Wednesday, December 18, 2019

A cascade of government banking reform

Mainly so central banking makes a better velocity equation.

We need to fire the primary dealers, but then we need the central banker to bet the seigniorage more accurately, the senators are stuck, need to do their job and government risk gets priced more often than every 50 years.

So a few mark to market tricks inside government forces agencies to cash flow, making the job of senator simpler, removes the internal small state bottleneck, yields recovery of a substantial part of our default contract. Just one bill triggers it all:

The House shall make an even cash swap with the state capitals once a year, approved by the Senate. Everything else becomes obvious, we have to mark government loses and pay market price for government monetary insurance. Agencies on cash flow, primary deals fired, upgrade central bank systems, resolve the encryption debate. The senators need a fair traded system, one that generates accurate velocity equations.

Do the accounting for Senator Tester of Montana. He is the go to senator for about 15 states with nearly similar shortages. If he can scale his solutions, up, then we get about a billion in savings per years, and the state share will be about 20 million into the state budgets. That is a high ratio, paid on the next budgetary period, and the senator from Montana becomes a hero.  Do that rather than each senator run the earmark gauntlet on this issue. Use the distributive, it is in the Constitution.

Then get on the back of that senator from Oklahoma who allowed Texas Space Cadets, that becomes a noticeable minus in the state budgets. Most of the earmarks removed from military expenditures, easily a few hundred million to state budgets. The math is easy, and senators competing to find that specialist spot that generates the steady income, they get wide support across partisan bounds. That productivity is  bonus, it is like a very white dove.

The primary dealers are a cherry pick because some of the senators can figure out how to handle a trading desk, but that immediately leads to a fifteen year independent Fed, as a fair traded desk. So, the monetary regime change makes a lot of sense, built upon the need to gain endogenous productivity, not lose it. It becomes worth the expected lose declarations in the senate. The contract renewal will likely appear positive to all parties, even with the exit clause.

What is it? Specializing to remove common redundancies. A redundancy minimizing aggregate system, driven by a budgetary mark to market. Structured queue, They will minimize the cycles in government.

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