Saturday, September 19, 2020

Due Process has meaning

 Due Process gets inherited in private contracts to government. Mostly  in the form of competitive bidding, but sometimes it can be skipped under the Law.  It never worked for the states as they were already subject to the fundamental personal rights.

In the case of an independent Fed, or better, to the extent the Fed is independent, it inherits Due Process. Competitive bidding, free entry and exit into the auction house. Due Process and Fair Banking are equivalent. It is a natural, and the rule in sandbox.  

Things unfair have to  gt their own binomial so traders can smoothly get passed the blocks. We have to bet the unfairness, like dealing with scofflaws.  This result comes from contracts having provable exits, provability requires traders setting their own risk levels,  ex ante. It is a form of efficient information usage, no one is hiding risk.

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