DOES BANKRUPTCY EXTEND THE LIFESPAN OF A SYSTEM OF EXPLOITATION?

Hi Kirk,

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).

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“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)

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This entry was posted on Tuesday, February 24th, 2009 at 1:30 pm and is filed under ALAN GREENSPAN, AUSTRIAN SCHOOL, BANKRUPTCY AND FORECLOSURE, Barack Obama, CENTRAL BANKS, WORLD BANKS, CONSTITUTIONALITY, LEGALITY, MORALITY, DENNIS KUCINICH, Devvy Kidd, ELLEN HODGSON BROWN, Edwin Vieira, FEDERAL RESERVE, FEDERAL RESERVE BOARD, FEDERAL RESERVE POLICY, G. EDWARD GRIFFIN, CREATURE FROM JEKYL ISLAND, INITIATIVES, INTEREST FREE MONETARY SYSTEMS, MATHEMATICALLY PERFECTE, INTERNATIONAL - PERFECTED INTEREST FREE MONETARY SYSTEM, MONEY MASTERS (SO CALLED), Mathematically Perfected Economy, NATIONAL - PERFECTED INTEREST FREE MONETARY SYSTEM, PAUL KRUGMAN, NOBEL LAUREATE, PAUL VOLCKER, POWER, ABUSED, RECTIFICATION - PERFECTED INTEREST FREE MONETARY SYSTEM, RELIGION AND USURY, RICHARD C. COOK, RON PAUL, Ralph Nader, STEPHEN ZARLENGA, 'AMERICAN MONTARY INSTITUTE', TIMOTHY GEITHNER, U.S. TREASURY, UNASSENTED GLOBALISM, WAR, PEACE and USURY, events and politics, theory and implementation, usury. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.