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.


"Honest money, no lie."


Monday, April 28, 2008


We can sufficiently analyze the disputable claims of Paul and Vieira's so called Honest Money Act from the few paragraphs of material in Ron Paul's announcement at the U.S. House of Representatives site. Paragraphically, the whole of that document is represented below.



leading advocate

Congressman Ron Paul, a leading advocate of sound money policies and an outspoken critic of the Federal Reserve, recently introduced legislation to repeal legal tender laws. The Honest Money Act, HR 2779, would eliminate forced tender laws that compel Americans to accept fiat irredeemable paper-ticket or electronic money as their unit of account.

mike montagne

35-year advocate of singular solution

When the *popular* (versus "leading") advocate of so called sound money is understood by no more than the borrowed idea that "creating money out of thin air" is inflationary, we have serious problems — we aren't even banging on the door of solution, we're passing by the very road to it.

As we have explained so many times, the issue isn't fiat, particularly if the purported money were created out of thin air. The principal issue is that interest is a compulsive process attached to an usurped currency; and the solution to this aspect of our issues therefore is to rescind interest.

Mr. Paul and many others just can't digest that. But what are the real issues? What is money to represent?

What we desire is that money consistently represent value. According to our indoctrination, we simply fail to think that new money to sustain new wealth must come from outside the existing circulation. But all the real laws of economics tell us it must. We can't solve inflation and deflation unless we create and introduce new money with new wealth and retire the money with the consumption of the wealth.

The necessary new money therefore can't be private money already representing earned wealth. It must come from outside the existing circulation.

Even as the present so called Federal Reserve Banks create new money without cost, we further presume quite incorrectly that the new money represents earned wealth, and that the so called Federal Reserve Banks would suffer losses equivalent to the sum of borrowed money if they were not repaid the debt.

But on the contrary, they recoup expenses as soon as the negligible costs of creating the money are paid back in a fraction of the first payment. Many times their costs are taken just in repayment of the principal; and all that is multiplied unnecessarily by interest, while interest multiplies debt in proportion to the circulation, eventually to inevitable collapse.

So if we accept the false principle that the risk of lending free money justifies interest, we commit ourselves not only to an incredible sum of dispossession of the wealth we produce, we commit ourselves to terminal failure.

The issue therefore is interest. It is even the unjustified interest which makes the money irredeemable, because multiplication of debt by interest commits ever more of every dollar to servicing debt, versus sustaining our industry.

So interest takes ever more from us without any justification whatever, until it takes so much we fail.


If we are to understand the problem before us clearly enough to perceive solution, we must understand the ramifications and false justification of interest clearly.

To do so, let us return to our Parable of Perfect Economy. What is the lesson?

In the story, to the betterment of both, two men agree to pay from their future production to each other, in a way which enables industry which could not transpire otherwise. One agrees to deliver feed in return for future production of the other, who raises fowl (chickens). They commit their promises to paper; and the notes (promises to pay) are even then circulated about the community as currency.

Most of us would agree the men have rights to promise each other of their production. No one can be injured from the initial reliance upon the notes but the two, and both of them, by engaging in their business agree to take the related risks.

Likewise, in taking the promises to represent what their face value declares the promises will forever represent (so long as the promise is yet to be fulfilled), the respective communities recognize and accept the related risk when they transfer the promises to others in payment for further commerce.

Finally, the notes are redeemed in the very thing of value they represent, when ultimately the possessor of the note collects upon the note from its issuer, and the note is retired.

There is no injurious inflation or deflation, because the circulation more or less always equals the existent wealth which it represents; and the limitless circulation which can be issued justly is capable of sustaining unlimited industry forever.

These are the natural conditions; and the naturally arising system parallels all the rectitude even of foreseeable commerce.

Suppose however that one day a wee man with a sufficiently large army shows up and declares that none of these promises shall be issued but on his paper, and that the value that the paper is intended to represent must be borrowed at interest?

This is what the so called Federal Reserve did, without even the army.

What is mathematically perfected economy™ instead?

In mathematically perfected economy™, the people together simply issue the notes as the men of the parable do, with joint republican government thus a) ensuring to the citizenry that the notes will be collected from the subject property; b) ensuring that the notes will always be circulated only in such numbers as represent the wealth they are intended to represent (giving the money perpetually consistent value by solving inflation and deflation); and c) ensuring thereby that the purported economy will not suffer ever greater devaluation of the money and eventual, inevitable collapse as a consequence of interest.

Thus mathematically perfected economy™ is the same natural process of the two men of the parable, only with the additional advantage that in effect the value of the notes is certified by application of the necessary prescription for collection.

Mathematically perfected economy™ therefore is the only sustainable prescription for just and true economy. It is the only prescription which solves inflation and deflation, systemic manipulation of the cost or value of money or property, and inherent multiplication of debt by interest.

Thus the only "sound money" Mr. Paul is that of mathematically perfected economy™.


Absent government intervention through legal tender laws, individuals acting through the market decide what they will use as money. Historically, the free market has chosen some combination of gold and silver whenever they were available. As Dr. Edwin Vieira, the nation’s top expert on constitutional money, stated: "A free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that’s being used."


As we have already established, there is no mechanism whatever in a purported free market (arena of predation) either to regulate the circulation or the value thereof; and certainly such a thing, even if it were so, even in terms of existing as such a mechanism (however dysfunctional), breaches the Constitution.

Lacking an understanding that there is one prescription only for regulating a circulation which will continuously represent the value intended of it, Mr. Paul simply proposes to cast the fate of value and all else to a purportedly free market, without even giving us a valid explanation how in the world it is to accomplish what he promises, how it is to be protected from predation, or how it is to deliver what justices we require of a true economy — which consequences are the sole result of mathematically perfected economy™.


When government creates fiat money out of thin air, the purchasing power of existing dollars falls. Fiat money erodes the value of savings, and is especially harmful to those living on fixed incomes. Paul believes centralized planning in monetary affairs is as harmful as centralized planning in economic affairs.


No Mr. Paul, it's multiplication of debt by interest which inherently/systemically drives up the costs of all things and inherently dedicates ever more of every dollar to servicing debt, versus what we intend to use the money for.

What's more, you're proposing to move the place of planning from one private profit-taking arena to another.

It is instead the very absence of *worthy* central planning from which we suffer; and it is only because so many such as yourself continue shout out their unworthy solutions, one yet after another, that we blame this or that without qualification, when all the while we could be discussing the solution you refuse to discuss.

What is more, mathematically perfected economy™ requires no central planning; like the other rights of man, it is a singular, incontrovertible, formula for a self regulating system which sustains economic propriety forever.


"Fiat money is widely accepted only because of legal tender laws," Paul stated. "Throughout the 20th century, the legal tender power enabled politicians to fool the American public into believing the dollar no longer meant a weight of gold or silver. Instead, the government told the people that the dollar now meant a piece of government-issued paper backed up by nothing except the promises of the government to maintain a stable value of currency. Of course, history shows that the word of the government (to protect the value of the dollar) is literally not worth the paper it is printed on."


Tell me something Mr. Paul:

If a man needed to borrow money to buy a house he could readily pay for during his lifetime; and if we ourselves approved of this notion even so much as to consider it our right to do so, would you loan the man new gold or silver at interest; or would you ask the existing circulation, which may very well be stressed to its capacity to sustain industry... would you ask the existing circulation to sustain this further industry, and all further industry, as could only engender effective deflation on the latter hand, or inherent multiplication of debt to collapse on the former?

How then does *your* word of government protect either the value of your precious gold money, or the sanctity and sustainability of our endeavors?

In fact even as the word of the money is made no good in either case, yet in either case of lending, would you not even prefer to lend paper tokens of value, rather than golden ones?

But if we could ensure the tokens could always be collected, or were at all times redeemable (as is the case only in mathematically perfected economy™), what possible value could golden, pearl, platinum, or squash tokens contribute to the integrity of the money?


"While legal tender laws harm ordinary citizens, they work to the advantage of large banks," Paul continued. "Banks have been improperly granted the special privilege of creating fiat irredeemable electronic money out of thin air through fractional reserve lending. According to the Federal Reserve, since 1950 these private companies (banks) have created almost $8 trillion out of nothing. This has been enormously advantageous to them."


The issue is not how much money is issued Mr. Paul; and if you think about it, you'll soon realize that in fact we live under the thumb of a vastly deflated circulation. Would we suffer if money truly represented (only) wealth, and we had much of it?

Of course not. We would simply be wealthy.

But if money represents a dynamically multiplying obligation to service ever greater debt, money instead represents as much as an ever greater grave for the wealth we have been dispossessed of for nothing, and couldn't even bury there if we wanted to.


Repeal of legal tender laws will help restore constitutional government and protect the people’s right to a medium of exchange chosen by the market, thereby protecting their current purchasing power as well as their pensions, savings, and other promises of future payment. Honest money serves the needs of ordinary people; fiat irredeemable paper-ticket electronic money improperly transfers the wealth of society to a small privileged financial elite. Paul’s legislation simply seeks to offer Americans a choice between fiat money and traditional stores like gold and silver.


No, no, no, no, no, Mr. Paul. Now I see where you are going with this.

The Constitution absolutely *does not* declare that "markets" (of all things!) should choose a medium of exchange, especially as neither you or anyone else have ever demonstrated how they can possibly do so.

You haven't even advocated anything which can serve as a consistent medium of exchange. Instead you continue to advocate using a costly finite resource as a purported medium of exchange, while all the while, the restricted circulation of the finite resource will itself engender inflation and deflation, which will perpetually upset the stabile value we intend to have in a currency.

No, no, no, no, no. You are hereby advised that as a citizen of the United States I *absolutely* reserve my right and others' to determine a worthy currency for ourselves; and I hereby further advise you once again that your faulty, unwarranted proposition merely gets in the way of the one solution which will serve us.


A pie in the sky without rhyme or reason.

If this is leadership, and if it is good enough for the American People, then its remarkable impotence is all the American people deserve.

This is a dead horse. It's not going anywhere; nor are the people riding it. Take the revolution, marry it to a solution which *will* accomplish the goals of the people on the other hand, and then you will solve 1) inflation and deflation, 2) systemic manipulation of the cost or value of money or property, and 3) inherent multiplication of debt by interest: refinance existent debts without interest; borrow further currency into circulation without interest; and pay your debts at the rate of consumption or depreciation of the related asset.

That's all you have to do to be out of this mess the very United States Congress has saddled you with.

These are your problems; and no greater example of ineptitude or ulterior motives will ever exist than resistance to the only possible solution by the very people who waited until the very end to cry out for it, then chose something else, or nothing instead.




"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™, 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.

THANK YOU FOR VISITING PEOPLE For Mathematically Perfected Economy™!


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