I wonder if this is practical? or even makes sense? any insights are welcomed:
Currently, the Federal Reserve (and central banking globally) uses a national-wide unified interest rate—this is a blunt instrument, very much so. Consider this scenario: If inflation is high due to a spike in gas prices (Energy CPI), the Fed raises rates for everyone. They crush the local baker, the bricklayer, and other entities that aren’t the culprits of the specific inflation at hand.
Cyberocracy gifts the monetarism apparatus miroscopic-precision, surgical, clinical-like selectivity: Imagine a "Dynamic Fed" vProg that is being fed (pun not-intended) a live, constant, high-definition look into the economy.
- Sector-Specific Precision: Core CPI (excluding food and energy) is stable, but Energy CPI is skyrocketing due to a supply shock as a result of either sanctions, geopolitical arm-wrestling, natural disaster, etc.
- Medicine by Dr.Fed: Instead of a blanket rate hike, the Algocratic Fed (which might as well be mostly AI if we arrive to this level of granularity) reacts IMMEDIATELY, and Instead of lowering rates for the whole nation (which might trigger, say, inflation in the housing market), the Algocratic Fed injects liquidity only into the wallets of the affected participants (gas stations? energy companies? enforces subsidies? open to discussion but that’s the gist). Those get the immediate easing correctly because they too reside in the L1 and vProgs space, registered, their data is standardized and travels with ZK.
Monetary policy is an act of constant balancing (e.g., housing market-energy axis) because, well, interest-rate is a 20th century, plain, basic instrument. Cyberocracy is not.
- The Mechanism: This is achieved through vProgs. The interest rate you pay isn't dictated by a central committee's quarterly meeting, but by a real-time, data-driven algorithm that adjusts the cost of capital sector-by-sector, block-by-block. World Supercomputer provides a live dashboard of reality because every transaction is sequenced at 100 BPS, RTD, and inter-connected vProgs-L1-vProgs logic-web.
To put this into context, look at these 20th/21st-century echoes of latency:
- The 1970s "Great Inflation": The Fed didn't realize M2 was growing too fast until the "inflation fire" was already consuming the house. The lag between money creation and data reporting was months, leading to a decade of stagflation.
- The 2008 Lehman Moment: It took weeks for the Fed to set up the "emergency facilities" to save the repo markets. In that "latency gap" the global trust engine seized up.
- The 2020 "Liquidity Tsunami": In response to the pandemic, the Fed hit the "QE" button so hard (printing trillions) that it accidentally overheated every sector—from used cars to "Monkey JPEGs"—because it couldn't be selective; it didn’t have the smarts.
The need for this neo-monetarism doctrine was acquired by blood, sweat and tears! Meaning, the stakes for a “World Supercomputer” are much higher than we think. This is an arms race to the creation of an elegant, superior system that combines money, logic, data, etc.
When code becomes the law there is transparency, auditability, an eusocial ethos of always optimizing the system (= hyper-organism) as a whole, and thus cold impartiality: QT, i.e. sucking liquidity out of sector_A instantly—regardless of who the lobbyists are—is just a given. No manipulations, no-truth purchasing, no distortion of reality, perhaps no oligopoly… but a truth ledger that optimizes humanity’s operations ad-infinitum, ubiquitously, PoW-led liveness (24/7 operation).
It moves us from "one-size-fits-all" to a Cyber-Planar Mixed Economy where the machine optimizes for the health of the specific "organ" (sector) rather than just the average temperature of the whole body (yes, this is how primitive the current doctrine is).
Source: https://x.com/KaspaWarrior69/status/2005473014612152529
Posted by WallakTill