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November 19, 2008 at 19:24:12

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Obama Says Aiding Economy Trumps Budget Deficit

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By mike montagne (about the author)     Page 2 of 2 page(s)

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First of all, what are these necessarily simultaneous deflationary and replenishing aspects?

A central banking system principally usurps the role of real creditor, to impose a currency in which the central bank issues the debtor’s promise to pay, and charges the debtor and subject system infinitely, for the issuance of those promises. Not only does this not contribute to the integrity of the promises, the arrangement itself guarantees the promises eventually cannot be fulfilled.

The currency of such a system thus is introduced to circulation as a debt subject to interest. With the full obligation of every such “debt” thus being comprised of principal and interest, there is a perpetual deflationary aspect of the circulation in which more than exists in circulation as principal is paid out of circulation in the way of principal and interest. Thus the constant deflationary aspect depletes the circulation of more circulation than exists, and so, because the principal and interest both must exist at some time if the resultant obligations are to be repaid altogether, and because it is not even possible to service the resultant obligations if a vital circulation is not maintained, an equal replenishing aspect must exist, with this being comprised of re-borrowing whatever principal and interest is paid out of the general circulation; and with this re-borrowing thus perpetually increasing the sum of debt so much as periodic interest on the ever greater sum of debt.

Thus the sum of debt increases at an inherently escalating rate, until such a sum exists that even the entire circulation would be dedicated singularly to servicing debt. None then remains to sustain the industry; but as industry has obligatory costs as well, the maximum practical lifespan of every such system falls short of a maximum possible lifespan, in which the whole circulation would be dedicated to servicing debt.

Thus it is in these final stages of the finite lifespan of every such system that the replenishing aspect cannot be performed to the equivalent of the deflationary aspect. Why not? Because, to maintain the circulation to that point in the lifespan, we have borrowed so much that the sum of debt already taxes us to our limits.

Obama and his “consensus” of exploitation are hoping instead that imposing further debt upon you will serve you. But at the brink of failure under already terminal sums of debt, you either rectify the system, or you suffer collapse.

Transforming the present system into mathematically perfected economy™ on the other hand will a) cost us nothing; b) apply interest paid so far against principal (vastly reducing the sum of debt); c) refinance all debt without interest and to a schedule of payment equal to the rate of depreciation/consumption (reducing payments against existent debt approximately 12 fold, and eliminating inflation/deflation); and d) make illimitable funding available to sustain further industry, versus continuing the expatriation and destruction of existing industry.

The only question is rhetorical: whether our true power to rectify Washington still exists.

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mike montagne is founder of PEOPLE For Mathematically Perfected Economy™ (perfecteconomy.com) and original author/engineer of mathematically perfected economy™ (1979), the singular integral solution for 1) inflation and deflation, 2) systemic (more...)
 

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Obamanomics will be business as usual by Paul Rye on Thursday, Nov 20, 2008 at 12:34:49 AM
Obama by Ty on Thursday, Nov 20, 2008 at 8:37:22 PM

 
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