Uncertainty under the New Fed

 If Treasury had a one point double spending account with a three paint variation. We will see  Mini Nixon shock of five points  in pricing chaos for a year or so. Within eight years we are again facing a near deflation until contract renewal. 

The productivity norm in government is incentivized by revenue sharing. You cannot have a fiat Treasury inflation tax without revenue sharing. The tendency if for government channel to move toward the center of gravity. Deals between small states, subdivision of authority in the large.

The productivity norm is the entropy maximizing. Any level of government that manages the imbalance gains on their revenue sharing budget. The central tendency is to lean toward the Markov stable point of state vs district where liquidity is highest. The effect is to reduce the government safe interest costs over the cycle. The tendency to get by with petty cash.  They spend less time re-prioriizing current expenses.

Pruning the net is what the AI folks call it. Things efficient at the Swamp level should be done directly, an so on, removing all the loops. Congestion management first, pricing second. Texans will observe that cash is more liquid than Space Cadets. The tendency to pass the presidency around by region diminishes.