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.


In fact, if not a derivative ever existed, we would yet be at the brink of monetary failure right now.

mike montagne

Saturday, September 27, 2008


Ellen Hodgson Brown ("Web of Debt") has quite a few questions still to answer as to how the colonial currency she referred to as "the most brilliant banking model in our national history," possibly was even intended to solve inflation — much less that it establishes solution or accounts for the further issues which, only if solved, would rectify a monetary system. Instead, Ellen (and now Ron Paul?) purports there's a plurality of ways far more complicated than mathematically perfected economy™, all of which Simple Simon says fixes the tainted, private Federal Reserve System. Why heck, thanks to all the folks who suddenly understand "economy" so well, we're in fine shape if we just learn "it's the derivatives, stupid." Which of course is the title of her recent article.

"Something extraordinary is going on with these government bailouts," she writes; and as if she has put her finger on that "extraordinary" thing, she quotes "economist" Robert Chapman:

"The point everyone misses," wrote economist Robert Chapman a decade ago, "is that buying derivatives is not investing. It is gambling, insurance and high stakes bookmaking. Derivatives create nothing."

No Ellen, and Mr. Chapman as well, I have news for you: "Investing" isn't "investing," either. Nor (likewise) does it create or produce anything. On the contrary, the very "investing" you yourself miss is all about unearned taking; and so, because it takes from the pool of wealth (production) without like contribution, the only possible consequence of this purported "investing" is that real producers are deprived of just reward for their production.

After all, what is Wall Street itself, but gambling? Is anything produced there?

Except for the case of an IPO, how much of all the money wagered there is ever "invested" in real industry, actual production?

Wall Street in fact therefore is one of our greatest problems, because if the prosperity of "Wall Street" can only come at the expense of real producers, then we should understand that at every moment, the better "Wall Street" "does," the worse free enterprise can possibly fare.

Why rescue Wall Street at all then? (Is the question, Ellen.)

So yet, Ellen complains,

"We the taxpayers are on the hook for the Fed's "enhanced liquidity facilities," meaning the loans it has been making to everyone in sight, bank or non-bank, exercising obscure provisions in the Federal Reserve Act that may or may not say they can do it. What's going on here? Why not let the free market work?"

Well, it's not a free market at all then, Ellen. The so called Federal Reserve System, like Wall Street, is an arena where our potential industry is plundered to death, to the obliteration of any reward to anyone who actually produces anything.

But since when is the Federal Reserve Act itself constitutional?

Why then would a lawyer cite it, or require confirmation from it, that we "may or may not" invoke a public bailout of something which a real "economist" would already understand, can only damage us?

No Ellen, the horse does not trail the cart. In fact, if not a derivative ever existed, we would yet be at the brink of monetary failure right now.

What's more, neither is it "the quality" of the loans, for which we're at the brink of failure.

Au contraire, it's inherent, irreversible multiplication of debt by interest which alone can explain how we have owed far more than we have ever produced; and for which debt can only multiply further, as, just to maintain a vital circulation, we are compelled to re-borrow principal and interest, as subsequent sums of debt, perpetually increased so much as periodic interest.

Purported experts who tell us otherwise therefore ensure we falter further, for it is your very cherry-picking of unqualified solutions which neither you, or Stephen Zarlenga, or Ron Paul, or Edwin Vieira, or G. Edward Griffin, or Jaikaran will debate, which confuse the people from the one thing which will save them: mathematically perfected economy™.

How do you maintain a circulation subject to interest without engendering monetary failure Ellen, where any of that interest is profit and where any of the circulation must be maintained by perpetually re-borrowing principal and interest as a subsequent sum of debt, perpetually increased above the previous sum of debt by so much as periodic interest?

Isn't that even exactly why you have come up with your ridiculous, unfounded explanation, asserting this is how the Pennsylvania Currency worked?

How do you otherwise service debt subject to interest without suffering the present consequences, as the interest and principal we must reborrow to maintain a vital circulation perpetually increases the sum of debt so much as periodic interest?

Did derivatives multiply debt; or did interest?

Do you deny this is what the very so called Federal Reserve System was imposed for? Do all your obfuscations of interest mean to deny that's the very purpose of interest? Do you mean to retain interest, by obfuscating it as taxation in your miserable explanation the Pennsylvania Currency was the most brilliant banking model in our national history?

Since you claim now to account so well for these obvious quantities and processes, where did I go awry in the source code which predicted this failure in 1983 from the very inherent, irreversible process of multiplication of debt by interest?

Franklin himself disputed gold could claim all the things which Mr. Paul simply repeats again and again without qualification. How is it you and Mr. Paul are so opposed to an interest free economy — the only real economy possible?

Why would you reject solution of the observations of Mr. Jefferson, who reportedly said, "If the American People *ever* allow the banks to issue their currency, first by inflation and then by deflation, 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?"

Is this not the process I've outlined, in which we must maintain a vital circulation subject to interest by re-borrowing (re-inflation of) what we pay out of the general circulation (deflation)... is this not an inherently simultaneous process, just as Thomas Jefferson told us?

Moreover, did Thomas Jefferson look to Hamilton's National Bank Bill to find its constitutionality; or did he look not only to the Constitution itself, but to the arguments which established it?

It's really very simple, Ellen: As a privatized (or even public) currency subject to interest forces us (only by denying us any form of currency but an unconstitutional form of currency subject to interest) to any degree and in any instance(s) to maintain a vital circulation by re-borrowing interest, then the sum of debt multiplies at an ever escalating rate of ever greater increments of just so much periodic interest on an ever greater sum of debt, until we collapse under an eventual, terminal sum of debt.

Why are *some* "banks" failing?

Well, you and I would find it impossible to fail, having taken the unauthorizable powers the private Federal Reserve System has taken.

But let's just think just a moment what happens as the so called Federal Reserve System can only multiply debt:

Well now, hugely devious behavior alone could collapse a "federal" "reserve" "bank." But what about all these other banks?

They're just middlemen. They're caught in the squeeze between the privatized currency's publishers and the poor bastards who are forced to service the perpetually multiplying sum of debt. The Federal Reserve prints "the money" for nothing; but after that, though no risk is involved to the so called Federal Reserve Banks, it represents an obligation to the middle-men — the subservient private banks in between.

As the sum of debt multiplies, more and more money has to be loaned back into circulation to replenish it of the deflation Mr. Jefferson has explained to you and Mr. Paul. All the while, ever more of a circulation is dedicated to servicing the escalating sum of debt, while ever less is left to sustain the commerce or industry which is obliged to service the debt. Margins of solubility are impossible to sustain, because the costs of servicing the debt eventually make sustainability impossible.

All the while, these middle institutions are required to produce collateral, and to paint pictures of themselves which falsely depict their own sustainability; for without the false portraits, they can't loan the further money not only necessary for the subjects of involuntary servitude to survive, but for the middle banks themselves to survive by collecting for the central bank.

Well, naturally then, as the impossibility of sustaining the escalating sum of debt draws nigh, they devise lies which obfuscate whether they or their marginalized clients are so worthy to borrow further. They're no longer really worthy. But they lie to tread water. That's what derivatives are, Ellen. They're the lies of the drowning victims, who in fact can only be saved by eradicating interest. Quite obviously, we the People cannot be saved by imposing the cost of the middle "bank's" failures on we, the victims, whose failures already signify our inability even to bear such further burden.

So, telling the people so long after others that this is a Ponzi scheme Ellen just doesn't convey the picture the people need. You have advocated a brilliant banking model, as if a banking model is what we require.

But in fact we need to rid ourselves not only of banking models, but of the very concept that banks or their proponents (such as yourself) have ever justified "interest." The producer is the real creditor Ellen, because it is the producer who accepts the paper, ether, or whatever token of wealth ("money"), on the faith that media is forever redeemable in whatever it is purported to represent.

Your "banking models" just pave the way for an extrinsic, further party to intercede between the creditor and debtor, while the usurping creditor of course will only ever do so for profit — and of course, unearned profit at that.

Of course then, granting them leeway toward unearned profit at all is folly, because maximimal unearned profit then becomes the quest of many, and many more, to whatever degree possible, in what you call a "free market."

As I have shown in the response to you which has yet to receive a credible reply, one and one only monetary prescription at all times preserves the redeemability of the debtor's obligation. Likewise, mathematically perfected economy™ alone makes it possible in all cases to acquire for our production an equal measure of the production of others. Under mathematically perfected economy™, monetary obligations (debts free of interest) are at all times redeemable, both in like production and the remaining value of the very wealth the currency of mathematically perfected economy™ alone represents.

So no Ellen, you're wrong again: It's not the derivatives, stupid, which either symbolize or are the cause of the present deterioration which for your fame's sake we have neglected to now to the brink of collapse. Derivatives in fact preserved the system for yet another false day of artificial sustention, that even authorities such as yourself have that further day yet to realize no, it's the interest, stupid!

It's the interest; it's the interest; it's the interest...




"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.

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