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™ 109' — CIRCULATORY DEFLATION AND THE CONSEQUENCES OF DEFICIENT CIRCULATION

Thursday, June 5, 2008

'MPE™ 109' — CIRCULATORY DEFLATION AND THE CONSEQUENCES OF DEFICIENT CIRCULATION

Because the subjects of a circulation subject to interest cannot borrow more than the value of related wealth into circulation, and because they are obligated to pay both the principal and interest out of circulation in servicing the respective debts, a circulation subject to interest inherently engenders perpetual circulatory deflation, and consequentially deficient circulations.

So, there is no circulatory inflation. But there is price inflation as a consequence of inherent multiplication of debt; and while the subjects are forced to maintain a circulation to continue their obligation to service the mounting debt, ever more of the deficient circulation is devoted to servicing debt, leaving ever less to sustain the commerce which is obligated to service the debt, and further devaluing the circulation.

Against these even escalating conditions, we are forced to work within a deflated circulation, in fact far less than the volume of existent wealth which it would have to exceed to comprise an inflated or excessive circulation. What are the basic consequences of the deficient circulation?

In respect to a system which does not dispossess its subjects of their wealth, effectively deflation can be understood as equivalent to not receiving full payment for our work. How in turn does this affect the purported economy?

To understand the effects of a deficient circulation, let us first suppose there is a balanced circulation (without deflation or inflation), where there are 10,000 of us, and for each of us, there is $10 in circulation, representing full payment for the value of wealth we have created.

We are to perform a symbolic, unencumbered transaction in which we are all facing the center of a circle we are standing in. We are to perform the transaction by turning to our left and passing the person next to us our $10, for which we receive our income from the person to our right. Our ability to perform this transaction without interruption or impediment demonstrates the capacity of true free enterprise to sustain the prosperity we are capable of.

The first person in the circle passes their money to their left, and likewise about the circle, we readily complete the necessary transactions across the entire system.

Now, suppose that every tenth person is denied their $10, and we are to attempt to perform the same transaction. What happens?

The whole transaction stops everywhere the deficiencies of the circulation are suffered. To complete the transaction, every person suffering deflation must first earn their unpaid earnings yet again from other subjects of the system — who also then will be deprived of the circulation necessary to sustain the intended, ongoing transaction.

So, even more extreme degrees of deflation would be pitted against issues such as servicing existent debt if we tried to return to the gold standard, because there is even far less monetary gold than the present, deficient circulation. But deflation therefore is highly undesirable, because it is highly damaging to the commerce we can and would otherwise sustain.

Deflation and its consequential, deficient circulation are akin to having no money or wealth, where instead we deserve perhaps to have much, and would be able to sustain far more prosperity by it.

We can readily determine whether we suffer a deflated circulation by comparing the general money we have on hand to the value of existent wealth. Where the value of the wealth around us exceeds the evident circulation, we suffer deflation to the degree of the disparity.

Moreover, we can make a further critical extrapolation from this observation.

Given the definitive facts of such an already deficient circulation, and further inherent degradation of our credit-worthiness, what for instance would be the consequence of lending institutions ceasing the further lending which is perpetually necessary to replenish a circulation of what we yet are compelled to pay against principal and interest obligations on existent debt?

Obviously, this resultant, extreme and likely manifestation of deflation will result in the extreme case of the previous example, in which our very need to perform a cycle of transactions across the whole system would only be so futile as to fail predominately across the system — that is before the mortgage is due, again and again.

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"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.

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