Working debt at the factory

Wer know it is not a conspiracy to say federal debt flow is an assembly line Not a theory because it is legislated into existence under the umbrella of TBTF banking regulations.  Even the debt advisory board,the primary dealers, bank separation rules, all result in an efficient assembly line that slings debt, packs sphere.

The feds role is the short end.  After the matching error, always mandated positive and shared by cartel members,  the fed has to implement its part of the plan, at the short end.  This is mainly the WalMart shoppers with one to three items. The union members at the beginning of assembly.  But, they are fixed price, by law, so they adapt by moving up and down the curve, such that their effect on interest (about 15%) stays constant. So, as Selgin points out, (I paraphrase) they are a single size step, they do 1-3, or 2-4, or 3-5,... fixed widow. The entire assembly line has to shift when the fed changes rates.   No? No, because we have this huge derivative industry which matches to relative supply/demand, counteracting the Fed jitter.