Wednesday, June 12, 2019

Goldbugs are out

Paul Tudor Jones Reveals His Favorite Trade For The Next Two Years

They think the carcass will stink.


Maybe, but I can beat them with the New Fed. The New Fed supports smart card, digital, hand held secure digits in the hand, good damn near forever, if you have the battery.

The gold bugs are betting a Nixon Shock. I got a Wiener process planned.  Sandbox naturally treats precious metals as an industrial input.

They think they can beat my 2.5%, 15 year trend  direct defaults.

I got back up, my plan generates a whole new line of banking, government agency banking.

In the end, sandbox will simply develop great digital gold certificates tied to an optimum metals delivery service, get the logistics to match, sandbox neutral goal everywhere. As much as people want a gold standard, sandbox will make it so.

Finally the theory of a stopped clocked.
I have been very carefully wrong always.

Theory:
The idea is to eliminate the profit concept, just mix a hedgeable stream. But it resolves down to a general surplus, which is what? Commutative property, the more surplus, the more exchanges of order you can do in the constricted flow of your warehouse.  The other key is transaction costs equal zero. The other big assumption is that we all swipe a deposit and loan account at the checkout counter. We are assuming transaction clearing is much faster than any real good.

And you find it quite easy to navigate networks of flows, threat them as queues, find balance point. Recognize that hard bounds make a one color hedge, so you end up packing at least three colors in the trade space. Loops, like when the patient goes to emergency, sees the five hour wait, then goes home. That is a loop. The lobbyist going through his rolodex of congress critters, that is a loop. Loops can be priced, the second go around. Optimum congestion, all this stuff, logistics.  Political power is a dynamic rotation among the ill conditioned state distribution, a federal good flow problem. Sandbox is the incarnation of the assumptions.

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