Wednesday, May 31, 2017

California is not part of any optimal currency zone

Is the United States Becoming Less of an Optimal Currency Area?

It took the United States roughly 150 years to become an optimal currency area (OCA), according to economic historian Hugh Rockoff. This long journey meant that it was not until the late 1930s that a one-size-fits-all monetary policy made sense for the U.S. economy. Since then the U.S. economy has often been held up as the best example of a currency union that meets the OCA criteria. This especially was the case when comparisons have been made to the Eurozone, like in this classic Blanchard and Katz (1992) paper.  But all is not well in this land of the OCA.

Note, the historian referenced says we were not an optimal currency zone until the California dust bowl  migration.  And now we are not an optimum currency zone because California is too big and run by unions.  Look at unemployment:

The last three recessions, starting in California and ending in California.  California and its interaction with the federal government is the synchronization point for recessions.  So, large, new federal programs always coincide with major disruptions in Cal government programs, causing recessions.

What can California do?

Not much, the sandbox will fix the problem, as the sandbox will automatically organize transactions by similarity, thus the optimal currency zone and sandbox are synonymous. Also, the sandbox has free entry and exit. So OCA is not an issue, especially since the central bankers will be competing with different monetary standards.

Redneck trading pits do savings and loans correctly

Short selling Canadian bankers 
Though Block said he hadn’t heard of Element before Wednesday, the run on Home Capital Group’s deposits in recent weeks suggests that “investors denial is just starting to crack.” HCG is being drained of assets at an unprecedented pace – already 94% of retail deposits have fled the troubled lender - and the company has erased more than half of its market capitalization since a Canadian regulator accused it five weeks ago of misleading investors over an internal probe of fraudulent mortgage loan applications – a practice that bears some resemblance to US mortgage lenders’ reliance on “liar loans,” which helped inflate the subprime bubble.
This is the central bank multi-lemma.  Loans and matching deposits are created by the same entity, so depositors do not have a chance to bid on funding until  after the fact.  And when the debt created is time based, then the borrower has less opportunity to refinance.

In the sandbox, the loan to deposits is asynchronously managed, automatically when loan to deposit exceed the stated variance.  Since both depositors and borrowers participate with equal access to the trade book, and they both absorb the currency risk, then the imbalance does not build up.  When loan to deposits become imbalanced, all parties have fair access to the trade book and can compensate before interest charges are assigned, asynchronously.

Let me state that smart contracts can issue term loans, but they introduce term risk for which they charge an insurance premium.  A great business, but in smart layer, not pure cash.  S&L in pure cash is strictly maximum entropy, no term structure except the trade book is order by significance.

The difference between banking built on ignorance and banking built on the theory of everything.

Taxi company loses 3/4 billion dollars

Uber said it lost $700 million in Q1 and it's looking for a public company CFO as its head of finance leaves

So, the idea of using your phone to call San Francisco and order a cab to take you across town in Wichita, Kansas.  Consider me confused, where is the value added?  

This is like Tesla, building a company based on bankrupt California subsidies. Some things do not make sense in Silicon Valley, some of it is more like three stooges.

Michelle Goldberg embarrassing dingbat

Will We Ever Have a Woman as President?

What an awfully stupid thing to write, especially after the 7th court of appeals just declared anybody can be any gender.  

So, I proclaim Trump to be a woman, and he is the first women elected president, and Trump can go into the women's bathroom and buy tampons. You, Michelle Goldberg, should quit talking nonsense and start thinking logically about how the 7th court has totally eliminated affirmative action for women.  Why even in California, a man can become an affirmative action senator as long as he declares himself a women and gets a job in the secretarial pool.

Sen. Jeff Merkley arrested for rape

Sen. Jeff Merkley: Trump ‘bears responsibility’ for wave of violence that includes Portland murders

The idiot wants to make false accusation, then I will help.  He is guilty of rape and murder, and I have secret facts to prove it.

Now, who is the best 'make shit up' artist, me or some idiot senator

My inland job network is gone!

According to this professor from Howard University I have no job network
The trend is especially acute among African-Americans but also applies to areas like Appalachia and inland California, which are plagued by low-wage labor and disconnected from larger companies and economic networks, he said.
I always thought it the other way around, I got stuck in inland California because I am a politically incorrect, Redneck  asshole, proud of it.  So I got booted from Silicon Valley and now I invent sandbox math and the sandbox is booming!

Deep welfare state produces unparented killers

Half the kids killed are the result of community members failing to inform the police of gang activity. The killers seldom caught because community members do not cooperate with police./  

So, ask yourself how many parented kids know enough to a avoid the welfare communities and you have the perpetuated poverty here in Fresno Ca; courtesy of the local welfare conspiracy. Now we have killer squads roaming the streets hunting whites, came close to getting me one a few occasions.

Fresno Police Chief Jerry Dyer said much the same in a news conference Tuesday: “From a long-term strategy, we need the help of every person in this community. Or we’re going to be facing this 15 years from now.”This knot of gangs and violence is not easily undone. All of Fresno’s mayors going back to Jim Patterson in the 1990s have tried mightily to protect innocent citizens, young and old, from the bullets of gang activity. Thus far, there’s been little headway in breaking the cycle of multigenerational gang membership.The reality is that there are parts of Fresno where gangs rule by intimidation. Some kids are born into gang families and raised to become criminals. Others are recruited with a promise that they will be protected from rival gangs or they’ll make easy money.

Need S&L technology

Bitcoin transaction fees are a big problem in the ecosystem right now. These problems have persisted for some time, yet things are not improving. The  wallet seemingly recommends very large fees, for some reason. According to a report, the wallet suggests paying US$26 in costs for a Bitcoin transfer. These problems continue to escalate at an accelerated pace as of late.
Bitcoin needs better things to do than wait in the ledger queue.  
Bitcoin has to have robust S&L tech so BTC pricing works. 

Californiia, especially the south, a great place to be homeless

And overall, homelessness has risen 23% in 2016 in LA County.

Sandbox worth 4.7 trillion says Goldman-Sachs

The Economist magazine reporting:
The magical combination of geeks in T-shirts and venture capital that has disrupted other industries has put financial services in its sights. From payments to wealth management, from peer-to-peer lending to crowdfunding, a new generation of startups is taking aim at the heart of the industry—and a pot of revenues that Goldman Sachs estimates is worth $4.7 trillion.
So, do we really think the GS wants to sit around for years baby sitting the senate and getting interest payments done?  No, especially since the sandbox can provide fair default mechanisms for the senators.

Elon wants his tax subsidies

Elon Musk Warns He Will Depart Trump Councils If U.S. Leaves Paris Deal

Do we see the first automated S&L technology in sandbox?

Coin Gecko is on the case.  A very quick read seems to show the basics, round robin access to the trade book, automated pit boss setting rates based on variance between deposits and loans.  It is not quite completely asynchronous.  Overall, looks very close to sandbox assumptions, a possible breakthrough.
The WeTrust ROSCA works almost like a peer-to-peer savings/ lending circle among trusted groups of friends. While there are several types, the example below shows one that uses a reverse auction to determine how to distribute the funds each period. The picture below gives a good illustration of how it works.

Gary Cohn would go full sandbox

Gary Cohn "Would Love To Be" Next Fed Chairman: Report

The Goldman-Sachs former chief operating officer would certainly be interested in the sandbox plan for government defaults.  He would also be weary of managing the ten year rate, GS's main job. He was also part of the ad hoc group working on streamlined government,. a group which included techies.  I am almost certain Gary gets the concept of auto-traded cash.

Automated cops for the sandbox

Bitcoin Scam Fighters – First Legal-Services Offering Platform to Fight Cryptocurrency Scams

This kind of technology will convince central bankers.

Try excluding medical

Dean  Baker's plot:

With medical services running at about 4% then the core consumable is actually in negative territory, deflation.

So, absent the low interest rates driving up housing costs and government driving up medical costs, we are now retracing our inflation steps back to the Nixon shock. We will need the default helicopter soon.

Assuming central banking remains clueless

Bitcoin could hit $100,000 in 10 years, says the analyst who correctly called its $2,000 price
  • Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years, according to Saxo Bank analyst Kay Van-Petersen.
  • Its market capitalization could grow to $1.75 tr.illion which would make each bitcoin worth $100,000.
Central banks will discover their fear of the sandbox is unfounded and adopt the principles, In that case, all bets are off and bitcoin may just sit around at thousands of dollars. However, that assumption requires that Congress get a clue before they default, not after.

Tuesday, May 30, 2017

Trumpster disrupting the latte masrket

Donald Trump is creating "chaos" that is impacting the American economy, according to Starbucks' longtime CEO and current chairman Howard Schultz. 
It is always the Schultzes.


7th Circuit Court eliminates Title IX

A girl calling herself transgender obtained the rights to use the boys room. On what basis do we determine that the student was transgender? Because she identified as such.  So, if any student chooses to  self identify with a particular gender then they can use the  bathroom.  The court, and federal law have effectively removed gender identification. Great, then on what basis can federal law specify gender equality since they have just erased the gender distinction, by federal law. Continued below....
The Chicago-based 7th Circuit Court of Appeals ruled Tuesday that a transgender student has the right to use the bathroom that corresponds with his gender identity under federal law.In a unanimous opinion, the court upheld a lower district court order allowing Ashton Whitaker, a 17-year-old senior at Tremper High School in Kenosha, Wis., to use the boys’ bathroom despite the school's claim that Whitaker’s presence in the boys’ bathroom would invade the privacy rights of his male classmates.

In the 35-page opinion, Williams said a policy that requires an individual to use a bathroom that does not conform with his or her gender identity punishes that individual for his or her gender non‐conformance, which in turn violates Title IX anti-discrimination laws. 
Note the boldface, that requirement implies separate genders be identifiable, but they are no longer identifiable, the court just ruled that anyone can be any gender.  The court actually invalidated the concept of gender discrimination all together. A group of boys can identify as women for the purpose of making the tiddlywinks team, then demand gender funding. There is no controlling law any more, and the idiots on the appeals court are clueless..

Bitcoin trades in India

This is the volume of local bitcoins, swapped off ledger (on side chain) between trusted parties.

A graduate of Redneck U

Perhaps the biggest story of Game 1 of the Stanley Cup Final was the Nashville Predators fan who threw a catfish on the ice, a move customary in Nashville, but less so in Pittsburgh.The fan, Jake Waddell, was charged with disorderly conduct, possessing instruments of crime, and disrupting meetings and processions, according to ESPN.Waddell, however, is not sweating it.During an interview on Nashville's "Midday 180," Waddell, a self-professed "dumb redneck with a bad idea," called the charges "B.S." He also explained how he hatched his plan, and it involved some coincidental timing, $700, several pairs of underwear, and some savvy planning.
I think its ab undergraduate activity, throwing fish. It sure smells that way sometimes. 

McCain gone completely delusional

President Donald Trump has unsettled allies, as well as Americans, Senator John McCain said during a speech in Sydney on the future of U.S. relations with Asia.McCain -- the chairman of U.S. Senate Armed Services Committee and the Republican presidential nominee in 2008 -- said Tuesday that Australia wasn’t alone in questioning whether America was still committed to upholding peace and justice around the world.
For you foreign diplomats, the USA was never responsible for upholding shit and McCain is off his rocker if he wants the millennials to cover his boondoggle defense failures/. 

Stork theory failure

The UK has been told to prepare for a workforce of 80-year-olds as the world’s leading economies struggle to deal with a £54 trillion pensions time bomb.
The amount could balloon to an astonishing £334 trillion by 2050 unless policymakers take urgent action, the World Economic Forum has warned.
An ageing population, falling birth rates and poor access to pension products were the main sources of the widening gap between what people are saving and the amount they would have to put away to adequately fund their retirement, the WEF said.
No a problem say the klanosians.  UK can always import a million jihadis and force hem to slave away at retirement homes. 

Sandbox solves this

Here is the usual bitch about central banking.  First, creating money out of thin air.  This happens because central banking lets the member bank create both the debt and asset entry.  In the sandbox, the debt is created, then all member banks have an opportunity to cover the debt.  To the extent that the new debt is not covered, the pit boss will raise the rate, ex post.

This also eliminates first access to money because the sandbox allows free entry and exit, making the first access a priceable risk. After these two problems are solved, the fractional reserve issue is moot.
However, what sets in motion these cycles is not fluctuations in the growth rate of money supply as such, but the fluctuations in the growth rate of money supply generated out of “thin air.” By money “out of thin air” we mean money that is created by the central bank and amplified by fractional reserve lending by commercial banks.An increase in the money supply out of “thin air” provides a platform for non-productive activities, which consume and add nothing to the pool or real wealth. Money out of “thin air” diverts real wealth from wealth generators to non-wealth generating activities, thus weakening the wealth-generating process.The diversion occurs once various individuals that are the early receivers of this newly created money are exchanging new money for goods and services by contributing nothing to the pool of goods and services. Wealth generators that have not received this newly printed money discover that they can now secure fewer goods than before. (The increase in the prices of goods and services manifests this.)

Psyops only

Not quite the success they claim. North Korea has developed three types of missiles while we have  only one well managed test.  The advantage of mid-course intercept always goes to the offensive missile.

Update: according to the Pentagon, the much anticipated intercept of an intercontinental ballistic missile was a success, and the mock ICBM warhead was shot down over the Pacific "in a success for America's missile defense program." The test was the first of its kind in nearly three years, and was the first test ever targeting an intercontinental-range missile like North Korea is developing.The Missile Defense Agency said it was the first live-fire test against a simulated ICBM for the Ground-based Midcourse Defense (GMD) and hailed it as an "incredible accomplishment.""This system is vitally important to the defense of our homeland, and this test demonstrates that we have a capable, credible deterrent against a very real threat," Vice Admiral Jim Syring, director of the agency, said quoted by Reuters."This is one element of a broader missile defense strategy that we can use to employ against potential threats," Pentagon spokesman Captain Jeff Davis told reporters.

US Military imposes trade embargo on Iraq

Syrian rebels say U.S., allies sending more arms to fend off Iran threat
Syrian rebels say the United States and its allies are sending them more arms to try to fend off a new push into the southeast by Iran-backed militias aiming to open an overland supply route between Iraq and Syria.
The stakes are high as Iran seeks to secure its influence from Tehran to Beirut in a "Shi'ite crescent" of Iranian influence through Iraq, Syria and Lebanon, where Sunni Arab states have lost out in power struggles with Iran.

Tensions escalated in the southeastern region of Syria, known as the Badia, this month when government forces supported by Iraqi Shi'ite militias deployed in a challenge to rebels backed by President Bashar al-Assad's enemies.

Boldface mine.

This is a little confusing to say the least.  That was the US plan, build a Shiite crescent to protect us from deranged camel jockeys from Arabia, you know, the folks who bombed us on 911.  I say go ahead, complete the original plan, screw Israel. If Israel wants to be friends with deranged, Islamic camel jockeys, then be my guest.

Hate crimes against whites are not counted by racists at VOX

The Portland stabbing is the latest in a wave of racist attacks across America

A Vox report by German Lopez, one of the anti-white racists at the VOX.  Hate crime really means anti-white legal system in which hate crimes against whites some how do not count.  Hence, whites who suffer the disproportionate amount of racism, legal and other wise do not get reported.  For example, California has a racist law allowing anyone to sue someone else in office, based on skin color.  The intyent and aim of the law is a legal attack on white people buy the racist Cal legislature.  Also, note the authors fail to mention the three dead white, a victim of race crimes.  Nor did they mention the game black kids were playing in punching out white folks a few years ago.   No mention of the exclusion of whites from many campus activities, a trend that is increasing. No mentiobn of the racist demands of black lives matter.

No, these boneheads at VOX follow the Doonesbury, Ted Turn plastic liberal rule sheet.

Portland mayor threatens Federal government with vigilante fighters.

The mayor of Portland, Oregon, is asking the federal government to cancel the permit for an "alt-right" rally scheduled for Sunday, saying it could make a difficult situation worse, after two men were stabbed to death as they tried to intervene when a pair of women were targeted by a man yelling what authorities have described as hate speech.Portland Mayor Ted Wheeler also said he is trying to ensure that a permit is not issued for a June 10 protest, which is reported by ABC Portland affiliate KATU to be called #MarchAgainstSharia.The city has not issued any permits for either of the two events, which are planned for the Terry Shrunk Plaza, Wheeler said. The federal government controls permitting for the venue and has issued a permit for the June 4 demonstration, called the Trump Free Speech Rally, he said."I am calling on the federal government to IMMEDIATELY REVOKE the permit(s) they have issued for the June 4th event and to not issue a permit for June 10th," Wheeler wrote on Facebook. "Our city is in mourning, our community's anger is real, and the timing and subject of these events can only exacerbate an already difficult situation."
The bold face is mine.  This is deep state, it is all local dictators like this mayor and the mayor farther north advocating anti-white killing sprees. This is all an indirect result of Jerry Brown's racist California legislature spreading their totalitarian venom.

CIA political spying for tidbits

What caused the Barack Obama administration to begin investigating the Donald Trump campaign last summer has come into clearer focus following a string of congressional hearings on Russian interference in the presidential election.It was then-CIA Director John O. Brennan, a close confidant of Mr. Obama’s, who provided the information — what he termed the “basis” — for the FBI to start the counterintelligence investigation last summer. Mr. Brennan served on the former president’s 2008 presidential campaign and in his White House.Mr. Brennan told the House Intelligence Committee on May 23 that the intelligence community was picking up tidbits on Trump associates making contacts with Russians. Mr. Brennan did not name either the Russians or the Trump people. He indicated he did not know what was said.  
There is your nullification clause right there. The pal of Obama decides to spy on the political opposition because of tidbits. This is Watergate material.


Germany's Schulz: "Trump Is A Destroyer Of Western Values, We Must Stand In His Way"

Most  of those western values came from California beach bums

Government's unfounded fear of sand box

Bitcoin News:
Regulators use financial The Slow Criminalization of Peer-to-Peer Transfersinstitutions such as banks to control the flow of wealth. The digital exchange companies that serve as “trusted third parties” are the main control points for bitcoin. That’s the point at which privacy is stripped from users, and the transfer of wealth can be closely monitored. For regulations to work, therefore, users must be herded toward trusted third parties who function as an arm of the government.  

 Because peer-to-peer exchanges sidestep digital exchanges, the former are slowly being criminalized.
This is the part about writing a letter to the central banker for each transaction.

The governments fear of losing control of wealth taxes is unfounded. Think of the pure cash layer where everything can be assumed peer to peer.  Under the current assumptions of auto traded, maximum entropy betting, there is no real government hedge for taxing in pure cash.

But, it is all in the smart layer, government can tax there, quite efficiently.  That is the rub, however, there must be a corresponding efficiency increase in the legislature.  The legislature is subject to massive coordination failure, and central bankers should focus on that, leave to money to the techies.

Not the sandbox

John Cochrane talking about research on zoning restrictions:

Hsieh and Moretti:
...high productivity cities like New York and the San Francisco Bay Area have adopted stringent re- strictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009.

Take Silicon alley, who wants to pay he high prices?  So growth is limited due to housing restrictions.  
But the sandbox is being constructed everywhere, and its developers dispersed globally. Yet the sandbox is the biggest productivity boost since electricity. 

Comparing gas taxes by the ton of CO2

  • CO2 Emissions from a gallon of diesel: 10,180 grams CO2/ gallon
1 ton is a million grams
So one  gallon puts out 1/100 ton
A one dollar tax per gallon is 100 dollars a ton
The US already taxes about 50 cents.

I have not seen he report, John Whitehead is trying to find it/.  But, without reading it, I can tell that returns to scale are not constant in this case.  A lot of the gas taxes become substitutes for other taxes which implicitly drop.   It is very hard to measure this effect, it is like trying to separate Jerry's CO2  tax on gas with his equivalent pension tax.  With the two dueling state government requirements, there is no real measure of how government handles the internal flow.

For example, we see above that just a first order estimate means doubling gas taxes, and that seems unlikely to stop CO2 build up. So the authors have to factor that out, already, the tax substitution effect, just to get the marginal elasticity of CO2. Very difficult.

Florida christians rape and force children into pedophile marraiges

Clearly a child raped and enslaved by force, yet Florida officials approved!  And I thought California was totalitarian.
My mom asked me if I wanted to get married, and I said, ‘I don’t know, what is marriage, how do I act like a wife?’” Johnson remembers today, many years later. “She said, ‘Well, I guess you’re just going to get married.’”
So she was. A government clerk in Tampa, Fla., refused to marry an 11-year-old, even though this was legal in the state, so the wedding party went to nearby Pinellas County, where the clerk issued a marriage license. The license (which I’ve examined) lists her birth date, so officials were aware of her age.

Monday, May 29, 2017

Most islamics seem to approve of mass murder

So why do they still gather in crowds?   

(CNN)At least 10 people were killed and 40 were wounded when a car bomb exploded outside an ice cream shop in central Baghdad early Tuesday, according to official in the Iraqi capital.Families were gathering after breaking their daily fast as part of Islam's holy month of Ramadan when the bomb went off.Footage from the scene showed blood and body parts scattered everywhere, as a young child in a pink t-shirt walks between bodies sobbing.Muslims often stay out late during Ramadan, which began Friday, after breaking their fast.ISIS claimed responsibility for the attack in a statement published on Twitter and Telegram by the group's media wing, Amaq. The statement said ISIS targeted a gathering of Shiites.
Shiites were blown up. But Shiites are as involved in mass murder like all the Islamics, so they should expect to be blown up. 

Janet Napolitano caught swindling tax payers in UC budget

More corruption from our crooked university system 
The focus of the hearing was a scathing audit prepared at the Legislature’s request and released by State Auditor Elaine Howle on April 25. It alleged Napolitano’s office had hid $175 million in reserve funds from the regents and the public while the UC president successfully orchestrated approval of a tuition hike. In her testimony, Napolitano succeeded in raising questions about the fairness of that allegation by asserting that most of the reserve dollars had been committed to worthwhile programs.But Napolitano’s attempt to explain away Howle’s second most serious allegation – that her aides had interfered with the audit by rewriting comments from individual UC campuses to make them more favorable to Napolitano’s office – has backfired. She denied that there was any attempt to make her office look good and asserted that the remarks were revised to make them accurate and that campuses had sought guidance on how to respond.

California is going to need a college voucher system so students learn more than union propaganda.

Jerry demands school cuts to cover unsustainable pensions

LA Daily News:
Regarding the $1 billion in one-time funding for K-12 schools that Gov. Jerry Brown proposed last week in his 2017-18 budget: The word is don’t count on it – at least not next year.In what a school consultant is calling a “bait and switch,” the Department of Finance is saying that the money won’t be available until May 2019 at the earliest – and possibly only partially then. The department will release the funding after it’s sure that the revenue projections on which the budget is based came true.“While we recognize that there may be some who would prefer that these one-time funds be released sooner, given the recent and demonstrated volatility of revenues, we believe that postponing the release of these funds in the manner we have proposed is a prudent policy in light of this uncertainty,” department spokesman H.D. Palmer wrote in an email.

Standard crap for the union totalitarians. 

University of Cal deep state attacks honest professors

UCLA students say ‘free speech is under attack’ and a conservative professor is the target 

About 25 students and supporters, carrying signs saying “Free speech is under attack” and “Keep your agenda out of our classroom,” gathered Friday on campus before bringing a list of demands to Laura G√≥mez, interim dean of UCLA College Division of Social Sciences which oversees the Communication Studies department, who wasn’t in her office when they delivered their list. Among the demands: that Fink be allowed to keep teaching and that the school implement curriculums “that increase intellectual tolerance” on campus.
Mick Mathis, a senior at UCLA, said pressure on Fink is about curtailing free speech.
“This is supposed to be a marketplace of ideas, and it’s not a marketplace of ideas if they’re trying to get rid of somebody with a contradictory viewpoint,” Mathis said.

The totalitarians  put another Sotomayor in charge of the communications department and suddenly it is 'make shit up' .  

The response of California citizens should be massive tax evasion and recall of all the Cal totalitarians, starting with Jerry Brown.  The problem is that taxpayers pay for  liar union professors, quite common at Bezerkley and UCLA.  If Cal legislature wants fraud in public colleges then make Zuckerberg pay for it, he is the useful idiot.   Why are the totalitarians making little browns pay for their crap with a gas tax.

John McCain is the greatest threat to America

In an interview with the Australian Broadcasting Corp. on Monday, Sen. John McCain (R-Ariz.) said Russian President Vladimir Putin is “the premier and most important” national security threat to the United States, “more so” than the Islamic State, also known as ISIS.

“I think ISIS can do terrible things, and I worry a lot about what is happening with the Muslim faith, and I worry about a whole lot of things about it,” McCain said. “But it’s the Russians who are trying, who tried to destroy the very fundamental of democracy, and that is to change the outcome of an American election.”
Boldface mine. When we see the idiots using democracy instead of republic, then we know the idiots want to bankrupt us. John McCain and Schumer have driven the senate to bankruptcy.

No can kick for Greece

EURUSD is sliding in early Asian trading after Greece's government is reportedly planning to forego its next bailout payment (of around EUR7bn) if no debt relief is offered by creditors (thus leaving it likely to default on its next round of repayments).Bloomberg reports, Greece’s government preparing to possibly go without next bailout payment if creditors don’t agree on debt relief for the country according to German newspaper Bild (without saying where it obtained the information).

There is no US rule of law

Donald Trump Could Threaten U.S. Rule of Law, Scholars Say

The rule of law has been Sotomayored, and it isn't coming back.

Hillary's favorite Islamic diversity group kills Christians

After the dual Palm Sunday church bombings last month, Egyptian Muslim Brotherhood leader Wagdi Ghoneim justified the attacks that killed 49 because Coptic Christians had supported the Egyptian government.
So the liberal identity groups include racism in California, mass murder of Christians and anti-white, unparented welfare killers.  Explain to me how this mob of liberals always engages in war crimes?

Minimum wage eliminates entry level jobs

There we have it, from a card carrying kanosian.

John McCain, Big Government spender

If McCain wants his boondoggle then he better be prepared to default.  Wealth isn't paying for the bogus defense programs. 
Defense hawks are hunkering down for a fight to get all $640 billion they say is necessary to rebuild the military after President Trump’s budget proposal fell short of their expectations.Budget experts predict a battle in the coming months between the administration, appropriators, party leadership and congressional committees that may fall short of delivering even the $603 billion Trump has proposed.Sen. John McCain (R-Ariz.) and Rep. Mac Thornberry (R-Texas), the chairmen of the Senate and House Armed Services committees, have the power to push a $640 billion defense policy bill regardless of how the budget shakes out.

Sunday, May 28, 2017

Housing bubble drives home improvement

In the San Francisco Bay Area, you’re talking about some of the most expensive housing prices in the country, and home prices have gone up dramatically,” said Brad Hunter, chief economist at HomeAdvisor, a website that matches people with home-improvement professionals. “We’ve seen a huge increase in the amount of homeowner equity, which stimulates home-improvement activity. It makes people feel richer, wealthier and more inclined to invest in their house.”The increased equity allows more access to home equity lines of credit and loans for those who need it, Hunter said, and it brings people who were formerly underwater in their mortgage back to a position where they can sell their homes and move — stimulating more home-improvement spending from home sellers and buyers.A report from Harvard’s Joint Center for Housing Studies shows that the New York, San Francisco, Denver, Boston and Washington, D.C. metro areas were the nation’s five top-ranked remodeling markets.
The problem being they do it all at  once. 

The semantics in the sandbox

The Securities and Exchange Commission has not said much about crypto companies issuing new tokens, usually called “ICO’s”, Initial Coin Offerings. The issue has remained silent. Now SEC provided a statement on May 23, saying they want ICO’s to be fair. They want cryptocurrency startups to protect their investors. 
Now I liked the idea of saying a token was a marker for some contract, separate from whatever coins are traded.  Like, I tap on NGDP icon and my bot and the Fed bot trade in tax dollars on NGDP.  But I carry around the NGDP token in my secure element, it is a contract guarantee. Gets me a spot at a NGDP futures table where the betting limit fits my style.

I don't need to stick to my semantics, marketing will clear this up. But apps want to set up trading opportunities, and get secure elements to agree; sort of independent of the particular coin being traded. We need a separation.

No sandbox, no defaults

Bank resolution: The importance of a public backstop 
In April 2017, the US House of Representatives passed a bipartisan revision of the bankruptcy code, which would expedite the resolution of adequately structured intermediaries. This column considers the new Financial Institutions Bankruptcy Act of 2017 and how it fits in with the existing Dodd-Frank mechanism. By raising the odds of an effective resolution, the Act (as a complement to Dodd-Frank) boosts the credibility of the US regime. However, in the absence of an Orderly Liquidation Fund-like provision for temporary government funding, investors and foreign regulators will expect a future US government to re-introduce an ad hoc bailout mechanism when it is inevitably needed.

Boldface mine.  

In the absence of a liquid set aside to  cover short term needs in an abrupt bankruptcy.  Sandbox fixes this when the secure elements are widespread, because then everyone can get even money on the defaults. 

In the absence of the new money technology, the first in line when the default hits can avoid damage. Like central bank and member banks get first grab at insurance payout. With auto-trade cash we all expect defaults now and then, and we bet that way.

Bull in a China shop

"You Tricked Me" - Trump Reportedly Rages At Palestine's Abbas For 'Lying To Him'

I can hardly wait for the movie.

Russian central bank is dufas

 Major CEO of Russian private bank want sandbox legalized.

Bitcoin news: Russian bankers released a statement May 26, saying that cryptocurrency should be legalized for circulation. This message comes from German Gref, who is head of the Russian Sberbank. Gref said there needs to be an honest and intelligible conversation about cryptocurrencies, because attempts to ban it have only caused problems in the past.

A Russian news article Russian Bankers Push to Legalize Cryptocurrencymentioned Greff’s commentary: “Gref stressed that they now engage in a constructive dialogue about cryptocurrency, the Central Bank are trying to understand – what is it and what to do next. ‘Attempts to introduce bans will only lead to the loss of existing competitors,’ said the head of the financial institution.”

Not good news to hear

Lopez [Modesto, CA city manager]is a member of the League of California Cities pension task force and as a member he is hearing that many cities are facing bankruptcy over rising pension costs.
He says the system will crash, local governments are simply inoperative when pension costs are 20-30% of the budget, and most cities are headed there, all at once.  

Joe is his name.

She approves of racist law

They dismissed her as a lightweight. But California's top judge has found her voice — and uses it to call out Trump policies

And she has ignored our restrictions of free assembly.

Ignorant LA Times writes are just checking off the affirmative action markers on their sheet. In fact, California law is a mess, and the judiciary basically depending on 'make shit up'. The restrictions on freedoms in California are readily documented, and well known; and ignored by the politically correct supreme court.

California does not produce hood law, mostly just ignore the supremes out here.

Wonder woman

She is a feared  Israeli commando as a side job.

Schizoid Persian Speaks

(TEHRAN, Iran) — Iran's Supreme Leader has said that Saudi Arabia is a "cow being milked" by the United States. 
A Saturday report by the semi-official Fars news agency quotes Supreme Leader Ayatollah Ali Khamenei as saying that Saudi Arabia trades its wealth with "pagans and enemies."
He is the high mucky muck of  psycho religions.  What happened to the old Persia, the one before the invasion of camel jockeys?

Deranged Islamic belt bombers

Bodies of what appeared to be executed civilians were found in a ravine outside a besieged Philippine city on Sunday as a six-day occupation by Islamist rebels resisting a military onslaught took a more sinister turn.
The eight dead men, most of them shot in the head and some with hands tied behind their backs, were laborers who were stopped by Islamic State-linked militants on the outskirts of Marawi City while trying to flee clashes, according to police.
They need  some of that diversity  training. 


Pretty pictures from the visual capitalist

Saturday, May 27, 2017

Steve Bannon is the leaker?

Another Washington Post anonymously sourced hit job dropped on the Trump White House — this one about Jared Kushner asking the Russian ambassador for a “secret channel.” It dropped just in time to greet the president upon his return from his first international trip and the very day after Attorney General Jeff Sessions pledged to “put an end to” the rampant leaks coming from within the government. The leaks that produced this story, according to sources, came from inside the West Wing.
And who is suspected?
Who stands to benefit from incessant Kushner leaks? According to Axios, the man whose job security has been a matter of constant speculation — Steve Bannon.
Our furry fake intellectual. 

Stork theory side effects

Intelligence Agencies Admit 23,000 Jihadis Live In Britain; 3,000 Pose "Imminent Threat"

Being an imported entitlement slave is none too fun.

Bitcoin jamming

While the Indian government deliberates over a legal and regulatory framework for digital currencies, the explosion in popularity and subsequent demand for bitcoin has overwhelmed the country’s exchanges. India, like the rest of the world, is seeing an unprecedented demand for bitcoin amid extensive media coverage of an ongoing bull run by the world’s most widely-known cryptocurrency. 

No two color trading pits make ledger pricing the dominate congestion mechanism. The Redneck reference architecture was a bit late.

Price entry and exit

Andrews at Real Clear policy is discussing the bankruptcies in Connecticut. Note the boldface, mine. He says the point of free entry and exit is theoretical, what theory? Bounded variation, bankruptcy has a relative cost, it is determined by occasionally testing it.  
In theory, municipal bondholders play a crucial role in promoting the fiscal health of states and municipalities by adjusting the interest rates they demand for lending their money. But for decades, affluent investors across the U.S. have largely ignored mounting civil debt, underfunded pensions liabilities, and other telltale signs of local government distress on the assumption that Washington would, if necessary, bail them out.

Such magical thinking is perhaps understandable in Mississippi, Wyoming, or some other state with no major financial industry. But Connecticut is the third largest hedge fund capitol in the world after New York City and London. A good portion of its most affluent and influential citizens make their livings at banks, brokerage houses, and trust companies headquartered in Manhattan. Any blindness in Connecticut to the frailty of its finances is as close as one can get to a state version of the 2009 subprime real estate crisis.

The sandbox does this with distinction

Algorithmic Pricing and Competition: The Small-Town Gas Station Example

Tim Taylor post abut a sandbox issue, anti-trust.  Can auto-traded cash transactions be designed to conceal inside information?   In a small town it is anti-trust for two of three gas stations to discuss prices without including the third.

The sand box rule is fair access to the tradebook, and that generally means round robin access and the peeking price (cycle pricing) is very small, not assumed zero.  This is the stable, two color auto-pricer.   There is no insider conspiracy that can be unfolded en-mass, the victims get a fair access to the trade stack as it unfolds.  

Out of market conspiracies, the development of inside information is legal, expected and pure cash has the job of getting insiders to trade their ideas ASAP. And this is all smart contract layer, and all of your anti-trust will happen here. The marketing folks in sandbox defined a new term for smart layer algorithms, regtech.  The term recognizes this distinction between auto-traded cash and smart contracts.  They are both algorithmic, but pure cash does not  know time or space; just odds of occurrence. 

Friday, May 26, 2017

A monetary regime change

This echoes another lesson from the past. Milton Friedman, Anna Schwartz, Allan Meltzer, and Karl Brunner all concluded, likewise, that very low interest rates during the 1930s accompanied, and indeed were the product of, monetary policy that was consistently too restrictive. 
Banks too restrictive really means banks restructuring and knew ledger systems not in place.   We were headed straight into national mass marketing of bank services,something new and not something supported by the gold standard.  It was like everyone suddenly realized that digital currencies were the new money technology.

The same thing happened at he Nixon shock, we adopted market based FX clearing, dropping the newly installed gold standard. It took years for the holders of gold to set up investment paths.