The political party that wins the franchise on government should always think about yield.

The takeaway: Underwrite the political management company that understands yield…

A very simple model of the needs of the State includes sustenance from bond yields, rents, and commodity prices. The Executive executes State power. The Congress codifies State power. The Judiciary clarifies State power. To maximize the yields acquired by the State, these powers should operate in sync.

Synchronized power goes against the notion of “separate branches of government.” There is no such thing. The State should underwrite the political management team i.e., political party that best understands the synchronization of power. This synchronization entails the three powers coalescing around an American interpretation of Western philosophy and narrative.

One of the tenets of Western philosophy is to divide up time and space in order to optimize yield on property. We divide our day into 24 hours and allocate eight to ten of those hours per day to work activities engaged for the purpose of extracting resources and creating product for sale. We divide land into parcels for the same reasons. The State monopolizes this process and shares a portion of the generated yield to the extent that such sharing maintains order among the populace.

Any political franchise seeking a franchise on the application of the three State powers needs to understand this basic philosophy. The State should not underwrite any party that does not understand this.

Alton Drew

2 May 2023

The stats …..

30-Day Fed Funds Options: 95.01

Effective federal funds rate: 4.83%

Discount window: 5.0%

Intertest on reserve balances: 4.90%

Two-year Treasury note: 4.04%

Ten-year Treasury note: 3.44%

Prime lending rate: 8.0%

Sources: CME Group, Board of Governors-Federal Reserve System.

Alton Drew

Thank you for reading my insights on the political economy. Your donations go a long way in keeping this blog live.