere 100 thousand.

The sandbox is neutral, everywhere.

It is a reference architecture that defines the mathematical assumptions needed conserve and distribute arrival uncertainty for chunks of do-re-me. This site gets sandbox surrounded, as do the bitcoin exchanges.  Miners sort of sit in the smart contract layer,  The sandbox, it is what you need at the interface to surround your digital site and make its activity priceable. It works everywhere in the web.

Republicans formally adopt communist ideology

House Republicans, still reeling from an embarrassing failure to bring their healthcare bill to a floor vote last week, are considering another attempt to pass the legislation. According to Billy House and Sahil Kapur of Bloomberg, House GOP leaders could bring back the American Health Care Act as early as next week for a vote on the House floor.
Decided not to fake it any more. Will formally become Tea Party Welfare Bums. 

GOP vs GOP, in court

A rare moment in hilarity is upon us.  The court must deide if Trump can legally cover the losses of Obamacare insurers. Paul Ryan thinks Trump should not, and has a suit in court to defy any attempt.  Who will back down?  A moment of GOP hilarity, a rubber necker's delight.
May 22: The ACA's day in courtOne key to insurers selling plans in the marketplace are reimbursements they receive called cost-sharing reductions. These aren't the same as the tax credits that people receive to help pay their premiums; it is financial assistance to help low-income people pay their out-of-pocket costs, such as deductibles. The Congressional Budget Office projected those payments would add up to $7 billion this year and $10 billion in 2018.But for insurers, there's a question over how long that money will be delivered, due to an ongoing political and legal dispute about whether the cost-sharing money should be distributed at all.In 2014, House Republicans sued the Obama administration over the constitutionality of the cost-sharing reduction payments, which had not been appropriated by Congress. The lawmakers won the lawsuit, and the Obama administration appealed it. Late last year, with a new administration on the other end of the suit, the House sought to pause the proceedings — with a deadline for a status update in late May.

Sandbox changes the cyber war strategy

The Reuters artticle talks about defensive measures against cyber war. The general fix in the sandbox is to reduce money transaction such that if the hacker wants the stuff, they have to buy it. We are awaiting the point when a third of us have our secure element.

When WikiLeaks founder Julian Assange disclosed earlier this month that his anti-secrecy group had obtained CIA tools for hacking into technology products made by U.S. companies, security engineers at Cisco Systems (CSCO.O) swung into action.
The Wikileaks documents described how the Central Intelligence Agency had learned more than a year ago how to exploit flaws in Cisco's widely used Internet switches, which direct electronic traffic, to enable eavesdropping.


Senior Cisco managers immediately reassigned staff from other projects to figure out how the CIA hacking tricks worked, so they could help customers patch their systems and prevent criminal hackers or spies from using the same methods, three employees told Reuters on condition of anonymity.

Fat kids making waves

North Korea threatens WAR with the US after Senator John McCain called despot Kim Jong-un a ‘crazy fat kid’
Michael Moore (fat kid) Loses It (Again): Warns Of "Extinction Of Human Life Due To Donald Trump"

Warm weather home sales spike

Mish pointed this out. Warm weather spikes are normal. The reason we like the spike is that it indicates the economy still responds to warm weather, it is not yet broken.

They're going to learn us about the sandbox

From Automated trader: Dr Zigrand, co-director of the Systemic Risk Centre at the London School of Economics and Political Science has been appointed head of research and learning stuff about how the sandbox works. Naturally they want to get at the theory of price compression and uncertainty of the 'trade book'.


However, new technologies are causing the most rapid changes and one of the key aims of the project is to train young economists to analyse high frequency data, a skill that usually belongs to computer scientists with no financial background."The digitalisation of society and the large use of high frequency trading and algorithmic trading have completely changed our financial markets, which are a vital core of our economic system."The increase in trading speed now allows markets to operate far beyond human capabilities, having a dramatic impact on the stability, liquidity and resilience of financial markets," Dr Zigrand said.Data will be collected at the nanosecond, if possible, which includes not only prices, volumes and dates of the transactions, but also other variables that academics and regulatory authorities can use, such as information about the state of the limit order book.
Or, we could read my blog. 
The new model simply eliminates the three way trade which was the hallmark of the old MIT school. They never solved it, and the economy decomposes it. The two color system is simple once the fair trading pit S&L technology is introduced.

Why so long?
The law. Central banking law is a legal requirement that money be fouled up, the economic models were designed to fail and keep on failing.  That is the whole point of central banking, insure the state against failure. That is impossible, hence the MIT boneheads at MIT stuck us with a foul model.

Tuesday, March 28, 2017

Trumping humping is back

Markets up by .8%.

John R. Bolton, been there, done that

Bolton speaks:
Moreover, the consequences of one of Barack Obama’s worst legacies, his gutting of America’s national missile-defense program, now leave us painfully vulnerable at home.
John, dear, the advantage, by an order of magnitude, favors deploying decoys in the vacuum of space rather than trying to pick the one of 50 targets that is the warhead.  

The result of your ignorance in the field of SDI is that you and your party blew about a trillion dollars,mainly the conservative state senators.  We are going to hunt down every bozo tea party nutcase who voted for this shit and take their homes, to cover the bond default, You, McCain, and old Dick 'Deficits don't matter' Cheney. Where are you from? Let us know, we want to tax the hell out of anyone supporting you.

Doing the central bank model in the pits

Economists want to keep it, ok.
Use the same triple entry accounting we did for  bitcoin, loans,deposits,ledger fees.

Ledger fees buys property insurance from the federal government,which collect ledger fees.  The pit boss enforce innovative leer fees on traders when the significance of their trades requires a significant ledger free.  The pit boss is doing the quark, making a proton.  But the shelf life of the proton is 10e32 years, the shelf life of a Senaton is six years. So, the vast majority of us, running two color  secure elements, will soon have the ledger fees broken into a complex of two colors.  In our balance sheets we end up with an account called taxes due.

Trading bots have arrived, on duty

You Might Be Exchanging Bitcoin With Trading Bots and Not Even Know It

That is Jaime Redman, again, the best crypto reporters in the business. He gives a nice review of the automate bitcoin and altcoin robot traders. Great start ups, all of them.

When the Rednek compatible pits are deployed, all of the bots will sit right at the trading site, instead of on your personal device, or some web wallet.  The sandbox model is simple, the coins are kept from cold storage and given to the in place bots to trade on the local odds tree.

Components coming together, coordination risk remains moderate, but nothing is going out of bounds in the market development.

Write a racist law in California, who will notice?

NORTH HOLLYWOOD, LOS ANGELES (KABC) --
Outrage has grown at Walter Reed Middle School in North Hollywood, as the school faces layoffs and increased class sizes due to a law limiting funds for schools with a higher white student body.The Los Angeles Unified School District provides more funding for schools where the white population is below 30 percent.In a letter to parents, the district noted the highly regarded middle school had been above the percentage for the past couple years.










It is not that little browns from Mexico are racist pricks, it is that they are so uneducated that they think writing racist American law passes constitutional muster.   OK, we get that old Mexico never figured much out, but there is a better, smarter California in our past, a past that proves, at one time, little brown people were something other than racist bums.

It is like the affirmative action Puerto Rican female lawyer.  If you are going to do it, look harder,they are not all dingbat down there. If you want to be a California racist prick, at least learn subtly.

Trump is not deep throat

Monday, March 27, 2017

Good point by Ron Paul

The Government Spies on All of Us — So Why Not Spy on Trump?

His point being that we already passed the Patriot Act, our stuff is collected.  

So what is the issue? Simple, did some NSA goof type in the word 'trump' into the data search engine? Was that illegal? Maybe, this NSA goof maybe searched trumps name.  

Or maybe he meant Gump, he was looking for terrorists who imitate Forest Gump, and mis-typed.  So, then he sees shit, Omigod, accidentally observing the usual, illegal yawker graft with Russian mafia killer demons. What to do?

OK, let's build a three color scaling pit for bitcoin

There are lot' of solutions when we have adaptable fair traded pits. Let us do triple entry accounting and solve the bitcoin problem.

We have: loans, deposit, ledger fees, together these three sequences are managed by the pit boss with predetermined bounds on variance. Loans to deposits drive the price discovery, but flow onto to and off of the bloc chain is priced, as follows.  When innovative interest charges ae gained or received,h pit boss charges you an equivalently high ledger fee. The boss does not want a whole bunch of bitcoins floating, and keep the ledger service busy, as needed.

By setting the variance on bounds, the sandbox can chain sub pits together and trade any
tiny factor of a bit coin as needed.  The more insignificant and tiny the bitcoin transaction, the longer the bubble up to ledger services.  Scatter and gather can be controlled, coin conserving and round off error conserved and shared.

The message. If you are doing high value, large and innovative bitcoin saving or borrowing, the you ate going to be reserving some ledger time a bit ahead of your trades. This satisfies the scaling consensus because user and miner can price the ledger service utility.  Say, I sell my car, for a good price; I am willing to hike my ledger fees, get my cash income registered ASAP. Triple entry accounting, we can ake that possible. Gonna need hardware support for shuffling orders.

Matching three sequences by  quantizing arrival jitter? It is  triple conditional odds making problem.  I wonder if that mathematician has escaped from my basement?

The sandbox likely devores the web

Mainly, selling bandwidth is simply priced and transaction costs are measurably zero. Consider he news reader app, I tap the ten dollar icon, and I am good to go on reading any news site. The cost of the articles I read are on the red/green icon when I browse, the news reader tracks news spending for me. So, forget about online ads, the ads have to be priceable  entertainment. The pricing system supplies controlled congestion to the web and removes the DoS problem.Again, loads of fun, huge improvement in commercial efficiencies everywhere.

Fundamental transaction, part 2

Part one of the fundamental transaction was, I give you digits, you give me a thing in my basket.

There is a part two. At some reasonable point afterward,you and I will independently tap an icon and inform our S&L trading bots what we done. Our separate bots  will cover the currency risk by adjustment of deposit and loans.  So, the game, generally, is to keep your spending deviations within range, and your bot can keep your mis-pricings under the radar of the pit boss. Even then, your bots may have deferred ledger service, generally the ledger should be called when accumulation spending exceeds some significant amount. Significant being the cost of security and due diligence on the part of tokenization services. Tokenization services atre a big part of the sandbox, it is the key to earning permitted conditons imposed on transactions, it gives others a hint of the protocol. And the tokenization services spend some tranaction costs doing crypto forensics on their tokens, mae us feel better.

It is all loads of fun.

Looking at the secure element architecture

The seure element i the protected 'ledger; with associated spreadsheet style programming.  It has the characteristic that nothing leave or enters except by specific, controlled  gate ways inside the element.

Inside the parts are sort of, as follows:
A section for managing keys and generating tokens
A section for coin ledgers
A section for verification and security protocols.
A section for a temporary stack usable by a multi-step coin transaction protocol.

The verification section should handle timeout, essential on  all transaction protocols. It secures the bankruptcy protocol, and human not present protocol. And it has the default, general purpose token generator, usable for street cash. And it manages 'parameterization' to set up coin contracts. Verification also contains biomatching.

The keys are an interesting set of original keys and installed keys. There is at least one key that known one, man nor bot, knows except the secure element, and that key is unique to that secure element.  The rest of ther keys are organized by the pros, and the pros also install a set of generic key manipulation macros, used to define token generating protocols.

And the ledger contains mandatory double entry honest accounting.

Thre stack is where the SE has a spreadsheet unction that tracks user spending by significance with uncertainty containerized, it makes the Huffman tree to specified precision. Some of your S&L contracts require some imprecise estimate of your spending tree. The SE can collect product category IDs, and separae them, but beyond that, all context is provided by the app.  in general the app controls your bot activations, with the approval of your SE.  So, when you initiate auto trade, you tap the icon and thumbprint; that turns the bots loose. The SE only works with POS, kiosk,smart phone othewise   strictly two way, SE to SE, card to card should work. .

As a gate array

The SE is simply a device on the microprocessor memory bus.  It is a completely self contained unit, read and written with mem control hardware lines.
The entire thing could  be  embedded in the general purpose micro. It is really just a special kind of ALU, in techno speak, it is like having a special circuit to do some special floating point format. Making that gate array would be a lucrative business, liking owning the ARM design, for example.

Red/green and the other rules

Everyu interaction in the pit will generate an accumulation of the red/green; scaled by the SE spending pattern.  Along with 'no forgery, double counting' we have 'red/green'. Basically it gives the holder an unbiased estimate of the risk this tranaction applies totheuser balance sheet.  Except, of course, the concept of balance sheet is provided by the app.. The spreadsheet only knows it as a convolution of two distributions.

The SE and government

Everyone gets an SE, preventing that from happening is like preventing shoes, government is on board, do not sweat this.  Government's survival under the mass of debt depends on the options that the SE provides.

So, you can see, the SE is a secure congestion management system, automated.

Crew in charge of helicopter

Jared Kushner's 'innovation' office will get advice from Bill Gates, Tim Cook and Elon Musk

Basically, the new money directive comes from this group.  They decide when the senate goes to the sandbox. There is also the budget  director.

These folks know as much as you can get off my blog, concerning price and auto trade, their assistants track it along with a bunch of other web stuff concerning sandbox.

So, we can see that this is  terrific marketing advantage for the hardware wallet vendors, they have a target. They want the glitter sticks in our hands, along with trading pit capacity, such that this crew knows better than to hedge. The mere fact that this group is assemble is prima facie evidence, the copter is going to fly.
How to hedge the copter

Hang around a gold pile, make sure this crew sees you. A watched pot boils right on time this time around. We watch them and build out the and box. Once we have a sufficiently robust auto trade network, we can move away from the gold piles. The strategy here is to convince the hardware wallet vendors that when the moment comes, demand goes to max, and they have to be ready, fill it with the lowest end wallet, but fill enough. Go for economies of scale, tens of millions.

Me and my grocer mathematician whoop Jeff once again

Technical issues are forcing Amazon to delay the public launch of its cashier-less grocery store

Me and my mathematician have a trillion dollar bet with Jeff. We claim that we are the maximum entropy gold standard, me, my bike, my basket, the checkout; together form a prime factor in all the containers from my street to the LA Harbor. I am king of the container algebra in America, my bike and my grocer.  Jeff cannot beat us, impossible, not even a wheeled bot.

Right now I am optimum.  I can pickup what I want,maintain my own count and pay him about every three trips or so. I do not have to exit my bike, I can ride the aisle in and out; and my basket is exactly the half case that is standard through all of grocerdom.

Further, since I am at maximum entropy, my self price variation does not change that much, I can count by item and category, tote the prices later. He and I spit the pricing risk if wholesale pricing change.

WhAt is the kicker? Fresno California is mild weather, and bike riding is actually leisure.

Welcome to California and New York

Bloomberg: 
As members of Congress in Washington debate raising the minimumrequired to obtain a U.S. immigrant investor visa from $500,000 to $1.35 million, concern about the hike has set off a scramble among wealthy would-be participants in China.

These folks will get in just in time to bribe the trumpster son-in-law.

The bulk of wealth will buy a house in California for grand ma and the kids, while they return home and pay taxes there. 

California's dufas legislature  has been trying to change the law so  only special little browns get the advantage. Each time they try they get called racist pricks by redneck intellectuals who understand the prior legal history of racism.

My suggestion to the California confused electorate, take back Baja California, secede, and that is how you get what you want.  It is called intelligent national reconstruction. But to do that, you have to be smart, you cannot just do that with some Pancho Villa hoot  and holler.  You actually have to make sound arguments, have a sound history of the USA, Mexico, the Frnciscans, European seconf era colonialism. In  other words, something better than then public school education. Andf understand the role the sandbox will play in your efforts.

Or, we could continue to be ignoramus little browns, Californians has to decide. It is too late to go back and beg for handouts at the swamp, nor does it any good to subsidize the swamp.  The discussion is over, sorry, we are seceded.

Horseshit

Elon Musk has launched a company that hopes to let your brain talk with computers

This whole line of brain-computer chat is pure scam. 

What really happens is you skull muscles generate readable electro charge. The neuro sciences are not nearly as accurate as claimed. However, reading muscle impulses is  a good idea, just do not let Musk sucker you into another scam.

California cannot afford another eight years of Medical volatility

Paul Krugman: How to Build on Obamacare

We would almost certainly trigger a bust out here,.  This would make nearly 20 years of  delusional California legislating with zero  memory. Our legislature will surely foul this up.

Fiscal conservatives have already accepted inevitable default

Republicans are going to have to drop the 'fiscal conservative' act pretty soon
Thus is a young Business Insider who has discovered the essence of fiscal conservatives. They are not idiots, they understand the central banking leads to generational default. What they do not understand is that  we have the technology to handle it smoothly. We can do it without world war or bombing rice farmers. Nor do we need special  protections for the little browns. All we need is for the conservatives  to vote in favor of defaults. 

More Nixon from Trump

Jared Kushner met with the CEO of 'the bank that financed Vladimir Putin's grandest ambitions'

Trump and the kids are all funded by foreign governments, and we have a  mess.

Maybe, but it is not JPM's decision

JPM: "Until Market Abandons Hope For A Tax Deal, There Will Be No Significant Weakness"


Goldman-Sachs will decide our tax break, and their decision depends on our willingness to accept senate losses.

And pricing engines and autotrade

A Nordea bank executive thinks they have mastered the new technology. But she forget to mention the basics. Pricing engines can set rates and prices directly balancing supply and demand. It will be the first money technology, ever, to implement auto trading for everyone.

“There are a lot of things happening in the payments space,” she explains. “Real-time is happening. Contactless is happening. Blockchain is going to happen. Biometrics is another key technology. Just a few years ago, making payments involved letters, faxes, phone calls or face-to-face interactions with banks.

In the sandbox, Musk's socialist guarantees weaken

ELON MUSK’S BILLION-DOLLAR CRUSADE TO STOP THE A.I. APOCALYPSE

He talks about roaming killer bots, but that is code word. 

His real fear is the multi-currency sandbox because California socialists will quit handing him money taxed from little browns.

The Fed fears the erratic helicopter

Tim Duy talking about the Fed: 
Policy makers see themselves as dancing on a fine line. Too much tightening and they leave the economy weakened and vulnerable to negative shocks. Too little and they set the stage for inflation that they are unable to get under control. But if the Fed can hold that line, it will extend the life of this expansion and maximize employment over the medium to long run. Lacking precise policy tools, however, requires the Fed to seemingly lurch between hike and halt, leaving it open to criticism.
Two known outcomes are in store. First a senate shutdown which occurs every regime these days. Then, if that fails, then Trump will go full sandbox and let the senate default.  The Fed is likely to be left out of the helicopter decision, leaving it up to Goldman-Sachs.

The idea that Yellen is doing dual mandate is horse manure. The game plan has been to keep senate interest costs at 2.5% so the senate might get past the boomer retirement. No can do, the boomers are plotting the proper time to stampede.

Trumpster crashing day

Trump Hump gone.

Sunday, March 26, 2017

George Soros engaging in crimes against humanity?

Disobedient media reporting:
Italian authorities are calling for monitoring of the funding of an NGO fleet bussing migrants into the EU from the North African coast after a report released the European Border and Coast Guard Agency has determined that the members of the fleet are acting as accomplices to people smugglers and directly contributing to the risk of death migrants face when attempting to enter the EU. 
Italy has for some months been reeling under the pressure of massive numbers of migrants who have been moving from North Africa into the southern states of the European Union. In December 2016, The Express cited comments made by Virginia Raggi, the mayor of Vatican City, stating that Rome was on the verge of a “war” between migrants and poor Italians. The wave of migrants has also caused issues in southern Italy, where the Sicilian Cosa Nostra has declared a “war on migrants” last year amid reports that the Italian mafia had begun fighting with North African crime gangs who entered the EU among migrant populations.

That would be planned default

WASHINGTON (AP) -- President Donald Trump is set to announce a new White House office run by his son-in-law that will seek to overhaul government functions using ideas from the business sector.
What business idea comes from the private sector? Free entry and exit, bankruptcy, default. How in the frig is some dufas son-in-law going to implement that?  No, the sandbox will forc e innovation onto Congress, the Trumpster and family have  one job, be the erratic idiot at the  moment of lift off.

Netherlands tires of the Turkish Burden

I see this everywhere. Europeans do not believe the mass migration from the middle east is a cute Doonesbury cartoon frolic.  Hence, the Merkelites are looking increasingly useless to the voters over there.

Can Ned be automated?

Secretary of Interest Payments, Ned Ryerson,  said Friday that he wasn't worried about artificial intelligence taking over American jobs. Especially life insurance jobs.

But a new study contradicts Ned:
For example, the report says the financial and insurance sector has much higher possibility of automation in the U.S. than in Britain. That’s because, it says, American finance workers are less educated than British ones.
Zero Hedge wants to know, can Ned Be automated? You decide, here is Ned selling insurance:

China, central banking, loops and deja vu

Zero Hedge goes through a great financial analysis of the Chinese banking.
Last last week, Deutsche Bank analysts led by Hans Fan released what is the definitive research report summarizing all the latest troubling trends facing China, which judging by capital markets, nobody is paying any attention to. They should, because as Deutsche Bank puts it, if taken too far, they threaten an "uncontrollable liquidity event", i.e., the financial cataclysm that Kyle Bass and other perma-china-bears have been waiting for.
But the author did a constricted flow analysis, both the two color visible,then he derived allthe circular flows resulting from three color liquidity extension by the PBOC.  Circular flows are the extend and pretend credit extensions banks get from PBOC rule and rate changes. Essentially credit risk gets extended out to longer terms and their pricing runs through a loop. Default risk is evaluated by trading the government injected liquidity, each participating banks adds its cost. But it eventually returns to the liability side of the bailed banks, and the loop get prices, the loop degenerate back to a two color and the stress returns. The PBOC then has to make a longer term expend and pretend. Eventually the term risk is too great for the banking system. to manage.

The solution is to skip three way trades, automate the pit bossm and give it no property rights.  The economy works the same, bankers still domthe same job, we just use entry and exit to price default risk rather than running around in loops.

We elect delusional idiots

Budget director discovers the senate is bankrupt.
“I think, more importantly, we haven’t been able to change Washington in the first 65 days,” Mulvaney responded. He added that the process was “educational for the Trump administration” because it revealed that “this place was a lot more rotten than we thought it was.”
Now that Yawkers have discovered the obvious, they will be looking for default mechanisms. 

Secession is back in the air

Daily Mail: 
The 'Bad Boys of Brexit' who led the campaign to break Britain away from the European Union have taken on a new exit challenge: splitting California into two states.
Former UKip leader Nigel Farage and Leave backer Arron Banks have just returned from the United States, where they helped raise $1million (£800,000) for a 'Calexit' campaign, which would split California into two eastern and western regions.
There are several 'Calexit' campaigns competing for a referendum in the United States, with one aiming to remove the state from America entirely as a response to President Donald Trump being elected last year.
We have full secession and partial secession. Let's have both. Collect taxes from Texas and send them to the various Californias.