Sunday, November 29, 2020

The Hick's jump shift is another

 The government could boost money flow in downturns and we would wake up by meeting each other in the private sector. This isn't expectations, this is low interest rates make government spending profitable.  But it is pretty obvious that government was involved with the downturn, ex ante, and ends up mostly bailing out its prior errors.  Few in the private sector have  delusions of government grandeur, we are not expecting positives.

Find the congestion, insert market. Where are the Nobels. 

Get the Swift bankers free, and they gain market share back and that means better tax efficiency. That is one step faster than shadow banking. Regulate if you must, but keep it simple: fair riced entry and exit, with a review. Closed provable contracts. Then regulations can add time and amount and count limits for petty cash. The Swift banker can insert any needed regulations into contracts with little overhead. Beyond that, it is up to Congress, but Sandbox is always voluntary.

OK, the new Swift bankers are burdened with an inflating money base. But it is the tax dollar, about 10 trillion flows through the Swift system for taxes. Everyone is stuck equally.

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