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mathematically perfected economy™ (MPE™)    1  :   the singular integral solution of  1) inflation and deflation,  2) systemic manipulation of the cost or value of money or property, and  3) inherent, artificial multiplication of debt into terminal systemic failure;    2  :  every prospective debtor's right to issue legitimate promises to pay, free of extrinsic manipulation, adulteration, or exploitation of those promises, or the natural opportunity to make good on them;    3  :  our right to certify, to enforce, and to monetize industry and commerce by this one sustaining and truly economic process.

MORPHALLAXIS, January 14, 1979.

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Friday, February 8th, 2008

Are we ready for real solution in this country? Or is our appeal for “change” as hollow as others’?

RON PAUL FOR PRESIDENT.

MY POST TO THE RON PAUL MEETUP FORUMS, APPEALING FOR BONA FIDE ECONOMIC SOLUTION, AND/OR DEBATE

My dire concern for the success of this revival, together with a vision for our success, compels me to point out a fatal flaw in this campaign.

We need to pull a rabbit out of a hat. Not tomorrow. Not the day after that. Not next week.

Today.

This is your rabbit:

Many of you will outright deny we have a fatal flaw. I’ve heard many of you already. That denial is itself one of our greatest obstacles, because it obstructs us from considering the necessary refinement of our efforts. It is the hinge point of our failure, because it precludes a sound, productive debate of what we haven’t done right, and why we haven’t taken in the vast breadth of the voting populace with an overwhelming, wholly convincing and irresistible message.

We don’t have to leave question marks anywhere ? at least none which are our fault. Those who are against this debate want to go on saying that creating “money out of thin air” or that the government’s spending policies are “inflationary” are sufficient explanations to the American People we have not attracted, that this revolution will solve our country’s economic woes.

They may have some appeal to some of us, but they aren’t sufficient explanations; and I’ll tell you straight away how you can prove that to yourself right now:Go door to door and ask each person you encounter what *solution* either assertion suggests to them.

You probably don’t even have to do this to realize what you will find.That’s right; we DO have a fatal flaw; and it is even more than the question of deducible solution, because there are further fatal flaws in material I will address momentarily. But I promise that unless the household is already a member of this movement, your question will be met with blank stares ? the kind which clearly express our fellow Americans haven’t the slightest idea what solution you could possibly suggest from these equivocal assertions.

We can turn this into a good thing, but not if we tarry; and not if we cannot convey an absolute solution.

But do we understand an absolute solution, either?

To answer this question, I present to this proposed debate the proposition that our proposals will *not* solve our country’s economic woes; and I suggest that we broaden the scope of what we are attempting to do, to monetary reform which will solve the woes of the world.

How and why?

Many years ago (1979), I published a mathematic proof 1)that any purported economy involving a currency subject to interest ultimately terminates itself under insoluble debt; and 2)that there is one and one only integral solution to a)inflation and deflation, b)intrinsic (systemic) manipulation of the value or cost of money or property, and c)inherent, irreversible multiplication of debt by interest.

The purported relevance of this set of proofs is that it identifies all the classes of woe imposed by the present, unassented monetary system, and that it solves them not by a prescription which can be adulterated or compromised, but by proof of a singular prescription for mathematically perfected economy.

I present this proposition now, for your candid evaluation.

Many of you will immediately respond skeptically, and rightly so, to anything which purports perfection, mathematics and economy all in the same expression, because most of us realize that what we call modern “economics” is only a pseudo science, wholly bereft of formal proof and theorem.

Most of us too realize that the facades of this pretended discipline all revolve about the intention to take unearned gain from us.

But let us develop a science of economics, that we can evaluate the propositions of what our problems are, and how we may solve them.

2a)If inflation and deflation for instance are defined respectively as increases or decreases in circulation per goods and services, then we solve inflation and deflation both (or mathematically perfect an economy of inflation and deflation) simply by maintaining a circulation which is at all times equal to the remaining value of the related assets. Thus we have mathematically perfected economy in terms of inflation and deflation (2a).

To solve inflation and deflation therefore, we must pay off debts at the rate of consumption or depreciation (which are to be understood to be equivalent) of the related asset. A schedule of payment is obligatory to mathematically perfected economy.

Please note then that the propositions of this movement fail to solve inflation and deflation (as herein [and elsewhere] defined).

2c)According to the proof I published in 1979, any purported economy involving a currency subject to interest ultimately terminates itself under insoluble debt. Thomas Jefferson said something quite close to this, when he asserted that “If the American people ever allow the banks to issue their currency, first by inflation and then by deflation [by introducing a currency subject to interest, by having to pay interest and principal out of the circulation, and then by having to maintain the circulation by re-borrowing the principal and interest as a greater debt, increased so much as periodic interest], the banks and [eventually 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 [had just] conquered.”

So, as I have translated it, Jefferson’s proposition equates to the proof that any purported economy subject to interest ultimately terminates itself under insoluble debt. Merely to maintain a vital circulation, we are forced to re-borrow all that we pay out of the general circulation in the way of principal and interest, as subsequent sums of debt, increased so much as periodic interest. The sum of debt thus escalates by ever greater increments of periodic interest on ever greater sums of debt, until we can no longer afford to service an eventual sum of debt. The purported economy crashes, having inherently and irreversibly multiplied unearned taking upon its subjects, ostensibly justified by the “risk” of losing a currency which cost the central bankers virtually nothing to produce.

Note that the problem however is not that the money is created “out of thin air” as some are saying, but that it inherently and irreversibly multiplies debt and costliness upon us; for what issue is there with money created of any substance whatever, if that money truly represents the wealth it is intended to?

Neither is that costliness a manifestation of “inflation” (an increase in circulation per goods and services); it is singularly a manifestation of irreversible multiplication of debt produced by interest, because the circulation can be static; and production or goods and services can be static; and, so long as there is interest, ever more of the circulation will be consumed in servicing ever multiplying debt.

Some of you may doubt the fatal ramifications of this phenomena.

But recall that in the 1980 presidential debates, the moment most approximating the truth transpired when Ronald Reagan turned to President Carter, looked him in the eye, and pronounced the $150 B of federal debt accumulated under 4 years of the Carter Administration as “unforgivable.”

I wrote the Reagan Campaign then as I am now writing the Paul Campaign. I provided Reagan’s staff with a version of my 1979 proof which showed that unless he adopted mathematically perfected economy, he would suffer far greater multiplication of public and private debt than Carter had. I also provided a mathematic proof that his proposed federal tax cuts would fail. If you remember, he advocated cutting federal taxes 10% per year for three years, saying this would balance the federal budget and cure what he called “inflation.” My proof established that his 10% tax cuts (not being the cost of *all* things) were not even sufficient to *offset* the costs of *all* things increasing *more than* ten percent, much less could they possibly *solve* the cause of his “inflation,” which is inherent, irreversible multiplication of debt in proportion to the circulation.

But this was not all that I provided the Reagan administration.

Certain members of his staff warmly received my work. In due time, on the heels of the proofs I supplied, I provided his staff with computer models capable of calculating the maximum possible lifespan of any purported economy subject to interest, and which accurately projected the very accumulation of debt to this day. These were submitted to David Stockman. Yes, these models even foretold the tripling of national debt under Reagan; and it is quite possible, if not probable, that the material I provided is the principal reason David Stockman ultimately resigned. Not only did I shoot holes in all the *unqualified* things Reagan had advocated; I proved their solution ? a singular solution which was wholly ignored, and which ignorance took our country from its initial status as “the greatest creditor nation” in the world to its lowliest debtor nation. In seven years under Reagan, we accumulated $3 T in federal debt, a parallel multiplication of private debt, and became the most indebted nation in the world, because our privatized currency *can only* multiply debt upon us.

To solve inherent, irreversible multiplication of debt, we must eradicate interest. None of the circulation can be subject to interest. In effect, the people issue their own certified promises to pay (notes) via representative government, which notes are secured by the related asset.

Please note then however that the propositions of this movement fail to solve inherent, irreversible multiplication of debt, because they fail to eradicate interest. And also note, that this is the most destructive and threatening aspect of the present purported economy, because we are on the verge of systemic insoluble debt.

2b)Now that we have solved inflation, deflation, and inherent multiplication of debt in proportion to the original circulation, let us turn to intrinsic (systemic) manipulation of the value or cost of money or property, which is the final class of injustice a purported economy can impose upon the people.

Because the purported economy only has the power to manipulate these things through multiplication of debt, manipulation of the circulation (non-solution of inflation and deflation), manipulation of interest, and perpetual transformation of the proportions of the circulation which must be dedicated to servicing the ever swelling debt, therefore we solve intrinsic (systemic) manipulation of the value or cost of money or property by solving inflation and deflation, and inherent multiplication of debt. The combination of our other two solutions (2a and 2c) thus solves intrinsic manipulation of the value or cost of money or property.

Note furthermore then that because the propositions of this movement solve neither 2a or 2b, neither do the propositions of this movement solve manipulation of the cost or value of money or property.

2d) Furthermore, let us address the prospects of returning to the gold standard.

First of all, no such standard in and of itself has any power to solve inflation and deflation in a circulation capable of sustaining *any desirable* sum of commerce (which may exceed finite monetary reserves). But neither can a alternate monetary standard solve inherent multiplication of debt or manipulation of the value or cost of money or property then, because to do so we must eradicate interest and adhere to a schedule of payment equivalent to the rate of consumption.

Nonetheless, a finite circulation can never sustain desirable commerce exceeding the quantity of monetary reserves; and this is a critical reason every gold or precious metal monetary standard has failed. We may require a greater circulation; and when we do, adherence to a finite standard will obstruct us from doing so.

Furthermore, the only ostensible value of a further dimension of a purported monetary standard is preservation of the value of the currency; and nothing either accomplishes this, but solving intrinsic manipulation of the value or cost of money or property.

Note however that the money of MPE is not created out of thin air, as is so loosely alleged in these quarters. Under mathematically perfected economy, the circulation always equals the remaining value of the related assets. No ostensible extrinsic standard is even necessary then, because the money always equals the remaining value of the hard assets which secure the circulation.

2e)So how does mathematically perfected economy work?

A $100,000 home with a hundred-year lifespan must be paid off at the overall rate of $1,000 per year, or $83 per month.

By gosh, people could actually save enough to pay for their own retirement then, couldn’t they? What “sub-prime mortgage crisis” would we have? who couldn’t afford health care, especially if its costs were not inflated by inherent, irreversible multiplication of debt?

But note that we can only afford to save if the value of money does not depreciate; and that, in maintaining a circulation which is always equal to the remaining value of *all* related assets, only mathematically perfected economy does so.

2f)So how do we convert the present system into mathematically perfected economy?

We refinance all debt with out interest and bind its payment to a schedule equal to its consumption or depreciation; and we restore to the people the best we can approximate of what they would have retained, had they not been subject to the involuntary servitude of the so called Federal Reserve System.

Now I happen to know how “Austrian Economists” feel about mathematics. But I’m willing to take all of you on.

Are we ready for real solution in this country? Or is our appeal for “change” as hollow as others’?

And so I say not only that it is understandable that the households you can visit greet you with blank stares, I say that’s what they should greet you with, especially if you cannot answer a question they should ask: How it is even possible to maintain a circulation without suffering further and fatal multiplication of debt, if Ron Paul does not advocate mathematically perfected economy.

Show me what you’ve got; debate these propositions at the following links.

We can lead the way for the world, if we ourselves will wake up!

RELATED MATERIAL

Tuesday, February 5th, 2008

Great presidents, like a great republic, must recognize sound principles. I’m just trying to save my country.

As a student of Jefferson, and even much moreso as a student of mathematics, I would first like to challenge your re-assertion that, “because, as Ron Paul reminds us often, our knowledge is imperfect, even, for example, if we are that giant of the Revolution, Mr. Jefferson. We are not infallible pontiffs or divine right kings. We are just honest and diligent men.”

In any discipline subject to finite elements and operations, not only can we know all outcome, we can even readily determine (therefore) the scope of possible outcome. The Austrian School however, which Dr. Paul is so fond of, is disposed against all such thinking, because it wholeheartedly rejects the application of mathematics. It assumes wrongly that mathematics must only or can only be applied to *human behavior*. And in many cases where mathematics cannot rightly claim to account for human behavior, indeed Austrian School thinking may be correct in their assumption.

But in alternate cases, where human behavior is not estimated at all, Austrian School zealots still coldly reject math, as if they are adhering to a sacred principle of Mises or Bohm-Bawerk.

Here too, Austrian School economics thus swerves from solution, because it embraces interest and purported “markets” which are means of taking from, and thus impeding, real industry. We can only begin to appreciate these detrimental effects therefore when we evaluate the ramifications of privatizing the currency for the sake of unearned profit, for it is the nature of the currency which predicates the environment which is produced by any currency involving the inherent processes of interest.

RON PAUL FOR PRESIDENT.

Dear Larry,

Congratulations on a generally fine article. While I would like to debate you on a few of its points, even in disagreement I commend your thoughts as excellent starting points.

One of our supporters sent me to your page in response to my own criticism of Ron Paul’s “Comprehensive Economic Revitalization Plan.”

I hope it’s OK if I post the URL for reference, particularly if we are to have a constructive debate. You are certainly welcome to comment on my critique and post a URL back to these pages. (In fact, I suppose I will blog this response in our pages, linking back to your article from moment one.)

[CLICK HERE for my critique of Ron Paul’s “Comprehensive Economic Revitalization Plan.”]

As a student of Jefferson, and even much moreso as a student of mathematics, I would first like to challenge your re-assertion that, “because, as Ron Paul reminds us often, our knowledge is imperfect, even, for example, if we are that giant of the Revolution, Mr. Jefferson. We are not infallible pontiffs or divine right kings. We are just honest and diligent men.”

Yes, we are fallible; but this does not mean that “economics” cannot be resolved into a true, infallible science, quite unlike what we are confronted with today. Jefferson himself postulated about the perfection of economics. There are cases where he all but arrives upon the true form of theorem which present “economics” is wholly bereft of.

In any discipline subject to finite elements and operations, not only can we know all outcome, we can even readily determine (therefore) the scope of possible outcome. The Austrian School however, which Dr. Paul is so fond of, is disposed against all such thinking, because it wholeheartedly rejects the application of mathematics. It assumes wrongly that mathematics must only or can only be applied to *human behavior*. And in many cases where mathematics cannot rightly claim to account for human behavior, indeed Austrian School thinking may be correct in their assumption.

But in alternate cases, where human behavior is not estimated at all, Austrian School zealots still coldly reject math, as if they are adhering to a sacred principle of Mises or Bohm-Bawerk.

A vital example of the latter, and an issue I believe Jefferson was working on, was a fitting analysis not of human behavior, but of the *environment* which a monetary system comprises, to which all human behavior is subject. If a person or persons were to engineer a perfect economic system, this of course is the first issue we must tackle, for what is money to represent to us; and how is it to represent whatever we intend of it?

Most people, and certainly the supporters to now of the Ron Paul Revolution, would desire that money represent a handful of just properties; and certainly Dr. Paul’s initiative seems to pursue these objectives, but on certain other planes it obstructs us from achieving them. Most of us desire for money to retain its value, or vital saving is defeated. Most of us desire that our money not be subject to involuntary servitude, or our commerce will cost more to us: Money therefore must be *only* a medium of exchange; it cannot involve unassented processes; and particularly it cannot involve unassented, unearned profit taking from us.

Here too, Austrian School economics thus swerves from solution, because it embraces interest and purported “markets” which are means of taking from, and thus impeding, real industry. We can only begin to appreciate these detrimental effects therefore when we evaluate the ramifications of privatizing the currency for the sake of unearned profit, for it is the nature of the currency which predicates the environment which is produced by any currency involving the inherent processes of interest.

Thomas Jefferson said, that “If the American people ever allow 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.” It is my presumption that he was thinking what I am about to present regarding the environment a privatized currency comprises. Certainly his observations can only concur with true observations of the present, for his prophetic projection is on the verge of completion.

In any purported economy where the currency is subject to “interest,” it is mathematically impossible/impractical to maintain a circulation without suffering inherent, irreversible multiplication of debt in proportion to the original circulation. This is the most critical issue Dr. Paul fails to address, because it is the issue which ultimately terminates the purported economy. Ultimately the process engenders a sum of debt so great that we can no longer afford to service debt and sustain commerce.

The process is simple. To maintain a circulation, we must perpetually re-borrow whatever we pay against principal and interest obligations. Subsequent sums of debt therefore equal the previous sum of debt plus so much as periodic interest. It is impossible to pay down the sum of debt, because, to maintain the vital circulation, we must re-borrow principal payments as subsequent debts equal to the former. Because we must likewise re-borrow what we pay against interest obligations, thus as we maintain a vital circulation, what we borrow back in the way of servicing interest comprises the increment by which debt increases.

Thus, the sum of debt increases by ever greater increments of greater sums of periodic interest on an ever greater sum of debt. The sum of debt increases by ever escalating increments then, until an eventual sum of debt is so great that we collapse under the weight of it.

In the early 1980s I provided the Reagan Administration with mathematic proofs that his proposed 10% per year, 3-year tax cuts would even offset double-digit inflation, much less solve it; and that he would impose the greatest multiplication of debt so far seen in the history of our country (after denouncing Carter’s $150 B accumulation of federal debt as “unforgivable”). I also provided the Reagan Administration computer models which calculated the future accumulation of debt by said process, and which therefore forecast the maximum possible lifespan of any purported economy involving a currency subject to interest.

The collapse projected from the first years of the Reagan Administration is now upon us.

So this brings me full circle to what is *definitely* wrong with the Paul plan. It shows no engineering at all; and it is a huge mistake for Paul supporters (of whom I am one) to presume it is “good” because of the modest steps in a direction it may purport to take. By the time it gets there (if it ever gets there), further multiplication of debt may already have consumed the “potential” benefits.

I formally proposed solution to these issues in 1979 (morphallaxis) in what we now call mathematically perfected economy™. Mathematically perfected economy™ is the singular integral solution to inflation and deflation, intrinsic (systemic) manipulation of the cost or value of money or property, and inherent, irreversible multiplication of debt by interest.

We have a shot (possibly) of getting the Paul Camp to pursue mathematically perfected economy™. It is a shame we haven’t succeeded in doing so already. But if you want our candidate to succeed, he can only do so with a real solution. As you will see if you visit the furnished URL, we can shoot holes in his plan. If you would like to try to shoot holes in ours, you are welcome to visit our forum and blast away.

[CLICK HERE to debate my critique in the MPE™ Forum.]

But, like you Larry, I present these issues with a positive attitude, hoping that in the very nearest future Ron Paul’s supporters can and will influence him to adopt a truly comprehensive plan.

Great presidents, like a great republic, must recognize sound principles. I’m just trying to save my country.

Regards,

mike montagne — PEOPLE For Mathematically Perfected Economy™

RELATED MATERIAL

Tuesday, February 5th, 2008

The plan absolutely fails to lay the groundwork for long term prosperity, because it fails to address the ramifications of interest.

We are on the verge of economic collapse, and if we do not identify the cause of the collapse and solve it, we may as well start digging our grave.

RON PAUL FOR PRESIDENT.

Critique (red) is inserted within the text of Ron Paul’s four point plan.

RON PAUL’S “COMPREHENSIVE ECONOMIC REVITALIZATION PLAN”:

Introduction

America became the greatest, most prosperous nation in human history through low taxes, constitutionally limited government, personal freedom and a belief in sound money. We need to return to these principles so our economy can thrive again. When enacted, my plan will provide both short-term stimulus and lay the groundwork for long-term prosperity.

mike montagne:

  1. The plan absolutely fails to lay the groundwork for long term prosperity, because it fails to address the ramifications of interest.

    1. Whatever ostensible benefits the plan purports to provide therefore will be consumed by further irreversible multiplication of artificial debt by unearned profit derived from a privatized currency intended for that purpose and created, as Dr. Paul has himself often said, “out of thin air.”

      In other words, because the cost of this privatized currency is virtually nil, nothing whatever justifies imposing the cost of interest. There is no real risk on the part of the private, issuing party (the so called Federal Reserve banks). And yet, even after leading us to believe he would terminate the Federal Reserve System and its collection agency, the IRS, Dr. Paul appears to renege on this seeming promise.

      Worse then, as he evidently intends to retain the privatized currency which has artificially multiplied insoluble debt upon us, he therefore will retain the very process which will continue the very irreversible multiplication of debt which will soon engender failure.

    2. Thus debt will continue to multiply upon us as we attempt to maintain a circulation which is at once vital to our commerce and obligations toward existent debt, while the iniquities of the imposed system continue to force us to maintain that circulation by perpetually re-borrowing whatever we pay against principal and interest obligations as subsequent debts, increased so much as periodic interest.
  2. Neither therefore will the plan avert collapse under insoluble debt, because it fails to restore the sanctity of the currency to the people, where they may be shielded from unauthorized, unlawful, and wholly artificial multiplication of debt by interest.

    1. On this account particularly, the proposition casts grave doubt regarding our candidates’ aptitude for identifying what principles monetary reform will be based upon. There is no engineering; there is no identification of underlying cause; and thus there is not formal development of a solution.
  3. The short term stimuli all come at costs, and are trivial compared to what would be provided by mathematically perfected economy™.

    1. To any critical thinker, a flag must be raised by the proposition that a just “economy” requires “stimulus” for its very survival. Such a fact itself tells us there is something substantially wrong.
    2. The concept of a “stimulus” too therefore is wrong.

      Does a proper “economic” system require stimulus?

      Or is the destruction of our vitality imposed as a fundamental consequence of the process of the system — inherent, irreversible, artificial multiplication of debt in proportion to the circulation?

      We are suffering from an artificial multiplication of debt which is so detrimental and wrong that it not only forces us to pay lifetime after lifetime for our very own production; that artificial multiplication of debt is so wrong and detrimental that it threatens collapse.

      This itself tells us that it is vital to identify and solve the cause of this multiplication of debt — which is interest.

      Only mathematically perfected economy™ does so.

    3. According to the scale of a $100,000 home with a hundred year lifespan, mathematically perfected economy™ lowers the costs of owning the home to $83.33 per month.

      This is approximately a 12:1 reduction in costs which obviously would immediately solve the so-called sub-prime mortgage crisis, and would immediately free up relatively huge amounts of spendable income we already have, it were not for the unearned, unjustified taking of the so called Federal Reserve System.

    4. Thus Paul’s purported incentives are even redundant, because rectifying the injustices of the present imposed system would provide far more substantial advantages to us.
  4. To say that “America became the greatest, most prosperous nation in human history through low taxes, constitutionally limited government, personal freedom and a belief in sound money,” is damagingly irresponsible, because despite the few obvious points it may be correct in, it fails to identify the principal cause of our demise.

    1. In fact however, since the inception of our nation, our history has been embroiled in conflict over attempts to privatize the whole currency, and over the consequences of private currencies.
    2. At the bottom of all of this turmoil is interest. Any rate of interest dispossesses the subjects of the system of ever more of their own production, because any rate of interest multiplies debt in proportion to the original circulation, as we are forced to re-borrow whatever we pay against principal and interest obligations as subsequent debts, increased so much as periodic interest.

      The greater the rate of interest, the faster the multiplication of debt to collapse under insoluble debt. The less the rate of interest, the slower the multiplication of debt to collapse under insoluble debt.

      The question then is what is the proper role of a currency?

      Is the necessary and only useful role of a currency to represent the commerce and production of the people? Or is the proper role of the currency to provide unearned profit to unassented parties — a process which has hardly been justified even by presenting the ostensible arguments to us when that system was imposed upon us.

Other candidates talk a lot about stimulus packages, but my record stands alone. I have fought for these measures for years as a member of Congress and will make them a top priority as president.

mike montagne:

But this proposal is nothing more than a stimulus package, because it fails to address the critical fundamental flaws of the present system — the very flaws which can and will soon impose “economic” collapse upon us as a consequence of further multiplication of debt.

Ron Paul, a 10-term Republican Congressman from Texas’s 14th District, is currently the ranking member of the House Financial Services Committee’s Subcommittee on Domestic and International Monetary Policy, Trade, and Technology. He has been named “Taxpayers’ Best Friend” for 10 consecutive years by the National Taxpayers’ Union. Ron Paul is also the author of several books on monetary policy and economics.

mike montagne:

Until a representative of the people produces bona fide solution, rank and record remain testaments of disservice. I’ve seen the books on monetary policy and economics. None of the material establishes solution for inflation and deflation. None of the material solves the critical issue of inherent, irreversible multiplication of debt. Neither can the material therefore solve intrinsic (systemic) manipulation of the value or cost of money or property, because even if we control interest rates, interest multiplies debt in proportion to a circulation, and devotes ever more of the circulation therefore to servicing debt, versus the commerce and industry of the people.

True free enterprise and this form of so called capitalism are mutually exclusive then. We can have one or the other; but not both. If we choose to let so called capitalists multiply debt upon us by way of a privatized currency, then to ever greater degrees “capitalism” extinguishes free enterprise, until it can exist no more.

This is what we have before us; and this is what we have to solve. The age of central bankers is over; or we are over.

The Four-Point Plan

  1. Tax Reform: Reduce the tax burden and eliminate taxes that punish investment and savings, including job-killing corporate taxes.
  2. Spending Reform: Eliminate wasteful spending. Reduce overseas commitments. Freeze all non-defense, non-entitlement spending at current levels.
  3. Monetary Policy Reform: Expand openness at the Federal Reserve and require the Fed to televise its meetings. Return value to our money.
  4. Regulatory Reform: Repeal Sarbanes/Oxley regulations that push companies to seek capital outside of US markets. Stop restricting community banks from fostering local economic growth.
  1. Tax Reform

    1. Eliminate Taxes on Dividends and Savings. The basis of capitalism is savings, and Americans who do so should be rewarded.

      • Pass HJ Res. 23 to encourage savings over consumption.
    2. Repeal the Death Tax. Attacking small businesses and breaking up family farms smothers growth and kills jobs.

      • Pass H.R. 2734 to make the Bush tax cuts permanent.
    3. Cut Taxes for Working Seniors. Grandmothers and grandfathers working to make ends meet should keep all the fruits of their labor.

      • Pass H.R. 191 to amend the Internal Revenue Code of 1986 to repeal the inclusion in gross income of Social Security benefits.
    4. Eliminate Taxes on Social Security Benefits. That money belongs to seniors, not the government. They paid into the system for a lifetime, and they should be free to spend every penny as they see fit.

      • Pass H.R. 192 to amend the Internal Revenue Code of 1986 to repeal the 1993 increase in taxes on Social Security benefits.
    5. Accelerate Depreciation on Investment. We need to help companies grow and create jobs.

      • Pass H.R. 4995 to amend the Internal Revenue Code of 1986 to reduce corporate marginal income tax rates.
    6. Eliminate Taxes on Capital Gains. Investment should be embraced and rewarded.

      • Pass H.J. Res 23 (The ?Liberty Amendment?), proposing an amendment to the Constitution of the United States relative to abolishing personal income, estate, and gift taxes and prohibiting the United States Government from engaging in business in competition with its citizens.
    7. Eliminate Taxes on Tips.The single parents and working students who earn their income chiefly through tips deserve to keep all of their money. This tax on “estimated income” is unfair and should be ended.

      • Pass H.R. 3664 to amend the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes.
    8. Support the Mortgage Cancellation Relief Act. Working families who lost their homes should not be punished a second time with a big IRS bill.

      • Pass H.R. 1876 to amend the Internal Revenue Code of 1986 to exclude from the gross income of individual taxpayers discharges of indebtedness attributable to certain forgiven residential mortgage obligations.

    mike montagne:

    Mathematically perfected economy™ eliminates all these taxes. Moreover, by refinancing debt, mathematically perfected economy™ dramatically reduces the costs of government by eliminating interest on existent debt (by some accounts, more than 1/3 of present taxes).

    What happened to elimination of the IRS?

  2. Spending Reform

    1. Reduce Overseas Military Commitments. Our bases and troops should be on our soil.

      • It’s time to stop subsidizing our trading partners in Europe, Japan and South Korea.
    2. Freeze Non-Defense, Non-Entitlement Spending at Current Levels

      • I vote against all bloated, pork laden spending bills and will veto them as president.

    mike montagne:

    Mathematically perfected economy™ dramatically reduces the costs of industry and government by eliminating interest on debt — making these propositions trivial.

  3. Monetary Policy Reform

    1. Televise Federal Open Market Committee Meetings. An institution as powerful as the Federal Reserve deserves full public scrutiny.

      • Pass H.R. 2754 to require the Board of Governors of the Federal Reserve System to continue to make available to the public on a weekly basis information on the measure of the M3 monetary aggregate and its components.
    2. Return Value to Our Money. Legalize gold and silver as a competing currency.

      • Level the long-term boom and bust business cycle by passing H.R. 4683, which would repeal provisions of the federal criminal code relating to issuing coins of gold, silver, or other metal for use as current money and making or possessing likenesses of such coins.

    mike montagne:

    Retaining interest ensures further multiplication of debt. What happened to dissolving the so called Federal Reserve System — a wholly unjust system which even President Wilson admitted to have ensured the ruin of the American people? If we dissolve the so called Federal Reserve System and replace it with a proper solution, whatever benefit exists in watching the Open Market Committee?

    Dr. Paul continues to ignore my warnings that honored precious metal monetary standards have no power whatever to sustain circulations exceeding monetary reserves, as is vital to sustaining commerce requiring a circulation exceeding monetary reserves. The unqualified bias toward finite monetary reserves has never been historically demonstrated to succeed; in fact, on the contrary, the often repeated failure of finite monetary reserves to sustain commerce above and beyond the reserves is the very reason every finite monetary standard in history has eventually been given up for a fractional reserve!

    Moreover, further critical faults in this proposition exist:

    1. As far more circulation has been issued than monetary reserves, it is mathematically impossible to restore the gold standard or any facsimile thereof, without multiplying the ostensible value of gold, not just at the outset of the proposed non-solution, but continually, throughout time. Who then would want to possess currency, when currency must perpetually be devalued to perpetuate a false standard which not only cannot preserve the value of currency, but in fact must continually debase the value of currency?

      As a friend observed, “eventually a house would be worth a speck of gold dust.” Immediately thereafter, it would be “worth” a fraction of that.

    2. Moreover, if we were to redeem the present currency in the monetary standard, we would immediately find our reserves vanished, for no one would hold a soon-to-be-discovered instrument of failure embodied in worthless paper, when instead they could possess precious metal.
    3. Present evidence exists that our monetary reserves may already have been criminally “leveraged” by the so called Federal Reserve. These reserves may not even exist in any form which make them available to the people.
    4. Retaining interest empowers the issuer of the privatized currency to take over all monetary reserves.
    5. The gold standard, or any facsimile thereof, has no power whatever to solve perpetual, irreversible multiplication of debt — the process which itself engenders collapse.
    6. Only mathematically perfected economy™ solves and accounts for all these issues.
  4. Regulatory Reform

    1. Repeal Sarbanes/Oxley. It has seriously wounded our capital markets and helped make the UK a financial center at our expense.

      • Ending these misguided regulations would bring jobs flooding back to the United States.
      • Pass H.R. 1049 to reform Sarbanes-Oxley and reduce the burden it places on small businesses.
    2. Repeal or Remove Costly and Unnecessary Federal Regulations. Neighbors know best how to help their neighbors.

      • We need to make it easier for community banks, credit unions, and other financial institutions to better serve their communities and to help people in these communities get access to credit and capital.
      • Pass H.R. 1869 to enhance the ability of community banks to foster economic growth and serve their communities, boost small businesses, increase individual savings, and for other purposes.

    mike montagne:

    Nothing here comes close to mathematically perfected economy™ in terms of potential to create jobs or fund new industry. Just refinancing real property under mathematically perfected economy™ would itself free up perhaps 10x as much spendable income to devote to further prosperity. But to make further funding available to industry under mathematically perfected economy™ is at once to make funding possible and to make the efficiency of the funding and the industrial advantage of the American people far greater than the possible reach of these trivial propositions.

mike montagne:

SUMMARY

I have no idea who wrote this proposition on behalf of Dr. Paul. But I feel betrayed by it.

Even if, at the cost of potentially lengthy, arduous, and dubious arguments, it succeeded in some relief (which it calls “stimulus”), that may be far too little and far too late, especially as further multiplication of debt by interest will not only consume those purported benefits, but ensure ultimate collapse.

We are on the verge of economic collapse, and if we do not identify the cause of the collapse and solve it, we may as well start digging our grave.

Mathematically Perfected Economy™ alone solves these and the further issues which plague us. Ron Paul supporters must recognize solution if we are not to pave the way for further inept failure; and Ron Paul must recognize solution, if he is to demonstrate the kind of leadership which can truly save the country.

Enough of this hollow, impotent rhetoric. Let us debate this issue to the bare truth of the matter.

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Monday, February 4th, 2008

I am disappointed that we cannot immediately do more, for there isn’t a candidate who can explain how it is possible to maintain a circulation without suffering multiplication of debt until we collapse under artificial, insoluble debt. Ron Paul could have established the greatest possible credibility, he could have distinguished himself as the only credible candidate, if he could already have presented this argument.

Those who have been following my work over the last 30 years know that I have been trying to get Ron Paul’s campaign to evaluate the prospects of mathematically perfected economy?. On December 27, 2007 I sent the following email, to which I have finally received a response which will follow below:

On Dec 27, 2007 6:39 PM, mike montagne wrote:

Subject: Mathematically Perfected Economy

I believe we have the issue resolution which can seal Ron Paul’s assent to the White House.

In 1979 I published a mathematic proof that:

  1. Any purported economy involving a currency subject to interest ultimately terminates itself under insoluble debt;
  2. That there is a singular integral solution to:

    1. inflation and deflation;
    2. intrinsic manipulation of the value of money or property; and
    3. inherent, irreversible multiplication of debt in proportion to a circulation.

I provided the Reagan Administration computer models capable of calculating the maximum possible lifespan of any purported economy subject to interest, and which projected the private and public debt he would accumulate in two terms. I am probably the reason that David Stockman resigned.

Thirty years later, we are calling the latter proof Mathematically Perfected Economy. Much of our essential material is online at perfecteconomy.com.

The arguments of MPE have never been defeated, and, should Ron Paul recognize the merits of these arguments in the purposes of his campaign, the arguments of MPE would demonstrate that our foes in this election cannot possibly serve the American people.

I therefore invite you to contact me at your earliest convenience.

mike montagne

[personal contact information omitted]

At 2/2/2008 7:31 PM, I received the following response:

Dear Mike,

You provide interesting material for evaluation. Please promote your analysis on the internet and we will follow it with great interest.

Sincerely,

ronpaul2008 PCC

While many of us may be disappointed at such little commitment or recognition, and while at the same time our political representatives’ adversity to mathematic solution is an amazing form of ineptitude or corruption to behold, this marks the first time ever that a presidential candidate or president has even indirectly responded to the propositions of mathematically perfected economy? (except perhaps for Ronald Reagan, who did eventually thank me for the ideas he failed to implement toward the objectives he professed to share). It’s so ironic that the campaign personnel of other candidates such as Jerry Brown for instance, have so enthusiastically received the idea of mathematically perfected economy?, while candidate or president after candidate or president has simply evaded the proposition. Where would our country be now, if we hadn’t chased all our industry away over the past 35 years? What “sub-prime mortgage crisis” would we have, if $100,000 homes cost us $83.33 a month?

None of us can read into this that Ron Paul will advocate mathematically perfected economy?, and I regret very much that the arguments of mathematically perfected economy? therefore cannot come into play as would/could carry this candidate to the White House. Our youngest generations particularly will suffer most. But we all stand to lose perhaps so much as everything, when the present pretended economy fails under artificial, insoluble debt.

Just the same, we must dedicate ourselves to making this the most positive opportunity possible. I am therefore replying to the Paul Camp as follows:

I am disappointed that we cannot immediately do more, for there isn’t a candidate who can explain how it is possible to maintain a circulation without suffering multiplication of debt until we collapse under artificial, insoluble debt. Ron Paul could have established the greatest possible credibility, he could have distinguished himself as the only credible candidate, if he could already have presented this argument.

Our purported economy is not collapsing for ineptitude. It is collapsing because the *intended* mechanism for stealing from the American people is irreversible. Therein lays the only opportunity to serve us, because there *is* but one solution to inflation and deflation: only by maintaining a circulation which is at all times equal to the remaining value of related assets do we solve inflation and deflation. Likewise, only by eradicating interest do we solve artificial multiplication of debt. Only mathematically perfected economy? accomplishes these objectives.

I believe in this campaign. I believe it will probably be America’s last chance. Certainly, we will only survive the next 4 years intact, and as a vestige of representation, by the grace of God otherwise.

I believe I can help this campaign as can no other. I am very disappointed I cannot yet do that; but please trust that I will do all that I can in the meanwhile, and that I will at all times remain ready to serve you with all that I have, if Ron Paul can be persuaded to establish mathematically perfected economy? on behalf of the American People.

Please therefore do follow my further efforts.

Warm regards,

mike

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Monday, February 4th, 2008

Unbeknownst to most Americans, a privatized currency has been imposed upon us which can only multiply debt in proportion to the original circulation. The so-called sub-prime mortgage crisis is but a symptom of this fundamental irregularity of our so-called economic system.

I provided the Reagan Administration computer models which calculate this artificial multiplication of debt and eventual collapse under an artificial sum of debt. Those models projected then, in the early 1980s, that we would suffer the projected economic collapse in the next few years.

I have proposed for 35 years that there is one and one only solution to inflation, deflation, intrinsic (systemic) manipulation of the value or cost of money or property, and inherent, irreversible multiplication of debt in proportion to the circulation. Your husband, when he ran for president, and as president, received this proposition. In return, I merely received 8 Christmas cards from the Clinton family.

Would you, as a candidate and as president, be willing to take a serious look at mathematically perfected economy™, especially as it proposes not only to be the singular formula for avoiding the so called economic collapse ahead of us, but furthermore as it proposes to be the singular prescription for achieving true free enterprise, and full prosperity?

On the other hand, if you are willing to engage in the prospect of mathematically perfected economy™, may I offer you all the help I can provide in establishing solution on behalf of the American people?

Thomas Jefferson said, “If the American people ever allow 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.”

Similarly, Woodrow Wilson, a Democrat, admitted to betraying the American people by passing the so called Federal Reserve Act.

Unbeknownst to most Americans, a privatized currency has been imposed upon us which can only multiply debt in proportion to the original circulation. The so-called sub-prime mortgage crisis is but a symptom of this fundamental irregularity of our so-called economic system.

In order to maintain a circulation subject to this unassented process of perpetually multiplied profit, it is necessary for us to re-borrow whatever we pay against principal and interest obligations as subsequent sums of debt, increased so much as periodic interest. The sum of debt thus inherently and irreversibly increases in proportion to the circulation, until the costs of servicing debt exceed our capacity to service illimitable debt. Thus every such system engenders collapse at a finite maximum possible lifespan.

I provided the Reagan Administration computer models which calculate this artificial multiplication of debt and eventual collapse under an artificial sum of debt. Those models projected then, in the early 1980s, that we would suffer the projected economic collapse in the next few years.

I have proposed for 35 years that there is one and one only solution to inflation, deflation, intrinsic (systemic) manipulation of the value or cost of money or property, and inherent, irreversible multiplication of debt in proportion to the circulation. Your husband, when he ran for president, and as president, received this proposition. In return, I merely received 8 Christmas cards from the Clinton family.

Would you, as a candidate and as president, be willing to take a serious look at mathematically perfected economy™, especially as it proposes not only to be the singular formula for avoiding the so called economic collapse ahead of us, but furthermore as it proposes to be the singular prescription for achieving true free enterprise, and full prosperity?

For example, if our artificial debts were re-financed under mathematically perfected economy™, a person would pay $1,000 per year or $83.33 per month for a $100,000 home with a hundred-year lifespan. What current threat to our prosperity therefore would exist under mathematically perfected economy™?

Would you, as a candidate and as president, be willing to offer a full account of whatever reasons you might reject mathematically perfected economy™?

Would you, as a candidate and as president, be willing to debate mathematically perfected economy™ in any forum of your choosing?

On the other hand, if you are willing to engage in the prospect of mathematically perfected economy™, may I offer you all the help I can provide in establishing solution on behalf of the American people?

mike montagne

PEOPLE For Mathematically Perfected Economy™

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Sunday, February 3rd, 2008

Thus once again we can see that resolving the obligatory issues is not a matter of appealing to emotions, or political niceties or reserve. Resolution is certainly not a matter of leaving the door open to further unearned taking from us. Unless we engineer a solution which accounts for all the matters at hand, we will not succeed; and most of all then, unless we truly rectify the uneconomic system… in the end we cannot succeed at all.

CLINTON

Hillary Clinton wants health care insurance to be mandatory. There’s all the difference in the world between a voluntary program and a compulsive one. In the latter case, all the lip service in the world can be given to controlling costs, but the fact the program is compulsive makes its subjects captives of those who may capitalize on the delegated authority to administrate what still amounts to a government mandated system. Every such unrestrained opportunity therefore is leverage to impose runaway corruption. Note how little attention is given to controlling costs, eliminating and punishing corruption, and even defining the scope of acceptable profits.

In my opinion, no authority exists under the Constitution to impose a profit-making program on the people, as in every case, the consequence is involuntary servitude.

In my opinion then, the only program that government can offer the people is a non-profit, cooperative, opt-in program to pay for health expenses; while at the same time, there remains the strictest obligation to rid the end product of all corruption or redundant costs.

No such program can exist unless it is openly monitored by the people and responsible at all times to the people. Rather than making whatever costs compulsive, it should be utterly compulsive that the administration be driven to the highest extremes of efficiency and cost effectiveness. The onus of effectiveness must always rest on the government, where the opportunity to abuse the power exists.

The Clinton program therefore is the usual bait of the global elitists. In the guise of providing, it is instead an obligation toward uncontrolled and already unaffordable expenses. It represents a channel for enrichment, which in turn reinforces the abuse of power by which it exists in the first place.

OBAMA

Given that costs can and will be reduced, the Obama program, like the Clinton program, can succeed to a limited degree temporarily. The reason it can succeed only to a limited degree, and the reason that limited success can endure only temporarily is the perpetual multiplication of indebtedness by the privatized currency.

COSTS ENGENDERED BY THE PRIVATIZED CURRENCY

The reason either of these propositions can work only to a very limited degree is the very substantial artificial proportion of involved costs which have been engendered by the nature of the currency. The costs of education for medical personnel, hospitals, supplies, drugs, and research have been multiplied over and over again just as the costs of our homes have. Truly, substantial corruption multiplies artificial costs; but the nature of the currency, being the financial facilitator, has multiplied the ultimate costs not only of the corruption, but of all the inherent costs as well.

Thus without rectifying the economy by refinancing all debt under mathematically perfected economy, these propositions can only succeed to a quite modest degree. Moreover, they will only succeed to that relatively minute potential degree if they can eradicate all unearned profit; and to my estimation, the very presentation of the propositions is particularly weak in expressing this vital dedication.

EFFECT OF THE PRIVATIZED CURRENCY ON OUR ABILITY TO AFFORD ANY GIVEN COSTS

IF either plan in fact does succeed in eradicating all unearned profit due to corruption, its very limited potential success remains subject to the ongoing multiplication of unearned profit attributable to the nature of the currency. After all, it is predominantly the nature of the currency which has artificially multiplied these costs beyond our ability to afford them. If there were no further corruption or unearned profit at all, perpetual multiplication of debt and resultant cost by interest would still have engendered our disadvantaged position: We cannot afford our own production, simply because the uneconomic system perpetually multiplies the costs of our production to us.

Thus, even if either the Clinton or Obama plans succeed to the minute degree that is possible for either of them, the nature of the currency, further multiplying debt upon us, will make it impossible to afford the hopefully, temporarily reduced costs of either proposition. Because the mechanism for taking unearned profit multiplies debt at an ever escalating rate, the failure of either program will ensue sooner, rather than later.

Thus once again we can see that resolving the obligatory issues is not a matter of appealing to emotions, or political niceties or reserve. Resolution is certainly not a matter of leaving the door open to further unearned taking from us. Unless we engineer a solution which accounts for all the matters at hand, we will not succeed; and most of all then, unless we truly rectify the uneconomic system… in the end we cannot succeed at all.

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Saturday, February 2nd, 2008

… and after the California Debate, where Paul was given disproportionately few minutes and Romney shot himself in the foot… yet another poll disappears after finding Ron Paul the actual winner.

While the mainstream media disinforms us that Ron Paul doesn’t have a chance to score major victories in states such as California, regular citizens report since the beginning of the campaign there have been Paul signs everywhere… and after the California Debate, where Paul was given disproportionately few minutes and Romney shot himself in the foot… yet another poll disappears after finding Ron Paul the actual winner.

This is criminal disinformation… and a criminal, conspiratorial attempt to throw the election.

RON PAUL FOR PRESIDENT.

Thanks to Mario Sikorski, who took this picture at 4:23 AM on January 31, 2008.

Friday, February 1st, 2008

My question for this evening is, “If it is impossible to maintain a circulation without further multiplication of debt in proportion to our means, then what candidate can possibly avert [un-]economic collapse as a consequence of exceeding debt, unless that candidate will advocate an economic system from which interest is eradicated?

Dear Bill,

The prevalent majority of our country’s founders adamantly warned us of the consequences of a privatized currency. Today, both the public and private sectors of the so called economy are arguably, technically bankrupt, or at least on the verge of bankruptcy. At the same time it can be shown that it is impossible even to maintain a circulation without suffering further multiplication of debt in proportion to our means, because to maintain a circulation, we must perpetually re-borrow what we pay toward interest and principal, as subsequent sums of debt, increased so much as periodic interest.

All of the candidates are giving lip service to the idea that the purported economy is not “working.” We know this. But we also know that we will never engineer an economy that “works” unless we address the underlying fundamentals.

What I am hoping on behalf of all of us, is that you will entertain the idea of providing a forum for the vital discussion of those fundamentals.

My question for this evening is, “If it is impossible to maintain a circulation without further multiplication of debt in proportion to our means, then what candidate can possibly avert [un-]economic collapse as a consequence of exceeding debt, unless that candidate will advocate an economic system from which interest is eradicated?”

Just something to think about, as our country verges on collapse under insoluble sums of debt…

mike montagne — PEOPLE For Mathematically Perfected Economy™

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mike montagne — PEOPLE For Mathematically Perfected Economy™.

"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™

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 1979-2009 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.COPYRIGHT 1979-2009 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED. TRADEMARKS: 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. ALL RIGHTS RESERVED.

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