Federal Government, disposable income

Not too stable and growing uncertainty. That makes a small rank network if government is recirculating money. The list of public goods the federal government can provide had better be very basis, or else the Federals need a reliable tax source.

Otherwise, the Federals need larger savings and smaller debt. So DC has to operate way down in hyperbolic angle, and between DC and the local government of California there is another three hyperbolic angles that need to fit. The network cannot get too close to hyperbolic angle zero because both zero and one are very uncertain in this chin. Hence, not much independence between the link in the chain.  This will not be an adiabatic solution set,  arbitrage motion will create a segmented value added chain and intermediaries step in and feed off the imbalances..

Rajiv Sethi has a handle on market segmentation and its problems. He is the expert on this problem, and very good.  His model of intermediaries and market makers apply very well to the problems of the government value added network.  Civil servants will be maximizing their income as market makers.

This is the Paul Samuelson model with uncertainty