Saving the EU and Monetary Union itself…

PFMPE™ founder, mike montagne’s 2012 WOLFSON ECONOMIC PRIZE SUBMISSION — PROOF OF A SINGULAR MONETARY AND POLITICAL SOLUTION

    1. AUTHOR BIO

Mike Montagne is a veteran software engineer, mathematician, world-leading monetary reformist, original 1968 architect of mathematically perfected economy™, and 1995 founder of the international coalition, PEOPLE For Mathematically Perfected Economy™, which advocates his 1968 mathematic proof of a singular integral solution for the potential categoric faults of any prospective monetary system.

Having ascertained the fundamental causes of the present crisis 44 years ago, Montagne provided the 1979 Reagan Campaign with prescriptions for transforming contemporary systems into mathematically perfected economy™ in part of a day, and virtually without cost. He provided the ensuing Reagan Administration with computer models projecting terminal global monetary failure otherwise, at approximately 2010 AD.

    1. WOLFSON ECONOMIC PRIZE MMXII

“The 2012 Wolfson Economics Prize challenges the world’s brightest economists to prepare a contingency plan for a breakup of the Eurozone” by seeking the best answer to the following question:

If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the current membership?

    1. NON-TECHNICAL SUMMARY

Particularly as crucial activities of the purported European Union are routinely insulated from direct and sufficiently comprehensive public assent, it is not clear how a prevailing recommendation of this committee can promise to meet perpetual requisites of inherently sovereign nations and people unless it is equally dedicated to establishing every potentially vital public means for preventing the like of present malfeasance.

Owing to the failed administrative license which has been imposed otherwise, monumental public impetus for real solution witnesses various readily arrested stages of the terminal deterioration my work plainly projected so long ago. We are compelled therefore by far more than regional considerations, or the inevitable disintegration of unassented states, to prove the resolutions of this mandate.

This paper demonstrates how fundamental determinants predicate a singular monetary solution which would be incumbent upon political processes subject to generic standards of accountability.

In itself abiding by the advocated standards, this proposition proves that every possible injustice of a monetary system is resolved only by a universal right to issue certified, enforceable, unexploited promissory obligations, subject to obligatory schedules of payment retiring principal according to the rate of consumption of related property. Given the conclusive determinations of this paper therefore, regardless of the disposition of their ostensible union, nothing less will truly save the people of Europe.

In its universal scope of accountability, this paper further proves that the present conditions are terminal; and that they are an inevitable consequence of an obfuscation of our currency which effectively forces us to maintain vital circulations by perpetual escalations of further borrowing. Thus, purposed inattendance to these facts can only exacerbate the present deterioration, unless the underlying processes are rectified by the prescribed transition to mathematically perfected economy™.

A vital observation of my work is that an implicit obligation to maintain a vital circulation is engendered by a fact principal and interest are obligated to be paid out of industrial and commercial possession of “a general circulation” comprised of only principal, with dubious and unjustifiable potential to return the costs of servicing escalating indebtedness to the “general circulation” without borrowing principal and interest back into the general circulation as ever escalating sums of debt; with a sum of debt artificially escalating therefore by so much as periodic interest on an ever greater and inevitably terminal sum of debt; and with this implicit process therefore precipitating in the call to contend with the present, terminal, concurring conditions.

Thus the controversial means for artificially extending the inherently finite lifespans of such systems amount to no more than loaning further to the already terminally indebted; and yet as these dire means signal desperation even by violating the ostensible principles of the responsible obfuscation itself; these artificial means too possess inherently limited effect in a fact that pouring further insoluble debt into circulation cannot reach many sectors of the purported economy in time to save them. As these fall, they bring down adjacent, dependent sectors with them; and thus the best that artificially extending an inherently finite lifespan for some while can achieve, is to persist in terminal indebtedness all the longer — as opposed to truly resurrecting a far greater, wholly unimpeded potential prosperity.

Thus as artificial indebtedness inherently escalates by so much as the ever greater sums of periodic interest of ever greater sums of artificial debt, ultimately a terminal sum of debt destroys credit-worthiness to borrow further, as nonetheless remains indispensable to further maintenance of a vital circulation. Thus the final stages of an inevitable failure precipitate in the very unabatable deflation which present artificial measures are attempting to combat.

Further sustaining this analysis of causative, inevitable failure is a fact I can successfully calculate the maximum possible lifespan of purported economies subject to the present obfuscations of our currency. Foreseeing events which were escalated at the time by far higher interest rates, I provided the 1979 Reagan Campaign not only with comprehensive proof of the present consequences, but of a singular prescription for transforming contemporary purported economies into mathematically perfected economy™ in as little as part of a day, and virtually without cost.

I likewise provided the 1979 campaign with proofs that Reagan’s proposed tax cuts would neither offset nor solve the fundamental causes of price inflation, nor balance the federal budget. As a matter largely of a disparity in ability to pay federal costs engendered by the projected escalation of private debt, these same proofs accurately projected on the contrary that Mr. Reagan would accumulate far more federal debt than any President before him.

Thus as these propositions soon proved true, I was asked to produce comprehensive computer models in which I prescribed how to replicate the implicit obligations of the present currency and its irreversible multiplication of falsified indebtedness.

These models in turn projected that the present global failure would transpire at approximately 2010 AD.

It has been said that, “Unfortunately, nobody knows how to organise the exit from a currency union in an efficient way minimizing hardship for the citizen.”

Yet a transition and state of mathematically perfected economy™ instead immediately alleviate tremendous hardship. Should history eventually acknowledge the present proof of singular solution then, whatever we do or fail to do will encounter an ever-persistent fact that only mathematically perfected economy and absolute consensual representation™ could have saved us.

On the further hand, if either exiting or persisting EU members fail to adopt these indispensable principles amidst a world which inevitably pursues that imperative goal, then the failing nations would not only suffer monumental disadvantages, but mounting, further deterioration under the obfuscations exposed by this paper.

Thus if it is worth saving, this proposition of mathematically perfected economy and absolute consensual representation™ would be instrumental in saving the European Economic and Monetary Union itself, for mathematically perfected economy and absolute consensual representation™ are the only propositions which can bind a just monetary and economic union together.

 

PROOF OF A SINGULAR MONETARY AND POLITICAL SOLUTION

    1. CIRCUMSTANCES WITH WHICH A GENUINE SOLUTION MUST CONTEND

According to the pattern of all useful developments, no problem is solved without ascertaining its causes. Thus even our most imperative and readily solved problems only persist so long as they are administered with prejudice or purposed evasion. The most ruinous potential obstruction to solving the issues of our time then is not that it is impossible or even difficult to solve the causes of terminal monetary failure — but that those who would preserve those causes might prevail in our stead.

The monetary problems of our time are indeed difficult neither to ascertain or to solve absolutely. Because the systems we are subjected to are man made, therefore the cause of our escalating disintegration is itself, inevitably man made. Most certainly then, the causal facts we must solve will equate to fundamental flaws of purported monetary or economic systems.

Yet our inevitable adoption of a readily demonstrated solution hinges too upon artificial political factors, because the vast majority of humanity neither understands, nor warrants, nor grants its comprehensive assent to the responsible aberrations. The problems which beset us therefore are imposed by a few, in the purposed stead of the only principles which would serve humanity universally. This means in turn that even our absolute recognition of a singular solution is confronted with both political and educational issues — with the latter yet being indispensable to capable public determination of our own fate.

Thus in solving the present problems, we can only inevitably discover both that contemporary anomalies are purposed, and that they are averted by little more than ceasing purposed violations of indispensable principles.

Such is the inevitable disposition and case then of the present paper.

    1. FUNDAMENTAL FAULTS OF THE PRESENT OBFUSCATION OF OUR CURRENCY
      1. ANALYSIS OF CONTEMPORARY MONEY FROM ITS ROOT

When we unravel generic money today, diligent examination inevitably discovers three things: 1) that contemporary money is an unwarranted obfuscation of our promissory obligations; 2) that the obfuscation is inherently terminal; and, 3) that all the while, the obfuscation makes both economy and monetary justice impossible.

The present world experience therefore concurs with these facts:

        1. CONTEMPORARY MONEY IS AN UNWARRANTED OBFUSCATION OF OUR PROMISSORY OBLIGATIONS
          1. NATURAL, INDISPENSABLE CONDITIONS OF PROMISSORY OBLIGATIONS

The natural conditions of a promissory obligation are no more than a generic contract, rightly compelling commensurable payment for what may be received either immediately, or more often, at some prior time.

A necessary freedom therefore exists to contract to exchange values determined and agreed strictly and exclusively by involved parties — without possibility of extrinsic subversion of any ultimate agreement. If our agreements were subject to extrinsic exploitation for example, every such contract could be jeopardized to potentially prejudicial, arbitrary, and destructive extents — compromising our ability to sustain production and trade.

          1. THE ONLY TRUE CREDITORS OF THIS ARRANGEMENT GIVE UP PROPERTY FOR PROMISSORY OBLIGATIONS;AND OBLIGORS ARE THE ONLY ACTUAL, RIGHTFUL, AND TRULY ATTRIBUTABLE ISSUERS OF MONEY MERELY REPRESENTING THEIR PROMISSORY OBLIGATIONS

Effectively then, a promissory obligation is necessarily a contract to deliver so much production of an obligor, receiving so much property from a creditor — the latter of whom is truly a creditor so long as they hold the promissory obligation, only because they have given up commensurable property in return for an enforceable obligation to deliver commensurable payment.

Reasonable people would not say for instance that a person who furnished the paper or the pen upon which or by which the contract was written was the creditor, for either only produces a representation of the promissory obligation at negligible cost.

Neither would entities which only publish further representations of our promissory obligations qualify as creditors for example, for they give up no commensurable property which could justify falsifying debts to themselves from the promissory arrangement between the actual creditor and obligor.

Neither then would such a publisher be entitled to interest based upon some ostensible risk of property, for in fact no commensurable property is ever at stake. Benjamin Franklin for instance contracted to publish such representations of colonial Pennsylvania’s currency — well realizing that a fact he had given up no commensurable property entitled him neither to collect the principal, nor to claim his property was ever at stake, as the present obfuscation presumes nonetheless further justifies interest.

Obligors therefore are the only true issuers of money comprised of promissory obligations, for their commitments alone instantiate the only enduring and enforceable basis of value.

          1. INHERENT VALUE, REPRESENTATION, AND LIFE CYCLE OF PROMISSORY OBLIGATIONS

The value of unexploited promissory obligations is equivalent to both the property received from the creditor, and to the promised contribution to the overall pool of wealth of the obligor. The latter therefore guarantees to the creditor that promissory obligations, deployed as currency, can be spent to procure due reward for the possession or production the creditor has given up for promissory obligations.

The whole principle of value inherent in a promissory obligation therefore derives from a fact that commensurable contributions to the pool of wealth by the obligor make it possible for creditors to receive from the overall pool of wealth, equivalent to their own contributions held by obligors. This representation of value therefore ceases when and to the extent that the obligor pays the principal, because payment nullifies the resultant commitment to contribute further production to the overall pool of wealth.

Thus the inherent life cycle of every promissory obligation ends in, and to the extent of, payment of the principal.

          1. INHERENT, INCONTROVERTIBLE DISPOSITION OF PAID PRINCIPAL

Because payment voids the only representational value of the principal, paid principal therefore can represent the rightful property of no one.

Paid principal therefore can only be retired from circulation.

          1. INHERENT MINIMAL RATE OF PAYMENT OF PROMISSORY OBLIGATIONS

An inherent minimal rate of payment is imposed upon obligors, retiring payment at no less than the rate they consume of the related property, in part because otherwise, no sufficient protection against default exists in the remaining value of represented property. In both default and the general course of consumption then, the obligor not only receives something for nothing, but by failing to pay for what the obligor consumes, we fail to maintain a requisite volume of circulation which must always equal and be fully disposable to the remaining value of representative property, if both the currency and the contracts upon which the currency is based are to be immutable by virtue of a perpetual 1:1:1 relationship between remaining circulation, remaining value of represented property, and remaining obligation to pay just that much for the remaining value of represented property (in which therefore, the circulation is always, always, always redeemable).

Effectively then, rather than assumptions of debt, enforceable promissory obligations are essentially and irrecusably, commitments to pay for property as we consume of it.

          1. UNEXPLOITED PROMISSORY OBLIGATIONS THEREFORE ARE THE ONLY FITTING CURRENCY

Unexploited promissory obligations therefore are the only fitting currency, a) because they are inherently available in unlimited supply; b) because uniform representations can impose no redundant cost; and c) because, if we pay and retire principal at the rate of consumption of related property, an obligatory schedule of payment itself perpetually maintains a vital 1:1:1 relationship between a remaining circulation, remaining value of represented property, and remaining commitment to pay just so much for the remaining value of represented property — in a circulation which therefore is necessarily, fully disposable to these purposes.

Thus the only truly free enterprise, markets, and trade inhere only to a mathematically perfected economy™, sustained by no more than an indispensable, universal right to issue certified, enforceable, unexploited promissory obligations, subject to an obligatory schedule of payment which therefore persists in the only immutable and just currency — the indispensable strictures of which only predicate paying for consumption with no less than equal measures of production (all determined by the only truly free markets and enterprise).

Moreover then, only a mathematically perfected economy™ sustains all these purposes, even without regulation.

          1. “BANKING” OBFUSCATES THESE CONTRACTUAL COMMITMENTS INTO FALSIFIED DEBTS TO THE “BANKING SYSTEM,” SUBJECT TO INTEREST

Because a “banking system” never gives up lawful consideration commensurable to the further representations of our promissory obligations it may create, it therefore no more than publishes further representations of our contractual commitments to each other — obfuscating these definitive commitments to pay and to retire principal from circulation into falsified debts to itself; and in turn imposing interest, only as if legitimate entitlement to property were at stake.

Thus, no more than Benjamin Franklin was entitled to principal and interest descending from all the representations of money he published, a purported banking system has no legitimate claim by which either to launder principal into its possession, or to subject our promissory obligations to the present unwarranted imposition of purported interest.

          1. THE ROOT OF OUR PROBLEMS THEREFORE IS REDUNDANT EXPLOITATION — THE MEANS OF WHICH REDUNDANTLY ENGENDER TERMINAL DISPOSSESSION AND DEFEASANCE

The root of our problems therefore traces to a fact that we do not actually borrow money into circulation “from banks.”

Nor is it even necessary to purportedly think we should “borrow money” into circulation, but by denial of a universal right to issue unexploited promissory obligations. In truth then, it is a simple, purposed ruse that we “borrow” representations of our promissory obligations from entities which no more than publish the representations at negligible cost.

          1. THE FALSIFIED PROCESS OF “BORROWING” NEW MONEY INTO EXISTENCE THEREFORE IS A PURPOSED RUSE OF PERPETUALLY ESCALATING DISPOSSESSION

No need to purportedly borrow “money” into circulation therefore exists, except by a criminal, purposed denial of the indispensable, universal right to issue unexploited promissory obligations.

The present concept of borrowing new money into circulation therefore is altogether entirely irrational, artificial, and falsified, because new money does not even exist to be borrowed; and because it only exists as a further representation of the very promissory obligations we ourselves issue. In no legal or rational sense then are actual debts ever established to a purported banking system which never gives up lawful consideration commensurable to the debts it therefore only falsifies to itself.

Nor does any legal way thereafter exist to launder such monies into the unwarranted possession of a purported banking system, because the principal is not the property of the bank; because the principal is never risked by the bank; because the principal is inherently instead to be retired from circulation; and because no fact whatever then, either justifies interest.

          1. THE OBFUSCATION IS INHERENTLY TERMINAL
            1. IMPLICIT OBLIGATION TO MAINTAIN A VITAL CIRCULATION

    Subjection of all this falsified debt to purported interest therefore forces us to pay principal and interest out of a circulation which is inherently comprised of only however much remaining principal.

    While the term, “general circulation” therefore may indicate currency retained by regular industry and commerce as opposed to what is presumed to be possessed by a purported banking system, it is impossible therefore for industry and commerce to persist in servicing these falsified obligations unless sufficient principal and interest somehow return to the general circulation.

    As purported borrowing is the ostensibly intended means; and as the only means of the obfuscation beyond spending is purported borrowing; and as the purported banking system itself has negligible actual requirements to consume our production in the negligible costs of obfuscating our currency; and as spending would practically directly launder so much production as principal and interest into the immediate unwarranted possession of the purported banking system; therefore the general pattern for maintaining a vital circulation sufficient to sustain the industry and commerce which are saddled with the multiplied costs of falsified indebtedness is indeed further borrowing.

            1. INHERENT CAUSE OF INEVITABLY TERMINAL FAILURE

    Thus except for the negligible extent to which a purported banking system must consume our production to publish further representations of our promissory obligations, a vital circulation is maintained by borrowing principal back into the general circulation as new debt, equal to the former sum of debt we might otherwise presume to be resolved.

    Therefore the general pattern for reflating principal makes it mathematically impossible to pay down any prior sum of falsified debt.

    Yet as the interest we pay out of the general circulation counts none against any prior sum of debt, thus the implicit obligation to maintain a vital circulation results in what interest we are forced to borrow back into the general circulation perpetually increasing every prior sum of falsified indebtedness by so much as periodic interest on an ever greater sum of debt.

    Thus an indispensable process of reflation perpetually increases the costs of servicing debt in proportion to remaining capacity not only to pay, but to sustain the industry which is obligated to do so.

    It is this ever broadening and inevitably fatal disparity therefore which precipitates in a terminal sum of debt — simply exceeding the capacity of severely compromised, surviving industry to persist further in its unwarranted dispossession.

    Thus unless some practical, legitimate (just), and conducive way exists for sufficient principal and interest to re-enter the general circulation otherwise, the present obfuscation of our currency is unequivocally the fundamental cause not only of the resultant breakup of the terminally crippled European Economic and Monetary Union — but of the inevitably terminal failure of an entire world subject to this purposed obfuscation of our currency.

            1. IS IT POSSIBLE, PRACTICAL, OR JUSTIFIABLE FOR THE PURPORTED BANKING SYSTEM TO RETURN INTEREST TO THE GENERAL CIRCULATION IN WARRANTED COSTS AS MIGHT AVERT THIS PERPETUAL MULTIPLICATION OF FALSIFIED DEBT, MERELY IN MAINTAINING A VITAL CIRCULATION?OR IS IT POSSIBLE, PRACTICAL, OR JUSTIFIABLE FOR THE PURPORTED BANKING SYSTEM TO RETURN PRINCIPAL TO THE GENERAL CIRCULATION IN WARRANTED COSTS, THAT IT IS LIKEWISE POSSIBLE TO PAY DOWN PRIOR SUMS OF FALSIFIED DEBT?

    If by any potentially legitimate process then, the aforesaid process were not to manifest in inevitable failure, legitimate processes of the purported banking system would have to perpetually absorb our production to the whole monumental extent of the periodic interest we pay out of the general circulation, if it were even to be possible to pay down any prior sum of debt at all.

    Otherwise, any periodic interest borrowed back into the general circulation (above principal), perpetually increases the sum of falsified debt in proportion to that circulation.

    If by any potentially legitimate process then, it were to remain possible furthermore to resolve prior sums of falsified debt, legitimate processes of the purported banking system would have to perpetually absorb our production to the whole further monumental extent of the periodic principal we pay out of the general circulation.

    Otherwise, paid principal, necessarily borrowed back into the general circulation as new debt, perpetually persists in former sums of falsified debt.

    As not even the first of these artificial requisites is met, we can only suffer an inevitably terminal failure.

    Yet if we attempt to justify such far-fetched processes without even justifying both the falsification of indebtedness and unwarranted imposition of interest, then ultimately we are ignoring improprieties which can never truly be justified — all to say that somehow a legitimate way might exist (which nonetheless never transpires) for mere publishers of further representations of our promissory obligations to launder all the production of eternity into their ever-unjustifiable possession.

    Therefore there is no way to justify any purely hypothetical possibility that by perpetually earning so much again and again for the public’s nought, it would be possible that interest would not inherently multiply falsified indebtedness into the very inevitably terminal sums of falsified debt everywhere around us.

            1. INHERENT PATTERN OF TERMINAL FAILURE

    Without offering any real benefit at all, and only by denying us the universal right to issue unexploited promissory obligations, this redundant escalation of falsified debt perpetually increases artificial costs in proportion to remaining capacity to afford them, because a sum of falsified indebtedness perpetually increases by so much as periodic interest on an ever greater sum of debt until even at an inherently escalating rate, a terminal sum of falsified debt eventually exceeds the remaining capacity to service it.

    In accord with this perpetual escalation of falsified indebtedness, ever more of a given circulation is maldisposed to servicing the redundant escalation, as opposed to sustaining the industry and commerce which are obliged to do so. This maldisposition, in turn, perpetually increases the costs of industrial production — saddling a commensurable escalation of prices upon markets equally compromised of former abilities to afford them.

    As an inability to afford these increasing prices thus compromises industrial margins of solubility, then so long as it can still survive, industry is redundantly expatriated to wherever compromised environmental standards make destructive industrial practice more affordable; to wherever more impoverished populations will suffer greater wage deprivation… and so forth.

    Yet as a futile compromisation of prior standards fails even to address the cause of an escalating inability to afford our own production, the sum of falsified debt nonetheless continues to escalate for no more than an implicit, redundant, artificial obligation to maintain a vital circulation.

    Eventually therefore, even aggressive reductions of interest rates (falling short of eradicating interest across the whole industrial and commercial plane) still precipitate in an inevitably terminal sum of debt, because so long as interest is borrowed back into circulation, this continues to escalate the sum of falsified debt in proportion to ever-waning industrial and commercial capacities.

    A sum of falsified debt which exceeds our capacity to service it is ultimately “terminal,” because it destroys the vital credit-worthiness to borrow further — which of course remains indispensable in our attendance to a waning vital circulation, perpetually deflated at eventually monumental rates by the escalating sums of periodic principal and interest we are forced to pay from the ever-escalating sum of falsified debt itself.

    By exceeding real credit-worthiness, further reflation of the circulation breaches ostensible standards of the obfuscation to artificially extend the finite lifespan by no more than heaping further falsified debt upon industry expiring under an already terminal sum of falsified debt — whereafter the circulation inherently disappears at an ever-more-monumental pace from failing industry.

    Ultimately, however much further falsified indebtedness we may conceive to pour into circulation, a finite capacity for marginalized industry to absorb, to benefit, and to be sustained under even greater sums of debt itself comprises a fragile scenario with terminal limitations, mounting particularly in facts that all sectors cannot benefit from means of artificial sustention sufficiently to sustain them. Attempts to sustain the system of exploitation therefore are ultimately the dead hope that industry which has already been dispossessed into oblivion, can survive for some while against an ever-mounting tide of dispossession and deflation. Yet “to survive” that finite while is still only to sustain a final stage of monetary drowning by further escalations of an already terminal sum of falsified debt.

    This terminal combination of facts is signaled then by the very conditions and efforts everywhere around us; and thus as reasonable people would expect, the perpetual failure of efforts to preserve the responsible processes comprises the very impetus of a disintegrating European Union itself.

            1. THESE OBFUSCATIONS OF CURRENCY THEREFORE MAKE BOTH ECONOMY AND MONETARY JUSTICE IMPOSSIBLE

      Because these obfuscations perpetually multiply falsified indebtedness in proportion to a related circulation, obviously economy is impossible, because the obfuscation multiplies wholly redundant cost upon us for nought.

      Obviously, modern “economies” therefore are the very antithesis of actual economy.

      Likewise, monetary justice is impossible to the very extent the escalating exploitation infringes upon our contractual commitments, and because “banking’s” means of exploitation make it impossible to sustain the perpetual 1:1:1 relationship which is indispensable to the integrity and redeemability of the resultant currency.

      Ultimately, “banking” itself makes the falsified commitments of “banking” impossible to meet, because “banking” imposes inevitably terminal, falsified indebtedness upon us.

            1. RECTIFYING THE CONSEQUENCES OF THESE OBFUSCATIONS

        To right the wrongs of an unwarranted imposition of interest therefore, we must at least count all prior payments of interest instead toward principal. Because we have generally already paid the principal multiply, this itself would immediately resolve most of the world’s falsified, artificially multiplied debt.

        Schedules of payment must likewise be adjusted to pay and to retire remaining principal (if any) at rates of consumption of related properties. Vast further improvements in prosperity therefore are immediately realized from the obligatory schedules of payment of a mathematically perfected economy™.

        For example, figured linearly (for ready assimilation), overall consumption a $100,000 home with a 100-year lifespan would cost $1,000 per year or $83.33 per month under a mathematically perfected economy™. Even lacking any resumption of prosperity, few of us therefore would be unable to own homes, particularly as the de-escalated rates of depreciation I have recommended for so long reduce cost in the later stages of the lifespan to the order of $10 per month.

        Let us presume hypothetically that under the present exploitation of our promissory obligations, payments against the same home would be $1,000 per month — or 12 times what they would be under mathematically perfected economy™. This means furthermore that we would immediately become some 12 times as liquid by immediate adoption of mathematically perfected economy™; foreclosures would instead be 12 times ahead of the present, unwarranted schedules of payment (thus immediately resolving the foreclosure crisis); bankruptcies would be dissolved likewise… and so forth.

        Furthermore still, as the costs of our production to ourselves can never rightly be reduced below the costs of production, it is impossible that any other proposition can benefit us so much as mathematically perfected economy™. Yet far greater improvements in prosperity are within near term reach, because mathematically perfected economy™ makes it possible to afford to produce and to procure just production as never before, and as is impossible otherwise.

            1. CONCURRING EVIDENCE

        It should be unnecessary to emphasize to reasonably diligent people that these very consequences correspond to the very reasons for the prospective disintegration of the European Union itself. That is, without any other reasonable explanation whatever, governments and populaces are forced to ask for an ever-increasing stream of falsified credit, merely to afford an ever-compromised state of our very own waning production — with the disparity being distributed to a handful of entities which produce nothing, and with this very irreversible cycle indeed increasing a sum of terminal debt ever further beyond reasonable hope or plan for salvation otherwise.

        As this very same predicament pervades the world then, the chance is virtually nil that a first country to adopt mathematically perfected economy™ will not precipitate in an avalanche of further adoption.

            1. POTENTIAL CATEGORIC IRREGULARITIES TO BE RESOLVED BY ANY PROSPECTIVE MONETARY SYSTEM

          The first requisite of any justifiable monetary system is that the value of its money must be immutable. If the value of money can be subverted by either volume or disposition, then equitable trade, contractual obligations, and entitlement to the overall pool of wealth are subverted. Effectively then, money can only represent entitlement to receive from an overall pool of wealth, so much as our like efforts have contributed to it.

          These facts establish a further fact that except for the obligation to fulfill commitments, money can incorporate no process which may affect either its necessary volume or intrinsic disposition, because either subvert the indispensable object of immutable representation itself.

          Because ostensible monetary principles are ultimately powers to directly affect either the volume or disposition of money, the potential categoric faults of any monetary system are either volumetric, dispositional, or possible combinations thereof. By categorically treating an otherwise potentially infinite array of aberrations, it is possible to readily develop and prove a solution which inevitably must eradicate volumetric and dispositional impropriety:

              1. VOLUMETRIC IMPROPRIETY

          Volumetric improprieties equate to the modern definitions of “circulatory inflation and deflation,” which, as adjusted to the aforesaid principles of immutable monetary representation, are respectively increases or decreases in the volume of circulation per represented property. The consequences of either the positive or negative of these faults are excessive or deficient money to immutably convey trade or entitlement to the overall pool of wealth.

              1. COMBINED VOLUMETRIC AND DISPOSITIONAL IRREGULARITY

          Any potential combination of volumetric or dispositional improprieties may be expressed as, “systemic manipulation of the cost or value of money or property.”

              1. MALDISPOSITION

          As dispositional improprieties can only divert the disposition of money from its simple intended purposes, “maldisposition” is to dispose any portion of the volume of circulation to any purpose beyond immutable representation — thus denying true producers of their rightful opportunity to produce to the extents of their capacities, and likewise denying anyone who spends money, full reward, commensurable with their contributions to the overall pool of wealth.

                1. MALDISPOSITION UNDER THE PRESENT OBFUSCATION OF OUR CURRENCY

          Under the present obfuscation of our currency for example, maldisposition would equate to “inherent, irreversible, and therefore terminal multiplication of falsified indebtedness by interest,” because a perpetual escalation of falsified indebtedness by interest dedicates ever more of a circulation to servicing falsified debt, as opposed to sustaining the industry and commerce which are obliged to do so.

                1. MALDISPOSITION IS THE FUNDAMENTAL CAUSE OF PRICE INFLATION UNDER THE PRESENT OBFUSCATION OF OUR CURRENCY

          A further manifestation of maldisposition therefore is an escalation of costs to industry and industrial margins of solubility imposed by this redundant escalation of falsified indebtedness — with units of currency therefore seeming to perpetually decline in value, only because more and ever more must generally be spent for prior production.

          Under the present obfuscation of our currency therefore, maldisposition or interest are the intrinsic cause of price inflation, in which by maintaining elevated rates of interest, a purported banking system denies margins of solubility to industry by re-directing the costs to banking, claiming all the while to combat price inflation by costs which are simply imposed otherwise.

              1. SINGULARITY OF MATHEMATICALLY PERFECTED ECONOMY™
                1. ABSOLUTE SOLUTION OF POTENTIAL MONETARY IRREGULARITIES

            Because the only possible systemic faults are possible combinations of volumetric and dispositional improprieties, we can develop and prove solution by solving circulatory inflation, deflation, and maldisposition.

                  1. CIRCULATORY INFLATION AND DEFLATION

            Because circulatory inflation and deflation are solved only by maintaining a circulation which is perpetually equal to the remaining value of represented property, therefore only an obligatory schedule of payment retiring principal at an inherent rate of consumption solves (eradicates) both disparities.

                  1. INHERENT, IRREVERSIBLE, AND THEREFORE TERMINAL MULTIPLICATION OF FALSIFIED INDEBTEDNESS BY INTEREST (CONTEMPORARY MALDISPOSITION)

            Because interest is unjustifiable in the present obfuscation of our currency; because interest is the sole agent of a terminal multiplication of falsified indebtedness; and because only our eradication of interest in a universal right to issue promissory obligations sustains economy and monetary justice, therefore only an eradication of interest solves contemporary maldisposition.

                  1. SYSTEMIC MANIPULATION OF THE COST OR VALUE OF MONEY OR PROPERTY

            Because systemic manipulation of the cost or value of money or property is imposed only by combinations of the first and third potential categoric faults, therefore we have already solved (eradicated) every potential combination of volumetric and dispositional impropriety.

                  1. PROOF OF SINGULARITY

              The singularity of a mathematically perfected economy™ therefore is an eradication of interest establishing a universal right to issue certified, enforceable, unexploited promissory obligations, subject to an obligatory schedule of payment retiring principal at the rate of consumption of related property.

              As any deviation whatever from this pattern engenders the very faults we only solve so; and as the faults we have eradicated account for the only dimensions of money, no other solution therefore can exist.

                  1. SINGULAR MEANS FOR TRANSFORMING SYSTEMIC OBFUSCATIONS OF OUR CURRENCY INTO MATHEMATICALLY PERFECTED ECONOMY™
                    1. RESOLUTION OF INTEREST

                A transformation which is faithful to these principles therefore must count all prior payments of interest instead against the remaining principal of outstanding obligations.

                As we have shown, this alone will immediately and justly resolve most of the world’s falsified debt.

                    1. REMAINING SCHEDULES OF PAYMENT

                Remaining schedules of payment against remaining balances must resume at distant points of the lifespan of the related property to which they equate.

                Given our previous hypothetical twelve-fold rate of payment under the present obfuscation of our currency for instance, property payments therefore will generally be some twelve times ahead of resultant schedules of payment under mathematically perfected economy™.

                For example, should this hypothetical hold, a year of payment for an existing property under the present obfuscation so decreases the existent balance as to equate to 12 years of payment under mathematically perfected economy™.

                Thus in general, after a year of payment under the present obfuscation, no further payment would be required for approximately 11 years after a transition to mathematically perfected economy™. Likewise, as ten years of payment under the present obfuscations would therefore equate to 120 years of payment under mathematically perfected economy™, thus no further payment would be required for approximately 110 years, if any balance remained at all after a prescribed transition.

                    1. REFLATION OF A COMMENSURABLE CIRCULATION

                The circulation in turn must be reflated to the remaining balances of represented property, with overpayment being credited to the equity of each related property.

                While I have worked out various scenarios for accomplishing this purpose, and while the distribution of this reflation should be decided by the public as a whole, my general recommendation remains to credit the accounts of the people according to a uniform pattern reflecting prospective savings during working life, spent during retirement.

                This, as much as practical (observing our rules for eradicating inflation and deflation, and owing to damages inflicted by the present obfuscation), restores a circulation as it would have been distributed under mathematically perfected economy™.

                    1. IMPLEMENTATION

                A “Common Monetary Infrastructure” (CMI) replaces conventional “banking systems” — certifying credit-worthiness; issuing uniform representations of promissory obligations on behalf of obligors; and enforcing and performing payment in its automated maintenance of the accounts of the people.

                Because of the natural role of this institution, it is inherently a non-profitable extension of government, with negligible costs distributed as determined by the subject people.

                As it is not even necessary to deploy physical money, and as physical money would impose substantial redundant overhead, the CMI and resultant money are most appropriately digital.

                Default formulas for “de-escalated” rates of consumption or depreciation have been prepared for immediate implementation. Owing to resultant states of overpayment, these can readily be adjusted downstream of an immediate implementation, as self-determined peoples may deem fitting.

                    1. PROCESS OF TRANSFORMATION

                Software can perform the necessary processes in part of a day.

                Even if this process were sabotaged by banking institutions, payments could be arrested in a virtual “time out,” whereafter balances and schedules of payment could be adjusted as fitting, without any negative impact of the sabotage.

                    1. RESOLUTIONS OF THE ONLY ACTUAL SOLUTION
                      1. OPTIMUM MONETARY RECONFIGURATION

                  The only solvent monetary reconfiguration therefore is a restoration of the universal right to issue certified, enforceable, unexploited promissory obligations through a common monetary infrastructure (CMI), subject to obligatory schedules of payment, retiring principal at determinate rates of consumption over the proprietary lifespans of represented properties.

                  In a mathematically perfected economy™ then, the need for monetization precipitates in the necessary, immutable volume of currency, contingent upon the credit-worthiness of obligors, who are the only rightful and necessary issuers of currency.

                        1. PUBLIC INFRASTRUCTURES, SERVICES, AND TAXATION

                  Public infrastructures follow the same pattern of funding as a collective responsibility, paid likewise by consumers, proportional to consumption.

                        1. IMPLICATIONS FOR SOVEREIGN DEBT, PRIVATE SAVINGS, AND DOMESTIC MORTGAGES
                          1. SOVEREIGN DEBT

                    As sovereign debt is comprised itself of disparate elements, dispositions, and origins, and particularly as so much purportedly sovereign debt is virtually insoluble under ongoing multiplication of falsified indebtedness in any system maintaining the present obfuscation of our currency, the fate of sovereign debt should be decided likewise on a categoric basis.

                            1. BINDING RATIONALE

                    The risks of purchasing unwarranted commitments of unassenting people are obvious enough in a fact that if the subject populace itself purchased its purported debts, it could hardly profit from their perpetual escalation.

                    But to count upon an oppressed populace to suffer the consequences of illimitable malfeasance which multiplies unwarranted debts for nought is to bet upon the perpetuation of a crime.

                    Those who hold sovereign debt are welcome to argue how and why it should be redeemed in production of the people. In cases where the creditor gave up property, justification for their case exists. Particularly in cases where pretended creditors have only falsified purported entitlement to wealth, I doubt the people will consider their further betrayal justifiable, particularly at substantial further expense.

                    To risk purchase of the latter form of purported security therefore is no defense for the underlying betrayal.

                            1. PRIVATE SAVINGS

                      Private savings are preserved by a transition to mathematically perfected economy™. Account balances are simply translated to the CMI™.

                            1. DOMESTIC MORTGAGES

                      As we have explained, most mortgages will be resolved by the prescribed transition to mathematically perfected economy™. Depending on actual current arrangements, remaining schedules of payment may or may not be some 12 times ahead of schedules of payment imposed by the present obfuscations.

                            1. IMPLICATIONS FOR INTERNATIONAL CONTRACTS DENOMINATED IN EUROS

                        Obligors will be far better able to fulfill obligations, and will profit far moreso from their participation in transactions. Monies received by creditors (who gave up property for promissory obligations) are the only possible representations of due reward which cannot devaluate.

                        Owing to vast decreases in costs of production imposed by the former falsified indebtedness, likewise the resultant mathematically perfected currency™ will ultimately procure far more wealth.

                            1. EFFECTS ON THE STABILITY OF THE BANKING SYSTEM

                        Banking can only fail of its own obfuscations — in the process, destroying the host society with it. A duty to pave the way for true prosperity therefore can only let banking fail, that a truly free and sustainable economy can ensue, because we can never achieve either economy or monetary justice until we eradicate banking forever.

                        As “banking’s” purposed obfuscation of the currency is the cause of its self-imposed demise; as “banking” is wholly adverse to a prosperous humanity; and as “banking’s” purported purpose of prosperity is served only by the Common Monetary Infrastructure of a mathematically perfected economy™, the inherent instability and ever-unwarranted dispossessions of “banking” are wholly irrelevant and inconsequential.

                              1. WHY PERIPHERAL BANKS FAIL

                        A question may exist, if “a banking system” dispossesses subject people to such monumental extents, how it is possible at all for “banks” to fail.

                        The reason peripheral banks can ostensibly fail, inheres to the architecture of a purported central banking system. In this architecture, the central bank(s) generally produce(s) the further representations of our promissory obligations which the peripheral banks in turn purportedly “borrow,” in turn to purportedly lend mere further representations of our very own promissory obligations into circulation. The peripheral banks which interface with the general public therefore assume obligations which escalate concurrently with the multiplying indebtedness of the general public.

                        Thus when the solubility of the general public is ultimately overstressed by its artificial obligations to service the escalating indebtedness, peripheral banks may fail for a resultant inability to “repay” the central bank(s).

                        Of course then, no real benefit at all is posed by the proposition of saving peripheral banks at the expense of perfecting economy, particularly as after we “save them,” they can only resume their plunge to failure as the obfuscations of banking multiply further escalations of falsified indebtedness upon the people.

                              1. APPROACHES TO TRANSITION
                                1. GLOBAL RESOLUTION OF FALSIFIED DEBT

                          In recognizing that the former unwarranted servitude of interest must be displaced by a universal right to issue unexploited promissory obligations subject to obligatory schedules of payment retiring principal at the rate of consumption of related property, we recognize in turn that against all present sums of falsified indebtedness, prior payments of interest must instead be counted toward principal.

                          As we have said, this immediately and justly resolves most of the world’s purported debt.

                                1. IMPLICATIONS FOR NEGLIGIBLE REMAINING OBLIGATIONS AFTER RIGHTFULLY RESTORING FALSIFIED DEBT TO PROMISSORY OBLIGATIONS

                          As we have shown, remaining obligations will be some 12x ahead of schedules of payment on remaining balances; and when remaining payment resumes (if any) payments will be approximately 1/12 of typical payments under the present obfuscation of our currency.

                                1. BANKRUPTCY AND FORECLOSURE

                          Most bankruptcies and foreclosures will immediately be resolved, with resultant payment duties being reduced some 12-fold, in schedules of payment which consequently will have been met for 12x the duration of servicing respective debts under the present obfuscations.

                          This alone can justly dissipate bankruptcy and foreclosure crises.

                                1. RESULTANT LIQUIDITY

                          Immediate resultant liquidity will be some approximate 12x what it is under the present obfuscation of our currency, with far greater potential prosperity to be realized as soon as we restore former means of production to ourselves. The way to that potential prosperity therefore cannot be better expedited than it can under mathematically perfected economy™, because we have minimized the costs of purported finance, and provided for the necessary availability and disposition.

                                1. IMMEDIATE POTENTIAL FOR FURTHER PROSPERITY

                          Immediate potentials for further prosperity are limited only by available resources and our willingness and capacity to render responsible production.

                                1. INSTITUTIONAL IMPLICATIONS

                            The institutional implications of a transition to mathematically perfected economy™ mean only that true, warranted production can survive; that just production will be rewarded with the like production of others; and that exploitation will fail because it has no place in a truly free and just society which must eradicate exploitation’s opportunities to dispossess us.

                                1. ESSENTIAL POLITICAL PROCESSES

                            No just political process can evade perpetual contribution and assent of the people without opening the way for the very bias which has precipitated in present events. Absolute consensual representation™ therefore is indispensable to the only prospect for enduring resolution.

                                1. CONCLUSIONS
                                  1. THE ULTIMATE QUESTION AT HAND

                              The ultimate question at hand therefore is not even when a better mankind will finally abandon oppression, that a just world can prevail eternally in our past stead; for as surely as humanity is ascendant, a world sustaining not just monetary justice, but all justice, is inevitable.

                              The fundamental causes of a disintegrating European Union therefore are far more important than the purported union itself, for our immediate personal fates beckon dismembering the union if it will itself persist in obstructing our only feasible course to genuine, unimpeded and undiminished prosperity.

                              The ultimate question therefore is not even who will participate in a genuine new world order; for the reality of a world order will neither exclude nor fail to account for any universal concern. The only question remaining, is what kind of grace we will dedicate to these inevitable developments, for only grace will well mark a transition we are prepared to make immediately.

                                  1. IF MEMBER STATES LEAVE THE ECONOMIC AND MONETARY UNION, WHAT IS THE BEST WAY FOR THE ECONOMIC PROCESS TO BE MANAGED TO PROVIDE THE SOUNDEST FOUNDATION FOR THE FUTURE GROWTH AND PROSPERITY OF THE CURRENT MEMBERSHIP?

                              If the economic process adheres faithfully therefore to the indispensable principles of this prescription for transforming such wholly destructive and unjustifiable obfuscations of our currency into mathematically perfected economy™, a virtually costless and immediate transition alleviates any monetary impetus to break up a European Union which deserves to meet its disintegration otherwise.

                              It is not to preserve destructive political unions however that the people will inevitably seek to prove a singular justice which has been denied them by that purported union. Unless the European Union therefore is itself dedicated first and foremost to the guaranteed sanctity and prosperity of the people, then the presumed union is not even worthy of saving.

                              The object of this resolution therefore provides for maximal, natural, just growth and prosperity of the membership, whether it persists in such a union subject to perpetual public assent of the union’s every nuance, or whether it leaves such a union to restore the public assent which is vital to every free, just, and therefore self-determined state. Thus it is not because incontrovertible monetary objects are only some assumably best hope of both member and non-member nations, that we assert a universal right to mathematically perfected economy™. It is because mathematically perfected economy and absolute consensual representation™ together are the only hope of a free and just world, that we can stand for nothing less.

                              All wars, all artificial shortages, all world turmoil, all unnecessary and undeserved disparities in prosperity, and all inevitable revolutions descend from timely failure to recognize justice. Some of us have believed it is a prerogative to negate the only principles which could serve humanity universally. But thus unless and until we develop courts which hear and resolve every injustice regardless of the conspicuous designs of purported laws denying us the most indispensable rights of life, injustice will indeed persist in the matters at hand.

                              It is indeed then the eternal object and potential power of betrayers to deny justice. But in the end, it is the whole of humanity which must determine the only facts and means of monetary justice, for nothing less can even ensure peace descends from just, ever-consensual interaction.

                              Humanity therefore is not merely asking for mathematically perfected economy and absolute consensual representation™.

                              We are declaring both are our only way.

                              mathematically perfected economy™ (MPE™) :  1  :  a singular integral solution of the purposed obfuscations of a closing era of purported banking systems and antithetical economy, in which a conclusive sum of categoric faults comprised altogether of,  a) circulatory inflation and deflation,  b) systemic manipulation of the cost or value of money or property, and  c) inherent, irreversible, and therefore terminal multiplication of falsified indebtedness by interest are solved altogether by our inherent right to issue certified, enforceable, unexploited promissory obligations, subject to an obligatory schedule of payment retiring principal at the rate of consumption of related property;  2  :  every person’s right to issue legitimate, enforceable promissory obligations, free not only from exploitation of natural commitments, but from denial of the natural opportunity to make good on them;  3  :  our inherent right to monetize production as will perpetually sustain desirable industry and trade for no more than equal production.

                              COPYRIGHT 1979 to present by mike montagne, founder of PEOPLE For Mathematically Perfected Economy™ and original (1968) architect of mathematically perfected economy™. ALL RIGHTS ARE RESERVED (except as implicitly agreed by submission to the stipulated rules of this contest).

                              TRADEMARKS: PEOPLE For Mathematically Perfected Economy™; PEOPLE For Perfected Economy™; [COUNTRY/LOCALE] For Mathematically Perfected Economy™; [COUNTRY/LOCALE] For Perfected Economy™; mathematic perfection of economy™; Mathematically Perfected Economy™; perfect economy™; perfected economy™; Mathematically Perfected Currency™; MPE™; VIRTUAL MPE™; PFMPE™; OBFUSCATION OF THE CURRENCY™; OBFUSCATION OF THE PROMISSORY OBLIGATION™; and the various further determinations of cause; development of solution; proof of singular solution; refutations of imitating theses; original explanation of the present obfuscation of the promissory obligation; original explanations and development of the categoric faults of pretended economy and improprieties of its pretended management; names; logos; distinguishably intrinsic terms; and the various slogans of these pages (however lengthy or convoluted), and most particularly, the unique meanings of all these things as are necessarily and distinctly conveyed by this material, are trademarks of mike montagne, founder of PEOPLE For Mathematically Perfected Economy™ and original (1968) architect of mathematically perfected economy™ — all of which are freely and yet restrictively licensed to the official *original* organizations of PEOPLE For Mathematically Perfected Economy™, perfecteconomy.com, and perfectedeconomy.org. ALL FURTHER RIGHTS ARE RESERVED; AND, BEYOND THE ABOVE FURTHER LEGAL INDICIA, *ALL CONTENT*, AS SUCH, SHALL BE RECOGNIZED TO BE MARKED SO BY THE FOLLOWING LEGAL INDICIA, WHICH SHALL BE INSEPARABLE FROM EACH AND EVERY UNIT OF THIS ORIGINAL CONTENT (HOWEVER TRANSLATED) — ALL ORIGINAL EXPRESSIONS, EXPOSURE OF FACT, AND FURTHER CONTENT INCLUSIVE.

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