HOW WE READILY COMPUTE FUTURE ACCUMULATION OF DEBT WITH GREAT PRECISION
Monday, June 16, 2008
HOW WE READILY COMPUTE FUTURE ACCUMULATION OF DEBT WITH GREAT PRECISION (TO THE NAYSAYERS OF PROJECTION)
No more than it is impossible to determine periodic interest due on an interest-bearing debt, there is no substantial challenge to computing future accumulation of debt with great accuracy.
To the extent that debt is inherently and irreversibly multiplied in proportion to a circulation by the coercive obligation to maintain the circulation by re-borrowing so much as we pay against principal and interest obligations as subsequent sums of debt, all we have to do to calculate future accumulation of debt in any purported economy subject to interest is, 1) for each successive period, calculate interest to be paid; 2) add this to the sum of debt; 3) for any prescribed rate of circulatory growth, add this too to the sum of debt (so much as it must be borrowed into circulation); and finally, 4) account for any reductions of the sum of debt by any pattern of bankruptcy, consumption of our production by the so called financial industry, and so forth.
By accumulation of serial data on any pattern of interest, circulatory growth, and factors acting (usually negligibly) to reduce the perpetual multiplication of debt, thus we readily determine how much industry must perpetually increase charges to maintain margins of solubility above the costs of servicing debt, or the maximum possible lifespan of any purported economy subject to interest, without artificial sustention.
Because this process determines for any plausible combination of patterns, we need only to match an implemented pattern to determine the maximum possible lifespan and so forth for any actual, administered conditions.
Obviously, projecting the future pattern of multiplication of debt is no more impractical than calculating interest due for each period... with the accumulated data of real world practice in fact concretely supporting the fact that interest inherently multiplies debt in proportion to a circulation, and to a terminal sum of debt.
The process is precise, not because it extends an uncomprehended mathematic pattern, but because it performs an actual calculable commitment in the very way the commitment will be calculated at the time it is performed.
Moreover then, the mounting failure everywhere about you is a testament to validation.
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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)
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