Half the cost of pharma is simple logistics

The majority of generics bought in the US are made overseas: Roughly 40 percent are manufactured in India; 80 percent of the active ingredients in all of our drugs, whether brand-name or generic, are made in India and China. As one drug-ingredient importer put it, “Without products from overseas, not a single drug could be made.”The vast amount of overseas manufacturing presents an enormous challenge for the Food and Drug Administration (FDA), which must safeguard thousands of drugs manufactured abroad by foreign companies

The problem they describe, in logistic terms, is exactly the problem of gold deliveries, except replace armed guard with medical gate keeper.  We have to ship around small quantities of protected things to registered distributors.

The first thing we assume in the solution is the smart contract tech each person has. Assume doctors  and medical police can automatically verify order and delivery at each stage at zero cost. Then find out what transaction costs cost the money, and the solution will almost always be an expansion of the delivery contract terms, with a wider and more frequent ledger call.  (imposing a Hamiltonian)

This is just another sandbox problem, (and another data encryption problem); the solution and theory match, give each transaction node the small plastic card with prequalified biometric digital contracts. Then let the bots optimize inventory flow, and the medical police can extract flow details as deeply as they desire, on or off line.



The other half of the pharma cost is its confluence with the medical insurance business, generally done badly and I am not the expert.

NSA needs to make a deal. Allow the technology with enforceable limits, Sandbox can take that, as long as we have renewal and review process. Law can change the limits, sandbox guarantees the bots will obey and protect as part of the counterfeit proof agenda.  NSA can redirect efforts to honest forensic accounting.

Sandbox agrees to biometrics, obey and protect; NSA agrees to limited autonomy for bots to own their own private keys. Sandbox provably meets the rules within the counterfeit error bound. Who is sandbox? The collective goodwill of finance in general, they have some right to advance by Moore's law. We cannot deny the technology of liquidity to finance. This should be a top priority for the New Fed.

But it is not just the Fed, it is FDA, SS, Census, local data integrity. But the Fed is the simplest, monetary transactions the easiest to 'prove', we can make the guarantee. So the New Fed stays out of the rest of the issue, it just wants free access to the latest liquidity tech. Software gurus can prove the increasingly complex contracts as they are needed for the other more exotic delivery schemes.

Getting smart card yields another half point endogenous gain to the Fed as the aggregation of accounts is more efficient. So on net, after the New Fed, long term direct monetary losses drop back to 1%, fairly quick.  We will no see a huge Nixon Impulse response. Being the enabler of digital bearer asset puts the New Fed on the front of a wave of market expansion. A 15 year renewable contract with Congress and the Moore's law update easily covers the extra expense of the 8T default.