Real leadership means to correctly define the actual problem ??and then ??to correctly prescribe the actual solution.
RON PAUL CORRECTS HIMSELF REGARDING THE CAUSE OF MONETARY FAILURE
Saturday, October 4, 2008, 1:23 PM
In the wake of the meaningless and useless idea our problems have been engendered by “printing money out of thin air,” Ron Paul may evidently be correcting himself.
No fact of course has sustained his long term claim that we have suffered [circulatory] “inflation.” In fact, all the while he has attributed our precipitous decline and devaluation of the dollar to an inflation he has never shown exists or can be such a cause, we have only suffered from severe, perpetual deflation.
We have of course nonetheless, suffered price inflation. Yet the price inflation we suffer therefore can only be caused not by the inexpensiveness of the currency (for crying out loud) or excessive circulation (which doesn’t exist), but instead by inherent multiplication of debt by the nature of the currency: As the costs of servicing perpetually escalated sums of debt erode margins of solubility, of course industry has to increase its prices or move to countries which permit slave labor forces ??both of which are manifestations of inherent multiplication of debt by interest.
Perhaps we can all be encouraged then that in a recent interview with Alex Jones over the proposed bailout, Mr. Paul appears at least hypothetically to agree we need more money in “the economy.”
This of course would contradict his previous claims we suffer an excessive circulation, and that the present malaise is caused by that non-existent excessive circulation. Nonetheless he asserts in his first statement of the above YouTube interview, that if we had more money in circulation we would all be “a lot richer” (more solvent).
He says further that he “would permit the liquidation of debt to continue.”
Now we may ask of course, Why would that be, if it weren’t that some otherwise irreversible cause of escalating debt weren’t our problem? After all, we all recognize our problem is the privatized currency so deceptively called a “Federal Reserve System.” But what is the answer? Leaving “competing” private banks to charge interest for *our* promises to pay *each other* ??interest which will likewise multiply debt into insoluble, terminal sums of debt?
We already have that; and that very thing of course is the engine of the brink of failure under artificial sums of debt.
Thus Mr. Paul’s remarkable turnaround, in potentially acknowledging at least that it is for a lack of sufficient circulation (and an essential dedication of that circulation to servicing debt) that we suffer, could put us far closer to agreement and potential solution, because Mr. Paul and his supporters cannot have it both ways: Either we benefit from a circulation which a)?is sufficient to sustain production and trade of all the wealth we are capable of producing; and b)?is wholly dedicated to that purpose (versus servicing ever more unearned interest, collected by an uninterested, extrinsic party which produces and risks nothing, destroys the integrity of the currency, and ultimately collapses the whole system *by* a form of currency which can only multiply debt in proportion to the circulation); or c)?we somehow benefit from a restricted circulation (which is the very condition from which we are about to suffer collapse).
To answer this question with integrity, Mr. Paul will have to account for the ramifications of interest. Does [any practical implementation of] interest [for the purposes interest is generally imposed] inherently multiply debt in proportion to a vital circulation, eventually to inevitable collapse under terminal sums of debt? Is it even possible to solve inflation and deflation under any form of currency subject to interest?
Mr. Paul has never told us how so. But of course, the latter is impossible because interest requires us to pay out of the circulation, more than was introduced to represent the original value of financed wealth; and the very present accumulation of debt should suffice to compel serious evaluation of the former.
All Mr. Paul has to realize then is that:
Price *or* circulatory inflation and deflation can only be solved by maintaining a circulation which at all times is equal to the remaining value of the wealth it is intended to represent.
It is impossible then to do that if the circulation is subject to interest, because interest requires that we pay more out of the circulation than the remaining value of the wealth we intend to represent.
Only by paying off monetary obligations *equal* to the original value of the financed wealth then, and only by paying off those monetary obligations at the rate of depreciation or consumption, can we do so.
As any conventional implementation of interest (for the sake of unearned profit) can only multiply debt in proportion to a vital circulation (and the costs of all subject industry in proportion to a vital circulation), the only solution of price inflation and inherent multiplication of debt is eradication of interest.
As all other offenses of such a monetary system comprise systemic manipulations of the cost or value of money or property, and as all these offenses manifest only from any possible combination of the first and third offenses, then systemic manipulation of the cost or value of money or property can only be solved by a combination of the first and third aspects of solution.
All this of course comprises the very principles and prescription of mathematically perfected economy?; and this of course is why mathematically perfected economy? is the one integral solution for 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 circulation.
These are the things Mr. Paul should be thinking about. To fall short of this one integral solution is no less than to deny the people of the world should be able to pay for each others’ production with equal measures of their production.
In other words, to fall short of integral solution is to deny us the very opportunity to pay for a $100,000 home with a 100-year lifespan with an equal measure of our own production; or $1,000 per year; or $83.33 per month.
There would be no housing crisis; there would be no banking crisis; there would be no bailout at further taxpayer expense; there would be no bankrupt nation; and there would be no Second Great Depression under mathematically perfected economy?.
- [?NEW?]??IF I WERE PRESIDENT…
- PROBABILITY AND TIMELINE FOR WORLD-WIDE ECONOMIC COLLAPSE AS A CONSEQUENCE OF INTEREST
- [?KEY?]??ABOUT INTEREST, KEY TO THE CYCLE OF USURY: ‘IT’S THE INTEREST, STUPID, IT’S THE INTEREST’
- [?KEY?]??WHY AND HOW PRECIOUS METAL MONETARY STANDARDS [THE GOLD STANDARD] CAN ONLY FAIL. WHAT IS SOUND MONEY?
- [?KEY?]??DOES RISK JUSTIFY SUBJECTING THE FEDERAL RESERVE NOTE TO INTEREST (USURY)?
- WHAT IS USURY?
- WHAT IS FREE ENTERPRISE?
- DETERMINING THE VALUE OF MONEY, PROPERTY, AND PRODUCTION
- [?KEY?]??’MPE? 102′ ??’FIAT CURRENCY.’ WHAT ABOUT IT?
- [?KEY?]??’MPE? 103′ ??HOW MUCH MONEY TO CIRCULATE ‘OUT OF THIN AIR’?
“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)