We have a one color Fed

The Fed's job of keeping deposits and loans distinguished is gone.  It is now just a government accountant and tax collector.  It is the Executive in full charge of the S/L problem.  Trump is a Nixon, in the end he will resort to a monetary regime change.  We know this, finance knows this, Godotists know this, mathematicians know this, mostly. they live by pure proof.

This is not going to be one of those overnight shocks foisted on a bunch of hillbilly senators.  And the new science requires the senators to make the long term bet. The senators o do not need perfection, they simply need to be a bit less volatile then Nixon's overnighter. Stat liners are not adaptive, hence there is congestion build up periodically in sate economies of scale. The solution is to insert the trading pit between senate and house, one  cash trade per budget for state capitals. The default volatilites much reduced, agencies more will to write off losses as they come.  Thus we keep convergence tendency, we all see the same optimum point within a known bound. The economies of scale divergence gets hedged. Read the 175 page proof when it comes out in book form.

This is the case of no convergence,  the meeting of the elders is coming. . Dave Beckworth is getting real clues on this, give him a look.

Look, the big banks know this:


Rabobank: "The Fed Just Carved Central Planning Into The Bedrock Of The US Financial System"

Meaning we have a one color system, the only path back is a meeting of the elders. The large banks know what the sandbox is about, the Bank of England has always been the dummy. There research staffs are following the new math, they are automating the hedge process up to a newly discovered boundary condition. They had their deja vu a long time ago.

Investing Is Dead: World's Largest Asset Manager Says "We'll Just Buy Whatever Central Banks Are Buying"

The primary dealer system is dead, pricing is not working,m we will be having the meeting of the elders, i is Nixon Shock time once again? Right on schedule I might ad.

We are entropy maximizing and that means information of the past may be lost.  We do not keep the path home, it is erased in the adaption process.