The Asset Class

Getting a Fix on the Problem

The asset class is the ruling class. They are warriors, pillaging and plundering. They make it to break it, and then, naturally, having assets, they exist to deliver us from the destruction of our own devices.

Buy Buy Buy, Buy a Bond

Europe is going gamma. The risk is so “big” (the big risk Geithner tells us rules by asset class, which is why we had to bail the economy out according to asset class) that Europe’s rate of interest is going negative.

(I’ve been telling you for some time now that the risk is going gamma. A Fed Funds rate at .25 basis points minus a 1.5% inflation rate yields to what measurable value of risk?)

Below zero, the rents attain a completely different risk dimension. (Articles on “reversing rents” by griffithlighton and “risk dimension” can be found on the World Wide Web.)

Remember that excess capital is supposed to trickle down, but because it does not, the capital yields to (it stops at) the intended risk. The tendency is, then, a negative yield. (A non-Pareto-optimality is supposed to yield a strong-Pareto-optimal condition in which everybody wins. Who, exactly, is being delusional here–the “makers” or the “takers.” What is the measurable difference that determines the future course of action?)

The European Central Bank (ECB) is now charging banks to deposit assets.

So, how do you price a bond that has a negative yield?

(It should be no surprise that futures prices will move higher against negative yield. Remember that equities prices are futures prices. The price of an equity is based on its probable future value now, and with a negative yield, consolidated wealth management is headed right for futures markets, supporting the gamma risk.)

What this is, you see, is an attempt to reverse the over-extension of rents. Wealth is so consolidated that there is no incentive to spend it to make it. The result is a negative yield and a bond price so high that only the king can afford to pay it.

Occupying negative space and time in the futures is a retrenchment, right? Occupation of space and time in the past is a fixed quantity–it has already happened–and so it is in the futures.

So much for the theory that we cannot reoccupy space pre-tending in the past over time. It is entirely possible by occupation, preoccupied with front running in the futures, identified by asset class.


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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