Tuesday, June 4, 2019

Simplify

Narrow Banks, Very Narrow Banks, and the Federal Reserve

Everything t the Fed is an identical S/L account.  Accounts are obtained via congestion pricing, which also serves as collateral.  A properly congested set of S/L accounts with competitive congestion fees will be risk equalized.

It works simple, when a individual member grabs do-re-me they get hit with higher interest charges as soon as the next betting round.  And visa versa on returning the do-re-me 

The interest flow changes sign for deposits. so the currency banker is managing S/L ratios, trying to keep the independent deposit and loan flows subject to structures, stable queues. We have interest charge flows and congestion fee flows for account entry and exit.

Trying to define bizarre account type makes the calculations impossible,  one has to structure each queue based on risk level, then combine adjusted, combined queues on a N-color channel, one color for each of the account type. The only sensible model here is sandbox, all accounts risk equalized, identical S?L accounts with contracted currency release function.

That is the New Fed, get used to it.

No comments: