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

Thomas Jefferson


This article responds this morning to the December 26 OpEd News piece, “Regulating the Economy,” by Ludwik Kowalski, advocating regulation as a modernization of economy, and as a path beyond impending monetary failure:



[Responding to the author…]

Part of your self-admitted ignorance stems from your ignorance ??that is, that a prescription for mathematically perfected economy? and for transitioning to mathematically perfected economy? immediately and without cost, has existed for 30 years.

The problems you only hope to solve are so stupefyingly simple, it’s amazing anyone would read into all this evasion of solution but a few sentences. Why?

What can the imposed, purported economies of the world do?

They only have the fundamental powers to “regulate” (as you say) the volume of circulation, and what the circulation costs us. It’s incredible enough then that there are advocates of these systems amongst the subjects of the systems (versus the exploiters); but it is even more incredible that the advocates and principals of these systems actually assert (versus qualify) that the costs of the imposed systems benefit us!

I leave it to you to argue so if you like ??which will simplify my job in answering to the limitless dogma we might answer to. Our web pages answer by class or category, so we may just reply with a link or two. But your assertion that a modern economy must be regulated is the whole disproof of your pudding.


As the imposed systems can only regulate the volume of circulation, and whatever subsets of that volume will cost us (owing to interest at any given time), there are only two problems to solve:

  1. inflation/deflation; and

  2. whatever ramifications there are of interest.

It happens that potential combinations of these two irregularities also manifest in a categoric fault of:

  1. systemic manipulation of the cost or value of money or property.

While this may be considered a distinct class from the first and third categories, owing to its distinct cases of combination, nonetheless, as I introduce it to you, it is still the combination of the original fundamental powers (volume and cost) to engender irregularity by what you assert is a need to regulate.

*IF* however, there is a need to “regulate” these potentials as you assert, there is a target or goal of the regulation. That is, if “regulation” is to achieve an intended effect/goal, we have to define not only that goal, but how “regulation” is to achieve it, if we are to qualify even that “regulation” can serve us, much less that a certain not necessarily qualified process “of regulation” is “necessary.”

Your proposition of course determines none of these things.

But let’s go there.

What is the proper volume of circulation? And how do we solve/eradicate circulatory inflation and deflation then?

Well, obviously, if inflation and deflation are defined respectively as increases or decreases in circulation per remaining value of represented wealth, then the only actual solution of *both* inflation and deflation is to maintain a circulation which at all times is equal to the remaining value of the property the circulation is to represent.

Furthermore, if we lack a circulation sufficient to represent the current value of all property, then this deficiency would prevent us from trading all property at once, by way of currency.

So we have the necessary volume, and not an opportunity or need for regulation ??but a prescription which automatically provides your asserted regulation, without human administration, decision, error, cost, and so forth.

What is that?

In every case of financed wealth, a debt equal to the value of the property must be paid off at the rate of consumption or depreciation (which are to be understood to be equivalent).

Thus payment of debts at the obligated rate to solve inflation and deflation *automatically* eliminates the need for any regulation whatever:

  1. the resultant circulation in total is always equal to the remaining value of all represented property;

  2. debts can always be paid from the remaining circulation;

  3. the value of the money is preserved across the lifespan of the property, system, and related circulation by a perpetual 1:1 ratio between each;

  4. everyone pays for what they consume with equal measures of their own production;

  5. and there is no inherent, irreversible multiplication of debt by interest, as we are forced to maintain a vital circulation subject to interest by re-borrowing principal and interest paid out of the general circulation as subsequent sums of debt, perpetually increased so much as periodic interest (which is the fundamental cause of the present failure).

Furthermore then, we can’t solve inflation and deflation if we do not eradicate interest, because interest requires that we pay out of circulation more than the original/financed “value” of subject property.

So there *ISN’T EVEN A WAY* (!!!) to “regulate” the volume of circulation properly, unless you adopt the one and one only solution of inflation and deflation; and if you *DO* adopt that one and one only solution, the obligatory schedule of payment automatically performs the “regulation” for you.

At the same time of course, the necessary eradication of interest *eliminates* both the cost of the circulation and inherent, irreversible, and terminal multiplication of debt by interest ??which is the one systemic cause of price inflation, as subject industry/commerce must perpetually to raise its prices to maintain margins of solubility necessary to withstand the costs of servicing perpetual multiplication of debt.

So this is why and how we have solved our first and third categoric faults of the systems presently imposed upon the world; and it is furthermore how no regulation whatever is required to perfect economy.

How so?

Our one remaining categoric fault is the second ??systemic manipulation of the cost or value of money or property. So, we have already solved this categoric irregularity and your purported need for regulation in regard to this fault as well, because any and every case of it can only manifest from any of the possible combinations of the first and third categoric faults ??which we have already eliminated.

So mathematically perfected economy? requires no regulation whatever; and 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. It 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.

I have answered to many of the related issues in my comments/responses to Ellen Hodgson Brown in her OpEd News article, Borrowing from Peter to Pay Paul: The Wall Street Ponzi Scheme Called Fractional Reserve Banking.

I have also shown how to transition to mathematically perfected economy? immediately and without cost (which furthermore solves our issues/cases of insoluble debt) in my article, If I Were President….

How “would” mathematically perfected economy? work?

In the case of a $100,000 home with a hundred-year lifespan, we would pay for the home at the overall rate of $1,000 per year, or $83.33 per month.

See my comments to Ellen for answers to your certain questions, “Who would we borrow ‘money’ from if it were not subject to interest?” Anyone who wants to argue can take that up here.

So then, not only does solution vindicate Mr. Lutz’ reminder why the rights of the individual “trump” those “of society” (if there is a difference)… absolute achievement and preservation of the rights of the individual *are* the rights “of the society.” And so, no society is better than its preservation and achievement of the rights of each and every individual.


“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)

? COPYRIGHT 2008, by mike montagne and 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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