California legislature took over PGE a long time ago

California Governor Threatens to Step In and ‘Restructure’ PG&E

California Governor Gavin Newsom threatened a state takeover of PG&E Corp. unless the beleaguered utility giant makes a swift exit from bankruptcy and improves its operations to reduce the risk of wildfires.

“We are gaming out a backup plan if Pacific Gas and Electric is unable to secure its own fate and future,” Newsom said in a media briefing Friday.

Newsom again blasted PG&E for its handling of a series of intentional mass blackouts intended to keep power lines from igniting fires during high winds. He said in a statementthat the shutoffs highlighted PG&E’s “culture of ineptitude -- a behemoth that was slow to act and resistant to change.”

Which is why we have these energy messes.  Denial will not help Gavin, nor will he be able to teach anything constructive to our sixth grade legislature.  California is frigged, we have irreversible failed state, there is no backing out now. Gavin's  political career will end in a few years and he will leave a decrepit state of uneducated peasants.

I can expand Dr. Doom's list of potential disasters

Four Collision Courses for the Global Economy

Between US President Donald Trump's zero-sum disputes with China and Iran, UK Prime Minister Boris Johnson's brinkmanship with Parliament and the European Union, and Argentina's likely return to Peronist populism, the fate of the global economy is balancing on a knife edge. Any of these scenarios could lead to a crisis with rapid spillover effects.

Add the Iraqi rebellion which may have a greater impact on the Middle East than Trump.
Add the Hong Kong revolt which may pull China GDP far down.
Add the potential collapse of California, a bigger threat than Argentina.
Add a violent, failed state on our southern border.
Add the potential for Yellow Vesters in France to grow their movement into a majority.
Add a potential collapse of Italy and the end of the Euro.

There is a lot more on those google maps

Senator Manchin was shown a video of the missile attacks in Saudi Arabia, he said at the forum.The Senator asked a Saudi Aramco official whether the oil giant is concerned about someone working at the facility getting the information or the coordinates of possible strikes to hostile actors.“He looked at me and said, ‘If we thought that was a problem, we would be, but basically it’s all Google, Google Maps.’ He said, ‘It’s so accurate,'” the Senator said, as carried by Washington Examiner.The revelation that clear images on Google Maps can help terrorists target oil and gas facilities had Senator Manchin worried about the state of the U.S. energy infrastructure, especially natural gas pipelines.

The bold face is not mine, came with the article.

But the bold face says Manchin does not want jihadis bombing oil facilities in the USA, which is stupid. There are many more valuable objects to bomb in Google maps, jihadis have  lot to choose from.

What is Manchin going to do?  How is he going to protect the White House from drones? The skies are filling up with legitimate flyers and choppers drones, the Senator has to identify the safe drones and shoot down the bad ones.   He is back to the SecureID problem and Tim Cook is supposed to be explaining this to the yokels in the Swamp. The good Senator has not been following the issue.

They mean the CATO annual central bank conference

Cato's 37th Annual Monetary Conference: A Shadow Review of Fed Policy

They deal with a dichotomy.  

There is the utter simplicity of Bitcoin and its monetary rules and there is the utter complexity of central banking. The difference being that the Fed has to guarantee government interest payments, an impossibility it they want stability.  Most of the complexity can be reduced if we assume some partial default on government debt.

The one message they need is simple, allowing some partial default allows traders to price what they already know, governments go partially broke now and then. If we bet the process we have no need for a shock, as in Nixon Shock.  But we end up with a three sided trading pit for central bankers, there has to be an ongoing random default process.

Knee jerking through the primaries

This Is How Warren Loses

What do you think will happen when Republicans get to frame the election as a choice between center-right/populist economics and progressive/socialist economics not because that’s the best ground for them to fight on but because it’s exactly the battle the Democrats asked for?
“Elizabeth Warren wants to take away your health insurance.”
“Elizabeth Warren wants to force your children into failing schools.”
“Elizabeth Warren wants to raise your taxes for government-run health care and government-run education.”
“Who do you trust to make the best medical and education decisions for your household: your doctors and your family, or Elizabeth Warren’s government?”

This is a typical result for a progressive Mass candidate. By the time the election comes around she will have knee jerked herself to idiocy. 

Getting our recession cycles timed

We have a new recession cycle, started in late 2015 and we had a recession somewhere in 2016, we missed it, what happened?

You do not get a blue bar always, anymore.  We can observe and hedge the pattern then we grow small and then just stumble badly on the cycle. We are just sending the 'map', stressing the economy just enough to trigger the shorts. We really waver between 1.0 to 2.5% growth with bouts of deflation occurring more frequently.

So we are really in the 2015 cycle, not the 2008. It turns out the timing was exactly prefect after all, the intensity was deceptive. How long can we do this? Dunno, this is a first.

I have a better interpretation

Tales of the Economy

While economic textbooks have long relied on a utility-maximization model of economic decision-making, Robert J. Shiller and other behavioral economists continue to demonstrate that human behavior is not so simple. The stories we use to frame our thinking and guide our actions might not always make sense, but they play a crucial role nonetheless.

Shiller calls it herd behavior, I call it rescaling.  Economists got stuck on constant returns to scale, they are the one making up narratives, not the traders.

Consider the small state problem:
The long term problem of small states going extinct will look to Shiller like a sudden herd behavior. It will not be, it will be the long expected shutdown of the Senate as it does its 200 year rescaling schedule.

And the monetary cycle is well established in history. Again it will look like a herd to Schiller.

Barry Eichengreen (and Schiller)  are mostly shifting blame from the economists to the trader. Barry has priors.

Some of the various genders were not allowed to get pregnant

WeWork CEO Adam Neumann Accused Of Pregnancy Discrimination

I doubt it was Adam's fault, it may have been biology.

Sounds like the Obamacare promise

"Not One Penny In Middle-Class Tax Increases" - Warren Unveils Plan To Cover $52 Trillion Medicare-For-All

Which was untrue and cost Dems four elections.
She says:

Senator Elizabeth Warren unveiled more details of her "Medicare for All" plan she swears won't cost the middle class "one penny," while raising federal spending by $20.5 trillion. Paying for the increases would be a wave of taxes on large corporations, the wealthy, cracking down on tax evasion, an $800 billion reduction in defense spending, and putting newly legalized immigrants on the tax rolls.

Pure fantasy.  Illegals are being subsidized, taxing them at minimum wage is no help.  The rest is the old 'waste, fraud and inefficiency' reduction of government and will not happen in this republic.  She is not serious, she is knee jerking.

The bitcoin S/L part nine

I simplify accounting here.

The bitcoin S/L has a hot wallet secured by a finite number of trusted miners.  Any S/L client can make transfers from the S/L wallet to their own via public blockchain, to for deposit sand from for withdrawal.

The trusted miners maintain an internal short block chain for current clients.  The short block chain is continually consolidated, maintaining a history long enough to chase potential scofflaws.

OK, we get a simple one number account which can be in the red or black.  If it is red, the client pays an interest swap, receives it if black.  A normal automated S/L. To keep the swaps consistent, the pit boss inserts its wedges of loans and deposits to get a balanced match.

The pit boss has no entry on the main bitcoin chain, But it can carry an obligation to the internal block chain less than contract market risk.

Clients are trusted in this example, that is why it is simple.  The additional guard is an entry and exit fee maintained separately for members, and then you do scofflaw management.

If deposits and loans go to zero, the pit boss may end up with a loss, bu it is a bot anyway.  Simple stuff once you get the matching math right.  But you are also in the scofflaw business, no different than any margin call bank on the street. You need risk adjusted clients.

Public chain fees aid by the client., So, in essence one gets the optimum fiat money hedge, the ability to borrow and hedge future currency values relative to an FX exchange tool in which the central banks are neutralized.