We need to reverse the formulation

This chart is representative of Congress borrowing money on its Fed S/L account.
Let me try.

Congress quit borrowing when we exited the blue bar.  That was good for about a year, then what happened? Ask that question.


Then Congress thought things were ok for a year, then suddenly needed to borrow again.  Finally, Congress got it right for four years. Then Congress thought they had the taxes so they lowered their borrowing, it didn't work, Congress is borrowing again.

Borrowing replaces taxes, Congress is partly relying on the Fed to collect taxes, hence it races up and down do to the double effect. That is a loop in the generator, I have gone over this a few times.

The Fed has no way to balance the loop, a compression of payments occurs that is irreversible without large gaussian jitter cropping up. The Fed has no path back to the short end of the curve where currency bankers need operate.  It is trying to balance deposits, as a currency banker. But the depositors tend to avoid the taxes by first watching the initial debt dynamics. So there is a lot of jitter in trying to back this thing out.

The best solution is the Fed needs to make a deal with the senators about this problem. We need a fifteen year renewable bet on that seigniorage, not a two year bet. Get the impedance mismatch out of the magnetic field.

The minimal generator is always spanning tree without loops.  This is all forensic accounting, finding those economic sequences that do not obey the laws of nature. Our generator will be homomorphic with the real cause, and the cause that matches is the Senate/House scale mismatch. That mismatch forces Congress of farm out debt management to the primary dealers and the best they can do is run the loop efficiently, the loop is in Congress. Sandbox theory really works, it is what the bots use. We will be homomporphic with the cause because we ae maximum entropy, all solutions should have the same form. Otherwise, one solution, in other variables, will have a hedge on the others, that is not maximum entropy. Entropy maximizing means the pit boss constantly removes l;oops ASAP.  Then we are entropy maximizing.

Understanding disorder

In the few places where disorder is maximum we mean the commutative property holds absolutely, any two vectors can switch places in the flow, at that junction.  The key word is 'few', the disorder is contained to those nodes of congestion, but the form holds.