Our model of the triple accounting pit was drawn as my estimation of the current debt cartel. Other can quantize a different economic law. My law says the debt cartel attempts to match loans and deposits as to minimize volatility and keep government interest charges under 2.5% of GDP.
We consider an S&L pit in which three sequences were observable, loans, deposits and tax reserves. The entire S&L complex includes the two color pits for non cartel members. But cartel members who maintained a tax reserve got 1.5 times as many looks at the balance sheet. They get 'early look' and can front run the equity markets.
The algorithm, it seems to me, goes like: Run the pricing operator over both streams and compute their distance. That distance is the error stream, sofar. It should have spectral components, companies planning taxes to get current growth. So, then price this sequence against government tax sequence.
The result is that we can automate the necessity of being filthy rich. Find almost better off people who want to do triplicate accounting, and they can be aggregated up to filthy, automatically, as long as their smart card obeys triple entry accounting. On most of your transactions, you card will think, how much of this transaction will need a tax reserve? Your three color card and app has to be smart, it points you to both government necessity and bets with better tax avoidance. On net triple entry accounters gain a consistent quarter point above the pedestrians.
Exactly how the system works, we just improve on efficiency. I doubt we need to automate more than a half point of GDP n central bank tax reserves. The system works on the margin.
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