Just like last time

 Fed Seen Holding Rates at Zero for Five-Years Plus in New Policy

In five years government can refi a lot of old government debt.  But the effort is very deflationary and regressive.

Rates are not low.  Middle class consumers are taking it in the shorts:

Simple Swift

 The tax dollar smart card currency contract.  it is the definition of a leaf Swift node, anyone can use it.  The complete correspondent system retained.

So, in one single statement, the Fed dominates the payments space for tax dollars.  But the correspondent banks automatically become trust banks. Why not? Push fintech to move up the stack.

The correspondent banks have a secure card interface, so everything is sand box contained.

Growth is lower than rates, rates are not low, money is tight

Loose limits on public-debt issuance in developed countries do not mean that there are no limits. As former IMF chief economist Olivier Blanchard has argued, it means that “if safe interest rates are expected to remain below growth rates for a long time,” then “debt rollovers, that is the issuance of debt without a later increase in taxes, may well be feasible.”

The subsidy at the ten year rate is almost one percent.  We pay 1.6% and growth is slightly negative, and tax income is   dropping faster than growth is dropping. We are paying a heavy deflationary price for the Fed tax collecting function, the regulated banking system is drying up.  Finance was still paying th bank taxes from the last intervention.

The Fed is in a trap, all bungled up, way off equilibrium.  It is losing market share too fast. If you want a looser Fed then free the Fed of its government restraints a bit better, with a long term contract. The trade is the only way out.

Sue him for political speech

Chris Cuomo On Pandemic Restrictions: Look, Protesting Is More Urgent Than Going To Church

I just mentioned the problem and Cuomo opens mouth.

I remember a year ago, or so, somehow speech and executive action got mixed, and ever since politicians have been sued for political speech that may imply an Unconstitutional.  This was my point, at the time liberals were not thinking, just waving the talking points. From now on they will be reminded again and again until the court corrects.

How does smart card manage all the ledger interfaces?

 Smart card needs a currency regime loaded and ready before it can manage that currency.  Part of the currency regime function is address and interpreter to format cash and packets.  The things smart card can do are spreadsheet like things. And Solidify local account management goes through a spread sheet interface. Each spreadsheet is a currency regime with macros loaded and ready.

Smart apps. These need not be secure and can run javascript outside the kernel.  For example, an app that intelligently matches and order to any shipping receipt.  The secure kernel has to swap out the cache, clear the criticals and make the call. But these smart apps are almost alweays called from spectre stable points with no cache risk.

Communications? in operation, all communications are under secure kernel control.  The card can be open to an app on a PC or iPhone, with a thumb print. In that case security is minimally transferred to the external app, just enough to check balances, change bets, load a utility, install new currency regime.

In place of a currency regime the user may insert a contract of some kind, multiple set of solidify code.  So, Walmart would have the delivery interface as a special currency  regime which can handle digital signatures and receipts. There are mini apps that just allow you to thumb print subscription services which minimally release your ID.

The industry now has a well developed secure processor supply, and processors that can generate and hold secret keys. Hardware wallet vendors are getting clues.

Send only once rule in Solidify

 Solidify is the smart contract language, Spectre compliant. This is a contract to send cash once from sender who gives a signsature and a receiver address.  This is done by a trusted miner, and the contract supposedly checked long the way by block chain miners.   When you compile this contract, it is likely some logic interface is exposed telling the trusted miners the proper path of a stable contract.  They can do check sums on the ETH tree.

These are simple contracts, we can guarantee them in the Spectre compatible processor in hand helds. We can chain these and prove stability.  More important, secure smart card is not tied to any currency regime except that the fab center has a security coin protocol.  

There is nothing in Solidify that prevents inter ledger swaps.  Smart card is not limited top cash, it can verify UPS shipping receipts, online order confirmation.  Smart means smart, all the Spectre condition met on the counterfeit proof card.

Solidify is a contract manager for hand held devices, spectre secure.

   

contract Coin {
    // The keyword "public" makes variables
    // accessible from other contracts
    address public minter;
    mapping (address => uint) public balances;

    // Events allow clients to react to specific
    // contract changes you declare
    event Sent (address from, address to, uint amount);

    // Constructor code is only run when the contract
    // is created
    constructor() public {
        minter = msg.sender;
    }

    // Sends an amount of newly created coins to an address
    // Can only be called by the contract creator
    function mint(address receiver, uint amount) public {
        require(msg.sender == minter);
        require(amount < 1e60);
        balances[receiver] += amount;
    }

    // Sends an amount of existing coins
    // from any caller to an address
    function send(address receiver, uint amount) public {
        require(amount <= balances[msg.sender], "Insufficient balance.");
        balances[msg.sender] -= amount;
        balances[receiver] += amount;
        emit Sent (msg.sender, receiver, amount);
    }
}

Central bank misunderstanding on digital currency

 Digital currency as envisioned by the Fed is a slightly better payment system. It is sort of a payment contract ready to go. Where is the gain? how is that better than visa/master charge?

It is based on block chain, a ledger, there is no bearer form of it. But the Swift ledger works fine, there is no need to switch to block chain.  I would hold off on making block chain dollars.

Right now, today, we can make bots that will share a single  business account, issuing passwords as needed. corporations essentially do that with travel accounts, relying on users to return receipts..

The applications you envision all demand secure identity. a valid signature on the ledger, with a send and receive money transaction channel.  Swift has all that.  Swift just need a bit more processor poop than current cards support. 

Bearer digital cash is a different animal, central banks need that to compete in shadow banking.  Central bankers are being deceptive about this.

Money is tight

The reason that Goldman Sachs and Morgan Stanley went against the herd yesterday and closed in the green, is the perception that they are still predominantly investment banks and make less business loans than the big commercial banks like Citigroup, Bank of America, JPMorgan Chase and Wells Fargo. As the economy has dramatically weakened this year and corporate credit downgrades and bankruptcies increased, those commercial banks have been forced to set aside ever larger amounts for loan loss reserves, which eats into their profit picture.

Banks adapting to a long term slog. 

Antificants are quite typical

There is no apocalyptic collapse. The dems are not destined to lead us into Bernie Land.

But the Antificant main base is in Portland, and sorry for Portland. BLM is ad hoc.  Otherwise the revolt is barely different than the 60s revolt. The complaints partially justified, the US government engages in some bonehead plots and these need to be written off. That was the basis of the 60s revolt.

But the dems will drive a hard bargain on the pension bailouts. That comes with a long term tax battle. And increasingly desperate small states. This may be too complex for the politicians and special interests. 

Kamala has to figure out there is no pension bailout until we cash in the state capitals. She needs their votes.  The pension bailout will be four years of chaos, like Obamacare. Likely the one thing Biden can get done. That is a long time for the state capitals t be paused.  Kamala might get a better deal after we get a New Fed contract. Use half that default liquidity to subsidies pension returns by a point. For every two dollars of debt erased, but a dollar of pension debt. But you need senate approval, you have to pay off the states.

To get the pensions adapted to 4% return,  Congress could provide a point, the retired boomers supply as point and state supplies a point. Otherwise the public sector will be composed of young antificants, angry as hell for being stuck with the bill.

While writing off a third of the federal debt. All the inflation adjustments will have to go. Earmarks gone. I doubt we can even afford the jammed up federal court system, not half the defense budget.

Tax battles. Californians want a super wealth tax, Biden wants to keep state taxes below 400,000 income.   They will both run out of funds before the decision is made. The Fed will face a bankers revolt, or capitulation; neither is good.  The banks will not survive ten years f the Fed tax, they are being over run by shadow bankers.  But it is all a chain, the senators will not agree until they  have the details of pension bailouts.  The trade is their cash to the state capital vs pension subsidies.

The lowest Markov triple

 If we put it in salad bowl context, the pit boss is running around trying to keep two geodesics optimally separated, about the bows.

Optimum ratio? If that ratio cycles around the bowl twice, then there exists a 4 D solution. Over running the color operator gets momentary pause and mass erupts.  Mass in this case is that spin valuer which is always one up the 3 tuple tree.

The system really is trapped in a 3D, and occasionally bouncing on 4D.  The numbers tend to match.  It admits to a stable vacuum.

But, so spin is placed by the dimensional restrictions, and variance about spin limited to the Markov condition.  The conditional properties of spin, charge and magnetism should match the 3 tuple tree.  i thought it a very close rhyme with the orbitals. A bunch of key physics constants seemed awfully close.  It is the path of maximizing entropy with a set if minimally co prime 'angle' allocations, the event space seems at maximum entropy always. 

Leads to conclusion.  The amount of mass we have in 3D is determined by the number of times we bump into the 4D bandwidth barrier. Each bunch adds momentum to the local spinner, like a secret agent keeping the tops spinning. And the mathematicians prove it is the only solution for an unlimited group of the same blueberry with no empty spot?

If the vacuum was slightly un-isotropic, say it had a slight relative pressure along an unobserved axis. Then when we have are occasional spin collisions, they happen at a slight asymmetric angle. The vacuum units might hold that angle, unobserved in flat earth. There might be a hidden term in spin. That term insures collisions happen sufficient to maintain mass balance. There is a second term in the cosmology constant.