Mt MMT plan has the independent Fed defaulting on some 2% of GDP per year for 15 years. That is a big jump up the Markov Tree.
The ten year will hold around 4.5% for six of those years as we learn the system. But the key is that government programs have free entry into the Fed system, and bankers offer individual cash mnagement. A lot of those interest charges are captured by programs.
But, it is is closed. all streams mostly trapped. Endogeneously all agents gain by forcing stability in the default stream, it is on the books for all players. That is the variable the senators watch, ten year rates, in this case the default performance predicts a potential renewal of the contract. Government programs are not restricted to external debt management, each program can seek its own banking services. If the senators watch this process, that default stream gets buried around year six. That becomes pure liquidity, the senator can give their state capitals half.
Thursday, January 2, 2020
She has no need to make any decision
Pelosi faces decision on articles of impeachment
CRISTINA MARCOS at the Hill has to answer one question. What would the Supreme court do is someone sued because Nancy did not deliver the impeachment to the Senate? The Supreme court will say the impeachment conditions were met and the impeachment is on record.
CRISTINA MARCOS at the Hill has to answer one question. What would the Supreme court do is someone sued because Nancy did not deliver the impeachment to the Senate? The Supreme court will say the impeachment conditions were met and the impeachment is on record.
The Senate can conclude the deal at any time with a majority vote to acquit.
No, this is can kick
The Fed's charter prohibits its from directly purchasing bonds or bills issued by the US Treasury: that process is also known as monetization and various Fed chairs have repeatedly testified under oath to Congress that the Fed does not do it. Of course, the alternative is what is known as "Helicopter Money", when the central bank directly purchases bonds issued by the Treasury and forms the backbone of the MMT monetary cult.Helicopter money is a direct, untraceable loss by the Fed. For example, erasing bonds it holds.
Digital pit bosses do not own assets
Vanguard Joins the Crowd, Cutting Trading Commissions to Zero
A result of sandbox automation, your welcome.
A result of sandbox automation, your welcome.
Grasping at strawsd
Politico:
Sen. Elizabeth Warren's support among Democratic primary voters nationwide plunged 50 percent over the past month, according to a new Quinnipiac University poll, signaling that the shake-ups in the primary field are far from over.She is a gonner, too much failed state policy.
Former Vice President Joe Biden has retaken the lead in the poll after an autumn that saw him surrender his solid frontrunner status, climbing 3 points to earn 24 percent in the poll. Mayor Pete Buttigieg of South Bend, Ind., surged into second, rising 6 points to 16 percent, with Warren and Sen. Bernie Sanders not far behind at 14 and 13 percent, respectively.
Gun nuts suffer castration anxiety
A Condescending Anti-Gun Argument
We can call it a disease or a cultural asset.
I think of it as an embarrassing emotional problem. They are stuck with no skills except having sex with steel pipes and inevitably blow their own head off. They are simply nuts. these idiots cause problems everywhere and are unable to live in cities.
Wednesday, January 1, 2020
Surprised me
About 203,000 people left California in that period, a result of the state’s shifting migration patterns and economic strains that are making it harder to afford living here. New York, Illinois, New Jersey, Massachusetts and Louisiana also saw large losses to other states.California’s potential loss in reapportionment, which will be determined by next year’s census count, would drop the state’s number of seats in the U.S. House of Representatives from 53 to 52, said William Frey, a senior fellow at the Brookings Institution. -LA TimesI had been expecting a big gain but the Illinois effect is happening sooner than I realized. Firms and households are escaping the failed Hispanic state.
Currency banker loss function
In a price neutral environment, the currency banker loses currency in response to positive innovations in the real use of bearer cash. Bearer cash is free cash, owned and restricted only by the holder, obtained by snookering the currency banker.
The mechanism is a silent real productivity boost that increases exchanges consistently. The currency banker is guaranteeing to keep deposit and loan skew matched. But it is consistently behind from a method of growth, it is making too many of its own loans to to fewer of its own deposits, its market making risk keeps jumping just beyond bounds, forcing a requant on occasion rather than adiabatic change.
The real economic innovation has control of the fourth moment on those structured deposit and loan queues. S/L eventually goes back to normal. Normal, in this case, implies some risk adjustment process, of assumed character. That is, the market risk remains where it was, queue rank is restored.
The whole human principle in sandbox is that we humans have our own natural tolerance for waiting in line. The first effect of two mistmatched is that both customer and clerk feel like they make unnecessary trips to the counter. They get deja vu and restore real queues to their natural. Hence the standard two color banker is the simplest wiener process, liquidity adjusting blob. Its long term destination buried in the market risk account.
The mechanics of it:
The simple two color pit boss promises to keep loan and deposits balanced to a rank six structured queue, the market making risk will be about 1.5 points of the total outstanding. It takes ll its cash in advance loans and encodes them to the bounded uncertainty. It insert banker self loans as needed to make the balanced tree. It does the same with deposits in advance, adding self deposits as necessary. Then the pit boss scales the one to the other with an interest ratio such the the aggregate difference in it self loans and self deposits is minimum.
The 'in advance' is the implied risk equalization. One can see this is the blob liquidity function, it assumes we are all lazy blobs and will consistently keep a constant tolerance for waiting in line. It is not a necessary, it is the minimal form of that loss function. We are operating at the base of the Markov tree, the smallest containers packing channel, the market risk channel is least energy.
The three color matches deposits and loans, but the risk still contains the fourth moment, and that it matched to the siegniorage in advance. Tat seigniorage is liquidity income to some of the accounts, specifically large government programs see that right away. Thus, the effect is captured, risk equlization was broken via the 'right to coin', and recovered via the seigniorage bet along a known axis. It becomes an acknowledged payment to government accounts, a known , slightly variale, tax collected at the Fed.
Central banking can work, we need to get a very long contract on the seigniorage risk. Then we can move up the Markov tree do some real quarking. But we will need some really smart senators. The senators need to purchase their desired monopsony gains fifteen years in advance. Renewability implies whatever gain they see can be repeated by half. The three color jump actually requires cash management within the government sector, it is the owner of the Fed, still. The key to controlling senators is to send the gains back to state capitals. Stabilizing the tax removes an interest charge wedge, that savings mostly goes to state capitals.
The mechanism is a silent real productivity boost that increases exchanges consistently. The currency banker is guaranteeing to keep deposit and loan skew matched. But it is consistently behind from a method of growth, it is making too many of its own loans to to fewer of its own deposits, its market making risk keeps jumping just beyond bounds, forcing a requant on occasion rather than adiabatic change.
The real economic innovation has control of the fourth moment on those structured deposit and loan queues. S/L eventually goes back to normal. Normal, in this case, implies some risk adjustment process, of assumed character. That is, the market risk remains where it was, queue rank is restored.
The whole human principle in sandbox is that we humans have our own natural tolerance for waiting in line. The first effect of two mistmatched is that both customer and clerk feel like they make unnecessary trips to the counter. They get deja vu and restore real queues to their natural. Hence the standard two color banker is the simplest wiener process, liquidity adjusting blob. Its long term destination buried in the market risk account.
The mechanics of it:
The simple two color pit boss promises to keep loan and deposits balanced to a rank six structured queue, the market making risk will be about 1.5 points of the total outstanding. It takes ll its cash in advance loans and encodes them to the bounded uncertainty. It insert banker self loans as needed to make the balanced tree. It does the same with deposits in advance, adding self deposits as necessary. Then the pit boss scales the one to the other with an interest ratio such the the aggregate difference in it self loans and self deposits is minimum.
The 'in advance' is the implied risk equalization. One can see this is the blob liquidity function, it assumes we are all lazy blobs and will consistently keep a constant tolerance for waiting in line. It is not a necessary, it is the minimal form of that loss function. We are operating at the base of the Markov tree, the smallest containers packing channel, the market risk channel is least energy.
The three color matches deposits and loans, but the risk still contains the fourth moment, and that it matched to the siegniorage in advance. Tat seigniorage is liquidity income to some of the accounts, specifically large government programs see that right away. Thus, the effect is captured, risk equlization was broken via the 'right to coin', and recovered via the seigniorage bet along a known axis. It becomes an acknowledged payment to government accounts, a known , slightly variale, tax collected at the Fed.
Central banking can work, we need to get a very long contract on the seigniorage risk. Then we can move up the Markov tree do some real quarking. But we will need some really smart senators. The senators need to purchase their desired monopsony gains fifteen years in advance. Renewability implies whatever gain they see can be repeated by half. The three color jump actually requires cash management within the government sector, it is the owner of the Fed, still. The key to controlling senators is to send the gains back to state capitals. Stabilizing the tax removes an interest charge wedge, that savings mostly goes to state capitals.
Bearer cash vs collateral
I am thinking about QE and nor QE debate.
If we are a standard currency banker, then why did both excess reserves and Treasuries both expand? Bearer cash went on deposit. Bearer cash is not on the currency bankers structured queue, or rather, it is there as one large interest swap of zero.
Apparently it seems the economy has found agreement on better investments today than yesterday. Interpret that in any way you want for now. Except we are central bankers, we get there the same but take the extra seigniorage loop around the S/L rebalancing procedure..
Is it QE? What is the third party contract? It is QE if the third party is setting seigniorage prices outside of priceable congestion. If Treasury is raising the Fed tax, for example, by other than market pricing. Then the translation bearer cash to collateral on deposit, has an uncertainty wedge.
In the standard two color, there is a contract on the market making risk account, the matching error that must be corrected asynchronously by interest swaps. If that market account is at risk by a small percentage, there is a wedge in the discount rate, a quarter, maybe half point to cover it.
In other words, if that seigniorage is congestion priced, the system acts more like the simple two color system. We end up with a standard ATM fee on the bearer cash system, we don't care, it is not a killer. It is the variance in that, it is currently subject to Treasury debt planning, not market planing. We pay more ATM fee than fair, it is much closer to 1.5% because of primary dealer planning.
If we are a standard currency banker, then why did both excess reserves and Treasuries both expand? Bearer cash went on deposit. Bearer cash is not on the currency bankers structured queue, or rather, it is there as one large interest swap of zero.
Apparently it seems the economy has found agreement on better investments today than yesterday. Interpret that in any way you want for now. Except we are central bankers, we get there the same but take the extra seigniorage loop around the S/L rebalancing procedure..
Is it QE? What is the third party contract? It is QE if the third party is setting seigniorage prices outside of priceable congestion. If Treasury is raising the Fed tax, for example, by other than market pricing. Then the translation bearer cash to collateral on deposit, has an uncertainty wedge.
In the standard two color, there is a contract on the market making risk account, the matching error that must be corrected asynchronously by interest swaps. If that market account is at risk by a small percentage, there is a wedge in the discount rate, a quarter, maybe half point to cover it.
In other words, if that seigniorage is congestion priced, the system acts more like the simple two color system. We end up with a standard ATM fee on the bearer cash system, we don't care, it is not a killer. It is the variance in that, it is currently subject to Treasury debt planning, not market planing. We pay more ATM fee than fair, it is much closer to 1.5% because of primary dealer planning.
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