Monday, December 18, 2017

What did we learn?

If we reduce tradebook uncertainty, we can run longer windows,plan farther out, and pay smaller ATM fees.

ATM fees is a reference point because it is a ratio of the actual uncertainty of cash, about 1.5%.  So, if you expect citizens can count on social security to a 1% accuracy, you are a liar. SS can never do better than cash, in terms of pricing volatility in our planning.

Quit lying, the truth isn't all that bad.  Social security payments should vary about 3%, every two or three year, vary around a zero trend. Why lie, this is not a horrible truth.

So the trading pits will move us around  the optimum points in the Markov index space, pareto efficient. Government programs liberated to play the even money bet, semi-independent of government taxes, thus forcing voters to pay attention  to and update programs.

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