What should concern us is who stands in the way of solution, and why.
DOES BANKRUPTCY EXTEND THE LIFESPAN OF A SYSTEM OF EXPLOITATION?
Kirk Jackson wrote:
Thanks again for your informational site. I have a question for you. Is it possible for the bankers to extend the lifespan of the system due to the bankruptcies that occur? In essence, the debt would be reduced because they would be forced to accept pennies on the dollar in cases. In effect they are plundering/stealing wealth from the people through usury and forced liquidations.
Is this not a way for them to extend the system?
Let me know your thoughts.
The first models I produced for the Reagan Administration (as well as all work since) accounted for bankruptcy and any other factors which prominently manifest in the terminal stages of the system. Two principal things happen as a consequence of bankruptcy: 1) as a consequence of the legal status of bankruptcy, debt and/or the costs of servicing debt are reduced; 2) as a consequence of the state which ultimately obliges bankruptcy, the abilities to service debt and re-borrow as necessary to maintain a vital circulation are destroyed.
The first, as you intuit, does effectively extend the lifespan in terms of what debt is serviced. The initiating/causative fact of the latter however expresses the present terminal state… and thus an inability to sustain a circulation… which further reduces the capacity to sustain further industry… in turn compromising that industry in its ability to service debt and sustain a circulation by re-borrowing principal and interest paid out of the general circulation in servicing the existent sum of debt. This inherent disappearance of the circulation of course comprises the present “credit crisis.” All these things together shorten the lifespan, and thus expedite systemic failure.
So yet, 30 years ago, my models accounted for the combination of these effects in determining a maximum possible/practical lifespan. Because so many people have a difficult time visualizing the ultimate consequence, I’ve just in the past few days added additional capabilities to my models/mathematics, to walk a person visually through the whole process.
At best, impractical expectations allow bankruptcy together with the present prospect of a bailout to moderately extend the lifespan of the system only 1 or 2 or 3 years. The necessary conditions to realize that modest extension are improbable; and yet the system still collapses — at best we only extend the term of exploitation so modestly.
That is the upward bound of potential “benefit” — which effectively is an improbable, artificial extension of a marginal, compromising state, only still to fail. At worst on the other hand (and a far more practical expectation), if *all* of the desired “benefits” of a “bailout”/”stimulus” do not reach *all* of the victims in ways which truly are required to realize the extension, the additional costs of the additional debt in fact, on the contrary, collapse the system even faster than it would collapse without a stimulus.
The video I’m working on will visually explain the bounds of either attempt to sustain the system of exploitation — and particularly, in regard to the ramifications of immediately adopting mathematically perfected economy?. Hopefully, I’ll be done with the video in a few days (but it’s quite a production).
- [ KEY ] THE PROBLEM IS NOT DEBT!
- [ KEY ] IF I WERE PRESIDENT — HOW TO ARREST WORLD WIDE MONETARY COLLAPSE IN A DAY
- SYNOPSIS — MATHEMATICALLY PERFECTED ECONOMY™ REDUCED TO ITS BAREST THREAD
- PROBABILITY AND TIMELINE FOR WORLD-WIDE ECONOMIC COLLAPSE AS A CONSEQUENCE OF INTEREST
- EVALUATION OF JEFFERSON’S OPINION ON THE CONSTITUTIONALITY OF A NATIONAL BANK
- WHY DON’T THE DEMOCRATS REVERSE WILSON’S ERROR, AND REPEAL THE FEDERAL RESERVE ACT?
“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™.
Except for profit making ventures or entities otherwise granted explicit permission to publish this copyright material, this article may be distributed or reprinted in whole only, from and including any quotes preceding its title, through and inclusive of the following permalink(s), by email or otherwise. Visitors may also download our entire directory of regular/main site articles from our downloads page: http://perfecteconomy.com/pg-free-pfmpe-downloads.html. If you want to save your country, we encourage personal distribution of this material to all conducive recipients of your personal address books. Of course, you may also send only the following permalink:
DISCUSS THIS ARTICLE IN THE PFMPE™ FORUM: