'MPE™ 110' — DEPRECIATION AND EQUITY IN MATHEMATICALLY PERFECTED ECONOMY™

Thursday, June 12, 2008

'MPE™ 110' — DEPRECIATION AND EQUITY IN MATHEMATICALLY PERFECTED ECONOMY™

In solving inflation and deflation, imposed payments for consumption must match perceived rates of depreciation, so that anyone taking over (buying) a related asset at any time in its lifespan pays against a generally acceptable rate of depreciation for that point of the object's lifespan onward.

In other words, if depreciation were determined in a linear manner, as a buyer then would prefer to purchase a new home moreso than a home occupied for a month, general determined rates of depreciation should be substantially steeper in the initial phases of the asset's lifespan than the latter phases.

In fact, we evaluate property in this way now; and it is not necessary to require ourselves to determine general rates of depreciating perceived value any more accurately than we do already, because whenever any of us buy used property from each other, we can make whatever adjustments we deem fitting on an individual case basis at the time of the transaction. For instance, all rates of depreciation could be linear, with buyers asking sellers for refunds for unperformed maintenance which diminishes the true remaining value of the property.

Generally acceptable rates of depreciation for different classes of property thus are decided and approved by the public, with an obligation to maintain the property to approved standards binding upon the debtor. In the interest of eradicating inflation, deflation, and inherent multiplication of debt, mathematically perfected economy™ is simply to pay interest-free monetary obligations at the perceived rates of depreciation.

Thus in mathematically perfected economy™, debtors are required only to pay at the rate they consume of their property. They may pay more against their monetary obligations, in which case they accumulate equity. But unless they voluntarily pay more than the obligated rate of consumption, they accumulate no equity. Thus when such a property is "sold," there is generally no payment to the former owner for accumulated equity. The subsequent debtor's credit-worthiness is certified by automated processes; and they simply take over the continuous responsibility to pay for the remaining value of the property at the rate of depreciation from that moment onward.

Should a purchaser instead elect to pay fully for the remaining value of the property, this of course fulfills the monetary obligation, and their equity from that moment on is equivalent to the remaining value depreciated at the applied rate of depreciation.

RELATED PRIMARY ARTICLES

15. 'MPE™ 101' — BASIC IMPLEMENTATION OF Mathematically Perfected Economy™
16. [ KEY ]  'MPE™ 102' — 'FIAT CURRENCY.' WHAT ABOUT IT?
17. [ KEY ]  'MPE™ 103' — HOW MUCH MONEY TO CIRCULATE 'OUT OF THIN AIR'?
18. 'MPE™ 104' — TAXATION UNDER MATHEMATICALLY PERFECTED ECONOMY™
19. 'MPE™ 105' — DEBT ONLY EQUIVALENT TO THE PROPERTY WE HAVE POSSESSED AND NOT PAID FOR, OR THE COSTS OF SERVICING DEBT PERPETUALLY MULTIPLYING IN PROPORTION TO OUR MEANS; WHAT IS THE REAL ENEMY?
20. [ KEY ]  'MPE™ 106' — 'MONEY OUT OF THIN AIR': IT IS NEITHER AN OFFENSE OR DISADVANTAGE THAT TOKENS OF WEALTH COST NOTHING
21. 'MPE™ 107' — PARASITIC 'MARKETS' CAN ONLY MAKE KILLINGS AT *OUR* EXPENSE — 'INVESTMENT' IN Mathematically Perfected Economy™
22. 'MPE™ 108' — CIRCULATORY INFLATION AND PRICE INFLATION EXPLAINED
23. 'MPE™ 109' — CIRCULATORY DEFLATION AND THE CONSEQUENCES OF DEFICIENT CIRCULATION
24. 'MPE™ 110' — DEPRECIATION AND EQUITY IN MATHEMATICALLY PERFECTED ECONOMY™
25. 'MPE™ 111' — UNINTRODUCED CIRCULATION AND EQUITY IN MATHEMATICALLY PERFECTED ECONOMY™
26. 'MPE™ 112' — NATURE OF MONEY IN MATHEMATICALLY PERFECTED ECONOMY™
27. 'MPE™ 113' — UNEARNED GAIN — PROFIT WITHOUT REAL, COMMENSURABLE CONTRIBUTION TO THE POOL OF WEALTH
28. 'MPE™ 114' — LAND
29. 'MPE™ 115' — RETIREMENT
30. 'MPE™ 116' — PURPORTED SUPPLY AND DEMAND
31. 'MPE™ 117' — MATHEMATICALLY? PERFECTED? ECONOMY? WHY TERMINOLOGY TO WHICH SOME OBJECT?
32. 'MPE™ 118' — HOW WE READILY COMPUTE FUTURE ACCUMULATION OF DEBT WITH GREAT PRECISION (TO THE NAYSAYERS OF PROJECTION)

"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)

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