INHERENT PATTERN OF FAILURE OF ANY PURPORTED ECONOMY SUBJECT TO INTEREST

Are Americans unusually stupid or is it something our President put in the water? As millions surrender their homes and sacrifice other standards of our nation's economic and political reputation to the caprice of the Bush-Cheney imperium, a majority of voters tell pollsters that they might vote for a candidate who promises more of the same. Robert Scheer, in "The Man Who Would Be Bush"

mike montagne

I had been asked if I thought it was possible to project the maximum possible/practical lifespan of an economy subject to interest. I answered that this would be a simple matter of calculating borrowing necessary to replenish interest. Months were spent developing computer models capable of calculating the maximum possible lifespan for any plausible managerial scenarios. The most probable managerial scenarios we ran anticipated that if federal/public debt accumulated parallel to the inherently escalating rate of multiplication of private debt, that Reagan would triple the federal debt of the entire previous history of the country over two terms of office.

Not only did those projections for federal accumulation of debt hold true, the modeled accumulation of debt has held true ever since. As we projected for more aggressive de-escalation of interest rates than have been deployed over this timespan, the projected accumulations are actually somewhat conservative. Even so, to most purported experts these numbers were hardly even imaginable in the early 1980s.

From the material of Morphallaxis, 1979

INHERENT PATTERN OF FAILURE OF ANY PURPORTED ECONOMY SUBJECT TO INTEREST

There is no mystery to projecting the pattern of failure engendered by any purported economy subject to interest.

As interest multiplies debt in proportion to a circulation, ever more of every existing dollar is dedicated to servicing multiplying debt, and ever less of every existing dollar can be dedicated to sustaining the commerce which is obligated to service the multiplying debt. Everything around you can be understood from the obvious consequences.

Over the finite lifespan of a purported economy subject to interest, a perpetual stimulus to reduce interest rates exists, as the multiplying sum of debt increasingly marginalizes all affected subjects of the system. But only such interest rates as yield periodic sums of interest equal to or less than actual production consumed by so called banks can avert multiplication of debt in proportion to the circulation which must service the debt. For a number of reasons, this never happens.

If banks were to charge such fees, rather than the form of interest, the fees would relate to processes; certifying credit-worthiness; and maintaining accounts. The purpose of privatizing a currency however is neither to maintain such rates or to distribute charges according to legitimate services. Thus there is only a reluctant de-escalation of purposely maximal rates, with unsustainable consequences and with every such reduction signalling the degenerative progress of the imposed, artificial state of fragility — that is, the proximity of the end of the practical lifespan of the system.

Throughout the limited lifespan of every such system, marginalized industry may be driven to other national systems where standards of reward for labor may be further compromised, and/or where more favorable interest rates are deployed, or were the aging of the system, and thus the particular degree to which debt has been multiplied, are less advanced. Where a populace is indifferent to solution, countries preserving humanitarian labor standards or suffering higher interest rates or aging of debt therefore are most deteriorated and further compromised by vanishing industry.

A breadth of transformation relates to the escalating marginalization of a system. Costs are driven upward at escalating rates parallel to multiplication of debt; social programs become necessary which were never necessary before; escalation of every such program becomes ever more necessary than ever before; it becomes ever less possible to afford such programs; public debt, which accumulates instead by deficits, grows too at escalating rates; the quality of public programs inherently degrades while the programs become preclusively expensive; ever less reward exists in virtuous production; ever moreso, virtuous production is abandoned for whatever possible alternatives.

How does the end come?

As the most marginalized entities service their debts to the monetary system for the last time, the circulation deflates because no credible reason remains to allow us to borrow it back again. Credit-worthiness has been artificially destroyed; and with the inherent destruction of credit-worthiness it becomes impossible to maintain a vital circulation by any legitimate process. The first collapsing sectors therefore can quickly take down less marginalized dependent sectors, nor only as further debts cannot be paid, but as the circulation deflates at an inherently dramatic rate.

The potential suddenness of the unfolding failure thus is deduced from what portions of the circulation are dedicated both directly and indirectly to servicing the artificial debts to the purported monetary system. If for instance 70 percent of monies held by a given sector disappear in a month, and the failure has extinguished income, then the entire circulation available to the sector can disappear in but a month and a half.

Where the system is even generally affected to this degree or worse, the end then will come as they say, like a thief in the night.

"To find the players in all the corruption of the world, 'Follow the money.' To find the captains of world corruption, follow the money all the way."

mike montagne — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1979)

 del.icio.us  FaceBook  NewsVine  reddit