Horsemanure

POLITICO

Trump privately doubted Moore's accusers

No, Trump's problem is the middle school gym where he first compared weenies with his mates, and got quite the shock. 

He has been in denial about his castration anxiety ever since.  He looks like an embarrassment with the condition publically hanging out there.

He already lost about three senators already on taxes, does he really want to publically endorse a bible thumping, child molester? The worst of the male castration complex? 

Get your neuroses straightened out.

Me and Al and even Matt Levine are differently perverted. But you are free to complain. 

Al is one of me, don't care that he is left or right, I care that he sees the hilarity of the Swamp. We are the Yippies of the current times, differently perverted.

Forced buyers!

A big money manager has an agument similar to ine about the suppression of the ten year yield.  Regulations in Europe!

The short-end of the US curve reflects what the Fed has done in terms of hiking rates. But, the long end of the US Curve (10-30) is being driven by very different forces. It has flattened because of interest rate differentials between the ZIRP rest of world and the rate normalising US, but also on the fact external investors effectively drive US rates because they are the forced buyers! Ongoing QE distortions in Europe and Japan are still driving close to Zero domestic interest rates – forcing investors offshore. Global demand for duration partially explains why the US 10-30 curve appears to have flattened.

Using sandbox terminology we can get at the regulation effect right away. The regulations specify that long term liabilities kind of match to long term assets.  They mean that regulated banks have to have a known bound on matching error, we are at bit error again.  The idea is to keep a little more congestion in the flow from in to out, and during volatile time the amount of short term borrowing is limited.

Europe has long term pension problems, as does the Swamp.  All of the long term liabilities denominated in the regulated tax currency. Then dollar, as the monopoly reserve currency, has to be safe, its rate will be fixed low and that is a big problem. The problem being that Congress runs a very fixed inventory cycle with large discrete jumps at the reguant moments.

Dealing with the seigniorage loop at the Fed

Economists, like Dean Baker, want to count seigniorage against debt costs for Congress. The problem with this approach is that the seigniorage is take from the treasury market. But yhe large firms have easily closed the loop on this and priced in the real cost of money.  It is the ten year rate.

Actually what is happening is that the forward pricing is setting the ten year rate after the seigniorage stream is priced.  Government still has a term structure, like six and four year elections. Interest payment have to be made. The carel knows the depreciation cycle is ten years, and they make it so.

Look at the Bloomberg Treasury rates. Since Trumpster gained off all the rates are up 80 basis points except the five year up 32 and the ten year up 3. The interest charges are being set to match the natural budget cycles.

It is a pegged system, and will not hold with a 1-19 year slope of 75 basis points.  If Treasury keeps the curve this flat, they will pay bonus points in short term debt as it all rolls over. 

Ned wants to jump on the ten year for debt needs.  There was a tie when Treasury wanted to jump on the short end, rates were 15 basis points. Ties change and Treasury is always a late jumper.

Another

SACRAMENTO (CBS13) — Sacramento Regional Transit is the one being taken for a ride on this night, by a computer hacker.That hacker forced RT to halt its operating systems that take credit card payments, and assigns buses and trains to their routes.The local transit agency alerted federal agents following an attack on their computers that riders may not have noticed Monday.“We actually had the hackers get into our system, and systematically start erasing programs and data,” Deputy General Manager Mark Lonergan.

They got a sleeped virus inside the route scheduler.  How? The server did not have Intel SGX . Nor did the operators use a hardware badge to log in.  All of this is known today, now, and as of a few months ago.  Even being this stupid, they should have backed up the critical files, off site, off network.

We have these sleeper viruses everywhere, there is no sense hunting them down, go directly to sandbox concepts, never let humans, any humans, have access to critical keys.

Naturally

Hackers stole the personal data of 57 million customers and drivers from Uber Technologies Inc., a massive breach that the company concealed for more than a year. This week, the ride-hailing company ousted Joe Sullivan, chief security officer, and one of his deputies for their roles in keeping the hack under wraps.

Uber was passing around customer data and doing searches on the stuff, and never guaranteed the critical numbers were protected. 

Big point

Uber did not need those critical numbers,  addresses, driver ID, financials, or any of the rest, for drivers or customers. Drivers never needed to give that information.  That info could have been passed without delivering the critical numbers.

Since this has been an open issue, on his blog, for over a year, I can see why we would fire the entire dumbshit staff at that company. This is something even dumbshit credit card managers figured out, Walmart made them mistake when they started, then Yahoo.  The whole system is inverted, no one needs to see the critical info, all we need is verification and validation.  This applies across the board, otherwise, forget money, the web till turn it onto a random number.

Off equilibrium

Janet is telling us she might raise rate one more time, even as she franticly buys the short end to keep down rates.  As short treasuries pile up on Jante's sheet, the one year yield keeps rising, now at 1.6.

So, to raise rates means buy less of the one year, and attempt to lower the one year by less then she would have attempted to lower it otherwise.  Whew! But that is off equilibrium, the Fed is circling around the debt cartel, not the economy.

True, she is just twisting the sheet, but Ned is still quite desperate in the short term. using the card.

Throwing money at the sandbox

Trump likes the child molester, bible thumper

Trump Is Standing By Roy Moore: "We Don't Need A Liberal Democrat In That Seat"

Acapulco coin

I invent it, anyone can create it.  One acapulco coin with worth 1/8 of the price of the most commonly rented hotel room in Acapulco.  It is pegged to the median tourist hotel room.

The coin is likely to be created by the hotel association, or the travel agency. The peg is maintained because hotel room rentals are statistically sampled, the distribution posted, and Acapulco coin is bought or sold by the Hotel banker to mostly match the statistics.

Almost every hotel will accept the coin for 1/8 of their median price because the coin is the most accurate measurement of their local constraints.  The acapulco coin is great for room reservation because it is pegged to the thing reserved.

Anyone can use Acapulco coin with their  mobile wallets.  Tech available now.  Reading between the lines, I can say the tourist industry is up to something very close, and it is a good idea.

Create the typical airline flight coin. Use the most commonly purchased ticket.  Peg the flight coin to a tenth of that.  You will become as rich as you can accurately, and frequently sample the statistics and take on the  currency risk.

Stock and sector analysts do this stuff, yesterday.  Judging performance relative the the sector and  market, estimating future price relative to a volatile trend in the industry.  The sandbox just makes their job much easier and they can do their ob over a wider range of segments.

What is the point of blockchain?

Cash and Grab

As news.Bitcoin.com revealed yesterday, hundreds of bitcoin cash are stuck in segwit addresses after individuals mistakenly sent them there. Well, as of today that cash is no longer stuck. Someone has siphoned the lot and those coins now reside in a single address whose contents are worth over $600k. Explaining how they achieved this is complicated; explaining why is much simpler.

Evidently, if you wallet is on line then blockchain is useless.