Tuesday, May 23, 2017

One of those diversity things

Daily Caller:
A criminal suspect in an investigation into a major security breach on the House of Representatives computer network has abruptly left the country and gone to Pakistan, where her family has significant assets and VIP-level protection, a relative and others told The Daily Caller News Foundation’s Investigative Group.
Like those bombings in Europe of the anti-white vigilante squads in he US.  It is OK on account of the diversity pros in the Dem party checked off on one of their identity groups.  

Ned wants to halt the Swamp bailout cycle

In a statement issued moments ago discussing Trump's proposed, if completely impossible, budget proposal, Treasury Secretary Ned Ryerson said that Trump's "budget will achieve savings through reforms that prevent taxpayer bailouts and reverse burdensome regulations that have been harmful to small businesses and American workers." Translation: taxpayer bailouts are imminent, especially now that the current economic cycle is the 3rd longest of all time and a recession grows likelier with every passing day.
Ned, as we all know, made his bucks by hedging the government housing insurance program.  Now he thinks he can stop 250 years of Swamp graft and magic by adopting the sandbox, which is his plan.  What will it be? Hug or slug? Naw, he is too confusing:

Something is exploding

CBPP picks apart the senate rules  and says the insurance program is fine. But the senators are sovereign, may I remind our fellow ignorants constantly.  The senate does not have good legal control when it is bankrupt.  Here is what the senators do:


Here we see deficits wildly unstable as debt piles up for the senators. his chart throws all your senate legal models out the window.

Either trend inflation is zero or double entry accounting fails


Liberty Street Economists on measuring inflation:
The persistent component of inflation plays a critical role in many economic and financial decisions. For example, investment and saving choices as well as interest rate determination depend on the expected behavior of inflation over a long-run horizon. Similarly, the underlying trend in inflation plays a critical role in the conduct of monetary policy. Unfortunately, differentiating between persistent and transitory changes in inflation in a timely and reliable manner is a challenge. Consequently, a large research effort has focused on extracting the trend component of inflation from monthly data releases. 

It is a matter of assumption on what is inflation, exactly. 

All models define it differently.  But, my statement above holds, in all cases. If double entry accounting only works for the wealthy in a monopoly monetary regime, then the liability falls straight back upon the legislature; we get monetary regime change and a big requant.

Smart contract layer works fine says researcher

Sophisticated computational techniques, known as machine-learning algorithms, increasingly underpin advances in business practices, from investment banking to product marketing and self-driving cars. Machine learning—the foundation of artificial intelligence—portends vast changes to the private sector, as many job functions performed by humans will increasingly be performed by these digital robots. But job displacement by machine learning will not be limited to the private sector. Governments may soon undergo their own data revolution and find ways to use machine learning to support smarter public sector decision-making by administrative agencies—potentially even replacing certain human decisions.
Not my area, but nice to know that smart contracts is doing its job 

Surprise libertarian win in pinkoland

LA Times:
Supporters of charter schools appeared to win control of the Los Angeles school board Tuesday, a watershed moment with huge implications for how students are taught in America’s second-largest school district.
The charter school movement has long been a major force in Los Angeles school circles. But the victory Tuesday night by pro-charter forces — who dramatically outspent rivals in what was the most expensive election in school board history — gives them the opportunity to reshape the district.

Estimating the social security deficit

Debts, Deficits and Social Security

Bruce Webb gets into the issue by reading the law on off budget and on budget definitions.  However, there is one sovereign, the senators in this case, hence there is one unified budget because they all default together under the current scheme.

So, the SS deficit is its proportion of the total deficit by proportion, a very simple calculation.

We cannot distinguish in the law until we amortize the debt, and it looks like that will happen in senate bankruptcy court, and so far the senate is clueless about how that happens. So stick to the simple calculation until we get some pricing on the coordination failure we expect.

Reagan, Totalitarian Rat

The Meyers-Milias-Brown Act (MMBA) in 1968 was the first California law to give public sector employees (city and county employees) the right to collective bargaining. The MMBA was signed by a former union president, Gov. Ronald Reagan.
Remind me again why we call it the Republican Communist Party 

The Asian rebalance stutters?

 We had the unexpected drop in home sales.  Dunno what caused it, mortgage rates haven;t moved much, weather is fine.  Likely Chines currency controls   may have reduced shoppers from abroad.  There was a bigger drop in the West,  which can tilt the wheel because of the California effect.

Business Insider:
New home sales in the US fell much more than expected in April. Sales slumped 11.4% at a seasonally adjusted annual rate of 569,000, the Census Bureau said in its monthly report. Economists had forecast that sales of new single-family homes fell 1.8% at a seasonally adjusted annual rate of 610,000, according to Bloomberg. "The seasonally adjusted price of new homes nationwide fell, which is encouraging to budget-conscious buyers, but most of that drop was most likely driven by weakness in the West, where homes tend to skew toward the higher price points," said Svenja Gudell, Zillow's chief economist, in a note. Sales in the West fell by 26.3%, the most since October 2010. 

Monday, May 22, 2017

The charge is baseless since California has an official anti-white legal system

Spanish-language television, leveled the on its face ridiculously false charge as part of a Univision report on the Trump administration’s early, swift success (as demonstrated by ICE statistics) in reversing the large-scale collapse of immigration law enforcement that was a hallmark of the closing years of the Obama era.The amped-up rhetoric is part of a concerted effort by Democrats, activists and their liberal media allies to portray Trump and Republicans generally as anti-Latino and ‘criminalizing immigrants’ by the very act of enforcing the laws on the books.
As long as hispanics support the racist regime of the Cal Dems, then anybody is free to ethnic cleanse.  My suggestion to Cal Dems is to stop the anti-white racism inherent in law and practice, otherwise we will not \obey any of the racist crap coming from   that legislature. 

Either discriminate against terrorists or avoid big crowds



Sudden mass immigration and blowing up crowds of people go together. Make up your mind, blow up people or quit the mass immigration schemes. It is like the Iraqi police recruits, step one form a large crowd and get blown up. The terrorists pre-announce that they are blowing up crowds, by the way.  The getting blown up is actually by invitation only.

Shapeshift has a trading pit

Today at the Consensus Conference in New York City the Shapeshift founder and CEO Erik Voorhees has announced the launch of Prism, a “trustless asset portfolio platform”. The Swiss blockchain technology company says investors of all types looking to build a portfolio can do so using the decentralized digital asset holding application.
Looks sandbox compatible 

Just the starting price

It would cost $400 billion per year to remake California’s health insurance marketplace and create a publicly funded universal heath care system, according to a state financial analysis released Monday.
California would have to find an additional $200 billion per year, including in new tax revenues, to create a so-called “single-payer” system, the analysis by the Senate Appropriations committee found
We forget that our legislature is making this service available to any world citizen.

My side does evolution better than your side

The Heartless Tradeoffs in the Trump Budget: As the bombshells continue to drop on the Trump administration, behind the scenes Trump’s first detailed budget proposal is being developed, and it has a few bombshells of its own, particularly for the poor. The budget proposal is not yet finalized, so the details could change, but according to what has leaked so far, the budget is a combination of tax cuts for the wealthy, reduced spending on social programs that serve the needy, and wishful thinking about tax cuts and economic growth.

The sandbox and government insurance

The sandbox can do it, throw in central banking even.  

We can design student debt markets, health re-insurance, agency accounts; the sandbox automates these, wienerizes and the senators can buy in with subsidized support as they wish.  The senators ad central bankers will introduce uncertainty as they sort their priorities in some non-transparent fashion.  But he sandbox will price the uncertainty, no problem.  The agencies on cash flow accounting, risk priceable and let the states buyning and out with their own debt/tax flows in regional markets.  All of this doable, especially with smart contracting.

Sandbox dominating

Bitcoin Blasts Through $2200, Here's Why


Zero Hedge gets it.

The student debt defaults

About a trillion in liability that comes back to a liability on he senators. It illustrates a point. The senators have been faking it with sham collections that cost way more than collected. This is the insurance payout in progress, and unsustainable. We should have been defaulting the loans sooner, now we end up defaulting the majority all at once. A set of pricing trajectories have been restricted, we one colored and got a large ledge fee. Back to the sandbox condition, free entry and exit. What are the others? Secure endpoint that obeys red/green, fair access to the trade book, no time betting, and auto-traded cash, each pit generally having the even money bot. So, make the student federal loan cash flow account, let it bank in the sandbox and defaults can be priced as we go.

Notre Dame students walk out

Dan Walters piles onto Jerry Brown

However, given the history and Brown’s linear leanings, one should look askance at a new proposal in his 2017-18 budget to borrow $6 billion from an obscure state fund and give it to the California Public Employees’ Retirement System to whittle down rapidly increasing state pension obligations.The money would come from the Surplus Money Investment Fund, which makes short-term investments with money agencies don’t need at the moment, such as the new gas taxes just enacted for roadway repairs.
Short term cash keeps short term interest charges lower. Jerry will pay the price. 

Guy deserves a medal

The news on Monday that Ford CEO Mark Fields will step down wasn't entirely surprising.Fields oversaw the carmaker's recovery from the Great Recession and its most profitable year ever, 2016, when the company made almost $11 billion.

The sandbox does this

Uneasy money talking about aggregate equilibrium:
Hayek suggested that progress in analyzing economic fluctuations would be possible only if the Walrasian equilibrium method could be somehow be extended to accommodate the existence of money, uncertainty, and other characteristics of the real world while maintaining the analytical discipline imposed by the equilibrium method and the optimization principle. It proved to be a task requiring resources that were beyond those at Hayek’s, or probably anyone else’s, disposal at the time
Pricing is the algebra of arrival uncertainty.  Pure cash is the odds making machine Hayek is talking about.  Hayek really means optimum congestion, a slight flow compression that is not time equilibriating. I always had Hayek in ind, he got it.

Perilous times for humanity


Sunday, May 21, 2017

More deep state

An Obama administration appointee with deep ties to labor unions promoted a grassroots campaign to reverse the Trump administration’s proposal to eliminate funding for the federal regulatory board he sits on.The Daily Caller News Foundation obtained emails that show Chemical Safety Board (CSB) member Rick Engler worked with union activists to promote a grassroots campaign to keep the agency from losing its funding.
Elsewhere in California we have the deep welfare agencies funding anti-white killing squads. 

Vox says son-in-law is the foreign agent

Makes for fun reading. 
Jared Kushner: the young, pragmatic, hardheaded businessman out to modernize the US government and moderate the worst tendencies of his father-in-law — Donald Trump.But what if, instead, Jared is not a panacea for the chaotic White House, but one of its biggest problems?As the Trump administration’s been sent into a death spiral over the firing of FBI Director James Comey last week — a failed move to curtail the Justice Department investigation into contact between his campaign and the Russian government — Kushner hasn’t been the “adult in the room” urging caution and scrupulousness. To the contrary, he’s been urging aggression and retaliation.And the White House’s reaction to the appointment of Robert Mueller as a special counsel in the Russia inquiry, including a possible attempt to use ethics rules to limit the scope of his investigation, shows that somebody in the White House is deeply worried about what might happen if Kushner were included in the probe.

Horse and cart backwards

By ROBERT PEAR...MAY 20, 2017
"WASHINGTON — When Aetna, the health insurance giant, announced this month that it was pulling out of the Affordable Care Act’s insurance exchange in Virginia in 2018, President Trump responded on Twitter: “Death spiral!”When Humana announced plans to leave all the health law’s marketplaces next year, the president chimed in, “Obamacare continues to fail.”Left unremarked on was a big reason for the instability: The Trump administration and Congress are rattling the markets.

Robert Pear  caused the problem by supporting an unsustainable federal program.

The sandbox is not a broken model

Economic Forecasting Is Still Broken

According to central banker. See below to understand sandbox.
The Federal Reserve fared no better. As of December 2007, its main economic model saw a less-than-5-percent chance that the unemployment rate would be above 6 percent in two years. The rate actually hit 10 percent, an event that the model would have said was close to impossible. I believe it would have assigned an even lower probability to where we’ve ended up today, with real GDP more than 10 percent below 2007 forecasts.In other words, both private sector and Fed models viewed the events that unfolded over the next one, two and ten years as essentially impossible. My own sense is that the typical academic models were just as inaccurate. These kinds of errors suggest fundamental flaws in the way the models are built.So have economists used the subsequent decade to address the problem? So far, I’ve seen little response from academics. The public documentation for the Fed's baseline model does not reflect any material change of this kind. As of May 2017, the average participant in the Survey of Professional Forecasters saw only a 1-in-200 chance that the unemployment rate would increase by 2 percentage points over the next eighteen months -- a prediction that appears grounded in the same kind of risk modelling that was used in 2007.

The sandbox is the model, it is what auto cash does, and thus it is the economy  pricing process and so it is the best known real time economy available, and completely computable, just not computable by any secret segment of hedgers.

Pure cash is an odds making system, the Fed is dealing with the non-optimum term structure set by its major customer, the government.  Hence the Fed will always have a limited set of price trajectories it can observe, it shuts off anything that breaks the senate ten year budget. Without those observables, its model is foul.

Saturday, May 20, 2017

In the sandbox we exactly this

Stumbling and Mumbling:
In the Wheatsheaf last night, I was struck by an obvious injustice. The pub was charging everybody the same price for beer, regardless of their income. This is obviously unfair: why should the millionaire picking up his children from the posh school pay the same as a low-wage worker? Beer prices must be means-tested, so the rich pay more.
Astute readers might spot a problem with that paragraph. It’s bollocks. It would be grotesquely inefficient for barkeeps to check everybody’s income before serving their Tiger*. A far easier way of addressing this unfairness – if such it be – would be to tax the millionaire and give income support to the poorer customer. This would have the same effect as means-testing – the millionaire would be less able to buy beer and the poor person more able – but would be more efficient.

Beer drinkers tap the beer club icon and agree to take the regular rounds, under contract.  Then we can do it by inventory volatility, reduced, and the reduction is due to limited income purchasers banding together in a buyers club. 

The supposed good news on Abenomics

Growth is about the same


But more people working to get growth.

Well, screw the Ping Pong and his belts and roads

Duterte told China's president he will drill for oil in the South China Sea, prompting a surprisingly abrupt retort from Xi: “Well, if you force this, we’ll be forced to tell you the truth. We will go to war. We will fight you,” Duterte on Friday quoted Xi as saying.
No one  likes to deal in a rigged game. 

Dave Crane, post of the year

California Cover Up

Pension loan would cover up wealth transfers to employees


California proposes to issue a pension obligation bond to finance extra contributions to the state pension fund, CalPERS. It would also cover up wealth transfers from citizens to state employees. Here’s how it works:
When pension promises are made by the state to its employees, both the state and employees incur costs (“Normal Costs”) in the form of contributions to CalPERS with the hope that the sum of contributions and investment earnings will be sufficient to fund the promised pension payments. If investments earn at the rate CalPERS used when setting the Normal Cost, everything works out. But if investments earn at a lower rate, deficits (“Unfunded Liabilities”) arise. In contrast to joint sharing of Normal Cost, employees don’t share in the cost of Unfunded Liabilities. 100% of that cost falls on citizens, whose services get crowded out and taxes get raised to pay off the liabilities.
As the astute reader will infer, employees profit from the highest possible investment return assumption being used by CalPERS to set Normal Costs. The higher that rate, the lower the Normal Cost, which is their only cost. But the higher that rate, the greater the likelihood of Unfunded Liabilities. Because public employees control CalPERS, investment return assumption rates have been set at levels virtually guaranteeing the creation of Unfunded Liabilities. That transfers wealth from citizens to employees. The transfer has been huge: citizens are already on the hook for $60 billion of Unfunded Liabilities for state employee pensions accruing interest at 7.5% per year and more transfers are occurring every day CalPERS continues setting Normal Costs unfairly low.

A price fixing by government causes crash later.

Think of government as preventing half your price comparisons, and the protected good is never tested for shortage or over runs. Thus, some paths through the queues are missing when the protected good eventually marks to market, we get jamming..

Peggy Noonan suffers delusions

Democracy Is Not Your Plaything
When the circus comes to Washington, it consumes everything, absorbs all energy.
It is not a democracy, and the difference between proportional democracy and a republic is exactly the issue, it goes to he heart of your comments.  You cannot make sense of the problem if you call it the one when it is the other. 

Friday, May 19, 2017

The government supply chain in action


Reuters:U.S. states collected less personal income tax revenue in April than they did a year earlier, a Reuters analysis shows, and analysts said they believed high earners were shifting income to next year, hoping for tax cuts from the federal government.
State personal income tax (PIT) revenue dropped an average of 6.6 percent in April from the same month last year in the 27 states for which Reuters has data. Removing outliers Louisiana and Oregon, which had big gains due to technical factors, magnified the drop to 7.6 percent from last year.


Taxes on wages and investment income are a top revenue source for the 43 states that collect it. April is the most important revenue month due to the tax filing deadline and the tendency of taxpayers who owe money to wait until the last minute to pay.

States have sovereign legislatures

"The loss of funds and financial uncertainty threatened by this case would lead at least to higher health insurance costs for consumers, and more likely to many insurers abandoning the individual health insurance market. The number of uninsured Americans would go back up, hurting vulnerable individuals and directly burdening the states. The wrong decision could trigger the very system-wide 'death spirals' that central ACA features, such as stable financing, were designed to avoid."
The is a Sotomayor make shit up lawsuit.  
The judge would normally notice the state legislatures have the remedy. However, under 'make shit up' even the legislative sovereignty is over ruled by judicial tyranny.  

Just screw the voters, literally

AZ Dem gubernatorial candidate: I’ve had a lot of affairs with married women


How prescient that turned out to be! A Democratic candidate for governor in Arizona told Comedy Central that he hadn’t just committed adultery in his heart, but also with the rest of his body, too — a lot. Daily Show interviewer Desi Lydic reports that Noah Dyer has generated considerable recognition for breaking new ground in normalizing radical promiscuity
The guy needs to screw 7 million people unless he skips the kids.  He may as well report to work without pants. 

The imaginary expectations magic

Temporary money theory:
By reducing the balance sheet after the United States’ first experience with quantitative easing, it could set a precedent for the next round, signaling that future increases would also be temporary. David Beckworth of the Mercatus Center argues that a temporary increase in the monetary base is going to be far less effective than a permanent increase, using the example of the United States going off the gold standard. A temporary increase may not convince the public that the inflation and economic growth will be permanently higher and therefore may not increase aggregate demand as much. Reductions in the balance sheet today could be a signal that future asset purchases would be temporary and less effective.
The double entry accounting system tells us accurately when the borrowers are leaving the queue and savers entering.  No need to worry, government currency insurance is built into the central bank model. Just treat all balance sheet activity as temporary, and work your theory from there. Once a generation our government will default on its monetary obligations, and you get inflation.

Thursday, May 18, 2017

Low mortgage rates likely cause house bubble

Home is in bubble when blue jumps way above red.  Mortgage interest rates are green, dropping.  We have low rates because higher rates cause senate shut downs. Goldman-Sachs and the wealthy have to keep senate rolled over to protect dollar.

Texas is going full public sector

For the purposes of this argument, Texas is Lilliput, and the 27 million residents of the state are Gulliver. The nearly 1.5 million state and local government employees in Texas are the Lilliputians. The Lone Star State has more state and local employees per capita than Illinois or CaliforniaApproximately 325,000 of these employees work for the state of Texasapproximately 1.2 million work for local governments (cities, counties, school districts, and other “political subdivisions” of the state).
Well  we know why Texas  growth is slowing to a crawl. 

Well, Paul, the one is stimulus the other a bailout

Krugman:
Take fiscal policy: before the crisis there was strikingly little solid evidence about its effects, largely because history gave us so few natural experiments (causation generally ran from business cycles to budgets rather than the other way around).
Right. The government responds the business downturns with bailouts, and the business cycles ends when it is time for bailout.  It is all driven by the government's unsustainable insurance programs, and that is a multiplier less than one. 

4 in 5 just like the colors

Poll: 1 in 5 Americans think transgenderism is a mental illness


I dunno what a woman's social life is these days, but the males who dress up look like they need to be in a parade.  The girls who dress as men end up looking like a regular people.

Hero of the sandbox

Kris Marszalek, Founder of Monaco Technology, commented: “The team worked incredibly hard over the last year to bring the Monaco VISA® Card & App to the market. It’s a beautifully simple product that allows users to avoid all the bank charges and currency exchanges impose on them. We believe that every single person who holds Ether or Bitcoin needs one. It brings amazing value, transparency and peace of mind. You’ll never have to worry about exchange rates again, always getting the best deal physically possible. It’s an incredible feeling!”Other features of the Monaco App include:• free global transfers in 23 currencies to 120 countries at perfect interbank exchange rates• free and instant transfers between Monaco users, with the funds being immediately available to the recipient and accessible with their Monaco VISA® Card• account opening via mobile app in under 3 minutes

They understand sandbox and secure element.  

Jerry calls us little browns Freeloaders

So I guess we can thank Gov. Jerry Brown for making it OK to speak directly about these folks. During a speech earlier this month in Orange County, the governor made his disgust clear. “The freeloaders — I’ve had enough of them,” he said, according to an Orange County Register report. Brown was there defending a new law he signed that raises fuel taxes by 12 cents to 19 cents a gallon, and annual vehicle-license fees by as much as $180 a vehicle.
But  us little browns are getting pissed at Jerry and the totalitarians and we have a tax revolt underway. 

I remember a lot of Obamacare BS

Obama Reveals True Thoughts On Trump: "He's Nothing But A Bullshitter"


An unsustainable program who existence required a torrent of Obama bullshit.

If I recall, our legislature stole from little browns, paid UC Bezerkley professors to lie about Obamacaere. Now  the  little browns are pissed. and broke.

Wednesday, May 17, 2017

Cal affirmative action appointee suffer horse radish

"I'm starting my career as a United States Senator at the height of the opioid crisis," Harris told the crowd. "And folks, let me tell you: These crises have so much more in common than what separates them."She then listed a series of headlines to illustrate the viciousness with which people addicted to crack — most of whom were characterized as black — were treated, versus the compassion with which opioid users, largely painted by the media as white, are discussed. "As you can see, this is not a black and brown issue," she said. "This is not an urban and blue state issue. It has always been an American issue."
Absolutely made up horse manure.  

The drugs effect completely   completely different parts of the brain and have different distribution networks; opoids come from the medical establishment, mostly via government payments.

Our appointee needs to shut up and serve tea.

Officers stay out of Lord of the Flies Land

Can more civilian oversight improve how police are disciplined? L.A. is about to find out


Crime rises among the unparented, and the neighborhood adults bring the cops back.

Who is going to fund Liz Warren's monster senate debt.

Liz Warren is scaredy because her institution is broke and central bankers have no model that works.
“Somebody’s going to have to pay the bills to keep the government running,” Warren said. “A generation ago, corporations paid 30% of what it costs to run the federal government. Today, corporations pay less than 10%.”

Bundesbank is in for a great fall

Bundesbank has a theory on S&L technology. A key statement is this:
Sight deposits are created when a bank grants a credit or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry. This refutes a popular misconception that banks act simply as intermediaries at the time of lending – ie that banks can only grant credit using funds placed with them previously as deposits by other customers.
The sandbox model destroys the concept. In the sand box, a member bank takes a loan, literally just grabbing digits from the pit boss. The pit boss then makes sure all other member banks get a good peak at the trade book so they can hedge the new loan. When that is finished, the pit boss re-establishes the balanced set of deposits to loans, then executes interest swaps relative to the virtual set of deposits to loans. Banks have no priviledge because the trade book uncertainty is equally shared, no bank gets two bites at the trade book in one action. We can see, then, the Bundesbank model is a rig, a the fix is in; and if Bundesbank thinks it can hold the rigged game, think twice, we gonna wipe that out.

The post provides an alternative:


However, it would be absurd to continue with an arrangement, which is designed to make money creation as easy as possible, after introducing 100%-money, which aims precisely at preventing banks from creating money. All it takes to stop money creation under 100% money is to make sure that banks can access central bank funds only at the beginning, but not toward the end of the reserve period, except maybe at penalty rates. If this change is made, banks can only intermediate existing money, but not create new money. New money would only be inserted into the system by the central bank.

The proposal is straight out of the the sandbox NGDP targeting system, using periodic money injections.  In the sandbox, we can control the ledger fees and keep congestion optimum through out the period, thus removing all hedges for the quarterly NGDP injections.  Again,  Bundesbank special government fix is gone.
This is what we eliminate, government rigging the game for their pals and their debt while the rest of us get the less than the even money bet.  Sasndbox removes booms and busts, mostly.

There is a perception that double entry accounting ultimately charges us for the bank fix. Yes, true once per generation.  Look at the significant motions of our rate cycle. You can see us mark Bundesbank's special price rig every generation.

California and Sotomayor making stuff up

NRO:

 And thanks to a California district attorney’s irrational, and probably unconstitutional, “collateral consequences” policy, Ms. Rastogi and her children are likely to continue to live in fear. Santa Clara County district attorney Jeffrey Rosen has a formal policy that allows reductions in charges against non-citizens (legal or illegal) to avoid risking the possibility that a defendant might be deported for committing a felony. 
There you go, just ignore the rule of law and a make shit up judiciary results.  

What this means is that when Jerry wants our pension payments then millennials will not pay.  The little browns will suffer as the unions hound them for regressive taxes, like Jerry;s pension tax on fuel. When the little browns revolt, we will  aim their  pitch forks at Jerry and  the Cal totalitarians,

The question, Ben, is why the senate waits till the last minute

LAS VEGAS (MarketWatch)—The ability of financial markets to ignore deepening political turmoil in Washington and elsewhere has long puzzled former Federal Reserve Chairman Ben Bernanke.
And the answer is in the 2.4T imbalance in that you loaned  one member bank the huge amount,  outside of any perceived price variation the would justify the action. You, Ben, bailed out a special member bank and put the senators way off equilibrium.

Unrelated technologies

The report by Tony Seba, an economist at Stanford University, finds that forecasts of a slow move from fuel-powered vehicles to electric vehicles envisage drivers continuing to own cars. He argues that the introduction of driverless technology will be driven by companies such as Uber and DiDi, which will invest massively in creating a fleet of vehicles that are so cheap and convenient to use that car ownership will become a thing of the past.Seba said the world is on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history. “By 2030, within 10 years of regulatory approval of autonomous vehicles, 95 percent of US passenger miles travelled will be served by on-demand autonomous electric vehicles owned by fleets, not individuals, in a new business model we call ‘transportas-a-service.’”
No, driverless technology and fuel type ate completely unconnected.  

The only connection between the two is a fantasy invented by California environmentalists who, as we all know, mostly just burn CO2 unnecessarily. 

Second, I am on the job with the reverse solenoid, all magnetic drive combustion technology which whoops any electric vehicle on the road in end to end CO2 usage.

Some quick numbers

The tax subsidies to electrics come to  about 15 k,  or 4000 gallons of gas.  My engine will get 40 MPH, or 160,000 miles on that, that is the life of a car folks.  So, my gas is essentially fully paid for by equivalent subsidies. If I am willing to pay the equivalent electric costs, then I have enough spare energy to cover alcohol from corn.  I am not environmentally sound, I cause global warming, but much less than the electrics.

If the correction continues, the California budget blows up

Markets down 1.5 points and yields dropping.  

The California budget survives on the capital gains tax for Silicon Valley. We have a whoops, we have a similar problem in New York and Illinois. Then we have Connecticut also.

My source got me the transcript

SOCHI, Russia, May 17 (Reuters) - Russian President Vladimir Putin said on Wednesday that U.S. President Donald Trump had not passed any secrets onto Russian Foreign Minister Sergei Lavrov during a meeting in Washington last week and that he could prove it.
Speaking at a news conference alongside Italian Prime Minister Paolo Gentiloni, Putin quipped that Lavrov had not passed what he said were the non-existent secrets onto him either.
Putin said Russia was ready to hand a transcript of Trump's meeting with Lavrov over to U.S. lawmakers if that would help reassure them.

Here is how it went:

Donald: Your know those lab top bombs?
Lavrov: Wait, don't tell me that stuff.
Donald: What stuff
Lavrov: The laptop bomb stuff, it is supposed to be secret
Donald: Big deal
Lavrov: The the leakers will tattle and create a mess in the media.
Donald: The leakers will never know, it is just us two.
Lavrov: Yes.

I quit guessing

This Is Now the Third-Longest Economic Expansion in U.S. History

The two biggest repeat cycles happened, the generational and presidential.  Wer do not know much about how this works.

Some events will be  different this time.   The economy would not remember back with that enough efficiency, so this part we see for the first time; or, a big part of the uncertainty is going to be bit error.  All the bots will have mis-pricings, from way back, marked to market.

So, this economy is mostly making the even money  bet, staying calm until we get the first pricing event, how do the senators balance.  It thus remains, when are the senators out of their bounded variation.  And, how big are the back dated interest charges.  

And, the answer may be, not too bad, we bounce along and suffer the few inflationary years of rebalance. The other answer is massive coordination failure during the rebalance. We get the bad outcome when senators try in desperation to make all the insurance payments.

A clue on public addresses

Secure n| "https://m8.i-doxs.net/PGE/OneTimeAddPost.aspx"

See that URL, that is the one I hit to confirm.  I have a problem, I look up and I want to see the first part to say: https: //pge.com.  See, I know that address goes through the URL tokenization check.  The other seems completely made up, as if I got there by fraud.   I trust the URL system and lnow pge nailed that url.

Let's do the sandbox equivalent of the car industry

Get a feel for pricing.
Treat this as a use case.  Otto, the Automobile Automatic Banker offers savings and loans for cars, as long as you clicked the OAAB icon.  How does this work?

Well, autos are midsized, full sized, compacts; and we have trucks, small, large and big, plus a couple of SUV classes. The auto executives tell me this. How did they figure it out?  They have to manufacture and haul these around, so they have to have a container algebra for the industry.

Does Otto the Banker care? No, if your token is valid, drop and S or take an L.  But the bot is going to see liquidity events, and order them by significance, and find the ideal match of savings events to loans events such that uncertainty matches significance. Then the bot will reward you or penalize you according to whether you were an ideal saver  of coin for cars.

The simplicity of this model rests on the tokenization process, and the assumption that endpoints meet sandbox rules for secure element.  The actual distribution of vehicles will be the dual of the trade book at Otto's place.  That condition is optimum congestion, buffers in the trade book do not overflow or underflow more than bit error is allowed.  The price of a vehicle, to the consuming public (cost of current operating vehicle) it the amount of empty space needed in the industry supply chain because you have jitter in your use of the vehicle.  You actually carry around a ton of unused basket, frightened of a measly overflow.

The data science says that Otto the banker generates important, and tradable, information whenever Otto asynchronously sets charges, especially if Otto raises the ledger fees.  These are the same reports we get from Zillow for real estate reports, or monthly reports on  mortgage reports.  Butvthe report is asynchronous.  There is a difference, I touched on it.  If you are making bets arriving exactly on predictable time, then the cycle price plays a role and the bets are forces to spread out, avoid jamming. If the event is an asynchronous event, especially having an even money place, then price or interest chages play.

See, either way, fair trading pits do congestion management. In both cases the fundamental applies, no flow, no quantization. When you start raising the cycle flag because of jamming, then you flow into an expanded window of the past, and you dump the window at the appropriate time. flow. Set  spawn = 1 if this case is desired.

Larry White on WalMart banking

Money and Banking:
However, when financial regulation is being discussed, there is a large elephant that isn’t in the room, but really should be: Walmart. Starting in the mid-1990s, Walmart made two separate efforts to enter banking in the United States, but was repelled both times. After its second effort was rebuffed in 2007, Walmart gave up this effort in the United States (but has since entered banking in Canada and in Mexico).
Larry is one of my guys, the article worth reading.  In the article he has estimates of banked and unbanked customers by income.   Then he talks free entry, (and free exit by implication).  What is he getting at? We all have to participate in the pricing process, to the extent that we consume from supply chain.   I didn't come up with free entry and exit condition, Larry did, with Selgin working at the Cato center.  But we can see it true, absent the banked consumer, the inventory flow gets volatile because missing S&L liquidity events cause larger than necessary price variations.

What happens when WalMart is not allowed to run an S&L? You get riots and other 'flea market' activity.  Many of the purchases  otherwise robbed are easily gotten on small credit, especially with low transactions costs.  WalMart can trade the S&L business for the security costs of unbanked customers.

This is the point I come back to with defaults.  Government cannot default when an large segments of the population do not have access to the even money bet. Otherwise, you get flea market and liability falls back to government.


Tuesday, May 16, 2017

Permanent crying syndrome incurable


So concluded a panel of mostly wild goose chasers at John  Hopkins. The conclusion of the report:

" Studying the permanent crying syndrome is like, well, a drag, like studying  Spanish men with the castration anxiety".

Jerry Brown begins mass slaughter of young people

There’s a time in everyone’s life to save. There’s also a time when you’re supposed to spend. That time is commonly known as retirement.Millions of Americans aren’t doing that, however, which has put the U.S. in a perverse situation. Younger generations aren’t saving enough as their income slips further behind previous generations. Older Americans meanwhile sit atop unprecedented piles of assets built through stock market and real estate booms.Yet these retirees, or at least the affluent ones, aren’t spending it. It turns out they’re afraid of the unknown.
His devious ploy to wipe out anyone under 40 is under way, complete with the associated plot of killing the whites. 

McCain vs Putin

McCain has cost taxpayers trillions in worthless defense spending. Putin has not. 
That makes McCain  an enemy of America, not Putin..

Jeff Bezos gives up the One Click Patent

Amazon CEO admitted to running fake news in the Wa Post, and admitted to giving Diane Feinstein a bribe to obtain the bogus one click patent.  He announced today that the WA Post is bogus fake news site.

Monday, May 15, 2017

Bombs in laptops?

How did we all know that?  Well, for one thing, Trump tried to ban them on flights.
Who told us? Likely Saudi Arabia.
Did I violate national security?  Dunno, I was stating the obvious.

Hard to white wash this one

How Is This Not A Recession? Ford To Slash 10% Of Global Workforce


We have the normal, periodic  result from our government's central bailer. Car companies get their boom and bust each time we go through the  presidential regime cycle.

No model for seigniorage

“Tightening is Easing”Since U.S. monetary policy began tightening in December 2015, the Fed has added liquidity to the financial system through interest payments to banks on excess reserves and has reduced its surplus to m is that the senators do the Treasury adding to the fiscal deficit.  Thus the financial system has had an effective injection of central bank liquidity and a fiscal expansion during a period of monetary tighenting.
The senators keep 2.4T on loan, with barely any savings.  Ben used the 'make shit up' theory from MIT to justify the senators behavior.  But, the senators can never get back to a normal savings to loan ratio, they are too far gone done the road to default.   The central banker needs to hit the senators with a sudden interest charge, wake them up to the nightmare that they are.

Evon Obama told folks to vote illegally

The travel ban case:
"No one has ever attempted to set aside a law that is neutral on its face and neutral in its operation on the basis of largely campaign trail comments made by a private citizen running for office," he said.
Or Pelosi who got  on TV and wanted to rig the elections for little browns.  Or Jerry who wanted special Jim Crow schools for little browns. Not to mention tha Obamacare always was unsustainable and Dems lied about that.

The horseshit we get on campaigns is horseshit.  WHat we get from the judiciary is a break down in the judicial system.  It was weak enough with California being an on constitutional racists totalitarian state, but Sotomayor essentially ground the US Federal courts to a standstill. 

Yes we do know where crypto is going

Neel Kashkari, a former Bush administration official who became president of the Minneapolis Fed in early 2016, gave a speech during the MN High Tech Association 2017 Spring Conference, held this afternoon.
Asked by an attendee about the Fed's position on digital currencies, Kashkari went on to make the following points:
  • The Fed is watching: "This is a topic a lot of people across the Fed are paying attention to and watching how it evolves."
  • His issue is with 'inflation by altcoin': "The problem I have [with bitcoin] is while it says, by design, you're limiting the number of bitcoins that can be created, it doesn’t stop me from creating NeelCoin or somebody from creating Bobcoin or Marycoin or Susiecoin."
  • Blockchain 'has more potential': "I would say the conventional wisdom now is that blockchain, the underlying technology, is probably more interesting and has more potential than maybe bitcoin does by itself."
  • The waiting game continues: "I think it's too early to know where this is going to go ... we'll see – we have a lot to learn."
Our vision of a sandbox having auto-traded cash is fairly  spot on and most of the crypto world is falling in line.   

Sandbox deployment schedule

A marketing report we swill have 3 billion secure elements by 2022.
Revenues for mobile and wearable biometric authentication will exceed US$6.2bn by 2022, Goode Intelligence predicts. “By 2022, over 3.3bn users will be benefiting from secure convenient biometric authentication,” the research firm says. Biometric authentication technology on wearables is some “years behind the smart mobile device market” but analyst Alan Goode believes it will “eventually appear on commercially available consumer wearable devices potentially as early as late 2017 or during 2018.”
I do not think the senators can wait until 2022 before default.  

A lot of folks will get screwed, and the senators are likely to try and time the defaults to  take maximum advantage of coordination failure. I would shoot for 2018, frankly, there is a real danger the next down turn will do the trick.

Dunces in Greece

When Greeks go borrowing, interest charges go way upp as they have no savings and are vulnerable at the short end.
Greece could soon return to debt markets, marking a major step in its recovery from a prolonged debt crisis, opposition leader Kyriakos Mitsotakis, whose conservative party holds a double-digit lead in opinion polls, said on Monday. 

"Returning to debt markets is a fundamental goal," he told a question and answer session at the London School of Economics.

"We may be able to tap capital markets in a protected manner. Assuming we have some visibility on the debt side, assuming we get QE, this could happen within the next months."

In California we can sue white people

WASHINGTON—The Supreme Court Monday declined to consider an appeal that sought to revive North Carolina’s Republican-backed tighter rules for voting, a move that came after the state’s new Democratic administration sought to drop the case.North Carolina, with Republicans in control, passed the voting changes in 2013. The measure disallowed same-day voter registration and voting out-of-precinct, while also reducing the days available for voters to cast a ballot early. The state also imposed a requirement that most voters show photo identification such as a driver’s license, passport, or military or veteran’s identification card.

Our judicial system is a farce when California is exempt, which gives little people the right of nullification. 

Crypto currencies taking the next step

Network effects. More connections make more transaction flow causes crypto currency buffers, increases coin demand 'on the run' as opposed to 'sitting on ledger'