Thursday, May 2, 2019

My reform platform


  • Cut down on the volatility of the Nixon shock by half, expense currency risk at twice the rate of generational change. And institute the Trump shock by expensing past currency risk.
  • Tax super wealthy another 3%
  • Institute a 3% adjustment to entitlements, in favor of millennials households.

There is no clear solution on the regulation issue except one, cash flow accounting in government; we get that with the 15 year Fed contract. The gain is a simple one, we remove the two year election loop,  by letting agencies hedge it. That frees up a bit, we are more liquid by double.  This is a big payoff, we can start spending if we get the senate signatures.

The super wealthy is the claw back for the price of excess volatility in the treasury market. The super wealthy are the marginal lenders, they set the volatility price, and that price is mostly accumulated currency insurance, unexpensed.

The 3% entitlement adjustment is the typical amount mom and dad cheat the kids.

But whatever, get that 15 year contract with Congress, pay the price.  Getting the Fed that far from Congress is a huge payoff.

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