Thursday, August 31, 2017

Why do we sphere pack with our S&L tech?

The interest charges make the space between layers of an onion, one way to think about it.

Multiple layers and we realizes the compressed flow contracts  to an almost fixed point, thus a sphere. The bit error is really  the closest estimate to the current center.

One can see this effect in the knee of the hyperbolic curve as I discovered years ago.  A pi like equation seem to hold when the hyberbolics are confined to the fibonacci derivatives, the fibonaccies always fit a Huffman encoded yield curve.

But, its true, it is fake gravity.  It is really the essence of the economy, making fake economic gravity look real. The hologram effect is  maintained by the queuing between layers.

I have discovered a landlord legal conflict

In California when a landlord finds a coding violation he must evict normally.  If he confesses to the coding violation the code enforcement officer cannot accept his confession as it  might be a ploy to execute a shortcut eviction.

A cop in Fresno California called the code enforcement officer on me.  I had already given the 30 day, I had already attempted to confess and find myself guilty and sought my just punishment.  The cop ordered the eviction on the spot and now we have two more homeless in LA.

But I might still be liable for the two weeks they lived after my eviction notice was served.  It is a quirk in tenant law.

Los Angeles Changes 'Columbus Day' To 'Indigenous Peoples Day'

Charlie pride as the theme song

Expressive money

There's Literally A 'Token' Called "Fuck" That's Up 370% In The Last 24 Hours


I love the sandboxers.

Federal judge eliminates states rights

Judge Blocks Texas Sanctuary City Law; Finds Mandatory Enforcement Of Federal Law Is 'Unconstitutional'


The ruling creates a mass of additional lawsuits all of which look for the same method to undermine states rights.

Whether we like states rights or not, this ruling creates the Sotomayor jam up, the courts will cease to function unless the Supremes clarify.

Big shot banker discovers debt/deflation

The red line is one of the many consumer price indices, of which there are too many, too useless indices.

But core CPI less shelter is in deflation, not inflation as the Magic Walrus says it should be.

As we have found out, federal interest charges as a percentage of the economy is the economic mark up, the Fiscal theory of price. Yields equalize in a low volatility environment, like an economic environment which is mainly government cost of living allowances and interest payments.

Continuing fraud at Wells

Wells Admits It Created 1.4 Million More Bogus Client Accounts Than Previously Thought

Virtual bankruptcy

The Kern County Board of Supervisors on Tuesday approved a nearly $800 million budget that included 3.5 percent cuts to all departments. 
Prior to the unanimous vote, supervisors listened to staff reports about two of the county's most vexing problems - low oil prices and high pension costs."Pension costs are like a cancer that keeps growing and it's eating away at our other funding sources just like a cancer would eat at healthy tissue," said Supervisor Zack Scrivner, who represents the southeast portion of the county.

Free anything for anybody in California, except for whites

Homeless encampment growing problem in Orange County...

It is not a problem, it is the design.

California just sues them to poverty

KANSAS CITY SERIAL KILLER SUSPECT: 'KILL ALL WHITE PEOPLE'...

A slight majority of Cal Dems eschew outright assassination of whites.  They use oppressive anti-white legislation instead.

The commie rat causes nothing but war and chaos

China Says It Will Never Allow War or Chaos on Its Doorstep

Wednesday, August 30, 2017

Nice can kick

Boom: Q2 GDP estimate shows fastest growth in 2 years

Bombing the bearded

In a surprise move that few analysts expected, the US led anti-ISIS coalition operating in Iraq and Syria has bombed parts of the ISIS convoy previously given safe passage out of Lebanon as part of a controversial deal brokered early this week with the Lebanese Army and its allies. Coalition spokesman Col. Ryan Dillan had previously warned that, “We will take action where necessary; those would be absolutely lucrative targets.” And it now appears the US coalition followed through by attacking the vehicles as they traveled across Syria to the Islamic State stronghold of Deir Ezzor.
I guess  the bombers never signed the agreement. 

Tuesday, August 29, 2017

Nothing to report

We are in the low volatility pause.  Most economists have figured out something is wrong with debt and inflation.  And most of us get the path forward on new money tech and finally, the smart economists have looked back and seen the recurring problem with generational debt.

So, what is to report? Let's see if we can kick can.

Monday, August 28, 2017

We are getting a gender algebra

Gender 'X' could soon be an option on California state IDs

Information theory in the news

I shall be blunt.

Information quants are a mathematical construct designed to obey channel queuing theory. The reality Shannon was solving was the queuing of charge in a confined channel. It is a part of queuing theory that Shannon discovered, or another way to put it, sphere packing. Information quants were fake constructs designed to represent queued up charge.

In economics, Jason Smith has his book out, and folks are still talking about emergent gravity.  Jason's book is about the optimum queuing of goodies in a goodie channel, and the emergent gravity folks are all about queuing up the tiniest chunk of vacuum.  Nothing really has any information about anything, there is no such thing.

Accused of being gray

The Root mag accuses Charles Barkley of being ‘black white supremacist’

Storm Harvey could cost as much as a quarter to half point GDP

30,000 expected in shelters, 450,000 may need disaster help

It depends on how much disaster help is need per person, but it could add up to tens of billions. The economy was already running at less than 2% growth, and this could push that number down to 1.5% potential growth, recession likely in that case.

Using basket brigade theory

Rising income inequality has received extensive attention from economists in recent years. However, changes in consumption inequality – which is potentially more relevant for welfare – have been largely neglected. Using US data, this column explores measurement issues and trends in household consumption. A key trend identified is that US households have been shifting towards stockpiling behaviour – shopping less frequently but purchasing larger quantities per trip.
This is the basket brigade theory of economics.  Emphasis mine.   But we see the requantization of basket sizes taking hold, and basically the economy has contracted.

Basket brigade theory has been around in other forms, I just renamed it. I also pointed out that maximum entropy channels connect basket brigade theory to optimally queued distribution graphs.

Sunday, August 27, 2017

Thus the plot

A Russia-born businessman who served as a real estate adviser to the Trump Organization was pushing for then-candidate Donald Trump to pursue a Trump Tower deal in Moscow in late 2015, The Washington Post reported on Sunday.
Trump was using a fake presidential run to sell hotels.  Everyone has it backwards, Trump never expected to win.

Mark ups pay interest costs

Everyone is interested in a new paper, the evolution of price over cost as time progresses. I compare their chart on mark ups with some chart from Fred that matches.  I find interest charges match mark ups, and that makes sense.

Look at the red line above, federal interest charges.  Look at the red line below, price mark ups above cost.

When interest charges rise, mark up rises. It is a bit asymmetric, mark ups mostly rise as interest charges rise but lessly drop when interest charges drop.

The channel is the one Prof Sims argues, the theory of the federal price level.  Firms have to compete for money with government. The willingness of taxpayers to pay ever higher interest charges means that corporations have to compete with higher margins.  The net result is that government creates monopolies to match it own monopoly.

Going full Yippie

Black-clad anarchists storm Berkeley rally, assaulting 5

Here is your typical yippy, notice the central manifesto reads "For the hell of it", that is your anarchist streak.

Uber needs to be in travel finance

Uber taps Expedia CEO Dara Khosrowshahi as new CEO

Build on their core group of riders and issue the smart cash card for all travel.

A few years of reconstruction

Rainfall over 50 inches would topple Texas records. The NWS said "the breadth and intensity of this rainfall is beyond anything experienced before and is resulting in catastrophic flooding."

All that electrical gear fouled. Oil industry flooded and muddy, roads washed out,.... 

He should know

Trump Afghan Strategy Poised to Fail, Pakistan Premier Says

Pakistan and Afghanistan share a 1000  mile border. The Pakistan Premier is not going to protect that border, hence endless war.

Nor is there a political settlement as that involves Iran, and Pakistan and India and Russia, too many players.

There is nothing left, just grow a long beard and beat the women, a degenerate islamic society.

Degenerate probability surface has collapsed to one dimension

Matt King: Global QE And "ETFs Everywhere" Have Created An Unstable, One-Way Market


Here the complaint is low volatility, rise of passive investing.  No one is looking at individual corporate performance, all are focused on aggregate indices.

Go back to the Fed balance sheet, it is all about making sure the Swamp gets through a bankruptcy.

Can we remove the MLK statues?

And we have these  Martin Luther King street and school names, a huge pain in the ass.  Can we remove all that crap?

Saturday, August 26, 2017

What do the econo babes at Redneck U know?

Justin WolfersEVIDENCE OF A TOXIC ENVIRONMENT FOR WOMEN IN ECONOMICS: "Ms. Wu set up her computer to identify whether the subject of each post is a man or a woman... https://www.nytimes.com/2017/08/18/upshot/evidence-of-a-toxic-environment-for-women-in-economics.html

Being the founder of Redneck U, I take allegations of unfairness somewhat seriously.  So I took the econo babes out for Thursday beer.

Gals, says I, rumor has it that you rarely see the entire context in your economic research. They say you are dingbatty, a bit, and prone to sudden fits of hysteria.
Boss, says gal one, we talked about it and decided we want a bigger government check.

So we had more beers. They never take me seriously.

But it is a friggen law center


IT'S ON: Christian Group Sues SOUTHERN POVERTY LAW CENTER, AMAZON for Defamation of 'Hate Group' Designation... 

The SPLC is simply a lawyers group. So they defame innocent parties and get their ass sued.  Where did they go to law school?

Typical California racists

Tower District rally against white supremacy stays peaceful


Anybody notice the racism?  They only pick on white racists, they leave out the brown, black, yellow and purple racists.   Here is a list of official congressional racists, go protest against them. I have included as much racist diversity as I could find:

Racial and ethnic caucuses[edit]

Among the most visible caucuses are those composed of members sharing the same race or ethnic group. The most high profile of these represent people of color. These include:

There we go, all these political and sexist (there is a woman's caucus)  caucii, almost every friggen race has a racist group in congress except...white.  I think it is illegal to be white in California.

It is time to invade Canada

All The Countries America Has Invaded... In One Map

From Montezuma to the shores of Tripoli, the US has had a military presence across the world, from almost day one of its independence...

It was Sotomayor and California that killed it

‘Law Is Dead in America’: Presidential Pardon of Sheriff Joe Arpaio Widely Condemned

California has long been ignoring the constitution, and Sotomayor turned the judiciary into a 'make shit up'.  California gets away with being unconstitutional as long as they pay extra in taxes and contributions to the Dem party.

Diane Feinstein, racist pig


Top Democrats in Congress are pressuring the Justice and Education Departments to stop the administration’s plans to investigate and potentially sue universities that intentionally discriminate against applicants based on

Of all the useless ideas, Diane wants to re-introduce Jim Crow schools.  

The Dems should at least wait till things cool down and they can return to their 250 year old racist program.

Stockman on the debt ceiling

But perhaps this time it will be even worse. The Goldman Sachs Regency in the White House would readily sign up for the skinny bill and three-month punt. They are flat-out desperate to keep the casino at bay and the stock average from plunging.Assuming that the Donald doesn’t blow-up the proceedings on a skinny bill, the maneuvering for a December deadline would be where the rubber could finally meet the road. That’s because there would need to be at least a $1.5 trillion debtceiling increase just to make it to December 2018 under current tax and spending policy.The Treasury will need to borrow $500 billionor more to replenish its depleted cash balances and to pay back the funds which allowed it to pay the bills since March 15. The Treasury will be running upwards of an $800 billionannualized cash deficit between now and December 2018.

 See the estimated interest charges, 200 billion more than we pay now.  There  will be no private investment, we will need all the wealthy to cover the interest charges. Janet will be needed.

No need to get fancy prof Sims

It is clear that this is directly relevant to the effectiveness of QE by the central bank. This was explicitly intended to be a temporary injection of central bank reserves that would eventually be fully reversed. Furthermore, it came in the context of a programme of fiscal tightening that was intended to reduce, not increase, the issuance of public debt over time. This made the debt more attractive, thus reducing aggregate demand for goods and services, in the way that Prof Sims postulates.

There is an easy way to get at the fiscal price theory.  The debt charges get pushed down to final consumption where demand falls as a result of little people having no do-re-me left.

Another theoretical basis is to look at the loans and deposits at the Fedc.  It is all government borrowing and all private sector deposits.   The price of anything in this economy depends on the Swamp inventing something useful with that 2.4 trillion dollar loan.  Unfortunately, it seems the 2.4 trillion was a bailout for failed Swamp, which means rich people get to collect interest paid by little browns because the kanosians fooled us.

This is not a race argument we are having

The argument, plain and simple, is the left wants more government jobs and the right doesn't want to pay nearly a trillion in interest charges.  If this were a race issue than Nancy would be out advocating special extra votes for her favorite race group.  Shr is not, she is dealing with a bankrupt Swamp and screeching hysterically.

This stuff happens once a generation as governments go broke. The solution we choose generally is to default and make everyone pay equally for the government failure. Don't worry, we are pretty efficient at civil strife and will trigger the defaults sooner than later.

Italy has its quota of entitlement slaves

Looks like Italians are largely fed up with the flood of refugees


The slave boats are a  bit leaky

Over just a two day period in June, a total of 193 people died crossing the Mediterranean in that direction out of 6,000 refugees who made the journey over the same two days. The UN estimates that more than 2,000 have died attempting the crossing since the beginning of the year and 83,650 have been admitted to Italy.

Let's tax little brown people

Should California spend $3 billion to help people buy electric cars?


The Cal legislature plans to tax the hell out of little brown, write billion dollar checks to Elon. It is OK, though, the city of LA conveniently provides pup tents for the little browns and they can sleep on any street in LA

Fiscal stimulus reduces debt to GDP?

We have a couple of the UC Berkeley crowd claiming that fiscal stiulus during recessions reduce debt to GDP.

I have the charts here, spending, recessions and debt to gdp, let's look.  In the 92 recession here was no real stimulus, debt to gdp rose then after Clinton surpluses (reduced spending and higher taxes, debt/gdp fell).   Debt to gdp barely rose after the 2001 recession, but that was not a real recession, it got revised away.  Then in 2008 we did stimulus and nearly doubled the debt/gdp. The only time debt/gdp drops is when we raise taxes and cut spending.

Whatever the bozos from Berkeley found, it is not reliable in the USA, just forget it and write it off as another Kanosian white wash.

A good outcome

"In total we can estimate the probability of no deal at around 33 percent. We think this is an alarmingly high probability of a very bad outcome."
If the debt ceiling is not raised, interest charges are not higher and a 4% cut in spending results.  A great idea and millennials are not driven to poverty.

Gold beats commie rat

"Rich Chinese, having lost confidence in the yuan and with investment in other assets becoming difficult, are turning to gold smuggling to move their wealth out of the country..."

Sanctuary works in the sanctuary city

Amid rising homelessness and mounting outcry from residents and business owners, a Los Angeles city councilman said Wednesday he wants to take a hard look at the way the city responds to the increasing presence of encampments and recreational vehicles.“What we have isn’t working,” Councilman Mitchell Englander said.In recent months, the issue of homelessness has become inescapable, with residents encountering more homelessness in their neighborhoods, according to the councilman, who represents the northwest San Fernando Valley.

Friday, August 25, 2017

California's secession partner

Mexico marked another murderous milestone in its conflict with organised crime as the monthly homicide rate hit its highest level in 20 years.Government statistics showed that 2,186 murders were committed in May, surpassing the previous monthly high of 2,131 in May 2011, according to a review of records that date back to 1997.Mexico recorded 9,916 murders in the first five months of 2017, roughly a 30% increase over the same period last year.
Texas is not all that enthused about secession with a bunch of murdering cartels, California is all in.  Out here in the SouthWest, we should start agreeing on the proper number of people to murder. 

Obviously unconstitutional



A bill that passed the California state senate and is now moving through the Assembly could threaten jail time for anyone who refuses to use a transgender person’s preferred pronoun.
The law is currently limited in its effects to nursing homes and intermediate-care facilities, but if passed, those who “willfully and repeatedly” refuse “to use a transgender resident’s preferred name or pronouns” could be slapped with a $1,000 fine and up to one year in prison, according to the California Heath and Safety code. The state senate passed the bill 26-12 at the end of May. Since then, the Assembly Judiciary committee recommended the bill unanimously and the General Assembly held its first hearing on the legislation Wednesday.

The interesting part?  The legislatures likely have zero clue about federal constitutionality, they never learned it. Even the California lawyers barely study it. 

Only with Janet's help

MNUCHIN: I am '100% confident' the debt ceiling will be raised in time

Our secretary of interest payments saying, no problem, "we can steal the shirts off the backs of millennials".

Except the wealthy get wealthier as they insure the government budget

Philly AntiFa 'Cell' Calls For All-Out Revolution, Demands "Gender Abolition", "Expropriate Land From Rich"


There is only one thing we need to know about this group, they would rather the wealthy own the world as long as they get their worthless welfare check.  They are fundamentally welfare bums at the county level, it is the only behavior they ever learned.

Thursday, August 24, 2017

George Will is wrong

The Next Obamacare Mess and the Rule of Law

He has a column out concerning the insurance subsidies that Trump is paying that were no authorized by law.  The subsidized were never appropriated, says George, and thus outside the law.

Except for one thing, the House voted by de facto majority to delay he suit, and that makes evidence that the House intends to pay the subsidies and the matter become law by judicial ruling.  Trump is the defendant, and the agreed to let him continue making the payments, hence all parties have voted legally for the subsidies in one form or the other.

Because it reveals Republican plans for massive deficits

Sen. Lindsey Graham, R-S.C., suggested Thursday that congressional Republicans should put the opposition in a "bad spot" by adding funding for border security to the upcoming vote on increasing the debt ceiling, Politico reports.
"Let's take some hard votes," he said on Hugh Hewitt's radio show."Let's make Democrats say no to raise the debt ceiling, no to funding the troops, no to helping veterans, see how many of them break. And I don't know why we don't do that. And I think that's what President Trump is saying."
Voters are not all that enthusiastic about another deficit fueled Republican recession.  And those massive deficits are you, Lindsey, you are the example of Republican recessions.

Obamacare taxes to rise 17% in 2018

The economy won't hold.  With wages rising 2% and growth below 2%, there is no money.  It will be Janet to the rescue.

Inflation jumps, recession follows

Not a theory, just observing the relationship between blue line and blue bar, observable to any economist who  advocates more inflation.

Let me give them points on the X axis, 1990, inflation jumps blue bar follows, 2000 ditto, and 2007 naturally.  


For the extremely unobservant economists, I am talking about the bulge in the blue line, do you see it? Yet we have a collection of economists who think this chart is disputable, how?

This chart tells me the Fed needs to keep inflation below 2% so that we can maintain our stable 1.5% growth rate and possibly kick the can some 87 yards down the field.  But I doubt it.

Central banking with flexible corridor

The IOER Debate Redux


Central banking economists are debating the IOER, and I think the ten years of debate  reveals the title of the post.  IOER has to be set separately from Interest On Excess Loans, IOEL.  IOEL don't exist as a separate control. 

There  are two independent queues, the central banker needs a bit error process.
This is not really new science because the market making function always existed and requires the exchange take some risk.  So it is not unreasonable to expect the central banker to act a bit like market maker, it is bridging the bid/ask queues.

We have the secret channel deal backwards

These stories about Trump assistants trying to set up a channel with Putin have a flaw.

Trump expected to lose, and Putin was likely clueless.  The secret channel was most likely Trump trying to sell hotels, under the assumption he would lose, the likely assumption, Trump was as surprised as anyone by the victory.  If the secret channel was about a Trump presidency, he didn't need the channel, he would have been president.

Trump and the Russians have always dealt the hotel or entertainment business, money laundering and all.  Trump would have wanted to continue as a private citizen.

Trumpster dings millennials with a permanent 150 billion interest charge

"I requested that Mitch M & Paul R tie the Debt Ceiling legislation into the popular V.A. Bill (which just passed) for easy approval. They didn't do it so now we have a big deal with Dems holding them up (as usual) on Debt Ceiling approval. Could have been so easy-now a mess!"

Says Trump.  

Never mind that the millennials were not even born when Reagan bailed out the Texas boneheads, including the Bush family.  Removing the three generations of Bushies would likely add a point to potential growth, but it is too late.

Why ding the millennials?  Why not share the cost of past bailouts among all users of government tax fiat?

California's make stuff up judiciary

Cal's Chief Justice does not realize that she just seceded from the union: 
California’s highest ranking judicial officer has waded once again into the politically fraught debate over the Trump administration’s immigration enforcement policy.
State Chief Justice Tani Cantil-Sakauye, who has previously condemned Immigration and Customs Enforcement (ICE) operations at court facilities, said Tuesday she has a duty to call out federal agents who arrest illegal immigrants in or near the California’s courthouses.
“If no one ever speaks out, then we can never be the land of the free and the home of the brave,” Cantil-Sakauye said at a panel discussion hosted by state Sen. Hannah-Beth Jackson, according to the Sacramento Bee.
It is an impossibility to be a member of the union and restrict federal constitutional legal activities. But she hasn't figured that out, she is completely unaware of what her pronouncement really means.

Chart of the day

From Mish.

Look closely.  Retail jobs dropping, to recessionary levels but food and drink jobs soaring.  Something is wrong.

This is an economy of retired and semi-retired boomers.  Their pensions are being paid with taxes  from the little brown person serving their pina coladas.

Not true, Simon Wren

This carries over especially into Japan's economic and financial situation. As a percentage of GDP the government here is carrying more debt than anyone else on the planet. At one quadrillion yen, the debt level is so high that it now takes thegovernment 43% of its central tax revenue just to pay interest this year.
But Simple Simon says:
But what happens when growth finally raises inflation, and interest rates rise. Will debt not be a problem then? Maybe, but only in the long term, so the government will have plenty of time to fix that roof when the sun shines.

Simple Simon is back on Magic Walrus and fails to note the volatility in interest charges.  The Japanese government is absolutely debt bound.  The Yen has become increasing useless as a pricing currency in the local economy, most price variations being used to manage government interest charges.

Most governments in he USA suffer the same problem, virtual bankruptcy because of past debt or pension obligations or unpaid entitlements obligations. The deadlock you see in Congress is repeated across municipal governments in California.  

Governments have become economically unresponsive.  Virtual bankruptcy of government is everywhere in the developed world, the result of Magic Walrus delusion.

New semantics of mass hysteria

ESPN Pulls Asian Announcer Named Robert Lee To Avoid A Mass Triggering Event

I wonder if mass hysteria and smartphone disease are related.

Wednesday, August 23, 2017

Sotomayor make stuff up

A federal court in Texas on Wednesday struck down the state's controversial voter identification law, granting an injunction that bars state officials from enforcing the measure.U.S. District Judge Nelva Gonzales Ramos ruled that the law was enacted with the deliberate intent to discriminate against black and Hispanic voters. Ramos said that it violates the Voting Rights Act and the 14th and 15th Amendments of the Constitution.The original 2011 law, Senate Bill 14, one of the most restrictive in the nation, requires registered voters to present one of seven forms of government-issued photo ID in order to cast a ballot.

Given that photos are cheap and commonly used in IDs, requiring a photo ID is quite well defined in the Constitution.  This is a Sotomayor maker-shit-iup judge with no sense of the law.  Nelva just wants to join the chaos.

Intent is immaterial, efficiency over rules.  The court cannot deny photo ID any more than they can deny square cards or purple ink.  Nor, the court cannot require voters to remove their shoes.

In California it reached the absurdity that volunteer election workers were not allowed to look a square cards with printed names.   Think about it,. some dumbshit twenty year old is told it is politically incorrect to  look are small square cards with printed names.  No one should ever admit to being a California poll worker, people immediately think you are dense.

The greatest human invention

The throwing rock, of course.  Throwing rocks was such an evolutionary advantage, it ushered in the stone age and still forms the basis of human society.

Russia surrounds itself with nuclear neighbors

Russia Vows "Inevitable Response" Over "Illegal" North Korea Sanctions


The Russians fouled the nuclear environment with nuke and rocket technology throughout Asia.  Russians frigged this up for themselves.  Having supplied their southern invaders with nuke technology, the Russians then enter population decline.  So, they can vow all they want.

Chinese Commies have the same problem. China supported this nuclear mess in their own backyard, and got nothing out of it.  The entire south Asia, from Iran to Koreas, stuffed with nuclear weapons, courtesy of Russian and Chinese goofy foreign policy.

Send me a check

Govt. union rep: Employees only have to be “available to work” to get paid

Tuesday, August 22, 2017

Secessionists heart trumpster

Trump threatens to shut down government to build border wall

A Goldman-Sachs coup d'etat

What I heard about the  Bannon ouster.  This is GS preserving the global can kick.

Gina Raimondo, rips off Rhode Island pensions, gets elected governor

As the collapse of the St. Joseph's pension fund (which was approved by current Rhode Island Attorney General Kilmartin) illustrates, any candidate for the position must have a knowledge of pensions -- and be prepared to act.  Moreover, Rhode Island needs an Attorney General who is willing to investigate the largest financial crime in the history of the state: a reckless gamble of over $1 billion in state pension assets to further the political fortunes of the then-Treasurer, now Governor, and her Wall Street backers. In its first five years, this roll-of-the-dice has already resulted in approximately $500 million in hedge fund losses alone.
There is nothing Rhode Islanders can do, the voters are simply too stupid.  I suggest refusal to pay taxes. 

The secretary of interest payments is a welfare bum

GLAM SHOT GETS UGLY: MNUCHIN WIFE TOUTS STYLE, SLAMS CRITIC

The whole mash up with the secretary's trophy wife is simple, the secretary of interest payments is a welfare bum and millennials and their offspring will be paying higher interest charges for eternity because some dumbshit Kanosian created a housing insurance program for wealthy people to get welfare.

Who wants to listen to some dumbshi welfare bum employee of the swamp?  But worse, everytime the secretary of dumbshit speaks all the millennials think the same thing, Oh Boy, huge interest charges so these bozos.

Clue for politicians.  If you want millennials to pay at eternity for your failures, then shutm up the secretary of interest payments.

Islam makes a nutty Pakistan

ISLAMABAD (AP) -- In announcing his strategy for Afghanistan, U.S. President Donald Trump lashed out at neighboring Pakistan, an ostensible U.S. ally, ordering it to stop giving sanctuary to "agents of chaos, violence and terror."His predecessors have aired similar complaints, and U.S. officials and analysts have long accused Pakistan of playing a double-game with Islamic extremists -- supporting those that threaten its rivals in India and Afghanistan while cracking down on those who target its own citizens.
Most islamic nations become failed states. 

Adopt-a-commie-zombie

It sounds innocent enough — "mixed ownership reform."That is the phrase the Chinese government is using to describe a program in which healthy private companies are encouraged to invest in debt laden quasi-state owned enterprises (SOEs).
Kind of a hidden commie rat tax. 

Congressional bankruptcy watch

A growing number of key congressional Republicans are considering a controversial maneuver that would allow for about $450 billion of tax cuts without offsets, according to four congressional aides familiar with the discussions.
Under the proposal, the GOP would not account for things like expiring tax breaks when gauging the budgetary impact of tax legislation -- giving tax writers more room for cuts. Senate budget and tax panels are discussing the move to a “current policy” baseline -- instead of the standard “current law” baseline -- said the people who asked not to be identified because the discussions are private. The chief House tax writer, Kevin Brady, also signaled openness to the approach last month, saying it would lead to deeper tax cuts.
Republican welfare bums trying to sneak past the bankruptcy judge. 

Idiot Commie Rats

A Furious China Responds To Latest Sanctions: Demands "U.S. Immediately Correct Its Mistake" Or Suffer Retaliation


China voted for the sanctions with the intent of cheating later.  Hence, Chinese commie rats caused the trade war by cheating.

The lack of inflation scares the Fed

Why Is the Fed So Scared of Inflation?By THE EDITORIAL BOARDAUG. 22, 2017
The NY Times is going to be years behind the curve on this.  The issue to date is no inflation, there is none and we might be headed to deflation.  The second issue is that the Fed cannot do anything abut it until Congress is ready to write off losses. 

The Fed has lost control long ago, look to Goldman-Sachs to set the government budget.

Why were native French unfit to survive?

New Reflections on the Evolution in France


Brian Caplan, a fan of continuing human evolution.  

Great, but his article is missing the other part of Darwin, why did the French need an immigration push to survive, but the new immigrants did not? What was the mechanism of population decline in France and population explosion elsewhere?  Answer: The French suffer the Magic Walrus delusion.

Adapting to the crypto world

Government agencies are looking further into adopting blockchain technology and bitcoin. They hope to commandeer these protocols in order to protect the military from mass-hacking campaigns, counterintelligence, and otherwise hostile attacks on their systems. The Pentagon has especially shown recent interest in using cryptographically-guarded blockchains to aid their operations. 
There is a bigger picture, government agencies now live in a more accurate, autotraded world.  Better cash flow accounting is on the way, and what a better place to start than maybe blockchain. 

Accounting reform is also getting pushed by the pension regulators as part of the general virtual bankruptcy of government in the dollar system. All the  re-tooling is happening at once.

The basket brigade agent

My macro model, based on quantized baskets, has an agent, who is it? It is a biped that, with trained accuracy, can throw a rock and change the probability of arrival in the environment.   We automate money for stone age mankind, singularity 1.0.

That is right, look at the smart phone disease we suffer from, it is a derangement of the fundamental human quality, throwing a rock.  All we do in the sandbox is give the agent an intelligent rock and the environment becomes the web of fair traded auto pits. We will be dumping the telephone gadgets.

Monday, August 21, 2017

Trump restarts nation building in Afghanistan

Afghanistan is a bombing range, some place to drop bombs on bearded Islamics.  Why would an Islamic nutcase travel all the way to the end of the earth to be bombed? It is a religious thing.

Believe me or liar Swamp Rats

Senate Majority Leader Mitch McConnell said Monday there's "zero chance" that the debt ceiling won't be raised. Speaking at an event in Kentucky with Treasury Secretary Steven Mnuchin, the Kentucky Republican said "America's not going to default." Mnuchin has said the Treasury can keep paying bills through September.
The US defaults once a generation, and time is now. 

Sunday, August 20, 2017

Not a new reality


Fed bankers have  looked at multiple decades of disinflation in the following chart:


Notice the line goes down as we move left to right?

This is not a new reality, this is unamortized  swamp debt creating deflation over time.  Central bankers never had it right from the beginning.

Cops kill cops

6 police officers shot in 3 US cities Friday night; 2 dead


Two cops dead in Florida.  Cause? A bunch of cops and jurors let another cop get away with murder, an execution and frame up by a cop seen on video.  

Next time cops cover up their own murders then some cops somewhere will be shot in return.  One might think they would figure this out.

Racial quotas are back

Rex Tillerson promises to consider minorities for all ambassador posts
I wonder if minority includes the LGTBTGIF crowd.

Saturday, August 19, 2017

Time plotting

A survivor's option bond (or certificate of deposit) is a bond (or CD) that can be held by two people in a joint account, and if one of them dies, the bond can be redeemed immediately at par. Many of these bonds traded at a discount to par, and Lathen had the bright yet also undeniably dark idea of finding terminally ill people (in hospices and nursing homes), buying discounted survivor option bonds jointly with them, and then redeeming them at par when the people died. This worked quite well, and Lathen ended up setting up a hedge fund to run the strategy using investor money.
Issuer of CD  being quite dumb. 

Friday, August 18, 2017

Which pronoun generates the largest check?

Only In Cali: New Bill Would Imprison Healthcare Workers For Using Incorrect Pronouns With Patients

Central bankers need to surrender

Bitcoin Cash soared overnight, spiking as high as $569 (from below $300) as renewed uncertainty around Bitcoin re-forking, reports that the first 8mb block has been mined, and fears over further crackdowns in China on Bitcoin trading sparked demand for the forked currency, pushing it back up to the 3rd biggest cryptocurrency by market cap.

  • Federal interest charges are the fourth largest of the four large budget items, and interest charges were rising at 10% a year the last time I looked. The fastest rising cost for Congress.
  • Federal interest charges cannot be paid in any downturn without QE from Janet.
  • Federal interest charges rise, then bitcoin rises because bitcoin predicts QE
  • Federal interest charges are bankruptcy in the sandbox technology absent some amortization.  The sandbox prices the Fed balance sheet and Congress is the sole borrower.