Monday, October 12, 2020

Revenue sharing model

 The House Senate trade splits a negotiated amount of cash, to state capitals and house districts. That is liquidity to cover the Constitutional imbalance.

It is still three color, the executive branch carries the pit boss in managing programs. It has two forces, one invests in small states to equalize populations. The other invests in district governments to replace corrupt county governments.  There is no need to mess with the Law, it is all built into a known program, Revenue sharing. Just do it by state and district.

The math behind it all

Government looks backward at two monetary cycles. They can, ex post, count through the number of steps backwards such that they make a nice Lie algebra, frankly, ex post.  A Lie algebra has both harmonic commutative and associative properties, you count around the ring in steps having both radial and circumference possibilities. All ex post, this is the pit boss keeping error bounded.  It is the pricing function, it is flattening the salad bowl, finding the best shortest salesperson solution, matching moments, hitting bingo. 

Then they move on, sharing coin tosses and making more salad bowl.  But a working ring algebra makes ratios stable as can be, ratios is the pricing function, keeping the second derivative of that ratio at maximum is maximum entropy. 

So government maximally incorporates ex post with ex ante to stay in a sustainable bound, there is no better approximation and a consensus accepts the result. But the trading pit is required, it is like the Markov round off graph. All parties must agree on the amount of unknowable and price that risk.

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