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mathematically perfected economy™ (MPE™)    1  :   the singular integral solution of  1) inflation and deflation,  2) systemic manipulation of the cost or value of money or property, and  3) inherent, artificial multiplication of debt into terminal systemic failure;    2  :  every prospective debtor's right to issue legitimate promises to pay, free of extrinsic manipulation, adulteration, or exploitation of those promises, or the natural opportunity to make good on them;    3  :  our right to certify, to enforce, and to monetize industry and commerce by this one sustaining and truly economic process.

MORPHALLAXIS, January 14, 1979.

Mathematically Perfected Economy™ FORUMS, DISCUSSION

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 Post subject: Question Concerning MPE Spreadsheet Model
PostPosted: 22 Jan 2009, 6:58 pm 
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Question / Comment:

Your spreadsheet model may lean towards "understatement" in that I think you are calculating that the some of the principal and interest payments are being returned to circulation. I have read that we now owe over $10 trillion dollars to foreign nations/entities. If this is true, we cannot be assured that any part of these foreign loans will re-enter our circulation.

Reference:

http://www.perfecteconomy.com/pg-math-walking.html
Quote:
ACCOUNTING FOR BANKRUPTCY, CONSUMPTION OF PRODUCTION BY BANKING ENTITIES, AND FURTHER FACTORS WHICH REDUCE MULTIPLICATION OF DEBT BY INTEREST

Consumption of production by banking entities and further positive factors reducing multiplication of debt by interest are negligible. Therefore to provide a simple, comprehensive model of the overall process, and to avoid engendering the mistaken impression that sufficient such factors can negate multiplication of debt, no (negligible) calculations for reduction are made. Competent mathematicians can readily introduce such calculations to these models, respecting the following condition.

FALSE ARGUMENTS REGARDING POTENTIAL CONSUMPTION OF PRODUCTION BY BANKING ENTITIES

Because consumption of production by banking entities can be no greater than production, no practical consumption of production by banking entities is sufficient both to allow paydown of the sum of debt and negate multiplication of debt by interest. Furthermore, even if such a thing were practical, obviously this would comprise such an undesirable condition as for absorbing the mere costs of publishing a money in the form of interest-bearing debt, banking entities would not only acquire our entire production multiplied by interest, but leave us no operating funds upon which to produce the impossible sum of production.




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 Post subject: Re: Question Concerning MPE Spreadsheet Model
PostPosted: 22 Jan 2009, 7:57 pm 
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The spreadsheets calculate just what has to be re-borrowed (given any further factors the user wants to account for) in order to maintain/replenish a vital circulation.

The foreign debt issue (if it is one) is a matter of currency exiting our general circulation in another way altogether. Anyone who wants to account for that in the spreadsheets can, but still the issue is inherent multiplication of debt by interest in the necessitated perpetual process of replenishing a circulation of whatever we are obligated to pay out of it in the way of servicing the ever escalating sum of debt.

The foreign debt issue can contribute further to the matter as you say, but of course I would be accused (rightly so) of overstating the issue if I appended that to the intentionally simple example. All the spreadsheets seek to do is to demonstrate how, if you have to maintain a vital circulation by borrowing (which you will have to do), that borrowing perpetually increases the sum of debt in proportion to the obligated circulation.


So, is foreign debt really "foreign" debt? And does it really exit the general circulation?

Personally, I consider "foreign" debt to be a deception. That is, what we owe to China is not owed to Chinese citizens; they have been paid (little) for what they have done. The debt is to foreign banks. Now if I bought bamboo from China and paid for it, I have incurred no debt to China. Even as there may be a trade deficit, where is the debt I am incurring?

As far as I am concerned, the debt which is being assigned to "foreign" debt merely further obfuscates the process of multiplying our debt. That debt may as well have been created through "our" central banking system, except that if it is ostensibly owed to foreigners, it may be considered or intended to be a little bit more difficult for us to decipher it, or arbitrate its imposition upon us.

Understandably nonetheless, there's no intention to build accountability into the spreadsheets for these kinds of further monkey business. The nature of the currency will destroy us. That's what the spreadsheets demonstrate to the student. The lesson then is that if we don't rectify the nature of the currency, certainly we'll expatriate our own industry as we have. Otherwise of course, there might not be a foreign debt issue.




mike


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"When the freedom they wished for most was the freedom from responsibility, then Athens ceased to be free, and never was free again."



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 Post subject: Re: Question Concerning MPE Spreadsheet Model
PostPosted: 23 Jan 2009, 1:06 pm 
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Thanks for the answer - I understand.

The trade deficit really bugs me. I do not believe that any economic system may perpetually run a trade deficit year after year. We have been able to push things further since we hold the world's reserve currency and have been freely and openly exploiting this privilege for over 40 years. There are limits to just how much exploitation other countries are willing to endure and we are seeing that now.

Our reserve currency status requires other nations to hold some US dollars in order to conduct international trade. If for example, Spain wants to buy oil from the Saudis, they must do so with US dollars. Why would China, or anyone else, be willing to accept such an arrangement?

As long as other large countries are able to exploit the system as much or more than us, they are likely to go along with our scam. I'd bet dollars to donuts that China for example, recognizes the problem with the multiplication of interest debt as explained by Mike Montagne. So, in order to offset the build-up of insoluble debt, they export more than they import. This provides their economy with debt-less money that may be used to service their internal interest debt. Any country that exports more than it imports may benefit in this manner.

My guess is that there are tacit agreements that allow us to continue as the worlds reserve currency. Japan and China for example, quietly demand that the US continue it's trade deficit which they refer to as "free trade." This is a great example of why private banks should not control our nations monetary system - it is a conflict of interest. While banks may prosper from such exploitation the people do not.

The people in China would be far better off if their central bank saw them as potential consumers rather than a cheap workforce. Wages and benefits would rise. In the US, the people are suffering since we are not able to sustain our growth of insoluble debt that is choking our economy. The trade deficit makes matters worse for the US since both the interest and the principal are largely removed from our circulation.




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 Post subject: Re: Question Concerning MPE Spreadsheet Model
PostPosted: 23 Jan 2009, 2:04 pm 
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DrKrbyLuv wrote:
The trade deficit really bugs me. I do not believe that any economic system may perpetually run a trade deficit year after year. We have been able to push things further since we hold the world's reserve currency and have been freely and openly exploiting this privilege for over 40 years. There are limits to just how much exploitation other countries are willing to endure and we are seeing that now.

You're absolutely right, too. It's theoretically impossible. Some day the tribe on the other side of the hill says, "Pay up. Or no more food, no more horses, no more raw supplies."

I believe you and I have had extensive discussions of this issue, maybe in email, or at least not entirely within the forum. But the idea we were after was eradicating trade deficits.

Effectively, they're the same thing as transpires on a finer granularity at more local or state levels. People can move to the concentration of the money in some cases. In others not. Where they can't, impoverishment is the result.

In the case of much of our trade deficits, the deficits arise from expatriation of our own industry. In cases such as oil, there is much more that we can do, if we alleviated oppressive pressures by adopting mathematically perfected economy™.

DrKrbyLuv wrote:
Our reserve currency status requires other nations to hold some US dollars in order to conduct international trade. If for example, Spain wants to buy oil from the Saudis, they must do so with US dollars. Why would China, or anyone else, be willing to accept such an arrangement?

There is nothing rational which would compel the Chinese people for instance to accept this arrangement. There is simply no benefit to it, and eventually there is an incredible inherent cost which they can perceive from the outset.

On the other hand, it is the thirst of a central bank which strives for these things in the numbers which are the paint before the eyes of exploitation. The reason is multiplication of unearned profit, at whatever expense to others which is not an expense to the exploiters themselves. They tend even to themselves the fatality of the arrangement, at least for the while to take what can be taken. Exploitation is a matter of jumping on opportunities. It is hardly ever a matter of the exploiter saying their self, "Wait, maybe this exploitation will extinguish the opportunity to exploit." So long as it can work, it is tried; and so long as it is already in motion, no benefit is seen in simply abandoning it to avoid utter destruction, because the only sustenance of the exploiter is exploitation.

The more who become committed to exploitation then, the more certain its inertia will carry into the deepest stages of destruction in the terminal stages of a system of exploitation, which can only multiply the magnitude of exploitation in proportion to the ability to give up what the system obligates us to give up.

DrKrbyLuv wrote:
I'd bet dollars to donuts that China for example, recognizes the problem with the multiplication of interest debt as explained by Mike Montagne.

Actually, you may have hit a nail on the head there. Patriots who have worked in or with our own intelligence agencies have guaranteed me for many years (since before 1980) that our own intelligence agencies absolutely know about mathematically perfected economy™, and that there are good people inside who know all this while that I am right.

This of course implies a number of further things which we cannot be so comfortable with. This very page will be read and understood by someone inside; yet "our" government will refuse to serve the people. No one is going to tell the President, Mr. Obama, you have to connect with this person. Why not? Have we no country to save? Or are our intelligence agencies, even for so long, actually dedicated to the destruction of the principles this country was established for?

A good many months ago, we had an impressive spike in Chinese traffic to the site here. There are almost no hits from China otherwise. I presume the Chinese people are forbidden to know about mathematically perfected economy™, and what mathematically perfected economy™ would provide for them.

In any case, right after that spike I heard that the Chinese were here, lobbying the Bush Administration for hard assets (primarily gold I was informed).

What we have in the case of these "foreign debts" is ownership of debt which of course could be issued through the country of locale. That it is not is curious; but certainly the present arrangement endows no integrity to this mere ownership of debt; and so, what we have here is a simple case nonetheless of the holders of worthless debt, finally considering the inevitable ramifications of not being able to collect on it — or perhaps even the least fraction of it.

The issue there of course is what is the nature of these debts; and how should they be paid? If they are wrongly imposed upon those who for instance an usurped government tries nonetheless to collect from (as here), and if the usurers of another country altogether are left holding the bag, well we can understand that these actions in the haste of the present failure symbolize in fact the very fact that they understand the terminal consequences of the exploitation.

Why should the Chinese people understand mathematically perfected economy™? Or why would they be obstructed from doing so?

Only a people kept ignorant can be oppressed. The more imposing issue in each case is that not only is no provision made to sustain the people across a failure they could understand, the intention instead to perpetuate the system of exploitation requires doing so at practically any human cost.




mike


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"When the freedom they wished for most was the freedom from responsibility, then Athens ceased to be free, and never was free again."



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 Post subject: Re: Question Concerning MPE Spreadsheet Model
PostPosted: 23 Jan 2009, 3:02 pm 
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I should probably add here that the thing for a government truly representing the people to do, is simply transition to mathematically perfected economy™. Somewhere, somehow, this is going to happen. It could be Venezuela, dodging the smell of sulfur. It could be Japan, which understands solidarity and unity of purpose. It could be anywhere in Europe, where the sense of propriety is rising instead of expiring, as it has under the worst leadership in the history of the United States. It could be Canada, where still, some independent thinkers and individualists have dwarfed TV watchers across the border. It could be Mexico, which is so rich in resources and corruption its people would wont for nothing if they had justice and mathematically perfected economy™. It could be Brazil, Argentina, China, India... anywhere, as the people of the world everywhere can only benefit from the one monetary prescription which can sustain all the prosperity we are capable of.




mike


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"When the freedom they wished for most was the freedom from responsibility, then Athens ceased to be free, and never was free again."



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While 12,000 homes a day continue to go into foreclosure, mathematically perfected economy™ would re-finance a $100,000 home with a hundred-year lifespan at the overall rate of $1,000 per year or $83.33 per month. Without costing us anything, we would immediately become as much as 12 times as liquid on present revenue. Transitioning to MPE™ would apply all payments already made against existent debt toward principal. Many of us would be debt free. There would be no housing crisis, no credit crisis. Unlimited funding would immediately be available to sustain all the industry we are capable of.

There is no other solution. Regulation can only temper an inherently terminal process.

If you are not promoting mathematically perfected economy™, then you condemn us to monetary failure.



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