WHY INFLATION ITSELF IS A LIE

I have news for the gang in Congress. We didn't elect you to sit on your asses and do nothing and remain silent while our democracy is being hijacked and our greatness is being replaced with mediocrity. What is everybody so afraid of? That some bonehead on Fox News will call them a name? Give me a break. Why don't you guys show some spine for a change? Lee Iococca

PLATO

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.

Elie Wiesel

Take sides. Neutrality helps the oppressor, never the oppressed. Silence comforts the tormenter, never the tormented.

Tuesday, May 27, 2008

WHY INFLATION ITSELF IS A LIE; WHY IT IS IMPOSSIBLE TO SOLVE THE REAL CONSEQUENCES OF A CURRENCY SUBJECT TO INTEREST

For a hundred years we've been told that inflation is the enemy. That's not the whole truth at all; and there is a reason we aren't told the whole truth.

To understand why it is impossible to solve the real consequences of a currency subject to interest, we only have to return to what happens as we maintain such a circulation: as we re-borrow principal and interest paid out of the general circulation, the sum of debt perpetually and irreversibly increases so much as periodic interest on debt; and so, in servicing this perpetually multiplying debt, ever more of every dollar is dedicated to servicing debt; and ever less of every dollar can be dedicated to sustaining the commerce which must service the debt.

Thus a circulation subject to interest requires both:

1. *perpetual*, escalating inflation of the circulation relative to the remaining value of related assets, merely to maintain sufficient circulation to sustain the commerce which must service the debt; and/or
2. perpetual price inflation, to maintain industrial solubility against the ever escalating sums of debt that commerce must service.

Thus in regard to solving the faults of monetary systems subject to interest, we must also account for the fact that the process of maintaining a circulation dedicates ever more of every dollar to servicing debt, because to eradicate inflation is to impose a circulation which can ever less sustain the commerce which must service the multiplying debt. In other words, eradicating inflation in such a system expedites its eventual collapse.

Only in an economy free of interest/usury can we therefore focus on solving inflation and deflation, because the currency of such systems alone is not subject to multiplication of debt.

Of course then, a purpose of restricting discussion of the faults of the systems imposed around the world to interest, is that you never understand the nature of those unassented systems.

RELATED PRIMARY ARTICLES

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2. PROBABILITY AND TIMELINE FOR WORLD-WIDE ECONOMIC COLLAPSE AS A CONSEQUENCE OF INTEREST
   3. [ KEY ]  ABOUT INTEREST, KEY TO THE CYCLE OF USURY: 'IT'S THE INTEREST, STUPID, IT'S THE INTEREST'
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14. WHAT IS Mathematically Perfected Economy™?
    15. 'MPE™ 101' — BASIC IMPLEMENTATION OF Mathematically Perfected Economy™
    16. [ KEY ]  'MPE™ 102' — 'FIAT CURRENCY.' WHAT ABOUT IT?
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    37. [ KEY HISTORY ]  Congressman Louis T. McFadden before the House of Representatives, June 10, 1932, in the midst of the first Great Depression
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RELATED REFUTATIONS/REVIEWS OF CONTROVERSIAL MONETARY PROPOSITIONS

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54. Why Pre-MPE™ Austrian School Dogma Can Never Solve Our Issues
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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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