PEOPLE For  Mathematically Perfected Economy™ (PFMPE™)  :  mathematically perfected economy™ (MPE™) is the singular integral solution to 1) inflation and deflation, 2) systemic manipulation of the cost or value of money or property, and 3) inherent, irreversible multiplication of debt in proportion to a vital circulation, engendering inevitable systemic failure at a finite system lifespan defined by an inevitable, terminal sum of insoluble debt. Mathematically Perfected Economy™ is every prospective debtor's right to issue their promise to pay, free of extrinsic manipulation, adulteration, or exploitation of that promise, or the natural opportunity to make good on it.

MORPHALLAXIS, January 14, 1979.

FATAL FLAW OF AUSTRIAN SCHOOL ECONOMICS — COMPLETE REJECTION OF MATHEMATICS?

Ludwig Von Mises, icon of the Austrian School.

"Austrian economists do not use mathematics in their analyses or theories because they do not think mathematics can capture the complex reality of human action. They believe that as people act, change occurs, and that quantifiable relationships are applicable only when there is no change. [They believe that] Mathematics can capture what has taken place, but can never capture what will take place."

The most important economic problem that people face, according to Austrian economists, is how to coordinate their plans with those of other people. Why, for example, when a person goes to a store to buy an apple, is the apple there to be bought? This meshing of individual plans in a world of uncertainty is, to Austrians, the basic economic problem.

Library of Economics and Liberty

Aldous Huxley

Facts do not cease to exist because they are ignored.

Thomas Jefferson

Both of the following are mathematic analyses:

"The system of banking is a blot [defect] left in [unsolved by, and unfortunately tolerated by] all our Constitutions [state and federal], which if not covered [eventually solved and revoked] will end in their destruction. I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity is but swindling futurity [on the greatest possible scale]."

If the American people ever allow banks to issue their currency, first by inflation and then by deflation [by having to maintain a vital circulation by perpetually re-borrowing principal and interest as subsequent sums of debt, increased perpetually so much as periodic interest], the banks and [bank owned] corporations which will grow up around them will deprive the people of all property, until their children wake homeless on the continent their fathers conquered.

Eugen von Böhm-Bawerk (1851-1914, Austrian School "Economist")

"It has never, I think, been the good fortune of any founder of a scientific system to think out to the very end even the more important ideas that constitute his system. The strength and lifetime of no single man are sufficient for that."

JOHN KENNETH GALBRAITH

The study of money, above all other fields, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.

AYN RAND

Ayn Rand.

"Independence is the recognition of the fact that yours is the responsibility of judgment, and nothing can help you escape it — that no substitute can do your thinking, as no pinch-hitter can live your life — that the vilest form of self-abasement and self-destruction is the subordination of your mind to the mind of another, the acceptance of an authority over your brain, the acceptance of his assertions as facts, his say-so as truth, his edicts as middle-man between your consciousness and your existence."

The spread of evil is the symptom of a vacuum. Whenever evil wins, it is only by default — by the moral failure of those who evade the fact that there can be no compromise on basic principles.

FATAL FLAW OF AUSTRIAN SCHOOL ECONOMICS — COMPLETE REJECTION OF MATHEMATICS?

The Library of Economics and Liberty, Concise Encyclopedia of Economics summarizes "Austrian Economics" thus:

The most important economic problem that people face, according to Austrian economists, is how to coordinate their plans with those of other people. Why, for example, when a person goes to a store to buy an apple, is the apple there to be bought? This meshing of individual plans in a world of uncertainty is, to Austrians, the basic economic problem.

Austrian economists do not use mathematics in their analyses or theories because they do not think mathematics can capture the complex reality of human action. They believe that as people act, change occurs, and that quantifiable relationships are applicable only when there is no change. [They believe that] Mathematics can capture what has taken place, but can never capture what will take place.

Students of bona-fide science are bound to have serious issues with these unqualified Austrian School propositions — and particularly because the school dismisses the very means by which we would determine whether a proposition is even valid or not. The broad dismissal of mathematics is inconsistent at least with the usual interest in tools which lend to the truth.

If the assertion were true for instance, "that as people act, change occurs, and that quantifiable relationships are applicable only when there is no change," the whole science of ballistics would be dismissed, ostensibly because the human element cannot be quantified. Yet ballistics carefully quantifies the whole of involved human factors to determine for given human influences, the very possibility for instance of impacting a vital target diameter.

Science never dismisses science or its tools for the sake of unqualified postulation. Bona-fide science instead takes the potential applicability of mathematics on an issue-by-issue basis, for the usage of mathematics can creatively explore not only the direct objects of concern, but even the limits imposed upon them — as is the explicit case of a purported economic system which can only multiply debt in proportion to the circulation "if" the subjects of the system maintain a vital circulation and if the subjects of the system are compelled to maintain a circulation.

On a fundamental level then, it is preclusive to the whole propriety of the discipline to dismiss the potential application of mathematics, because mathematics both certify and solve the most critical inherent flaw of the examined system. Furthermore, this dismissal fails even to abide by the asserted precept of inapplicability to indeterminate human behavior, because it fails to distinguish what is affected by human behavior and what is not (even if mathematics can account for both cases). The only human behavior involved in producing insoluble debt is the ostensible question whether they maintain a circulation; and the system itself compels them to do so.

ADVOCATING INTEREST

Compounding this error, the Austrian School evidently goes on to actually even advocate interest.

As or if the cited Austrian School work of Eugen von Böhm-Bawerk (1851-1914; see RELATED PRIMARY ARTICLES links below) is representative of Austrian School views, von Böhm-Bawerk carries on extensively to dismiss early arguments against interest as moral dogma which, according to his telling, has never been qualified before or since. In the 4th von Böhm-Bawerk chapter cited, von Böhm-Bawerk appears in fact to promote the idea that interest is beneficial and even a necessary. According to the cited prejudice against mathematics however, he gives no mathematic argument or any other form or qualification for this postulate whatever. In the very form of what he disputes therefore, and in the characteristic manner left to the pseudo-science of Austrian Economics, his propositions denounce prior thinking by mere counter-assertion, without a single formal theorem or proof.

Moreover, von Böhm-Bawerk in fact appears to concede that little further refinement of former thinking is even possible. In his own terms then, like Galbraith he concedes that "economics" (as it has been practiced to contemporary times) is a mere "study," versus bona fide science. In evident admission of the quality of his (and other Austrian) work, von Böhm-Bawerk says, "It has never, I think, been the good fortune of any founder of a scientific system to think out to the very end even the more important ideas that constitute his system. The strength and lifetime of no single man are sufficient for that."

THE TEST OF WHAT WE CAN AND CANNOT CALCULATE OR PROJECT

[They believe that] "Mathematics can capture what has taken place, but can never capture what will take place."

Thus according to the predisposition of Austrian School "Economics," we cannot determine that a purported economic system subject to interest inherently and irreversibly multiplies debt in proportion to a circulation; we cannot determine that such a system inherently engenders terminal insoluble debt; we cannot project the maximum possible lifespan of any purported economy subject to interest; and neither can we solve this unidentifiable problem mathematically, even as solution only requires eradication of interest.

But if the Austrian School "Economist" were correct in this proposition, we would have to return the bank's bill for interest, saying there is no way that mathematics can possibly account for human action. Of course we would be absolutely wrong in that unqualifiable assertion, because to determine the interest for this month is the same simple multiplication which will likewise determine the interest for next month.

As a matter of fact, this is just how the computer models I furnished the Reagan Administration accurately projected the debt we would accumulate to now — in addition to the maximum possible lifespan of any purported economy involving circulation subject to interest.

RELATED EXTERNAL MATERIAL

RELATED PRIMARY ARTICLES

RELATED REFUTATIONS/REVIEWS OF CONTROVERSIAL MONETARY PROPOSITIONS

"To find the players in all the corruption of the world, 'Follow the money.' To find the captains of world corruption, follow the money all the way."

mike montagne — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1979)

While 12,000 homes a day continue to go into foreclosure, mathematically perfected economy™ would re-finance a $100,000 home with a hundred-year lifespan at the overall rate of $1,000 per year or $83.33 per month. Without costing us anything, we would immediately become as much as 12 times as liquid on present revenue. Transitioning to MPE™ would apply all payments already made against existent debt toward principal. Many of us would be debt free. There would be no housing crisis, no credit crisis. Unlimited funding would immediately be available to sustain all the industry we are capable of.

There is no other solution. Regulation can only temper an inherently terminal process.

If you are not promoting mathematically perfected economy™, then you condemn us to monetary failure.

© Copyright 1979-2008 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.Copyright 1979-2008 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.

PEOPLE For Mathematically Perfected Economy™, Mathematically Perfected Economy™, Mathematically Perfected Currency™, MPE™, and PFMPE™ are trademarks of mike montagne and PEOPLE For Mathematically Perfected Economy™, perfecteconomy.com. The trade name, Mathematically Perfected Economy™, may only be used, and may freely be used, only by permission, and only by countries complying with the prescription for Mathematically Perfected Economy™ herein.

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