Tuesday, December 15, 2020

Newsom's federal sharing slush fund

 If the House got all the money split then Newsom gets:

150 billion *53/435 about 18 billion.

Vermont gets about a third of a billion.

Illinois claims a take of 6.8 billion with 18 reps, and that is way too much tilt. That number mean Vermont is net negative, and they did not have a fair bidding process. In other words, Vermont was likely third in line, with the other small states. Or maybe Vermont is being charged a Bernie tax.

I would vote no, I would force a fair market equilibrium under the idea of forcing them to a Kelly bet the returns, or losses, from scale distortion. Include the automated pit boss. 

Why is this Kelly betting? Because there is separation between Senate and House, they are different traders by law, incoherent to each other. In a Kelly bet we always stop and insert a fair market. Fair being optimally congested interface between the independent partitions. The pit boss function. What pit boss? Both groups know there unhedged losses are within the Treasury inflation tax because Treasury is stuck with the liability. Treasury is the defacto pit boss, and likely will project an inflation outlook after the sharing agreement. 

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