We the people “as always” create & issue all new money to pay a principal debt. How we do this in MPE is by issuing a Promissory Obligation (PO) free from such exploitation that otherwise imposes pretended loans.
Therefore we are eradicating the practice or crime of banking & interest altogether. What we are keeping however is nothing more than a method of accounting, but a different method of accounting currently used by purported banks.
The accounting used in MPE is a simple equal 1.1.1 maths ratio relating to (1) “Remaining money circulating“, (1) “Remaining debt”, (1) “Represented property value” that remain respectively equal to each other at all times.
How this is done is by simply retiring the principal out of circulation always equal to the remaining debt, which is always equal to the represented property value. This simple 1.1.1 ratio therefore solves inflation & deflation.
NO REFLATION, NO DEFLATION, NO INFLATION
With the eradication of banking & interest altogether the remaining money in circulation available to industry & commerce will be neither inflationary nor deflationary, but instead always equal to represented property value & remaining debt.
In other words irrespective of the sum of new money issued into circulation upon new represented property & or the sum of money retired out of circulation upon consumption of that property. So long as we are keeping to that all important 1.1.1 ratio the money remaining in circulation equals the remaining debt & remaining represented property value. In effect the remaining circulation is always sufficient in quantity (volume) & earn-ability to pay of debt.
What will replace banks is a public non-profit “Common Monetary Infrastructure” (CMI) which is not only the publisher of our money, but applies that all important 1.1.1 ratio.
The CMI will basically do all the checks & balances to determine if you are issue worthy, such as checking if you have an income, collateral or savings so as to determine if you can pay down & retire the principal, therefore the CMI has the added responsibility of actually retiring the principal from an account subject to a PO.
The overall service the CMI provides to those who have an account in the CMI should cost the average person around $1 a year & possibly a few dollars more if you are running a business for the added service further required from the CMI.
Money will be still available either by debit card (no credit cards) & or cash via ATM machines. Using cash, however, may cost you a few cents more to withdraw due to the added cost to print physical cash & maintain those ATM machines, which will be at *cost only* that we the people pay (eg: $1 per head) considering the CMI is a non-profit publisher.
To be very clear the CMI is not under any circumstance, or in any way shape or form a bank, pretended or otherwise, not even a central bank.
All money in one’s account in the CMI regardless if its digitally recorded on a paper ledger, or computer ledger is collectively a part of the overall remaining circulation — that cash & coin can only further represent again as a percentage of that circulation.
For example you wanted to purchase a home for $100,000 you would issue $100,000 PO via the CMI to pay for that home in full, however nothing comes for free in a realistic world. It will be your obligation as the creator (obligor) of new money to then go out to earn & redeem the principal you formerly paid into circulation — so it can be rightfully retired out of circulation — equal to your debt at the rate you personally choose to consume of that home.
Although the underpinning debt forever remains so long as we are GIVING up our production to each other there are no loans or borrowing in MPE, not from a thieving bank, much less from each other. Simply because “WE” predominantly the purchaser who issues a PO before any deposit are the only fiduciary issuers & creators of all new money, due to the fact it is we the people “buyer & seller” who give up the only commensurable consideration of value in any or all debts.
A new home worth $100,000 determined by the builder constructing that home with a remaining lifespan of 100 years likewise determined by the builder based on quality, workmanship & materials cost you a $1000 a year which is rightfully retired.
Who determines the remaining value of a home upon subsequent consumption likewise applies to any buyer & seller, however if the home cost $100,000 to build brand new & you pay above that $100,000 it is your loss & your loss alone. Which will not effect that all important 1.1.1 ratio, simply because under MPE you cant issue a PO above the “Proprietary Determinate Lifespan” of the home.
If you choose to pay over the remaining consumption value of a home on any sale at any time it will be ultimately coming out of your own savings instead, which will simply circulate further so someone else can earn & retire that money on their PO. In other words if you are stupid enough, or choose to pay above the remaining consumption value of anything in MPE it does not create or issue new money.
You can give your money away in MPE if you want but it wont effect that all important 1.1.1 ratio.
I am aware there are some mentally deranged individuals out there who might immediately conclude this opens up the door for asset bubbles, HOWEVER, I would argue if people are already seeking a bargain just spending money today & if made aware they are only obligated to pay the remaining consumption value the probability of asset bubbles is zero to none in MPE. If anything we might see some fools paying more than what they should to purchase whatever, but not enough to cause any asset bubble, much less inflation.
People might be stupid from time to time, but as a matter of pure observation even today when the crime of banking obligates us all to pay ever more in artificial price inflation caused by interest — precipitating asset bubbles — the people are not that stupid when they are collectively seeking to pay the least amount as possible.
For example if you were stupid enough to pay twice the remaining consumption value of a home what makes you believe it will automatically increase the price or value of your home beyond its remaining consumption value in any subsequent sale, or the homes surrounding your home?
It simply will not, unless of course there is another 1000 fools just like you in your neighborhood who are prepared to pay twice the remaining consumption value for their homes. That will in effect not increase the value of the home itself because the true value a home will be a matter of public record upon construction that is subsequently negotiable between the “seller & buyer”. Furthermore taking into account if the home is either neglected or run down below its remaining consumption value, & or maintained, possibly even preserving the home above its remaining consumption value — thus redetermining that homes Propriety Determinate Lifespan upon the sale.
So the remote possibility of thousands if not tens of thousands of people paying twice the remaining consumption value for their home causing some housing bubble is a virtual zero possibility. People are just not that stupid parting with their money.
What people have to understand — no longer will homes be subject to interest in MPE — which is the very thing that otherwise artificially inflates the price of everything into oblivion causing housing bubbles — that quite literally leaves us with no choice but to pay over exorbitant prices on homes.
Of course knowing what is an economy & what is not — is likewise knowing something about sociology or human behavior. The pretender who immediately assumes MPE does not account for inflation or is somehow susceptible to asset bubbles clearly has no clue about money, interest, economy & nor for that matter sociology.
PAYING YOUR HOME OFF IN ADVANCE
Logically if you choose to pay off your home faster or pay in advance beyond that $1000 a year its otherwise savings in your personal account in the CMI. Logically then if you pay off your home in 10 years & sell that home after 10 years of consumption you walk away with $90,000 tax free otherwise as savings in your own account in the CMI. Effectively you have only paid $10,000 for what you have consumed of the home.
It is important to note Issuing a PO to take over a former PO does not create new money. Alternatively then if you already have $100,000 in savings you can still purchase a home subject to PO . Therefore that $100,000 remains in your personal account in the CMI, which is retired equal to the remaining consumption value you choose to consume of that home & not before. In this instance you are in effect taking over the former PO if the home is already subject to a PO.
With this in mind if you are purchasing unrepresented property with savings you are not taking over the former PO or making any new PO. This means the home has been built with someone else’s savings & you are simply paying for the same home outright with your savings. Apposed to issuing a PO on a newly represented home that otherwise issues new money into circulation you might not have prior to purchase, & or just taking over the former PO that obligates you to retire the principal even if you have paid for the home in full.
Whichever the case what you pay in advance remains in your account in the CMI, with the exception of course if you are directly purchasing unrepresented property with savings which is paid into the sellers account upon the sale. Therefore the money simply circulates as its spent further into the overall pool of wealth so someone else can earn & retire the principal out of the overall pool of wealth on their PO.
Running a business is much the same as paying down & retiring the debt on your home, where business’s can still profit without passing the added cost of interest (unearned profit) in artificial price inflation onto the consumer in the resulting price of goods & services. This will if anything by eradicating the added cost of interest considerably reduce the overall price of goods & services almost immediately. Keeping in mind all debts in MPE are collateralised so if someone is unfortunate enough to fall ill or die for example the collateral can be subsequently sold so the principal can be rightfully retired equal to the remaining debt, thus keeping to that all important 1.1.1 ratio.
Running a government is likewise the same as paying down a home. Public infrastructure is financed “as always” by the people by means of affirmation & reaffirmation. In effect it’s the people through a vote or referendum that creates the principal to finance government expenditure.
Essentially MPE is a system of self governance to the extent it is we the people who hold all the purse strings deciding how & when politicians spend money on our behalf. Politicians will be reduced to mere administrators that answer directly to the people, apposed to thieving banks that will be simply nonexistent under MPE.
To be very clear the practice of banking has never been formally assented by the people in any nation making it an unofficial act of treason. Logically the practice of banking will become an official act of treason & treated as such by law for any nation who formally assents & therefore adopts Mathematically Perfected Economy™ .
Taking into account taxation has never ever funded government expenditure under purported banking. The only taxation under MPE is by means of consumption tax in the price of what you personally pay to use or consume that public infrastructure to rightfully retire government expenditure at the rate of public consumption.
This way taxation is fair across the board & discriminates absolutely no one, So if you choose not to use or consume public infrastructure in MPE you are subsequently not taxed.
In other words if you vote “NO” & everyone else votes “YES” to build whatever public infrastructure in your immediate area it cost you nothing, unless of course you decide afterwards to use or consume that public infrastructure & it will cost you the same as anyone else who uses that public infrastructure. Even it is a one off use to consume that public infrastructure, so even if you use public infrastructure only once you will pay for that one time use that is rightfully retired.
This in effect makes any or all other taxes you otherwise pay today redundant. Essentially there will be no income tax. In fact just about all taxes you pay today will become redundant & replaced with a consumption tax in the price of what you pay to use public infrastructure, which will actually decrease over time at a de-escalated rate of public consumption. Remember you only pay for what you consume in a Mathematically Perfected Economy™.
Considering the supply & demand of materials & services today to produce anything is artificially manipulated by interest — the overall cost or price of goods & services under MPE will not. Prices under MPE will remain much the same in 100 years if not costing us even less in the foreseeable future, due to reduced rates of payment over extended lifespans of new represented property.
Reduced rate of payment: Industry will be truly free to produce goods with an even greater longevity at reduced costs, simply because if the producer is paying down their PO at a rate of consumption or depreciation on something that might have twice its original lifespan. Logically this will be reducing monthly or yearly payments to retire the remaining principal across an otherwise extended lifespan of that represented property. Therefore leaving more disposable income for the producer to invest into research & development to make things last even longer & better again, which will be logically an advantage for both the producer & the purchaser, thus making monthly payments to retire the principal even less again.
De-escalated rates of payment: A de-escalated rate of payment means the remaining value of represented property depreciates to the extent of a reducing rate of payment — across the remaining lifespan of represented property — to subsequently retire the remaining principal equal to the remaining debt.
How we might provide substantial leeway for determining *publicly approved* Proprietary Determinate Lifespan’s according to already existent engineering standards ; A home for example with a lifespan of 100 years with a value of $100,000 you might otherwise pay $2,600 per year for the first 12.5 years — Thereafter up until 25 years of consumption you pay $1,800 a year — Thereafter up until 50 years of consumption you pay $1000 a year — Thereafter up until 75 years of consumption you pay $ 500 a year — Thereafter up until 87.5 years of consumption you pay $250 a year — Thereafter up until 100 years of consumption you pay $110 a year, which is still adhering to that all important 1.1.1 ratio.
What all this simply means is the longer something lasts in MPE the less you essentially pay down & retire per month or year over the remaining life span of represented property — still leaving more disposable income for everyone — including the producer to likewise expand business, employ more people & even pay more to employees.
Standard of living & Environment: Under MPE we will be no longer dependent on a socialist kleptocracy or rule by thieves that steals more & more of our production throughout our life, only to get back a mere fraction in benefits as if this system of exploitation disguised as an economy or democracy is doing us all a favor.
Under MPE most if not all of us could be self funded retirees, retiring from work at age 45 if we want. We could all afford the best private health care standard for everyone. Unemployment will be by choice & not imposed by a system of terminal exploitation. Just about all of us could afford a home with plenty of disposable income left over to live a healthy comfortable life, even helping those few who are truly in need.
Lets not forget this will be beneficial to the environment by reducing pollution considerably, apposed to today’s current throw away society — forcing us to produce copious amounts of throw away products based on inferior quality & workmanship — only as means to keep on servicing but never ever paying down the current terminal, irreversible, multiplication of falsified indebtedness.
Considering the definition of the word “economic” means to save something or pay less which is what you will have under a Mathematically Perfected Economy™. This is not what you have today under any purported banking system, or purported economy subject to a monumental crime of theft which perpetually steals the value of our production when we just spend money, that in truth is not even an economy but a terminal system of exploitation (ie:slavery).
Advocate / mentor, Co-founder, Co-director – Mathematically Perfected Economy™ (au)
(Published : June 30, 2017, last edit December 05, 2017)