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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.

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 Post subject: REBUTTAL OF HYPERINFLATION AS A CAUSE OF FAILURE
PostPosted: 21 Dec 2008, 4:24 pm 
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The idea of national or world-wide monetary failure as a consequence of some ostensible, dramatic manifestation of inflation, conflicts with an eleventh hour, ever growing array of further assertions, submitted likewise without conclusive argument. The conditions we are presently combating, and which are the cause of the mounting failure, on the contrary embody a scarcity of circulation respective to a growing sum of debt, with the resultant collapse being a consequence of a resultant inability to service debt.

As the failure mounted prior to the recent efforts to purportedly rescue the system with increasing artificial infusions of capital, in fact then neither inflation nor hyperinflation can be truly said to be causative, for at best now (both being absent), either can only eventually manifest in the wake of the onset of failure. Thus it is only in understanding the actual, previous causative forces, that we can accurately project further consequences (which may ultimately include inflation). Likewise, it is only by understanding those previous causes that we can develop or identify solution, responding to actual cause (versus the said, eventual consequences).

What is obviously contradictory to a mere assertion of hyperinflation as a present cause then, is that the basic reasons for the present rush to resume sufficient “credit” as will maintain a vital circulation, speaks instead to a perpetual, prevailing deflation of the circulation by present obligations to service the most monumental sums of debt in history. It is this escalating obligation to service an inherent, irreversible, and terminal multiplication of debt then, which in fact is the only present cause of the downturn. Thus the mounting failure is instead manifested from a starvation for sufficient circulation to sustain a diminishing industry, which in fact too, is already largely expatriated by the previous stress of ever escalating indebtedness upon markets and producers alike.

On top of this systemic stress of inherent multiplication of debt, certainly we suffer further stress of downstream exploitation. But the monumental primary obligation to service multiplying indebtedness comprises an escalating deflation, in which servicing the escalating debt perpetually and ever more dramatically depletes the circulation in such a way as can only require ever more borrowing, to replenish the circulation.

The fact of this escalating deflationary process thus obligates any assertion of circulatory inflation as a potential cause of failure, to prove first that the necessarily escalating act of borrowing further, so much as may or may not even replenish the circulation of the deflation, actually prevails in a purported increase in circulation. Secondly, such unqualified assertions are obligated to prove that it is the increasing circulation which actually causes failure, versus the underlying, singular disposition of the imposed system to perpetually multiply debt in proportion to a finite potential to service illimitable debt.

On the contrary then, artificial inflation of the circulation is not a cause of failure at all. Ultimately instead, artificial inflation is the only possible, eventual, systemic recourse against an irreversible systemic process, which, in perpetually re-borrowing so much as would replenish a vital circulation of ever escalating depletion, inherently transforms interest and principal paid out of the general circulation into the very escalating sums of debt which ultimately impose failure. But inflation of any kind or magnitude then is not causative. On the contrary, the very need for artificial inflation, rescues, and so forth, testifies to the cause of failure being irreversible, inherently escalating multiplication of debt. Eventual inflation of any eventual magnitude is a consequence of preserving the system of exploitation, versus establishing mathematically perfected economy™.

The subject currency of course was privatized (versus rectified) for a purpose; and the very disposition of the imposed system therefor is a device to take unearned profit, multiplied at inherently escalating rates. Only because the device of taking is itself irreversible so long as it exists, does the usually (but not necessarily) privatized system ultimately impose such a sum of debt that the subjects cannot afford to borrow further as would otherwise enable them to replenish the circulation against its perpetually escalating deflation.

Failure therefore is an inevitable culmination of this systemic, irreversible multiplication of debt in proportion to the obligated circulation; with ever more massive inflation being a consequence both of inherent systemic failure, and a public which fails to recognize and adopt solution.

The system of exploitation thus fails for a simple combination of inevitable events:

1. Merely to maintain a vital circulation, the subjects are inevitably compelled to perpetually re-borrow principal and interest paid out of the general circulation, as subsequent sums of debt, perpetually increased so much as periodic interest on an ever greater sum of debt.

2. The sum of debt thus multiplies at an ever escalating rate, requiring ever more monumental further borrowing, merely to maintain a circulation.

3. All the while, ever more of the obligated circulation is dedicated to servicing debt, leaving ever less of the circulation to sustain the industry which is obligated to do so.

4. Ultimately then, an eventual sum of debt exceeds the finite capacity of industry to service it, which in turn exceeds a limit of credit-worthiness which the artificially indebted public can in fact service.

5. Because they can service no further debt, they cannot borrow further, as remains necessary to replenish the circulation of the deflation — which in turn results in depletion of the circulation across their final days of servicing the existent sum of debt.

6. With the inability to borrow further to replenish the circulation, and with the primary obligation being to service debt (versus sustain industry), this depletion further makes it impossible to sustain the industry which is obligated to service the debt.

7. As failing sectors quickly take down multiple dependent sectors, the failure of the first important sectors soon escalate into complete failure, in which the falling subjects are only further compromised to maintain a sustainable circulation by taking on the further debt which they are already proven unable to afford.

Thus opposed to this proposition that hyperinflation will cause the present failure, the nature of the currency which Jefferson, Franklin, Adams, Madison, Jackson, Lincoln, McFadden and so many others of this caliber warned against, is the cause of a sudden and inevitable depletion, in which a mortal, final period of servicing a terminal sum of debt deflates the circulation, leaving the subjects unworthy of borrowing further, simply because the fatal sum of debt can only multiply their obligations above what they already cannot service.

If anything then, hyperinflation will only eventually manifest from artificial attempts to preserve a process which still, will continue to inherently and irreversibly multiply debt in proportion to the obligated circulation, as will only allow pathetic subjects to marginally tread water against the eventual culmination in failure.

All this of course was projected thirty years ago, not only in my proposition of mathematically perfected economy™, but in computer models I provided the Reagan Administration which projected the accumulation of this debt, manifesting in potential world wide failure at approximately 2010 AD. Now curiously, even those who argued most against this idea of inevitable failure and singular solution, lay claim to eleventh hour projections which still yet deny recognition of what they argued against, both as the inevitable cause of failure and singular basis solution — and the only veritable thing therefore from which anyone can truly predict the failure they boast only now of predicting.

There is one and one integral solution only for 1) inflation and deflation, 2) systemic manipulation of the cost or value of money or property, and 3) inherent, irreversible, and inevitably terminal multiplication of debt in proportion to the vital, obligated circulation — and the only reason you won’t have that solution is the very pretended representatives you have chosen, remain the very people most dedicated to your exploitation.

http://perfecteconomy.com/wp/2008/12/21/mike-montagne-rebuts-hyperinflation-as-a-cause-of-an-inevitable-second-great-depression/




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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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