it is their right, it is their duty...
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.
REGARDING INTEREST THEN, DOES AUSTRIAN SCHOOL ECONOMICS NOT HAVE TITLE TO LIBERTY AND RIGHT REVERSED?
First they ignore you, then they ridicule you, then they fight you, then you win.
Library of Economics and Liberty
"Austrian economists do not use mathematics in their analyses or theories because they do not think mathematics can capture the complex reality of human action. They believe that as people act, change occurs, and that quantifiable relationships are applicable only when there is no change. [They believe that] Mathematics can capture what has taken place, but can never capture what will take place."
"The end of democracy and defeat of the American Revolution will occur when government falls into the hands of the lending institutions and moneyed incorporations."
If the American people ever allow banks to issue their currency, first by inflation and then by deflation [by having to maintain a vital circulation by perpetually re-borrowing principal and interest as subsequent sums of debt, increased perpetually so much as periodic interest], the banks and [bank owned] corporations which will grow up around them will deprive the people of all property, until their children wake homeless on the continent their fathers conquered.
Eugen von Böhm-Bawerk (1851-1914)
"It has never, I think, been the good fortune of any founder of a scientific system to think out to the very end even the more important ideas that constitute his system. The strength and lifetime of no single man are sufficient for that."
JOHN KENNETH GALBRAITH
The study of money, above all other fields, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.
Does it matter how many competing currencies are subject to interest? Does it matter who issues them, in terms of the consequences to the subjects of a system which only steals from us, and might therefore steal from us by four bankers or three, or one, taking as much interest as can be shaken from our pockets?
Can the number of usurers alter the consequence of usury?
LIBERTY OF THE FEW ABUSERS ABOVE LIBERTY OF THE REST?
A few years ago, a Libertarian candidate told me they defended the right to spam the internet. I asked, do you mean that a spammer's ostensible right to spam the whole internet overrides countless peoples' right not to have to deal with spam, however proliferated?
An unhesitating answer re-affirmed the original conviction.
Thus if we exalt a concept of liberty without responsibility, just one ramification of that concept is that a few people could bring the whole world to a standstill for nought. Such is the case for a diversity of fields we far too loosely call, "economics."
TYPICAL AUSTRIAN SCHOOL REACTION TO SOLUTION
Many years ago, I was invited to join a purported economics forum.
The invitation encouraged me to go ahead and introduce myself. Assuming the obvious reason for the invitation was my theory of mathematically perfected economy™, I gave a brief explanation 1) how any purported economy involving a currency subject to interest ultimately terminates itself by multiplication of debt; and 2) that there is one and one only integral solution to a) inflation and deflation, b) intrinsic/systemic manipulation of the value or cost of money or property, and c) inherent multiplication of debt in proportion to the original circulation.
My introduction was immediately attacked by dozens of members.
While the viciousness of these attacks was remarkable, the targeted ideas of this usual introduction were few, and entirely elementary math.
Anyone with elementary math skills readily understands that if inflation and deflation are defined respectively as increases or decreases in circulation per goods and services, that to maintain a circulation which is always equal to the goods and services is therefore to solve both inflation and deflation.
In almost 40 years, no mathematician ever contested this proposition, or the proposition of solving irreversible, systemic multiplication of debt by relieving the currency of interest.
Who then were these people — all of them contesting both, and even ridiculing me for thinking I could apply mathematics to economy? Who had I found, that they were entirely unwilling to engage or accept mathematic principle?
I had found the so called Austrian School of "Economics."
TYPICAL AUSTRIAN SCHOOL BUILDING BLOCKS — THE AUSTRIAN PERCEPTION OF THE CAUSES OF A DEPRESSION
The Mises-Hayek business cycle theory explains depression "as a reaction to an intertemporal production structure fostered by monetary policy setting interest rates inconsistent with individual time preferences."
How could we possibly legitimately develop such an idea without mathematics?
The first Great Depression was caused (perhaps even purposely) by withdrawing the availability of further short term credit to continue speculation on the so called securities market. When the availability of credit was withdrawn, a market which had bought its "securities" on margin (with but ten-percent or so of the value of the stock, owing the rest) was forced to sell its short-term possessions to a market which could no longer borrow the money necessary to sustain the present value, much less the continued escalation of "value" which ostensibly constituted the "boom."
The market of course could only crash in short order — in fact in no more time than the terms of the existing debts. The rest of the "economy," broken by a typical ruse, could only follow suit.
I agree then, perhaps to an opposite polarity, that such a depression is a consequence of preference. It is a consequence of a preference to think wrongly not only that unearned gain is justified, but that the little fish in the pond really get to share what in the end falls to the fish they already preferred to give the power to eat everything in the pond.
AUSTRIAN VIEW TOWARD INTEREST
Wikipedia is also instructive in the Austrian view toward interest, citing a "contribution" to thinking regarding interest by Austrian Economists:
The time preference theory of interest, which explains interest rates through intertemporal choice — the different time preferences of the borrower or lender — rather than as a price paid for a factor of production.
But they grant rectitude to the imposition of interest then not as a choice of human action, but as an extrinsic action; and they do so at the cost of the right to true free enterprise.
HOW FAR DO THEY CARRY THIS VIEW TOWARD INTEREST; AND TO WHAT POSSIBLE BENEFIT?
Not only then is the Austrian School wholly disinclined to solve the terminal consequences of interest, the present 2008 election has even proposed multiple competing currencies, assumably subject to interest or bound to the further faults of an alternate monetary standard.
But does it even matter how many competing currencies are subject to interest? Does it matter who issues them, in terms of the consequences to the subjects of a system which only steals from us, and might therefore steal from us by four bankers or three, or one, taking as much interest as can be shaken from our pockets?
Can the number of usurers alter the consequence of usury?
RELATED EXTERNAL MATERIAL
RELATED PRIMARY ARTICLES
RELATED REFUTATIONS/REVIEWS OF CONTROVERSIAL MONETARY PROPOSITIONS
"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)
REFUTATION OF CONTROVERSIAL MONETARY PROPOSITIONS, REVIEW OF OTHER MATERIAL
REVERSE CHRONOLOGICAL ORDER
pfmpe[ at ]perfecteconomy[ dot ]com
Gross National Public Debt Clock
"National debt," perhaps better said to be "federal debt," refers only to public debt accumulated by the federal government. National debt does not include the even greater sum of private debt, or further public debt accumulated by state and local governments.
PER CAPITA, THE CURRENT FEDERAL PUBLIC DEBT COMES TO APPROXIMATELY THIRTY-THOUSAND DOLLARS.
FIGURED AT THE ROUGH SCALE USED BELOW TO DETERMINE RESPONSIBILITY FOR PRIVATE DEBT, THE AVERAGE FEDERAL DEBT WOULD BE ROUGHLY $93,750 PER ELDER ADULT MOST RESPONSIBLE FOR THE ACCUMULATION OF FEDERAL DEBT. BUT LIKE PRIVATE DEBT, THE UNDUE BURDENS OF THIS SHARE WILL SIMPLY BE SADDLED UPON YOUNGER GENERATIONS.
PER CAPITA U.S. PUBLIC AND PRIVATE DEBT
Estimates of the sum of private and public U.S. debt together, accounting for potential Social Security and Medicare liabilities as of November, 2007, run as much as more than $96 trillion; or $320,000 per capita even for infants; OR AN AVERAGE OF ROUGHLY HALF A MILLION DOLLARS PER ADULT.
THIS EQUATES TO ROUGHLY $1 MILLION PER ELDER ADULT, MOST RESPONSIBLE FOR ENGENDERING THIS DEBT.
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PEOPLE For Mathematically Perfected Economy™ is the original and only bona fide solution to the world's imposed, falsified economic systems. On November 7, 1998, tens of thousands of voters designated PEOPLE For Mathematically Perfected Economy™ a Starting Point HOT SITE. Since the early 1990s, even while subject to extensive imitation and plagiarism, we have served up to hundreds of thousands of visitors per month, from all parts of the world.
DONATIONS FROM JANUARY 1979 TO APRIL 2008, $0.00!!! My great appreciation to Max Demarzi and I Young, who have since donated $100 and $50 respectively. You know, $1, $2, $3 is cool. If everybody did that, we wouldn't have any trouble at all maintaining this effort !
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.
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