To deal with climate change we need a new money system

Abolishing interest isn’t a new idea, but it could hold the secret to ending our economies’ environmentally damaging addiction to growth

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When it comes to global warming, we know that the real problem is not just fossil fuels – it is the logic of endless growth that is built into our “economic” system. If we don’t keep the global economy growing by at least 3% per year, it plunges into crisis. That means we have to double the size of the economy every 20 years, just to stay afloat. It doesn’t take much to realise that this imperative for exponential growth makes little sense given the limits of our finite planet.

Rapid climate change is the most obvious symptom of this contradiction, but we’re also seeing it in the form of deforestation, desertification and mass extinction, with species dying at an alarming rate as our consumption of the natural world causes their habitats to collapse. It was unthinkable to say this even 10 years ago, but today, as we become increasingly aware of these crises, it seems all too clear: our “money system” is incompatible with life on this planet.

The question is what to do about it. How can we redesign the global economy to bring it in line with the principles of ecology? The most obvious answer is to stop using GDP to measure economic progress and replace it with a more thoughtful measure – one that accounts for the ecological and social impact of economic activity. Renegade economists like Kate Raworth is making headlines with her Doughnut Economics and is calling for such changes for years and it’s time we listened.

But replacing GDP is only a first step. While it might help refocus economic policies on what really matters, it doesn’t address the main driver of growth: INTEREST. Interest is the reason the economy has to grow in the first place. Because debts are subject to interest, it grows exponentially – so if a person, a business, or a country wants to pay down debt over the long term, they have to grow enough to at least match the growth of their debt. But with or without growth, debt piles up and eventually triggers an economic crisis. No such thing is economy at all!

Debt Jubilee

One way to relieve the pressure for endless growth might be to cancel some of the debt – a kind of debt jubilee. But this would only provide a short-term fix; it wouldn’t get to the real root of the problem: that the global “economic” system runs on “money” that is itself debt subject to interest.

“Money” creation

This might sound a bit odd, but it’s quite simple. When you walk into a bank to take out a loan, you assume that the bank is lending you money it has in reserve – money that it stores somewhere in a vault, for example, collected from other people’s deposits. But that’s not how it works. Banks only hold reserves worth between 5% and 10% of the money they lend out. In other words, banks lend out 10 to 20 times more money than they actually have. This is known as fractional reserve banking.

So where does all that additional money come from? The popular saying is that “banks create it out of thin air” when they make loans – they loan “money” into existence. But that´s a misleading way to describe what really happens. Without becoming to technical, the banking system never ever in the history of banking gave up anything of value in the process of money creation and are not even risking anything.  In contract law, each party has to give up consideration for the contract to be valid, “quid pro quo”. The banking system never has, and never will give up consideration. It is the people giving up consideration with respect to their labour and collateral, such as a house, in the money creation process.  I will leave it here, but legally something is very wrong.

Given the above, this accounts for about 95% of the money circulating in our economy right now. It’s not created by the government, as most people assume: it is created by commercial banks in the form of loans. In other words, every currency that passes through our hands represents somebody’s debt. And the debt has to be paid back with interest. Debt is now comprised of the principal amount + added interest. Only the principal amounts enters our economy. Because our money system is based on debt + INTEREST, it has a growth imperative baked into it. It is mathematically impossible to pay down any prior sum of debt without “borrowing” further. Think about that for a second! In other words, our money system is heating up the planet.

Pseudo solutions

Once we realise this, some people propose as a “solution” that we need banks to keep a bigger fraction of reserves behind the loans they make. This would go a long way toward diminishing the amount of debt sloshing around in our economy, helping reduce the pressure for economic growth. But at the same time, it would diminish the money supply so dramatically that a crisis would be imminent. Those who advocate these sort of measures, including rules and regulations, have no leg to stand on really, because at most it can only temper an inherently terminal system.

Then there’s an even more exciting “solution” some might consider. We could abolish debt-based currency altogether and invent a new money system completely free of intrinsic debt. Instead of letting commercial banks create money by lending it into existence, we could have the state create the money and then spend it into existence. New money would get pumped into the real economy instead of just going straight into financial speculation where it inflates huge asset bubbles that only benefit the mega-rich. But how do we account for inflation and deflation? And is the issue really debt?!

DEBT is not the issue

Debt is simply the tool to retire money from circulation and to keep a balance with whatever that money represents. Borrowing 100k to buy a 100k home, and then pay the 100k back at the rate of depreciation of that house hurts no one, and there is always a balance between remaining debt, the remaining free market value, and the remaining obligation to pay down the debt. There is always enough money in circulation to pay of any prior sum of debt without the need to borrow further, and without the need to grow further. We can clearly identify that the issue is interest, making it mathematically impossible to pay down any sum of debt without the need to borrow/grow further.

 

“Abolishing interest holds the secret to getting our system off its addiction to growth”

 

The faults of the present “money” system

  1. Inflation & Deflation
  2. Systematic manipulation of the cost or value of money or property
  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.

Without making things to complicated, in layman terms;

Inflation: “Money” as we know it today does not holds its purchasing power, an ice cream in 1960 cost perhaps 10 cents, and today we pay 2 euro´s or more for the same ice cream, and it is not because there´s a shortage in ice cream. Somebody, or something, is stealing from us!

Because interest keep draining money from circulation (deflation) the money in circulation is decreasing against the things it should represent resulting in an imbalance which can only be restored temporarily with further “borrowing”, but at the same time the sum of debt keeps going up until we can no longer afford servicing the escalating debt. Simply put, debts keep multiplying, due to interest, until we fail … again.

 

“Every “economy” subject to interest will eventually terminate itself under insoluble debt”

 

Solution

The responsibility for money creation would be placed with an independent agency that – unlike banks – would be non-profit, democratic, accountable, and transparent, so money would become a truly public good. A mere accounting system to keep track of our promissory notes.

This is not a fringe proposal. It has been around since the early 60´s, when Mike Montagne proposed it as a way to solve the previously mentioned faults of the “money“ system.

Mathematically Perfected Economy (MPE), as it was called, made headlines again during the 2008 crisis, when progressive activists put it forward as a strategy for preventing the global financial crisis from recurring. They pointed out that MPE would dramatically reduce both public and private debt and make the world economy sustainable.

What they noticed is that abolishing interest also holds the secret to getting our system off its addiction to growth, and therefore to arresting climate change. As it turns out, reinventing our money system is crucial to our survival in the Anthropocene – at least as important as getting off fossil fuels. And this idea is already beginning to gain traction: worldwide, the campaigning group People for Mathematically Perfected Economy has generated momentum around it, building on a series of excellent explanatory videos.

“Mathematically perfected economy is little more than elimination of interest in lieu of a singular charge, equal to the value of actual financial services rendered.

The currency of mathematically perfected economy is purely a token of value. Rather than being issued by the privilege of private profiteers, it is issued and regulated by mutual consent of the public itself, without profit, that it may be purely a token of value, and that as a token of value, it replicates the natural processes of true free enterprise.

To replicate the processes of true free enterprise, it is only necessary to synchronize payment of debt with rate of consumption, that in trade, every producer receives equal to their production.

Beyond this, mathematically perfected economy is merely to provide adequate circulation, that all possible commerce can be sustained. The quantity of circulation necessary to sustain trade of all production is equal to the production itself. No circulation comes into existence without creation of equivalent production. The value of the circulation is comprised directly of, and without obstruction of procuring, the value of the production it immutably represents.”

The idea has its enemies, of course. If we shift to a Mathematically Perfected Economy, the banking system will no longer have the power to literally make money out of nothing and the rich will no longer reap millions from asset bubbles. Unsurprisingly, neither of these groups would be pleased by this prospect. But if we want to build a fairer, more ecologically sound economy, that’s a battle that we can’t be afraid to fight.

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Prospects and Prescription of Mathematically Perfected Economy

Mathematically perfected economy: Singular prescription for true free enterprise, and full, unimpeded prosperity.

_________________________

“Our lives begin to end, the day we become silent about things that matter.”

Martin Luther King

The whole purpose of representative government is free coexistence, on equal terms. Classes and privilege, particularly where welded to government establishment, are entirely inconsistent with representation intended to render just coexistence. Abuse of power itself is known by degree of obstruction to free and equal coexistence. The more severe the iniquity, the greater the oppression.

When a government imposes a “financial” system upon its people which forces them to pay lifetimes, generation upon generation, for the very homes they produce themselves by a few months’ work; When a government imposes a “financial” system which, by perpetually multiplied financial leverage, is capable alone of installing political representatives perpetually favorable to further maldistribution of wealth and power by that system, to the ever greater detriment of the people; When the ostensible principles of that system are not subject to vigorous public debate and obvious, due repeal; When a government imposes a “financial” system which spreads its oppression to further nations, there too above true accountability to their people; and, When a government conspires with peers in abuse of power across the world, to spread “financial” systems across the world which further multiply unearned and undeserved takings from diverse people by multiplication of debt so severe, the abuse imposes upon the world itself, the brink of collapse under insoluble debt, there is no question abuse of power is great.

The perpetually multiplying accumulation of wealth by usury is manifested largely by the nuance of “interest” being withdrawn from circulation, and, that to retain the vital circulation, interest must be borrowed back as perpetually increases subsequent debt so much as periodic interest. Payments against debt must be re-borrowed as new debt. Payments against interest increase the sum of debt, in proportion to the circulation, or commerce which can be sustained by it.

This ever-multiplied, unearned profit is largely responsible for all further maldistribution of wealth from those who produce it. Consequent debt, diminished credit-worthiness, and ever-more-overwhelming costs of debt service under a circulation characteristically far less than production, further preclude, to a huge degree, the much greater prosperity we are otherwise capable of.

Mathematically perfected economy is little more than elimination of interest in lieu of a singular charge, equal to the value of actual financial services rendered.

The currency of mathematically perfected economy is purely a token of value. Rather than being issued by the privilege of private profiteers, it is issued and regulated by mutual consent of the public itself, without profit, that it may be purely a token of value, and that as a token of value, it replicates the natural processes of true free enterprise.

To replicate the processes of true free enterprise, it is only necessary to synchronize payment of debt with rate of consumption, that in trade, every producer receives equal to their production.

Beyond this, mathematically perfected economy is merely to provide adequate circulation, that all possible commerce can be sustained. The quantity of circulation necessary to sustain trade of all production is equal to the production itself. No circulation comes into existence without creation of equivalent production. The value of the circulation is comprised directly of, and without obstruction of procuring, the value of the production it immutably represents.

How then is prosperity financed so as currency, and the regulation of a circulation, replicate true free enterprise?

In the case of a $100,000 home with a hundred year lifespan, the cost of the home is paid to the producer with a debt assumed by the possessor. The debt is paid off at the rate of consumption — which is $1,000 per year, or $83 per month.

Across all time, and in every case, the system requires debtors pay against their consumption of production, with an equal measure of production, earned by way of an immutable currency available in exactly the quantity necessary to do so. Everyone pays for their consumption with, and only with, an equal measure of production.

Inflation and deflation are impossible, as the circulation is at all times equal to the current value of production. All debt can be paid off with the circulation. All production can be procured and traded without impediment by the circulation. Debt is not multiplied at all by interest.

The cost of new money is only the cost of qualifying credit-worthiness. The money serves as a token of value; and its value is constituted by the very production for which it is issued.

Where all unindebted assets and services may be financed to their full value, every respect of true free enterprise is replicated, with the sole additional cost of maintaining a universal circulation being qualification of credit-worthiness, and accounting for payment.

Society maintains and enforces the system, and assures compliance of debtors 1. There is no risk to, nor reliance upon, any private creditor whatever.

By funding government likewise, here too, all costs of interest are avoided. True government services, rendered for proper costs, cost the people only production equivalent to what they receive of such services. By attaching taxes to consumption directly reflecting consumption of government services 2, tremendous overhead is eliminated. By taxing only for what is rendered, and to whom it is rendered, loopholes to government abuse of taxation are sealed. Taxes such as income tax, capital gains tax, property tax, and inheritance tax are entirely without justification.

Extrinsic cost, perpetual multiplication of all costs, homelessness, unemployment, underemployment, instability, preclusion of prosperity, recession, depression, and insoluble debt — imposed by the usury of the present world’s central banking systems — are unimposed by mathematically perfected economy.

What kind of society should find true free enterprise undesirable is difficult to conceive, as its very pattern is the unimpeded human intention of necessarily fair trade.

 

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 — PEOPLE For Mathematically Perfected Economy

 

 

PEOPLE For Mathematically Perfected Economy

Introduction to Mathematically Perfected Economy

Introduction to Mathematically Perfected Economy

It is not easy to summarize Mathematically Perfected Economy, because it has many ramifications. I tried to keep my answer lean, but it is nearly impossible. So, I ask you beforehand not to be upset by the extensiveness of this message.

MPE is basically a set of proven mathematical principles that identifies and clarifies the true nature of currency, and its life-cycle. It is a long-standing proof (a proven mathematical theorem, rather than simply a theory) of singular solution to the faults of any prospective economy. In the end it is a platform for the restoration of rights, and the rectification of the monetary systems across the world. A complete prescription for the transformation of the current systems of exploitation into a proven just system.

It also categorically refutes any and all other “monetary reform” propositions out there, showing how and why they can only result in economic improprieties and eventually in terminal economic failure. MPE was first introduced in 1968, by Mike Montagne, but it was during the 70’s that he tried to reach politicians, hoping to warn them about the most damaging problems we face because of the absurd way the monetary system is set up. Since, and including Gerald Ford, all American presidents and many candidates received letters with these proofs from Mike.

Our models from 1984 predicted monetary failure around 2010.

The Reagan campaign was the first that responded to him. In 1983/84, the author of MPE created a computer model and provided the Reagan administration with it. This model could project when the terminal failure of the current monetary system would transpire. They understood Mike was right about his premises, however they only wanted to know when the economy would enter the terminal stage of failure, instead of tackling the inherent injustices of this system that can only exploit it’s subjects. The computer model projected, due to the data they provided, that the global terminal failure would transpire approximately 2010.

MPE proves how banks commit the most severe crimes against the people, by laundering all ‘principal’ ever created, into their unwarranted possession, and by then multiplying those initial sums of falsified debt – by way of the unjustifiable imposition of interest/usury –  into terminal sums of insoluble falsified debts.

Here we are, in 2018, and the current system can only be preserved (for the benefit of the few) with what we call ‘artificial sustention’, otherwise known as Quantitative Easening (QE), which is the artificial introduction of huge amounts of liquidity into circulation, attempting to avoid a general collapse of all industries.

Origins of money

They, the banks, are in truth, mere publishers of the evidence of the peoples’ ‘promissory obligations’ to each other. To understand what this means, I think it is necessary to understand the origins of money first:

Since the conception of money, nearly 5 thousand years ago, in the region of Sumeria, the system of credit was introduced to facilitate the exchanges between people, and the vehicle that allowed that to happen, was what we now call ‘promissory obligations’.

Since that time, money comes into existence through promissory notation. But, this fact has been obfuscated and distorted through the centuries. In antiquity, the money used, in commercial arrangements, were clay tablets, made to register obligations between producers. This means that the accounts of so-called economists and historians, who say gold and precious metals were the first “type” of money that men used to substitute for barter, is yet another misconception, generally spread to keep the exploitation and obfuscation in place.

A Promissory Obligation represents the commitment of an issuer of money, to redeem that note with his own production. So, a creditworthy individual, when lacking ‘notes’ to acquire the production of another productive person, issues a promissory obligation and promises to pay with his own labour/production, in equal measures to that which he has acquired.

This is how money used to function in ancient times: a producer of chickens who wanted to increase his production, and needed chicken feed to reach that goal, would approach a producer of grains and issue to him a promissory note, promising to redeem it with so many chickens, in exchange for so many kilos of grains. The grain producer would give him credit and accept the notes of that obligor. That meant that, he, the grain producer, was the creditor, and that piece of paper or clay tablet was money; or the evidence of his entitlement; a token of value; currency.

That note could then circulate, because the creditor could use it to acquire the production of others, who also accepted that type of note, believing as they did, that it would be redeemed for the chickens of the original issuer. Once redeemed, the promissory note was naturally retired, because, and this is crucial, that promise had been fulfilled.

Despite the lies that we have today, fulfilled promises are property of no one. They become naturally null and void upon fulfilment, otherwise there is fraud.

The (terminal) obfuscation of our promissory obligations

The money we have today is still born out of the promissory obligations of the people. When we enter a bank and ask for a ‘loan’ to buy a home, for instance, the sum we purportedly borrow, is created only after we sign the promissory notes, and the banking system then charge us interest, when they never even had that money in the first place. They simply publish secondary representations of the actual issuer’s promissory obligations, claiming prior ownership of the tokens of value, that the true creditor (the constructor of that home in this case) receives. And then, they charge the true issuer of money interest – properly called usury – as if they had actually given up ‘commensurable consideration of value’, or property of their own.

But the fact is, that NO ‘borrowing’, at all takes place in those loan or mortgage ‘agreements’.  Banks simply do not own, so therefore cannot loan, the money that they insist that we must borrow from them, in the form of their purported “loan and mortgages”. No bank ever signs these documents either, further confirming that production of money is an “unilateral commitment to pay”, not a “bilateral contract to pay back”. The work called “Modern Money Mechanics”, produced by the Federal Reserve of Chicago, is an admission of this reality.

It is vital to understand, that the banks do not even create money ‘out of thin air’ as so many “monetary reformists” claim, because it is the PEOPLE who create money, not banks, and it is created out of the PEOPLE’S ability and capacity to produce and redeem that original obligation, even though the further imposition of interest depletes this ability and engenders defaults.

The bank is not the real creditor even, because it is the previous owner or constructor of the related home that is. This is the most monumental crime ever perpetrated against humanity, because all sorts of aberrations, subversion of reality and other crimes or symptoms that the honest people of the world contend with and face, are derived from this original absurdity.

In truth, the banking industry takes no risk at all. Neither do they, ever, lend us any money, at all; neither from their own funds, not from that of their depositors. All money, apart from perhaps the approximately 3% that is coined and printed into existence by government, is created solely by the signatures of the “purported” borrowers.

Even the ‘expansion of the monetary base’, claimed by so-called economists, is completely absurd. It is an attempt to create money, to allegedly pay for government projects through bonds, pieces of paper, which are generally bought by the very same banks that rob the people, at interest anyway. Then, another huge injustice that is carried out, as the people are obliged to work and are taxed to pay for ever escalating sums of artificial debt. But even these bonds are themselves just ‘promissory obligations’, signed, as they are, by those who merely purport to actually ‘represent’ the ‘will of the people’.

MPE

I too had never heard of MPE, prior to 2007. Despite long personal research into monetary reform. But, once I grasped MPE’s basic concepts and mathematical logic, and after diligently studying it, I came to the inevitable conclusion that it was, without doubt, the single solution that we must all unite around and implement, if we are ever to prevail against injustice, and restore monetary rectitude.

To begin with, there are some basic unequivocal principles that no other monetary reform group is correctly identifying and addressing.

  1. WE, as individuals, create money, because money is a representation of our labour and production; and WE are the true creditors, as only WE even can produce and exchange our production for promissory obligations, also known as money.
  2. Money, in its purest form, is simply a ‘representation of entitlement’, enabling us to draw on the ‘overall pool of wealth’. It allows a creditworthy party, or individual, to issue a ‘promise to pay’ for the production that a true creditor (not a bank) gives up.

This is the true nature of money: a Promissory Obligation to pay back to the ‘pool of wealth’ (goods and services), in equal measure, to that which the issuer has taken from it. In other words, it is an obligation to redeem the ‘Promissory Notes’, with an equivalent production to that which was acquired from the actual creditor.

I know that these core principles may at first seem a little complex, but, it is the very fact that the people have handed over and abrogated their responsibility to understand money, that has led to the ‘take over’ of us all by the ruse called banking in the first place.

Mike and the “economic” teacher

At this point, I think it would be important to mention a discussion that took place when Mike Montagne was 16 years old, and he was attending an economics lecture.

Before he got there, he was already considered to have advanced knowledge of mathematics for his age.

His teacher was explaining the widely held theory of monetary inflation, and its alleged effects.

The teacher then used the accepted explanation, still blindly taught by nearly the entire world, that says that: ‘the expansion of the money supply results in the increase of prices of the products’.

But first, the teacher said that ‘all money was created as debt, subject to interest’. After that, Mike had all the necessary data to identify the impossibility of these mainstream erroneous concepts.

Because if all money is created as a debt, subject to interest – and given that inflation and deflation are commonly defined, respectively, as increases or decreases of money in circulation per goods and services (represented wealth) – it is impossible to even suffer from too much money in circulation, per represented wealth.

His first question to his teacher, back in 1968, was:

“If all the money is loaned into circulation as debt, and the debts are subject to interest, and if we cannot borrow more than the value of whatever we are borrowing the money for, it is unclear first of all how it is even possible to suffer what you define to be “inflation.

“In other words, if we can’t borrow $50,000 to buy a $35,000 home or $50 to buy a $20 tire, then how can we possibly ever suffer ‘inflation’?”

And so he unfolded it, unravelling the underlying mechanics of the current monetary system:

“We have an inherently, irreversibly multiplying sum of debt [by interest], which ultimately engenders collapse, and which, all along the irreversible path to that collapse, imposes ever greater costs of servicing ever greater debt. While I can understand that these costs manifest in ever greater prices as industry has to account for their erosion of profit margins, it is also true that ever less of the circulation can be devoted to commerce, as ever more of the circulation is inherently devoted instead, to servicing debt. Eventually, even all of the circulation is devoted to servicing debt.”

MPE’s first steps, back then in 1968, already dismantled the common lies of economy that we still carry out in 2018.

In the subsequent years, Mike developed the theory into a whole, rounded out, theorem; the answers, and solution, to the inherent problems of this model of economy we are all in.

The solution is relatively simple, and it doesn’t take too much effort to comprehend it.

There is only one solution to any mathematic riddle, and in fact, MPE is the only veritable and accountable solution to the monetary aspects of any prospective economy:

1) Inflation and deflation;

2) Systemic manipulation of the cost or value of money or property;

3) Inherently irreversible multiplication of falsified debt by interest.

1)  As inflation and deflation are defined as increases or decreases of money in circulation in relation to the represented wealth, then only a circulation which is perpetually equal to the remaining value of all represented wealth can eradicate both problems.

2)  Systemic manipulation, which is a combination of faults 1 and 3, culminates in dispossession of the unwitting victims, and huge amounts of money and property being unwarrantedly taken from the people, and made available to those who take advantage of the crimes imposed on the rest of us. All this is solved by the combination of the solutions for faults 1 and 3.

3)  The solution for the inevitable escalation of falsified debts to mere publishers of money by interest, is the complete eradication of interest/usury.

THE EQUATION –

MPE will eradicate the potential faults and allow industry to prosper to the full extent it is capable of, by establishing a perpetual 1:1:1 relationship (ratio) between:

– Remaining money in circulation;

– Remaining value of all represented property;

– Remaining obligation to pay just that much for the value of represented property.

Money is to be created, and to enter into circulation, to represent value of property; the representations (money) are to be retired according to the rates of consumption of the related properties; the properties depreciate at the same rate.

THE PRINCIPLE –

Under MPE, we only pay for what we consume, as we consume of the related properties.

Only under MPE will the people have ‘immutable’ tokens of value. In other words, the money earned will have the same purchasing power throughout time. The unit of value will not suffer the unwarranted consequences of inflation or deflation. Therefore, the people will not see their entitlements drained invisibly into the hands of criminals.

It is easy to understand, that under the current system of interest, we have our labour exploited by deftly concealed mechanisms, as the money we earn today cannot buy the same things throughout time. It is a modern equivalent of servitude or slavery, perpetrated against the people.

MPE will accomplish its objectives by restoring the universal right of individuals, to issue their own unexploited promissory obligations to actual creditors, free of extrinsic manipulation, or adulteration. And by adopting the obligatory schedule of payment, to retire (extinguish) the promissory notes from circulation, at the rate of consumption or depreciation of the related properties.

We use the basic example of a home to better explain how MPE will function. Under a rectified economy, a $100.000 home with a rate of consumption or depreciation of 100 years, will cost to the issuer/obligor only $1.000 per year, or $83.33 per month (considering a linear rate).

Expanding on that example, a person who wants to buy that home, monetizes the property through what will be called the Common Monetary Infrastructure (CMI), which will be a transparent body of government, fully controlled by, and fully accountable to the people.

Then, the previous owner/creditor of the home, will be credited in his account, the full principal from the outset ($100 K). And, the issuer/obligor, commits himself to pay for the home at its rate of depreciation.

THERE IS NO USURY UNDER MPE.

Under MPE, instead of paying sufficient to actually buy 2, 3 or 4 houses in order to secure just 1, and even then, being subject to failure and to losing that house in the process (even when it’s been already paid), all due to dispossession, inherent in deflationary circulation as we have to endure today, the creditworthy individuals [certified by simple mathematics] will pay for just 1 house.

In the end, MPE is the equivalent to a ‘monetized barter system’, with the enhancements of a just and accountable credit system added; one which, by its very design, simply cannot inflict any injustice upon society, as it maintains an immutable representation of entitlement which is the only reason for money to exist.

The transition to MPE will count all ‘prior payments’ of interest, instead towards ‘principal’. For example, if someone payed for a home worth $100K, $50K in principal, and $50K in interest, then this person would be deemed to have ‘paid in full’ for the property, and no further payments of funds would be required for that house.

“Absolute Consensual Representation” (ACR) is the other crucial second strand of the work we do in support of Mike Montagne’s work.  ACR is a political reform of the voting system, that allows the MPE transformation to take place. It is a set of principles of representation that prevents corruption and establishes the sovereignty of the people.

The amendments, with the prescriptions for each, can be found at:  https://australia4mpe.wordpress.com/united-peoples-mandate-amendment/

Please, don’t hesitate to ask me any questions. This issue is absolutely vital, it is the single most important set of principles imaginable, and it is a genuine piece of history that is just waiting to be written by those who see it for what it is. Not just for our own benefit, but for the benefit of all future generations to come. The responsibility to put an end to this aged old crime perpetrated against humanity is on us.

 

Deense leerlingen tonen gevaar van Wifi aan met experiment

Mathematically Perfected Currency & Economy

Bron: lexnaturalis

Deense brugklasleerlingen verbazen wetenschappers met hun Wifi experiment

 

De 5 meiden die met hun WiFi-experiment op tuinkerszaadjes de wereldpers haalden.

De 5 meiden uit de brugklas van de Hjallerup School die met hun experiment over de invloed van WiFi-straling op ontkiemende tuinkerszaadjes de wereldpers haalden. (vlnr: Lea Nielsen, Mathilde Nielsen, Signe Nielsen, Sisse Coltau en Rikke Holm.)

Veel internationale wetenschappers zijn verblijd over de duidelijke uitkomsten van het biologie-experiment dat vijf meiden (foto) uit de brugklas van de Hjallerup School in Denemarken hebben uitgevoerd. Hun experiment heeft inmiddels al veel interesse gewekt bij wetenschappers in Engeland, Nederland en Zweden. Deze meiden wilde weten of de straling van WiFi, draadloos internet in huis, effect heeft op de groei en ontwikkeling van planten. Hun experiment bestond eruit dat ze 400 tuinkerszaadjes verdeelden over 12 kweekbakjes. Ze plaatsten 6 van die bakjes in 2 kamers op dezelfde temperatuur. Ze gaven alle bakjes evenveel water en zonlicht gedurende 12 dagen. Maar de helft…

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Prospects and Prescription of Mathematically Perfected Economy

Prospects and Prescription of Mathematically Perfected Economy

Singular prescription for true free enterprise, and full, unimpeded prosperity.

“Our lives begin to end, the day we become silent about things that matter.”

Martin Luther King

The whole purpose of representative government is free coexistence, on equal terms. Classes and privilege, particularly where welded to government establishment, are entirely inconsistent with representation intended to render just coexistence. Abuse of power itself is known by degree of obstruction to free and equal coexistence. The more severe the iniquity, the greater the oppression.

When a government imposes a “financial” system upon its people which forces them to pay lifetimes, generation upon generation, for the very homes they produce themselves by a few months’ work; When a government imposes a “financial” system which, by perpetually multiplied financial leverage, is capable alone of installing political representatives perpetually favorable to further maldistribution of wealth and power by that system, to the ever greater detriment of the people; When the ostensible principles of that system are not subject to vigorous public debate and obvious, due repeal; When a government imposes a “financial” system which spreads its oppression to further nations, there too above true accountability to their people; and, When a government conspires with peers in abuse of power across the world, to spread “financial” systems across the world which further multiply unearned and undeserved takings from diverse people by multiplication of debt so severe, the abuse imposes upon the world itself, the brink of collapse under insoluble debt, there is no question abuse of power is great.

The perpetually multiplying accumulation of wealth by usury is manifested largely by the nuance of “interest” being withdrawn from circulation, and, that to retain the vital circulation, interest must be borrowed back as perpetually increases subsequent debt so much as periodic interest. Payments against debt must be re-borrowed as new debt. Payments against interest increase the sum of debt, in proportion to the circulation, or commerce which can be sustained by it.

This ever-multiplied, unearned profit is largely responsible for all further maldistribution of wealth from those who produce it. Consequent debt, diminished credit-worthiness, and ever-more-overwhelming costs of debt service under a circulation characteristically far less than production, further preclude, to a huge degree, the much greater prosperity we are otherwise capable of.

Mathematically perfected economy is little more than elimination of interest in lieu of a singular charge, equal to the value of actual financial services rendered.

The currency of mathematically perfected economy is purely a token of value. Rather than being issued by the privilege of private profiteers, it is issued and regulated by mutual consent of the public itself, without profit, that it may be purely a token of value, and that as a token of value, it replicates the natural processes of true free enterprise.

To replicate the processes of true free enterprise, it is only necessary to synchronize payment of debt with rate of consumption, that in trade, every producer receives equal to their production.

Beyond this, mathematically perfected economy is merely to provide adequate circulation, that all possible commerce can be sustained. The quantity of circulation necessary to sustain trade of all production is equal to the production itself. No circulation comes into existence without creation of equivalent production. The value of the circulation is comprised directly of, and without obstruction of procuring, the value of the production it immutably represents.

How then is prosperity financed so as currency, and the regulation of a circulation, replicate true free enterprise?

In the case of a $100,000 home with a hundred year lifespan, the cost of the home is paid to the producer with a debt assumed by the possessor. The debt is paid off at the rate of consumption — which is $1,000 per year, or $83,33 per month.

Across all time, and in every case, the system requires debtors pay against their consumption of production, with an equal measure of production, earned by way of an immutable currency available in exactly the quantity necessary to do so. Everyone pays for their consumption with, and only with, an equal measure of production.

Inflation and deflation are impossible, as the circulation is at all times equal to the current value of production. All debt can be paid off with the circulation. All production can be procured and traded without impediment by the circulation. Debt is not multiplied at all by interest.

The cost of new money is only the cost of qualifying credit-worthiness. The money serves as a token of value; and its value is constituted by the very production for which it is issued.

Where all unindebted assets and services may be financed to their full value, every respect of true free enterprise is replicated, with the sole additional cost of maintaining a universal circulation being qualification of credit-worthiness, and accounting for payment.

Society maintains and enforces the system, and assures compliance of debtors 1. There is no risk to, nor reliance upon, any private creditor whatever.

By funding government likewise, here too, all costs of interest are avoided. True government services, rendered for proper costs, cost the people only production equivalent to what they receive of such services. By attaching taxes to consumption directly reflecting consumption of government services 2, tremendous overhead is eliminated. By taxing only for what is rendered, and to whom it is rendered, loopholes to government abuse of taxation are sealed. Taxes such as income tax, capital gains tax, property tax, and inheritance tax are entirely without justification.

Extrinsic cost, perpetual multiplication of all costs, homelessness, unemployment, underemployment, instability, preclusion of prosperity, recession, depression, and insoluble debt — imposed by the usury of the present world’s central banking systems — are unimposed by mathematically perfected economy.

What kind of society should find true free enterprise undesirable is difficult to conceive, as its very pattern is the unimpeded human intention of necessarily fair trade.

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

“If this mischievous financial policy, which has its origin in the American Republic, shall become permanent, then that government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains and the wealth of all countries will go to America. That government must be destroyed or it will destroy every monarchy on the globe.”

Hazard Circular — London Times, exposing the Bank of England’s reasons to establish a central bank here, and referring to the original United States’ resistance to a central bank “economy” — or circulation subject to usury.

“A country voting each for the self determines a subclass few of them will truly belong to, prevailing at the cost of the rest. Even a country voting for the good of all determines a good country only if it votes so well. It is incumbent on the wise to spread word of real solution.”

PLEASE promote mathematically perfected economy by forwarding our newsletters to your address book, and by publishing PFMPE URLs to forums, newsgroups, websites and newsmedia. Where an ostensibly representative government and media serve oppression, everyone not participating effectually in solution is an accessory to the consequences.

PEOPLE For Mathematically Perfected Economy

http://www.perfecteconomy.com/

If I were President, I could arrest monetary failure in less than a day

If I were President, I assert that by exercising the following prescription, I could arrest the present monetary failure in less than a day; and I could establish a perpetual, sustainable solution, or absolute economy, in perhaps less than a month.

You may of course never elect me. But still the purpose of this page is to explain how to do so — how to immediately transform unsustainable systems of usury into mathematically perfected economy™. We have already sufficiently explained why.

This program of course could be implemented by any nation, collection of nations, continent, and so forth. While world leaders can and have stood in the way of mathematically perfected economy™, nonetheless I further assert that mathematically perfected economy™ is inevitable not only for the reasons given already, but those to follow as well.

Obviously, present world conditions call for this resolution loudly; and so, unless mathematically perfected economy™ can indeed be invalidated, those who will neither hear nor heed immediately, therefore condemn the rest of us to the calamity before us.

This proposition is no casual or recent matter of relatively little development or survival of test cases. Its initial form was developed seriously since early 1979, before I provided computer models to the Reagan Administration just a few years later. Those models of course readily tested for interest free cases. Primarily however, they projected not only the otherwise unforeseen federal debt which President Reagan’s two terms eventually accumulated. They further anticipated in 1983 that for expected interest rates and growth, that public and private debt would multiply at rates which would develop terminal sums of U.S. debt, and potential world wide monetary failure. Our projections determined this would occur at approximately 2010 AD.

Essentially then, the designed power of those elementary but potentially exceedingly accurate models, was to calculate the maximum possible lifespan of any purported economy subject to interest. You can still download the models from our pages.

PRIMARY PRINCIPLES

All subjects of contemporary, pretended economies have critical interests in veritable solution; and rightly, only by prevailing understanding can a publicly approved solution ever have emerged.

That we can say there are legitimate representative governments, true representation always seeks and finds not only the ideal, but the due, certifiable approval of their apprised people. Given the critical circumstances, just such a process is to be expected now more than ever.

Because the problems and consequences before us are universal, a model for real solution must solve for the innate, sustainable interests of all. That is, it must solve for the world — not just a country, not just a generation, not just a time, not just a class, not just a disposition.

Effectively then, we can only seek to prosper so much as our contribution to the pool of wealth; and we must seek to prosper only so much, in whatever way cannot and will not deprive others of the opportunity to prosper likewise.

No matter the issues necessarily addressed then, this is the primary object and final test not only of this proposition, but of any prospective/purported solution.

WHAT IS THE CAUSE OF FAILURE WHICH WE MUST MOST URGENTLY ARREST?

As we have said, the critical breaking point of the pretended financial systems of the world is predicated by irreversible, perpetual escalation of artificial sums of debt, which ultimately exceed a finite capacity to service debt. Vast, persistent housing foreclosures, marginalization of industry, and destruction of credit-worthiness are obvious, inevitable consequences of the final stages of this artificial, escalated multiplication.

In the terminal stages of its practical lifespan, such a system requires paying the vastest costs of servicing debt out of circulation. Yet these very same terminal sums of debt finally destroy the last remaining possibility of sufficient credit worthiness to assume further debt. So much as the vital circulation can only be replenished by further borrowing then, the very multiplied indebtedness of the final state makes it impossible to justify “credit” as would maintain a vital circulation. It is at this juncture then that “the economy” suddenly collapses.

To prevent this final, potentially sudden collapse, it is necessary therefore to prevent a final/terminal cycle of deflation.

HOW TO ARREST THIS DEFLATION AND FURTHER DEVELOPMENT OF THE FAILURE IMMEDIATELY

  1. To avert a terminal cycle of deflation, and to arrest further development of the failure by further multiplication of indebtedness, we must immediately suspend all payments against debts subject to interest to “banks” (or “credit”/”lending” institutions), and from all intermediate “banks” to the “central bank.”

    1. To sustain other incidental lenders across a brief period of transition to mathematically perfected economy™, the accounts of small, private creditors (home owners carrying the paper on a sale of their home for instance) would be credited (artificially) with so much as the payments they are accustomed to receiving, without taking these payments from the debtor.

    2. Any other possible conduits of deflation are sealed, including taxation. Federal taxes are suspended and the states are asked or required to suspend state and local taxations.

    3. Accounts of retired persons are credited with advance sustenance as will be completed in later stages of what yet amounts to a more or less immediate recovery (4.g.), not just to pre-collapse conditions, but to a level of prosperity several times that.

    4. Necessary government programs are funded temporarily by new circulation, with the tolerance for this brief measure to sustain necessary government activities being the tremendous present deflation of the circulation.

Effective immediately then, not only would critically marginalized home owners be able to stay in their homes, *all* home owners and all surviving industry would immediately have the entire former costs of servicing debt available instead to sustain necessary commerce. Immediately, industry would not only avoid and survive the imminent failure, but prosper across the transition period to substantial further extents which have otherwise been impossible.

A capacity to sustain unlimited further prosperity is eventually provided by converting the present system to mathematically perfected economy™ — effectively concluding a transition period existing only so long as necessary to set up accounting infrastructures, and to refinance debt under mathematically perfected economy™.

Meanwhile, there is no deflation; no need to borrow further to maintain a vital circulation; and we immediately prosper to whatever further degree we are relieved of servicing the existent sums of artificially multiplied debt.

HOW TO AVOID “CAPITALIZATION” OF (STEALING) THE LIQUIDITY SUDDENLY REALIZED

To avoid theft of the liquidity which would suddenly be realized:

  1. Prices would be frozen. Commodities traders would be eliminated from the chain of purchase. Products would be directly delivered to markets by natural processes of distribution, without unearned taking. Commodities traders would be paid for their existing assets with a separate currency, temporarily at least dedicated to unearned taking. Just settlement of their unearned wealth would be settled later.

Having relieved not only the pressures of escalation, but the whole weight of servicing existent debt, no reason persists for bona fide industry to raise prices; and, granted such substantial further liquidity under existing price states, industry would immediately be free to sustain and generate further employment, while sustaining profit margins substantially beyond what was previously possible — if and only if truly free markets are liberated from predation.

“REPAYMENT” OF ARTIFICIAL DEBTS TO THE CENTRAL BANK(S)

False promise of redeemability.

  1. To resolve all debt to the unassented and unlawful central bank(s), I would scribble onto a piece of paper, “Will pay to the bearer upon demand, infinity.”

    This like irredeemable promise to pay would be offered with a cordial invitation to challenge this resolution of all debt in a fitting court of law (manned of course and accountable to the people), where on behalf of the people we would argue:

    1. that inherently no private entity has any right deprivable from any other private entity or person to issue irredeemable promises to pay (“Federal Reserve Notes”);

    2. that therefore on the one hand, the paper I have submitted satisfies the purported obligations;

    3. or on the other hand, there is no legal basis whatever for the purported debts;

    4. and most of all, that as the implementation of interest inherently multiplies debt in proportion to an obligated circulation, the imposed currency cannot constitute lawful obligations to “repay” debts which ultimately are purposely made insoluble by the very artificial conditions imposed upon the arrangement.

This of course would not resolve whatever assets have been acquired by equally/potentially illegitimate, unlawful means.

For now, like the resolution of assets acquired by commodities traders, I leave it to the people ultimately to determine whether they want to go after these assets, or whether we shall just call termination of all this good enough.

But should these banks or any advocate of the currency they have imposed upon us make any substantial effort from this time forth to obstruct or even discourage us from solution, I recommend instead not only to recover the assets/profits which have been dispossessed from us, but to try all persisting advocates for crimes against humanity — these being explicitly, whatever perpetuation of damages is suffered since these systems were imposed.

RAMIFICATIONS

These measures, necessarily carried out before the onset of fatal deflation, arrest further failure within a day, with the additional liquidity immediately established being capable of sustaining multiples of present industry.

Those who delay implementation of this proposition therefore are responsible for the consequences this measure would avoid — 10,000 homes daily going into foreclosure, vast further dispossession, inevitable further failures of industry, and so forth. As the present arguments sufficiently demonstrate, all of said detrimental consequences can be arrested in less than a day.

ESTABLISHING AN EMERGENCY, TRIAL IMPLEMENTATION OF MATHEMATICALLY PERFECTED ECONOMY™

  1. As soon as possible, to restore and sustain the industry we are capable of, an initial implementation of mathematically perfected economy™ is established under emergency conditions. Once electronic infrastructures are established to maintain the people’s accounts, that initial implementation comprises:

    1. refinancing of all private debt without interest, with schedules of payment being the rate of consumption or depreciation (which are to be understood to be equivalent);

      1. a general, de-escalated formula for depreciation shall be used for the initial implementation. Specialized formulas may be implemented thereafter;

      2. the remaining value of the related property shall be the refinanced sum, as determined by the general formula for depreciation;

    2. any payments so far made beyond the depreciation so far incurred and up to the full remaining value of the property shall be considered accumulated equity, counted against the balance of the remaining debt;

      1. equity in all property as determined by the general formula for depreciation can be financed likewise;

        thus the whole effective circulation is equal to the whole value of related wealth; and the remaining circulation is always equal to and redeemable in the very remaining value of the represented wealth, with this itself eliminating any cause or need for ostensible alternate monetary standards;

    3. debts which have been paid, in principal and interest both, to the extent of the remaining value of the property, shall be considered fulfilled;

    4. further financing for further production shall be made available under the same terms;

    5. private savings are converted into the new currency;

    6. otherwise, MPE™ currency is not interchangeable with the former Federal Reserve Note;

      mathematically perfected economy™ divorces itself from the previous, imposed system;

    7. to restore sustainable conditions with regard to retirement, the accounts of all working-age people are eventually to be credited with a facsimile of what they would have saved and could therefore have lived on should they have benefitted from mathematically perfected economy™ their whole working lives;

      To replace social programs which are unsustainable as a consequence of unfunded near term federal liabilities, a mandatory savings program is implemented in which the private individual takes an interest in preservation of the value of the currency (which is sustained by MPE™), and by which the individual is compelled to save some portion of their income over working years, which they may spend in retirement.

      For example, if for the purposes of calculation, working years are taken as the years 20 through 60, and savings are taken to necessarily account for 20 years thereafter, compulsive savings of 1/3 of income may be enforced across the 40 years to render the same standard of living across the latter 20. The ultimate terms of such a program are to be determined in the final implementation of MPE™ as agreed by the public.

      All people beyond the age of 20 then are to be credited so much, to establish a sustainable condition akin to what would have existed in mathematically perfected economy™ all this while. These savings of course are to serve in lieu of inherently unsustainable “social security.”

Sustainable conditions are thus immediately established; illimitable further prosperity is readily funded; and all this costs us nothing.

Under mathematically perfected economy™ then, a $100,000 home with a hundred year lifespan for instance would be financed at the overall rate of $1,000 per year or $83.33 per month, with the initial/general formula for depreciation dictating higher rates of payment in the initial phases of the debt, and substantially lower payments in the latter phases.

The emergency implementation of mathematically perfected economy™ serves as a proving or trial period, after which the subject populace may determine to retain or reject the proposition, optionally returning to the conditions formerly imposed by the previous system, or electing to adopt any other potential solution.

The time required to implement this trial depends upon development or adaptation of existing hardware and software technology to maintain the necessary accounts. Roughly a month of operation under emergency deflation prevention measures might be required before the necessary infrastructure can be developed/adapted, so that this perpetually sustainable trial phase of mathematically perfected economy™ can begin, for whatever duration the people elect to preserve it.

PERMANENTLY ESTABLISHING MATHEMATICALLY PERFECTED ECONOMY™

  1. Should the public elect to retain mathematically perfected economy™ after the emergency trial, its ultimate implementation is determined in regard to specialized rates of depreciation, scope of financed wealth, and potential relationships with other programs.

    It can be said that no risk is involved, because in all respects, emergency or otherwise, by eliminating the vast costs and destructive consequences of “interest,” these provisions generally engender as much as a dozen times the liquidity possible under the conditions of interest-bearing systems — particularly of course, prior to the present and ensuing phases of failure.

  2. Ostensible “foreign” debt of the people shall be collected from the sellers of the debt in the currency of which the debts were issued.

SUMMARY

No one will ever stand for your liberation from usury so long as you, the people, fail to master the problem and its solution. When, and only when you will settle for nothing but the latter, none of the foes of justifiable economy can afford to stand against you.

It is your obligation then to broadcast this proposition of solution if you so see fit. We have no candidate to serve us. None apparently dare respond; and yet we have a critical election just weeks away. But if each of us immediately sent this proposition of solution to our entire address books, the entire country could be prepared to vote for solution in only days.

Shame on us then, if we can do no better.

This page can be copied and pasted into an email; or the permalink to its online instance may be sent; and/or its zip (compressed) file can be distributed freely; or the link to download the compressed distributable may be sent. The recommended procedure is to send this page copied into a text email, complete with the following permalink to the page. Please see the distribution instructions below for further information. Many articles at the PFMPE™ web site (perfecteconomy.com) answer virtually any further conceivable question or issue.

This of course is a serious appeal. Usury is not only terminal; its perpetuation requires usurpation, and that usurpation largely explains the undesirable world as it is. You will have no representation so long as there is apathy toward privatized currencies, which obviously have been imposed upon us for the very purpose of the multiplication of unearned profit which is responsible for the specter of world wide monetary failure before us.

In the introductory quotes with which I began this page, Ayn Rand tells us that “Whenever destroyers appear among men, they start by destroying money.” I translate this and the rest to mean, “they start by imposing interest to multiply debt upon the circulation, for money free from that multiplication is mankind’s only protection from those men, and so, it is the only possible harbor of unsubverted moral existence.”

At present, while 10,000 homes a day are going into foreclosure, the media those men own suppresses the truth, saying such remarkable, ongoing events — and all the related evidence not just of depression, but of utter world-wide failure — are only fueling “fears” of a severe recession. On the contrary, no distortion could be more conducive itself to engendering failure, because it asks us to remain ignorant of all the things we can no longer afford apathy.

Before putting this matter to rest then, let us consider the opposite, positive case of Rand’s postulate:

When we are ready to deliver ourselves from oppression, necessarily, we will so understand first and foremost that “interest” can only multiply debt upon the obligated circulation, that no just person will refrain for a moment from assimilating the opposing, vital principle.

A succeeding republic of course must meet necessary minimal standards, first for deserving, and then for enforcing representation.

A truly positive people are not deterred from unity and purpose by a handful of usurers and whatever panderers, generations, or classes tie themselves to purse strings at so much cost to all the rest; they are not discouraged by anything from the good and due things people can readily achieve. Especially, they do not settle for less than ideals, when the ideal can be handed to them.