Back to natural rate

Roger Farmer doesn't like it, but he really thinks it is a computed result of the agents, an outcome.  In that case he is right.

The natural rate is one over the maximum set of unique school girls the economy an generate.  It is the minimum surplus transactions  until can rotate back into the sequence and maintain a unique set.  But we agents warp our surface to make it so, the natural rate solidifies our quantization, keeping excess liquidity to a minimum that spurious re-quantization cannot take place.

If we assume an adaptable, dual queuing system, then we measure liquidity events (change to loan or deposit), innovations to be organized into a two complement generator of some precision. You can find it by getting a well partitioned savings and loan value from a unconstrained currency banker, then looking up the hypoerbolic angle getting the x and 1/x.

I think the combinatorics well tell you a nasty secret, if money does not re-quantize, then it might be thousands of years at low interest rates, under the current central banking law.  The federal system, we currently have,is based on the assumption that about 20  million of us can  organize into a few unique groups.  Its the magic Walrus, we have to all know the finite set of paths forward in each of our separate classes;  then we can always find the sufficient prime sets we belong to.


Our finite block chain process cannot maintain infinite  precision. We always need to slightly off from Shannon stability.   If you view the statistics of the difference between customers and clerks, thatdifferenc distribution shows the probability of a loss by he grocer.    He has to lose money, now and then, so that he can observe the next possible quantization levels.  Price elasticity is a computed outcome, a local stable point between current inflow and outflow.  When the grocer loses a bit on a product line, he knows the income flow sequence is mis-matched to his customer outflow sequence, hence its inventory surplus will wander, actually appear to have a unit root.  So, the grocer maintains enough liquidity to support re-quantization, over come the 'loop' while the Shannon  limit locks you in to the current configuration, assuming there is not loop.