Miniature California

As the Wall Street Journal editorial board explained earlier this week, Connecticut's labor laws convey many advantages on public employee unions. Local mayors say their only hope for reining in retirement costs would be for the state to change these laws. At the very least, the Connecticut Conference of Municipalities, a lobbying group for Connecticut's towns and cities, is asking that some collective bargaining rights be curtailed.

Makes no sense

 San Jose City Council Votes To Remove Columbus Statue.

Junípero Serra, California's founding father was Spanish and likely recognized Christopher Columbus.  From Chris we inherited our California form of government, ultimately.  Finally check out the name of the city, you dunces.  Someone is dingbat in San Jose, must be those Zuckerberg kids.

San José niega nuestra herencia española, quiere cambiar el nombre de la ciudad por 'inglés solamente'.

A sandbox schematic

Killing time with the draw machine. But this is my current simplified sandbox.  The escrow router is new, think of it as a finite ledger service, as opposed to the consensus ledger service at the  top.  

Everything except the router is queued (priced). The router takes a finite instruction set , with gas, and executes it as a contract buying its way across the network. Routers are meant to be ubiquitous, finite, bound,  and barely observed, like an internet router.

Pits are pits, auto traded, two and three color. Consider them as a wide variety of GDAX like price matching services.

Applications split the ledger services and intelligent cards in the following sense.  Humans interact with applications, and agree to contracts, then release the escrow bots.  Apps use ledger services to pre-qualify and verify completion and legality.  Apps are the smart layer, cards and ledgers split across the layer, escrow routers and pits completely automated.

Consider inside trader bot

It is a configuration of IBM Watson, it watches sock prices and insiders and insider related traders one degree removed. It does this in runt time as the sandbox istie independent fair queue adjustment, always.  Thus, insider trade arbitrage goes away, almost immediately. Insiders, in this situation, will be optimally congested, it isn't insider trading, it becomes normal economics. Then the Watson service is sold to traders, an insurance program. Again, another in the many billion dollar businesses  unfolding in 2018, and likely to cause coordination failure.

One change in the sentence will change Matt Levine's opinion

In Money Stuff, he says:

Being a "crypto skeptic," to me, means thinking that the core claims of cryptocurrencies -- that they can provide a viable non-governmental store of value and medium of exchange, that they can allow for the creation of new decentralized protocols for the infrastructure of the internet, that their underlying blockchain technology can revolutionize finance -- are wrong or inflated. 

All we need to do is change blockchain to finite blockchain.  Next we understand it as a contract consistency check, then all the rest of Matt's beliefs are maintained in the proper order in the sandbox.  We still detect securities fraud, as contract fraud.  We still keep consumer protection rules in the requirement for observables and fair access to the tradebooks. In fact, Matt, much of the work we do is based on your columns, making sure your understanding is met in the box. You are what we are duplicating, the ex Goldman-Sachs executive.

Price it!

Cisco Talos warns about malicious cryptocurrency mining attacks

Here we have a post about viruses that use your machine to compute blockchain ledger, and earn ledger fees.  It is like a secret ATM fee we pay because of infinite blockchainers dominating the ledger business.

The sandbox has a solution, let the user agree, by contract, to bitcoin computations and collect part of the ledger fees.  This is a nice industry, generating some 200 million in ledger fees over year to split with computer owners.

The business opportunities available with micro pricing is huge, all of it due to the discovery of that wonderful spectre feature.

A budgetary impossibility

The ten year treasury, at 2.74, has risen 10 basis points in a week while Trumpster added earmarking to the budget.  There is no predictable budget, no solution, not even can kick. Dump the earmarks, go full sequester and rethink this.

Net neutrality is a local issue

Net Neutrality Advocates are Asking the Wrong Questions

Mises gets the problem.  It is about people in your neighborhood putting posts in the ground and climbing poles and unrolling wire; all of it locally restricted.  

So, If my bandwidth seems restricted, no problem, I go outdoors and throw a rock at my nephew's house, he is watching NFL.

Let's tak pricing and inflation

Is The Momentum Factor Relevant For Bonds?

This is the Capital Spectator dealing with the momentum issue, which in our model is the generator model.  

Does the Treasury market have a stable generator that can predict a closed set of finite liquidity sequences? Do we have a debt cartel organized as a value chain, yes.

The real issue is what is price and what is inflation?

Everyone seems to use inflation as if it were the magical rise in the quantity of loose change in the economy.  It is not really, inflation, generic, the one they want, is the rise and fall of market share by the fiat banker.  Transaction go off books and the same money chases the fewer left over.  That model is not closed unless you include the generator function, momentum.

Price is the cost of the excess inventory capacity needed in he distribution chain such the consumer jitter is covered without inventory instability.   Our model says that at some finite point in the past we began subdividing the chaos, and price is the cost of containing chaos.

Sandbox labor ready

New data from the UK shows that interest in crypto careers more than doubled in December 2017 when the all time high Bitcoin price record dominated headlines​. The average salary for roles requiring “Blockchain” expertise ranges from £30,117 per year for a Research Analyst to £67,209 per year for a Software Architect.

One of the stats I look at is Ethereum meetups and I watched the number grow to half a million people.

It was a mole hill to begin with

The inspector general, Michael E. Horowitz, has been asking witnesses why FBI leadership seemed unwilling to move forward on the examination of emails found on the laptop of former congressman Anthony Weiner (D-N.Y.) until late October about three weeks after first being alerted to the issue, according to these people, who spoke on the condition of anonymity to discuss the sensitive matter.

Because, in the end, this whole affair is hysterical fantasy, politics as usual.  All the investigations, on both sides, reveal standard operating procedures in both parties, minor corruption in government.  Mueller should just say that, cut the entire crap out and go back to the usual corruption, it is what we expect.

Already been mined

At the Tuesday meeting, Maduro also announced his intention to “accelerate the entry into the operation of el petro cryptocurrency and mining farms through the Petro Container,” which he unveiled at that time.

A bit like blockchaining gold.

The blockchain for oil is the a measured generator of typical oil sales sequences. The generator is the blockchain, and it is maintained by contracted reporting mechanism from oil supplier. The pit boss trades the oil discount coin to match the distribution at a ratio of 10%. Works great, but it is tricky to keep the statistics honest, there is opportunity for fixing.

Members will accept the 10% discount coin, and in doing so trigger liquidity events in the observable generator. If we make that path honest, then fixing is difficult. We are back to thumb printed, robotic  and legal contracts, we can close the network (make sure the oil coin is economic).

Confused

I looked at two sites for one year treasuries. They said 1.88, a glitch it seems to me, as that is a ten basis jump.

My personal moonshot?

My personal moonshot

Tyler says lets toot our horn.  My personal moonshot is a mechanical Santa Claus. This machine sits near the North Pole and listens to everyone of us and makes it very likely our reasonable desires are met.

The battle enjoined

Just in the last two years, the NSA has granted over $112 billion in high-tech contracts to private industry representing just over $400 for every man, woman and child in America. This is ten times more than their own basic budget, so the question is, how do these contracts get funded? The second question is, Is the NSA forming outright Fascist relationships with private industry? ⁃ TN Editor

Bold face mine.

We got a problem.  Intel, microsoft, Google, Walmart, me and a bunch of others are putting a $50 device in the hands of every man  woman and child.  Our device comprise the connections to the singularity, and  NSA ain't allowed.  Houston, we have a misunderstanding. The monetary network is separate from this nonsense, sandbox rules, sorry, it is a theoretical necessity for the global economy. These NSA folks won't get the issue and we get humongous coordination failure.

They lied to get warrants

Why the Nunes memo is a very big deal

The post is about revealing sources and methods if the Nunes memo is released.  The FISA warrants on Trumpster and pals, maybe others?

Well, no one expected different.  We expect that the cops cheat.  So what? The dossier was bogus, the FISA was bogus, we get it.  They were Obama folks. But, sort of, so what, it is like standard procedure.

Unless it was something deeper, a longer and wider plot tio sneak a wider variety of crap through FISA, then maybe.  Otherwise, there are no revealed methods.

Digging beneath the humor

I always figured, Putin is not colluding with Trump the smoozer, and Obama had his deadenders in the FBI. So what, Mueller should just punt and say fagettaboutit.  The longer they Mickey Mouse it, the longer we begin to suspect something more sinister.

The Bostonians are back

I got a bit of the irish, lotta rednecks suffer the affliction. I once fell for a irish redhead, stole my heart.  Anyway, swoon time  for the girls, he be pals with Gavin.

They missed the memo

When AriseBank announced last week that it had become the first crypto platform to purchase two traditional banks, it won plenty of attention. 
 Its press release was picked up by major media sites like HuffingtonPost and its endeavor was endorsed by Stan Larimer, founder of the decentralized cryptocurrency exchange Bitshares, who announced a partnership with the bank.

Then we discover the enterprise was boneheads who were going to javascript the world of banking.  They weren't watching, don't tried to do too much.

If your customers can secure the bot that manages their bank account, then the deal is done.  The legal model says the human owns the regulated account.  The human is free to engage in robotic escrow services, as in any other contract, it is his account.

See the problem?  We are giving the customer on line banking, the we are giving the customer's javascript bot on line banking.  They are impossible to separate.  Spectre done this, I tell you, and Googe knew what they were doing.

Central bankers are stuck, their system becomes bearer cash almost tomorrow, as soon as the high school kids test the javascript, Never needed Arise.

Chinese investors with inside information on the Renminbi?

A year ago today China’s central banks temporarily scared the cryptocurrency community when they stopped bitcoin exchanges from operating. Since then the top mainland-based digital asset exchanges moved abroad to more friendlier regions, but Chinese citizens are still acquiring bitcoin whether the People’s Bank of China likes it or not.

Why leave the yuan? Because you work in a big bank and you know about the zombies and you sit in meetings about directives from above.  This is why  we have this global currency standard,  central bank neutrality.  

Central banks can live in his world just fine. They have market power in an auto traded network, they have great power in issuing bearer tax coins.

Let me convince Krugman of sandbox

Bubble, Bubble, Fraud and Trouble, by Paul Krugman, NY Times

He is basically complaining about bitcoin, that is fine. What about the total sandbox? Here is the thing for all the so called liberals who think money must be a monopoly. 

Skip the monopoly debate, Paul, and focus on this.  I can put a $50 intelligent cash card in the hands of every underprivileged kid in America.  With that card, the underprivileged can agree, by enforceable contract, to watch his spending a little, and I can give him credit.  Instantly, upon acquisition of the card this kid has increased his personal assets, he or she gets a savings and loan account that earns even money.  

Our current rop of liberals are charging these same folks 1.5% ATM fee to use the government cash, I am dropping that down to a quarter a point for everyone. My question to the progressives is simple: Why do you pretend to monopoly banking when the pretend is an excuse to take from the poor and give to the rich?

No budgeting capacity

Chuck Schumer says Democrats will gladly work with President Donald Trump on any infrastructure plan that is directly funded by the federal government, the Senate Minority Leader wrote in a column for The Washington Post.
Read Full Article Here Schumer: Trump Has Dem Support on Infrastructure Plan | Newsmax.com 

Schumer is playing Magic Walrus with a government that budgets on a monthly basis.  Consider him full of crap.

Already done

Deutsche Bank  executives have suggested 

“Once security and the corresponding trust have been created, cryptocurrencies can be assessed and evaluated like established asset classes,” he forecast.“It’s possible that the required governance will be in existence in five to ten years.”

We have fixed the Coindesk problem, and the current crop of crypto are paying the price in market share. 

A bit of bubble pricking in the markets

Market down about one and a quarter. The idea was to prick early and often, so the physicists now tell us. Otherwise we get turbulence as the prick rate is slower than the hiss rate.

This means the large pension funds are moving, especially in California, and they hiss something badly.

Causing a mass exodus of traders from NYC

The New York State Department of Financial Services has asked two South Korean financial authorities to share cryptocurrency-related data they obtained from their recent inspections of six major Korean banks.

New York AG just killed the golden goose. 

Redneck compatible?

Over 1 Million People in Line for Robinhood’s Bitcoin Trading App

They started with auto trading of stocks, my first reference app.  Now they are become an FX trader, like Coinbase (GDAX) made a billion in congestion fees, Silicon Valley is jealous. They are using this start up to move into sandbox, permanently.

I ask, can groups of us down load the stock trading pit and form our own investment clubs?

Robinhood has to consider the escrow minimization process. Corporate issuers can easily run their own pit. The escrow optimizer finds that the most minimal, it is easier to look up the source and trade there than suffer the congestion of a collective stock market. This is where Microsoft Coco wins he game they can sell the ore-configured pits to each corporate customer.

The Dim Kim has a helleva basketball team

North Korea is still poised to participate in the Winter Olympics with its 22 athletes

The tallest player is 5'3". 

Bernstein misses an important distinction

'MONDAY NIGHT SLAUGHTER': Legendary investigative journalist Carl Bernstein calls Trump-GOP attacks on the FBI and DOJ a 'turning point'

Unlike Nixon, Trump tweets his crimes in progress, generally to a large approval. It is hard to call that obstruction, it sounds like freedom of speech.

The standard S&L as an issuer of bearer cash

The ledger service,. for the standard S&L,  is the accumulation of bit error, total amount of loose coin running through the sandbox.  That is the released coin count, the only block chain it keeps.

The queues are bid/ask, not yet reconciled. The S&L finds the match that minimizes bit error.  Now, at this point, the pit boss is legally contracted to request or deliver bearer cash to a guaranteed wallet, guaranteed by an outside service.  The S&L never takes possession.

The counterfeit risk, at any time, is in the accumulated bit error, it is the S&L blockchain. If that count get fouled,the coin loses market share.

But, even in trend release by contract, potential error losses are bound by the contracted pit boss error, if the counterfeit is soon caught.  Not a problem,  we see plenty of opportunity to counter check the processor security.  The cyber cops still can collect sufficient data, over some interval,  to tack down a counterfeit processor.

Any accumulated bit error losses or gains should be owned by the current bid ask wallet. Under the contract, any contracted trend releases are considered 'good will', and upon the discovery of a counterfeit pit boss, the good will number should remain stable, it wasn't really stolen.  The best that a counterfeit pit boss can do is drain small changes over the indefinite,but finite future.  It will be eventually caught by an outside accounting.

Individual trader wallets, or their legal contracts, are outside the currency issuer.  Traders are responsible for their own counterfeit problems.

The crypto contracts industry

Huge, billion dollar businesses dealing with escrow liquidity and legality.

We need to know how to minimize the amount if 'gas' we need to power escrow contracts through a network of queues, (ledgers trading pits, fixed priced, central banking).

Today this industry is called 'contracts', a practically uncountable skill set in the modern economy.  Tomorrow much of the work will be off line statistical estimation, running a contract against some other sets of contracts, proving stable state completion and minimizing steps to remove unnecessary calls to market.

This industry needs bearer assets. In the same way that the processor needs the look ahead pipelining.  The escrow routers  remove costly loops in the protocol interactions.  It is grease, the system jams without it.   Complex interactions are decomposed into a series of cash transactions, calls to market are the cost of keeping cash accurate, maintaining the virtual denomination algebra. So the connection, a contract, we hope, generates a set of typical outcomes, if the market interactions generate a quotient algebra, is the term.  Thus the human trader has a bounded set of outcomes and knows bounds on matchingerror through theoriocess.  Trade book uncertainty fairly shares, and minimized. Bearer assets needed.

What about us?

Pay a small insurance fee and sign on to a great escrow service. Do most of your trades with your favorite trading router.  As long as you have the standard secure cash card with pre-qualified cash advance enabled. 

If you cannot find a good service, contact Redneck Trading Systems, we keep track of the good escrow services.

Nothing is time consistent

Time Consistency: A Primer

If the transaction is economic then it will spend a variable interval in the queue.

Let me guess on Spectre

The techies really were trying to use the pipeline to its maximum capacity to run their AlphaZero node protocols, the way they deal with  their semantic network representing the current state of a game. They knew this also guaranteed protocol security as a side effect. This was sandbox all the way.

They never discovered it as a bug, I suspect the researchers just happened to notice their optimization method, in the pipeline was a early peak method available to asynchronous processors.  In other words, these folks were getting ready for sandox, they knew the rules. So discovering a rule violation in the old system is a natural course of events.

Spectre was never a bug for the sandbox, it alway was a feature, a procedure for securing protocols.

We get phase change before infinity

There seems to be a fairly sharp threshold at which fluid flowing smoothly in a pipe becomes turbulent, yet the precise mechanics have long been a mystery. Does it happen all at once, or in stages? In a series of landmark experiments, German physicist Bjorn Hof and colleagues offer new insight: Turbulence emerges in the form of little puffs -- tiny regions of confused, disorganized flow -- which can then split, creating more puffs. Below a certain speed of flow, the puffs die out more quickly than they split: Even if you create some turbulence by putting your finger in the flow, it will soon subside. But above a critical speed, the splitting happens faster than the dying out, causing the turbulence to spread. Weirdly, it seems to grow following precisely the same mathematics as diseases.

Here the physicists are talking about incompressible, but divisible flow.  What happens to the fluid as is blows past the moving sphere? Well, the equations are proved according to Newton's grammar, the algorithm proves to recursively converge, but the algorithms generate ever high flow velocities.  At some point, real fluids cavitate, they form a minute bubble of gas.  Then the bubble is compressible, we get constricted flow.  Again, it is the renormalization concept, and a bit of the relativity. The fluid cannot adjust faster than predicted velocity,  kind of a relativity concept.

This is not a new concept, I dunno what the mathematicians are up to here. I thought I remembered this stuff from college physics. For example, on your van, put your bike rack at the nose so as the prematurely break up the flow. There is a regime where smooth flow is no efficient because of pressure buildup. I guess they are digging deeper into it, it is closely related to what we do in the pits.

OK, I get it

This is about the mechanics of triple points. Like, the mechanical structure of ice cannot respond to a temperature gradient faster than heat, so the ice breaks its phase structure and becomes water. Scientists are nailing this process, great. I will bet they discover it is all about queuing up, the queues jam and renormalize.

And safe bonds earn a four year high

U.S. consumer spending rises; savings drop to 10-year low

Who said debt based money don't cycle?

Well, General, you have been doing this your entire career

Defense procurement is deliberately non-economical, as was Obamacare. In both cases, the future plan is unsustainable, all parties know it and knew it. When that point comes, all parties have to reorder their sequence.  They all know this, they are all frauds back in the Swamp, sequester the bums, all of them.

Mattis first warns of readiness impacts, stating that 90 days after the start of a CR, lost training is ‘unrecoverable’ due to the need to move onto previously scheduled events. As a result, the Marines will lose out on vital training for coordinated joint fires, while the Air Force will be unable to train a group of pilots needed to refresh a pilot shortage.The Navy will delay induction of 11 ships, which would push some readiness availabilities into fiscal 2019. The service will also reduce flying hours and steaming days, as well as slow down orders of spare and repair parts. The Army, meanwhile, will postpone all noncritical maintenance work orders until later in the year, as well as restricting home-station training.

Sandbox rules in Japan

The standards include “the maintenance of cold wallet, etc., under the consent of the related members,” the association announced on Saturday after one of its members, Coincheck, suffered a hackwhich led to an approximately 58 billion yen loss on its platform.

Look,the existing rules did in fact maintain the bounded, legal position; except no consent operaton.  "Consent of a member" means, in the sandbox, that the authorized protocol can check exchange account balances in run time before dropping a trade.

Also, note these rules impoly all trading protocol get equal (fair) access to the observables, no cutting in line from look to trade. So, in the Coincheck fiasco, the members should have noticed the imbalance and should have halted trading on their own.  

The bots betting the bit error  is the thing.  But bit error is chaotic? Yes, chaotic because members can view it and trade it slightly ahead of the pit boss. Bots that see bit error a bit odd in the margin will likely yield to the pit boss, or try and hedge the pit boss with inside information, all great stuff.  

We are maintaining the legal escrow chain back to the member in structured 'buyer beware'.  The protocols are short, the interaction between pit boss can be characterized by countable outcomes and thus pre-tested for stability by the regtech folks. This  is how it works, starting now.

Capn, she's gonna blow

The ten year rate jumps to 2.70.

John Kerry has a history of changing sides mid-battle

John Kerry In Secret Communications With Palestine For "Alternative Initiative" Circumventing Trump

So consider the shopkeeper applications, in total

These are th intelligent card apps that local shopkeepers run on a stand alone basis, credit,  including loans and deposits, all based around goods at the store, by contract.  So, shopkeeper apps give the shopkeeper a 'transmission' such that is can rate down the cost of fiat ledger calls, get more fiat ledgered for a given fee.

We can include some pre-ordering of goods, tying the shop keeper apps to his whole sellers supply for further gain.

How to regulate?

We have legal personal contracts between the shopkeep and the fiat regulators.  We all have thumb printed the bots, and the bots can be cleared as regulation safe, prior to deployment.  We have pros in regtech, these pros can preclear a whole range of shopkeeper apps for regulatory safety.

Remember, we have observability rules, regulator bot watches the show in run time as needed. So we would expect to see a few billion dollar companies working on shopkeeper applications, doing segments of these apps in isolation and going through the usual integration phase.

Earn 1% on your money by investing in a notebook

My fellow researcher, the shopkeeper down the street.  He operates an ink n paper blockchain ledger for his pre-qualified customers.  The ledger is entered and scratched, in sequence, each of the customers remember their last entry.

No space left unfilled after your name, then the page is done, you get a new page. The man is running a virtual savings and loan, he adjusts prices to maximize the quantity of entries while pricing the cost of defaults.

His cash customers save about 1% on ATM fees, his Chip card customers save about a half point.  Total expense? One dollar per notebook, and personal contracts. os of us have a similar generator, we are ad hoc buyers a bicycle basket at a time.

What happens when  the shopkeeper and customers have the same intelligent cash cards? Then he puts his blue notebook into a javascript app, and we agree to his contract.  From then on everything is the same, if we need to see the blue book, he swivels his lap top and there it is, an exact duplicate.  Great, we have dropped the transaction costs from a few dollars a year to a nickel a year.

Treason charges against Hillary and Obama getting solid

The Obstruction Case Is Getting Solid

Why would Slate even bother with this crap anymore.  

Mueller is fighting and lying to save the FBI spy ring organized by Obama and Hillary.  Every time some dip weed mentions the so called obstruction of justice, all the evidence seem to show an obstruction of an illegal plot.  If Trump obstructed, the he obstructed by not bring treason charge against the whole gang.

Notice the FBI phone mails go missing,then suddenly show up? Notice the FBI scramble to find another excuse besides the Dossier? Anybody notice Comey admit to leaking?

Slate, give up the crap, it isn't going anywhere.

Price elasticity

In basket brigade, the price of something is determined by the interest charge needed to maintain a consistent inventory.  Interest charges, in the S&L, become the amount of of the conserved index space ued by one item relative to a other.  Se really do not know pric until the S&L pit boss settles account and applies charges.

Rather work with price elasticity, work with bin size,  The more items you purchase of a thing in a given transaction. The more thing you purchase per transaction, the less transaction  space you take, but you have higher interest charges, relative to smaller bin sizes.

This  formulation gets us back to structured queues.

Sequester and tax

This graph tells me some sphere packers are learning monetary theory.

If you take out the lil Bush regime, it look like we are having fewer, and smaller recessions over the sequence.  What was the key? Shutdown and sequester, keep government closer to balance.

Look at the last few years. One can make the case that we done figured it out. Like we had this tiny slowdown, and we are back up already, missed the blue bar completely.

I cannot say we are in for the big crash, we may be slipping in the new technology, and simply be much better at this.  I simply don't know, from this chart.

We have always had multiple monetary systems.

The fiat tax dollar has never been a monopoly, just the dominant player.  Hence, economists for 250 years have had the theory of "something-something", make up an expectation function to cover the varying market share of the tax dollar. It kind of works.

Watch GDAX, they trade over multiple monetary systems.  Their techies know that each monetary system has a niche, the systems jostle for index space. Each system has its optimu buy and ask window sizes, and mostly keep the same queue structure. 

When GDAX pros deploy to a new monetary system they are good at ratcheting up to speed and watching overflows. They also know there is price discovery, an allowance for traders to test a slightly different queue structures. GDAX is winning, they understand the something-something is a congestion issue.

GDAX isan FX transfer exchange, not a ledger service.  Think if them as an S&L with a huge window size and little price compression.  If  we have pre-qualified cash in advance contracts, the actually running loans against savings is much easier, the window sizes are more 'elastic;. What we are issuing is the pre-qualification ,a personal contract to deploy trading bots.  

Thus, we should all be pre-qualified somewhere that we can keep a loan and deposit ratio. Their are yet companies to be formed, but they will be multi-billion dollar companies because they get the idea of asynchronous, adjustable interest charges. The S&Ls operate queues such that price times price change is maximum, the trades move the most gods with the least transactions.

We now have personal, bot contracts, and can chain them with consistent inheritance of risk parameters. We know how to use the Spectre feature to make digital bearer assets..

Hiring the cyber patrol

An early Coinbase and Twitter investor just gave Uphold $57.5 million to add Ripple and insure against hacks

The insurance company has the do-re-me on the hook and will develop the cyber patrol bots. If we had cyber patrol then the Coincheck 450 million hot wallet would have been spotted as a fraud.

This is the way to go, that plus prior analysis of protocols reveals instability.  Use the observable exchange accounts and we can detect error.  If the accounts are not visible, the pit is not a fair traded pit and customers should exist immediately. Observables are also operational, the customer trading bot can monitor build up at the exchange and act accordingly.

But, if you run an exchange according to sandbox rules, your insurance is cheap. GDAX, Walmart, Intel, Microsoft Coco, ARM, Trezor ; these companies understand sandbox. If you use these technologies, you insurance  is cheap. 

Try this hardware wallet: The Ledger Nano S now supports nine cryptocurrencies (including Bitcoin) and is also the cheapest multi-currency hardware wallet available ($65).

Starbucks CEO thinks weirdly

He [CEO of coffee] clarified that Starbucks is not developing a digital currency or announcing an investment in blockchain or cryptocurrencies, but would like to use its stature to lend credibility to these technologies.

He is going to count all the coffee poured down the drain so as to prove the technology? I have a computer simulation that will do that, send me a check. 

Gold is its own blockchain

Perth Mint CEO Claims Metal-Based Crypto Potentially Offers Price Stability

Gold is its own ledger servicer.  If you add block chain then what is the purpose? I guess, one the blockchain one can see a history of gold assessments everytime gold is shipped?

Gold is its own blockchain, it is a blockchain of rank one.  Here is how it works.  Take you gold to the gold assay office, have it checked.  If it is gold,then go ahead and erase its entire blockchain history, we don't care.

If you are a venture capitalist, then you will see gold crypto business plans.  All of these plans devolve into the gold delivery business, and all of them would simply defer to Federal express for gold deliveries. You end up with a protocol for tracking shipments, and we have that already in general use.

Here is the real gold business plan.  Track the existing gold deliveries as best as can be done.  Then create a derivative based on those statistics.  If you can be more accurate then the gold market, then you manage the gold market in your pit.

What does the car industry know?

This week we find that according to the latest Edmunds' data, many of the same problems also afflict the used auto market.  The most startling takeaway from the report is that the percentage of used cars being traded in with negative equity values - which means that dealers lenders are willing to accept an immediate loss for new transactions - continues to rise and currently stands at an all-time high 32.4%, up from under 20% in 2009.  Moreover, the average balance of the negative equity also continues to rise and stood at a record $5,130 last year, up over a quarter from $4,075 a decade earlier.

I get that we have moved future car consumption forward, but the darn things are mobile.  In this case, the underwater cars are being returned to lots and marked to market. They still work, they transport themselves to large, cheap parking lots and can be moved from market to market.

The car industry is supposed to be good at this, I am not ready to say this blows up. 

Debt cartel in action

This paper handles the skewness in the distribution of stock market returns, noting that traditional capital pricing models assume normal distributions. The traditional method is in error.  What kind of sphere are we ockaing when we are skewed? A sphere in motion.

But, on a related note, here is a quote about prior studies noting the point at which excess returns are obtained.  Government action, but more accurately, a cringed fence decision by the debt cartel setting the term down the line.  This is the three color problem, this carter that gets the excess returns pay an entry fee, ultimately, because they become liable if the three color trade fail, government needs bailing.

The point of the sandbox regarding the debt cartel is great, we can do that, and allow fair and free entry to the three color trade, using personal contracts between thumbprint and the Fed bot, make the debt cartel work efficiently fir everyone, automate it.

These results [ on skewness in stock market returns] complement recent time series evidence regarding the stock market risk premium. Savor and Wilson (2013) show that approximately sixty percent of the cumulative stock market return premium accrues on the relatively few days where macroeconomic announcements are made. Lucca and Moench (2015) show that half of the equity premium in U.S. markets since 1980 accrues on the day before Federal Reserve Open Market Committee (FOMC) meetings. Related, Cieslak, Morse, and Vissing-Jorgensen (2016) document that the entire equity premium since 1994 has accrued in even weeks after FOMC meetings.

Unstructured queues

In Venezuela, "We Loot Or We Die Of Hunger"

Airforce perfects the swarm bot

Airforce guy talking about attacking North Korean artillery:

Attacking North Korea Is Unthinkable. Or Is It?

Nowadays, we can drop GPS-guided ordinance on coordinates with a miss-distance of just 10 meters. A 10-meter miss with a 2,000-pound conventional bomb means that gun is out of action, because the blast doors would cave in. The people inside will likely be out of commission for a while. This is a different kind of a threat to those guys.

Here we see the latest in air force bot technology, ready for Korean action.

Your trading bot takes risks

It is part of your contract chain, at some point your bot will risk a variation from what you thinks is trend.  It has to take risk to jem through the congestion along some escrow route, is a way to put it.

That risk is not more than 5%, typically, and you can limit, by ratio, the amount of rik your bit can take. Your bot and escrow router guarantee you can meet your trading risk. The exception to this rule is insider information, trade it higher, you know it.

So, under these conditions, our bid/ask market risk will be limited and the exchange market masking risk a fraction of that, somewhere around a half point.

These rules are contracts and they guarantee the you can find the exchange pits that meet the criteria with the critical balances observable.  If you cannot get this condition verified, get another exchange. the job of the exchange is to partial out risk.

Th dismaying part of the Coincheck fiasco

The Ethereum pros were just discussing the legalities of ownership via a chain of contracts. This became the subject because figuring out spectre means we ca have secure contract. We had consensus.

And Coindesk (GDAX) , my favorite, already had a handle on matching error and what is a reasonable 'pit boss' fund for a given trade flow.  It was no where near 450 million in the theft at coincheck.  Nothing in the trade flow numbers justified coincheck having a company wallet with 450 million.

And the trade press watches this,  the press knows the rules. The trade press found GDAX was slowly accumulating a small round off error somewhere, and called them on it.

Accumulation in a pit boss accounts in the exchange is evidence of a congestion problem building, we all knew that, the trade press and cyber patrols knew to look for it.  And by implication, exchange funds are observable and must betable by the customer trading bots.

Then this fraud happens, a dirty mark.  How did customers begin using a foul trading pit  without the cyber patrols?  These balances are always observable in the pits according to sandbox rules.

We need a professional cyber patrol for this stuff, customers will be paying digital trading insurance and the cyber patrols will tag the trading pits that have obscured the balances.

We have a name for this, coordination failure; not everyone got the consensus at the same time.

List the government moneys

Tax dollar, food stamps, housing vouchers, California infant supplement. Just four is enough, the sandbox supports them.  They are each an issuer's money governed by some rules.  They all do, or can easily, be transacted with square plastic things in our hand.

So, any good wallet has a configuration procedure that supports any of these government coins, as the legislature desires.  All of the government ledger services are available in the monetary naming system.  And government ledger services will be trading these coins against the tax dollar, so the sandbox offers standard auto trading. No money distorted by HFT.

We are asking the impossible if we expect central banks to pretend to a monopoly. These are just the government exceptions, not even counting the discount coins. The square plastic thing is already committed to a multi-currency system.

What is happening here?

One of Japan’s largest cryptocurrency exchanges has halted all withdrawals amidst rumors of a large-scale hack. Ripple worth $123 million was withdrawn from its wallet on Friday January 26 along with a single withdrawal of 500 million NEM, with the altcoin’s foundation president Lon Wong then tweeting “It’s unfortunate that coincheck got hacked. But we are doing everything we can to help.” Upon news of the alleged hack surfacing, the price of NEM dipped sharply, leaving it down 19% in the past 24 hours.

OK, we do not yet know if this was a hack. This may have been a legit withdrawal, though one that the regulators bots will be hunting down.

But we have a sandbox rule, no humans have access to secure element keys.  The processor can generate new keys from a unique key, all keys kept in hardware protected  memory, not on the standard memory map.  No key seen by human. The keys only used indirectly via protected calls to the kernel.  A group of fenced processors can have a shared key, but the no humans allowed rule holds.  Intel should have all these options available, go pester the company.

Legally, this means you, the customer, own a share of those keys and processor is legally your escrow officer.  If anything gets lost it is an act of god on the technology or an error by Intel or your coin base owners are crooks.  Your contract was violated, go to smart contracts court, sue one or all of the parties, especially god.

Consider food stamps and tax dollars

The new system treats them exactly the same. They are independent currencies, both supported by the standard, intelligent cash card.

For food stamps, the customer goes to the food stamp office, verifies a thumbprint, then touches the food stamp icon with their standard cash card. The contract is made. Same as the tax dollar, the same as frequent flyer, btc,....

Good idea? Not my call, I would try it though. From the sandbox perspective, just keep the contracts finite, priceable at queuing points,  and have timeouts. Statistical pre-qualification is the rule to support cash in advance, but there can be exceptions by default. All queue lengths equally observable by all trading bots.

Otherwise the sandbox view is try anything, see what sticks.

Apply some venture capital rules

Company is selling you a new wallet technology, ask: Does it do food stamps? If the pitch includes a 'coin', ask them what it counts.  Good coins counts real stuff.  If they claim to be a fancy transaction server, ask to see their ten page routing protocol.  If they know all about trading pits, ask why they are different from micro-priced IP buffer space.

Theresa has the power

Silicon Valley VCs are reportedly lining up to invest in Telegram, the messaging app beloved by crypto traders and criticised by Theresa May

What the VC neglects is that Theresa may get a positive briefing on bear digital fiat, and give the go ahead to BofE. Or we might hear from BofJ on the  issue.

Digital bearer fiat is just the accelerator for Swift, once we have bearer cash, all the special coins become useless and a swift mechanism emerges as the generic escrow router. We go full sandbox.

Our future choice seems binary

Which of the prior sequences will be repeated. I have two options, we repeat the 1992 - 2000 period, or we redo a 2000-2009.

Kick the can good enough and we can make this expansion a stretched out version of Bubba's expansion. Suffer a flat curve but chug quite nicely. 

Then we can redo the lil Bush crash.  Sequester gets us the former option.

Beating fiat bot while putting a smile on Congress

Simple enough, Congress can collect a ledger tax for each bearer cash transaction.  Member banks check out bear cash, against deposits or loans, and re-issue the bearer cash under a rental agreement, limited by the number of transactions. So, Ripple can grab some at will that its customers traverse the escrow routes.

Bearer cash has a timeout, all protocols inherit the time out and all will resolve to stable state, the cash being returned to deposit and loans.

Now life is a bit easier. My ATM card just touches the kiosk and it gets bearer digital dollars.  If I leave my cash in my card to long, it is returned to my account and erased locally.  The best part is, I can drop a hundred in bearer cash on a bot and tell it to get me a new toaster oven. I have some really neat shopping trips encoded in escrow routes.  They take my bot through great goodies, on line.

Let us not forget fiat bot

I mentioned fiat bot once before in passing, let us repeat ourselves as a warning.

I go to the retail fiat banker, deposit $5000 in cash for a new on line account.  Then I go to Sandbox Offices and let the standard Sandbox bot operate my account, under a written contract with Sandbox.org. I go home.

My standard fiat bot is ring fenced, it does nothing but bearer cash. All fiat bots operate with the assumption that bearer cash can be traded at will between fiat banks. The fiat bank managers none the wiser, but the bots get instant fiat ledger services as needed, and no sooner.

There is no protection against this, except those that foul the fiat system. This can break your system tomorrow, it is like those broadcast radios that suddenly showed up as network distributors, overnight in 1929. You will get a whomping huge big bang jam to the fiat system.

Central banker, jump in, seriously.  Instead of disaster, your staff will have terrific fun.

Optimizing queue size

Stripe, a payment company, complaining about bitcoin.  I do the theory

 (By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the “wrong” amount.) Furthermore, fees have risen a great deal. For a regular Bitcoin transaction, a fee of tens of US dollars is common, making Bitcoin transactions about as expensive as bank wires

OK, we have volatility over the transaction interval and the implied congestion price.  Where is the optimum? Price it so there are exactly two in your queues, and multiple queues make a structure, a generator. We are back to the model of a Walmart checkout, if you have "five or six items, take line 3', and the pit bioss can alter the number items per basket to keep all queues equally at two customers.  The queues are really the match of clerk queues and customer queue, the implied customer wait is 1.5, the implied clerk wait is .5; their combination meet the bandwidth conditions, Shannon match in the information sense where both SNR and Signal we quantized to provide the most flow with the least number of transactions.

The problem is similar to Uncle Milt's thermometer analogy, the system quantizes basket size in units of measurement uncertainty. We get a set of relative pricings, nice quants to pack a sphere in remembrance of a thermometer. Those bitcoin quants, right now, seem to fit the price setting needed to plan a hotel and flight for a few days. Folks would wait yen minutes, and pay a $30 dollar fee if they could share in the gains of a central bank neutral coin for trip planning.

The original problem being solved in 1970

Basically, the economists were tasked with making sure government can make the economic system dense enough so labor can find mobility.  Central government, via central banking provided a mild evolution insurance, a path forward or a soft landing for workers.

The sandbox accepts that challenge, if there is a natural 'covering' of the economy for this purpose the  try it out, in a competitive monetary system.  Central banks still control the tax fiat, use it, central banks and their debt cartels need to jump in head first..

I can buy into the idea of employment insurance, labor markets are often uneconomic. I can buy into the debt cartel, Congress is often uneconomic.  

It is simply that the sandbox prices the debt cartel, enforcing free entry and exit. The central bank sets a liquidity ratio allowing all parties access to central bank fair trading, by personal contract.  

Otherwise, central bank can be profitable by renting out bearer cash, if you please.  Stuck on this, since free entry and exit implies cash transactions. Sandbox got rules.

Hey, good idea

“We are building a genuine use case for cryptocurrencies in the tourism industry”, Travelbybit’s CEO Caleb Yeoh stated. He also noted that the application of digital currencies in the travel sector makes a lot of sense. “Whenever you travel overseas you have to deal with multiple currencies and you never know what exchange rates the banks are charging you. We are promoting the bitcoin travel movement. Digital currency for worldwide travel. It’s simple, safe and there’s no bank fees,” Yeoh argued.

Bitcoin hedges central banks when central banks attempt the fabulous trilemma, (controlling exchange rates). The international travel industry wants a central bank neutral coin and bitcoin is it. 

Bitcoin has one competitor, the frequent traveler discount coin.  But I doubt the frequent flyer consortia really want the whole business, they just want to measure about ten percent of the airline travel costs, enough make airplane packing go smoother. So airline can sell tickets in bitcoin, but offer a 10% discount with the frequent flyer, we get mixed currency pricing, and it works fine.  Retailers been doing it for centuries.

I go with the weaker dollar

To be more specific.  If you gave me this chart, I would say that, on a volatility weighted basis, a lower dollar will balance the cycle.

But I am just reading the left hand axis label,  and assuming some aggregate process that packs a good sphere. I could be talking about gut bacteria.

The idea of packing sphere is what makes chart analysis work. The chart analysis simply looks at the trade series and tries to find where the various trade queues are getting jammed, and about to break.  

I made this point many years ago when I was doing Huffman coding on the SP500 stream.  I was criticized by the charting folks and the engineering experts.  I was right, a Huffman code simply, recursively hunts for jamming in the trade series, it uses sorting rather than geometry.

The real breakthrough was discovering an algebra of structured queues, the same idea that makes AlphaZero do its thing.

Intel owns the bearer cash machine

• Intel's fourth quarter revenues were up 4% from 2016, and earnings per share were up 37%, beating analyst expectations in its fourth quarter 2017 earnings report Thursday. 
• It's the first earnings report from the company since the major securities flaws Meltdown and Spectre were revealed on January 3. 

Intel has SGX, they lead the charge in  hardware secure sandbox, a 15 trillion dollar industry. Intel is now Intel plus Cisco plus the Fed. They own the cash machine we will  all be using.

The bubble likely comes from California

Deutsche: The Fed Now Appears Powerless To Stop This "Unprecedented Bubble"

We have these humongous pension funds that  made an uneconomic decision to over invest in stocks.  They keep the pension returns artificially high to meet union imposed budget constraints on the legislators.  No one can figure out how they can cash out without causing a pension stampede.

Double entry accounting goes back to stone age

Can Double-Entry Bookkeeping Save the World?

We cannot have tool makers without managed inventory flow and thus accounting. The system was based on marks in the mud.           

Once we had specialization, we had the  'in n out' model of value added. We adopt  the binary system because any multi entry accounting can be broken down to a complex of double entries. I call it the queuing theory which we know as Shannon information theory.

WA Post staffers told to advocate post office subsidies

WASHPOST Staffers Fighting for Better Wages Told to Be Grateful for Bezos...

Else their jobs as fake news reporters will be at risk.

It is called bearer cash

This 19-year-old bitcoin millionaire is traveling the world recruiting an A-team to build an alternative to the 'corrupt' world of cryptocurrency

The concept was invented ten thousand years ago, using an internet called,  'impressions on a mud tablet'.   Paper came along and we made something called, 'paper cash'.  Now we have replaced that with digital bearer cash.

No  need for a new currency, just need the intelligent cash card. We can make a digital bearer asset out of anything, as long we make a personal contract with a thumbprint.

MIT Grad is confused about the Fed

Says Mr. Kocherlakota:
Its fear of sharp interest-rate increases renders it unable to provide enough stimulus when needed.

When asked why they’re gradually removing monetary stimulus even though inflation remains too low, Federal Reserve officials tend to offer the same refrain: If they don’t start moving now, they could eventually be forced to raise rates more sharply when the economy overheats. This fear of raising rates rapidly is a relatively recent phenomenon -- and it’s a key drag on the overall U.S. economy.

Tell the good doctor that interest paid in minus interest paid out is constant under Fed rules.  The only thing the Fed does is move up and down the yield curve finding something for its staff to do. That can be proven because the net flow at the Fed is its own expenses.

So, all the currency risk goes where?  Who is doing all the borrowing on the Fed sheet? Why Congress, and that makes Congress bear currency risk, and they have fouled that job something fierce.

The best tuning strategy for the Fed is to adjust the Fed position on the yield curve to keep Congress sufficiently constrained, constrained to sequester only.  And that is the plot, it has worked for ten years past, it worked for Bubba, it will work for Trump. Just squeeze,squeeze,squeeze.