PEOPLE For  Mathematically Perfected Economy™ (PFMPE™)  :  mathematically perfected economy™ (MPE™) is the singular integral solution to 1) inflation and deflation, 2) systemic manipulation of the cost or value of money or property, and 3) inherent, irreversible multiplication of debt in proportion to a vital circulation, engendering inevitable systemic failure at a finite system lifespan defined by an inevitable, terminal sum of insoluble debt. Mathematically Perfected Economy™ is every prospective debtor's right to issue their promise to pay, free of extrinsic manipulation, adulteration, or exploitation of that promise, or the natural opportunity to make good on it.

MORPHALLAXIS, January 14, 1979.

'MPE™ 103' — HOW MUCH MONEY TO CIRCULATE 'OUT OF THIN AIR'?

"Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves."

William Pitt the Younger, speech on the India Bill, November, 1783

mike montagne

In the final analysis, Reagan had doggedly moved ahead with a plan that couldn't possibly work. Despite my appeals, he left an imposed process to destroy the house by further irreversible multiplication of debt to the eventual terminal state. In that, he may be no more guilty than any and every president since the 1912 campaign. But too, these events certify we require a higher genre of leadership — at least capable of resolving the intellectual challenges of identifying, presenting, and prevailing in solution.

Sunday, April 6, 2008

'MPE™ 103' — HOW MUCH MONEY TO CIRCULATE 'OUT OF THIN AIR'?

Talk is circulating that "creating money out of thin air" has caused the falling dollar... rising prices... the long term disappearance of our once remarkable industry... insoluble public, private, and foreign debt... the "sub-prime mortgage crisis" (case of the most artificially marginalized debtors)... and a far broader multiplying indebtedness, manifesting in a far broader and deeper failure just ahead.

The saying ascertains nothing which answers for the effects attributed to it; for again, what injury could a costless currency inflict, if it merely represented wealth in a monetary system which ensured its currency is always interchangeable with that wealth?

As costlessness is non-injurious, we must look further than the saying for useful explanation, because in fact it is impossible the expression identifies the crime against us.

Typical utterances of the saying imply that malpractice of one kind or another engenders an anomalous circulation. If we are to understand this is the case, then we must first ascertain a proper circulation and how to maintain it.

Because consistent value and perpetual interchangeability are virtues of a currency against which lack thereof the sayers rightly complain... let us suppose that "money" is *just* an interchangeable, consistent representation of wealth in such a monetary system as ensures we can always exchange it for the respective wealth.

How much currency then should we circulate?

  1. What if we circulated no money whatever?

    Obviously, we could do nothing requiring money to exchange or to expand our capacities to further produce wealth.

  2. What if we circulated more currency than wealth?

    Then when the excessive circulation was issued, someone would have gotten something for nothing.

    While this would be a transgression against a system in which money is intended to be a medium for exchanging like wealth, nonetheless it is impossible to suffer this condition if the money is loaned into circulation, because we can only borrow so much as the value of the wealth. Thus although there are those who assert that "inflation" results in price inflation, the condition to which they attribute a result itself cannot exist without circumventing the intended conduit for regulating the circulation.

  3. What if we circulated less currency than wealth?

    Technically, such a circulation is deflated; and we suffer such a circulation.

    How can you know we suffer a deflated circulation? Look around you. For all the wealth you see around you, there would be an equal quantity of money in circulation if the circulation were not deflated. There of course is far less than that.

    What are the consequences of a deflated circulation?

    Overall, a deflated circulation makes it more difficult for the subjects of the system to obtain due reward for their creation of wealth, because there is a general lack of sufficient circulation to sustain due reward across the system. This does not mean it is impossible to obtain due reward in explicit cases, or across many explicit cases even at once. The greater the disparity between the circulation and overall wealth however, the greater the obstruction of possible, simultaneous due reward.

    The general effect can be understood from the extreme case. If everyone wanted to exchange all their wealth simultaneously, it would be impossible to do so with a deflated circulation because someone has not received monetary reward equivalent to the wealth they have rendered. Those such persons must do further work to earn the money necessary to purchase their part of such a whole simultaneous transaction, even though the only reason they are unable to participate in the simultaneous transaction is that there is insufficient circulation to represent the wealth they have produced (and not been rewarded for).

  4. The only further option is to circulate so much currency as wealth.

    This is the only condition which is neither inflationary or deflationary.

    Only a circulation which perpetually equals the remaining value of existent wealth *is always redeemable* in the very wealth itself. The only way to achieve the necessary constant relationship between units of money in circulation and remaining value of related wealth is to pay off debts equal to the original value of the wealth at the rate of depreciation/consumption. If the debts are subject to interest therefore, this cannot be accomplished, because more must be paid out of circulation than was introduced to circulation to sustain the wealth.

    So again we find that eradication of interest and a schedule of payment which solve inflation and deflation are the issues; and that the resultant prescription results in mathematically perfected economy™.

SUMMARY OF CASES

All but the last case are anomalous circulations, and, rather than shouting "creating money out of thin air" is the problem, or any problem whatever, we can rightly draw only two overall conclusions related to that proposition from the whole of the cases:

  1. the only circulation which does not injure us is that of mathematically perfected economy™ (4); and
  2. there is no detriment whatever from creating representative money "out of thin air."

    In fact therefore, a money without cost is only conducive to a system which itself is intended to cost us nothing.

WHAT THEN IS THE CAUSE OF THE INJURIES TO WHICH THE EXPRESSION "CREATING MONEY OUT OF THIN AIR" COMPLAINS?

All of the consequences to which the expression "creating money out of thin air" complains therefore are instead ramifications of interest (usury), because interest inherently dedicates ever more of every dollar to servicing debt, as we are forced to maintain a circulation subject to interest by re-borrowing whatever we pay against principal and interest obligations. This intrinsic and wholly unavoidable ramification of interest of course systematically, perpetually, and irreversibly ("if" we maintain a circulation) multiplies the sum of debt in proportion to the circulation (or the commerce which can be sustained by the circulation), as subsequent sums of debt equal the previous sums of debt plus so much as periodic interest.

This inherent, irreversible, perpetual multiplication of debt at inherently escalating rates (of ever greater increments of periodic interest on an ever greater sum of debt) therefore inherently destroys the purchasing power and thus the very integrity of "the dollar" not only to an ever greater degree, but at an ever escalating rate, not only until the dollar is soon enough destroyed altogether... but until the whole of the system caves in under the weight of a sum of debt it can no longer afford to service.

After all, in inherently multiplying debt, ever more of the circulation is dedicated to servicing debt, and ever less of the circulation *can* be dedicated to sustaining the commerce which is obligated to servicing the multiplying sum of debt.

Because it is impossible to maintain a circulation subject to interest without re-borrowing payments against principal and interest as subsequent sums of debt increased so much as periodic interest, *interest* then is the cause of the injuries to which the expression "creating money out of thin air" complains.

It is the interest and improprieties of the schedule of payment which are the cause of all the issues — not the conducive cost of the currency, or an excessive circulation which does not even exist.

The sky is not falling "because we created money out of thin air."

The sky is falling because 1) when you hold in your hand "a dollar," it actually represents a *dynamically* *multiplying* obligation to pay... and because 2) that *eventually impossible* obligation to pay is *already* so incredibly far much greater than the wealth most of us hope that false dollar could otherwise represent.

The purported "confidence" in "the dollar" therefore ultimately tumbles because there was no real basis for "confidence" in the first place.

The lie of the false dollar was always a deception; and it was never the inexpensiveness of the lie which hurt us. The sky is falling instead because of the inevitable ramifications of a purposed process, which in fact was the original, principal intended object of a privatized currency.

From the very beginning, the issue — and the only distinguishing process even — was "interest."

RELATED PRIMARY ARTICLES

"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)

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.

© Copyright 1979-2008 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.Copyright 1979-2008 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.

PEOPLE For Mathematically Perfected Economy™, Mathematically Perfected Economy™, Mathematically Perfected Currency™, MPE™, and PFMPE™ are trademarks of mike montagne and PEOPLE For Mathematically Perfected Economy™, perfecteconomy.com. The trade name, Mathematically Perfected Economy™, may only be used, and may freely be used, only by permission, and only by countries complying with the prescription for Mathematically Perfected Economy™ herein.

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