As we in the sandbox can prove, under a no arb currency emitter, the money hedges are extinguished, asynchronously as discovered in a fair traded pit.
We do not have a no arb currency banker, we have a badly designed central banker so there is term error in the numerator of pricing. That is why we hve shadow banking, and that is why be buy and sell stock market shares.
And we do deliberately introduce arb condition in money, we actually have fake economists advocating this process. Our politicians are told by our economists that this is fine and dandy, but it makes credit risk estimates extremely tricky, so tricky we need to intervene in a market to price the arbitrage.
Banking is part of measure theory, how to keep an accurate scale under self sampled systems. Dealing with quantum effects of known uncertainty. For 250 yeas we have had economists trying to invent solutions without the computational proofs. Central banking does not have a complete solution, never will. The best we can do is make it more independent for slightly longer periods before contract renewal. Central banking will never be a monopoly, just the dominant player if done right.
Who manages time risk, then?
Senators, according to our Constitution. They are supposed to be walking the ine on these programs and removing internal arb moments by management within and between budget cycles. Thus the senators handling cash management remove the causes of central bank arbitrage. We have to pay their state capitals cold hard cash for this service, I am sorry to tell you,. It is not free.
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