I've never seen a system like MPE, where everything is explained and pieced together and actually makes sense in every regard! I see all the questions I've had for many years (ie. the problems with national debt, unexplained loss of financial purchasing power of families, political manipulations, erradication of our liberties, on and on and on). These are all explained and easily solved by MPE. I've been searching for many years and this is it, no doubt, no question whatsoever. I intend to champion this system here and try to explain, to the best of my ability, what it is, what it does, the difference between what we now have and what we can hope to achieve...a true and just economic system. Any questions about it are welcome. So what is Mathematically Perfected Economy? Here's a summary (it's well worth the read)
Mathematically Perfected Economy™, Mike Montagne, proposes a very simple solution which would put our economy in the hands of WE the people who actually create money and wealth. No banks, no interest and the setting up of a Common Monetary Infrastructure. This will be a truly free market where centralised governments would have no role to play in the economy.
WE, THE PEOPLE, CREATE MONEY
The central most important point about money is that it is actually WE who create it. Under the present system, money is created by taking out ‘loans’. On our loan agreements it is WE (individuals or companies) who guarantee the creation of money by OUR OWN property and labour. Only WE sign the agreement, the bank does not sign it.
The reserve bank, in our present system, has been given the right in law to then use our agreement to issue 'money' and lend it to us, however (and this is the main point of fraud), this money was not theirs to lend in the first place as it was WE who created it. That money did not exist before we ‘borrowed’ it, or to be more accurate, created it, so it is impossible to 'borrow' something that was not there before. We created that money by guaranteeing it with our property and labour on our promissory obligation or ‘loan agreement’.
So, using our ‘promissory obligation’ the bank then commits a falsified debt to themselves without it ever having existed in the first place and they give up nothing of value when they do this (lawful consideration).
So, the system of banking is, in actuality, based upon a fraudulent transaction of pretending to lend us that which WE, in reality, created in the first place and which was not there beforehand. Without the bank giving up lawful consideration, the banks have broken one of the principles of contract law which should render their ‘loan’ contracts null and void.
The bank then demands that we not only pay back this 'fraudulent' debt to them (the principle) but also pay interest on it. They argue that they must charge interest as they are taking a 'risk' by lending us the money. But they take no risk as it is not they who give up anything of value, it is WE who give up value with our guarantees.
Our government also has to ‘borrow’ money via this fraudulent scheme and repayments are levied via taxation that we, the people, have to pay, thus further increasing the theft of our assets by the banking system.
ALL ECONOMIES BASED ON INTEREST ARE DOOMED TO FAIL
In addition to the initial fraudulent debt that banks force upon us, the interest charges that they levy from this create a context within which our economies are always doomed to fail - there is never enough money in circulation to 'pay back' the principle plus interest (only principle is ever introduced into circulation and so we keep having to 'borrow' more to pay the interest back). This is the cause of inflation. Business and industry constantly have to raise prices to cover interest payments and the cost of raw materials, utilities and general running costs which are also always increasing. More money is constantly being borrowed to cover shortfalls and there is an ever-diminishing amount of liquidity in the system.
Likewise, governments, have to keep borrowing additional money to pay the interest on previous loans. Most of the taxation we pay goes to pay interest on government loans and sell offs of national assets are used as additional ‘pay back’ monies.
So, even those with no debts are paying a large cost for public and private debt through taxation and inflation.
MANIPULATION OF THE VALUE OF PROPERTY, ASSETS AND WEALTH
All the other manipulations of money and the value of property and represented wealth stem from the initial fraudulent act of the banking system which creates obfuscated ‘loans’ and then demands ‘repayment’ of the principle amount plus interest. This creates the institution of money as a commodity. This commodity is then used to manipulate all the assets of a country as a subcategory of the initial falsification of money. Money is traded as a commodity and lent out again and again to prosper those who produce nothing and contribute nothing to the real wealth of a nation.
SO, WHAT IS THE SOLUTION AND HOW DO WE ACHIEVE IT?
Under this Mathematically Perfected Economy there would be no interest, no inflation, no deflation and with the correct amount of money circulating so that new money that we create, always has value in real tangible property or represented wealth. This would be achieved by maintaining a 1:1:1 ratio between the amount of money circulating, the value of represented wealth and property/assets and the amount of remaining obligations to pay out of circulation as assets are consumed.
These would be the steps to creating a Mathematically Perfected Economy and Absolute Consensual Representation:
1.Firstly, a new constitution or constitutional amendment for those countries who already have a constitution for the country would enshrine the immutable rights of every citizen and these rights could never be subject to amendments by any government. (soon to be available the Mandate by Mike Montagne which is a legal document outlining this constitution)
1.A Common Monetary Infrastructure (CMI) would be created which would, basically, be an accounting system to maintain the accounts of the people. This structure would have nothing to do with governments or banks as they exist now. The CMI would register deposits and withdrawls in much the same way as a bank does now. The changeover to MPE would mean that all banks would transfer all accounts of their clients to this CMI and banks would cease to exist. The ownership of the CMI would be held by the people of a nation under a strict, transparent and accountable system which would not be intervened by the government or any external ‘entity’.
2.The value of all represented wealth, property and assets would be calculated using existing available data. Based on this calculation, the amount of money in circulation may have to be increased to match the value of all represented wealth, property and assets as calculated.
3.In the interest of security for those who may have lost money in the ‘crash’ of the old economy, money would be credited, via the CMI, into the accounts of all citizens who may have lost savings or who have no pension, according to a calculation of the savings that would have been accrued by each citizen for their retirement. The establishment of a 1:1:1 ratio between the value of all represented wealth, property and assets and the amount of money in circulation would be created as described above and below in more detail. This would be a requirement to ensure, from the beginning, an immutable currency which would not be subject to inflation, deflation or the manipulation of the value of property or assets.
4.Outstanding debts: all prior interest payments made on all loans would be offset against the principle amount of the loan, leaving very little outstanding debt. That debt would then be recalculated into a formula of MPE which is the following: 1.The depreciation rate of the property or asset that was originally purchased would be calculated (standard rates of depreciation for all goods, services and property would be agreed by using existing depreciation rates and new rates would need to be decided).
5.Based upon these standard rates of depreciation, a statutory ‘obligation’ would be created for each asset for which money was brought into circulation and a schedule of payment thus determined. Those with outstanding ‘debt’ or ‘obligors’ would be required to pay out of circulation
exactly the amount that equates to that rate of depreciation and the standard schedule of payment. No one would be paid this money, it would just be cancelled out of circulation.
For example, if Ms Smith had had, under the old system, an initial mortgage from a bank of $100,000 for a home payable over 10 years at 5% interest and had already paid to the bank $20,000 of the principle plus $20,000 interest, both the interest and the principle repayment would be taken off the original amount and she would be left with an obligation of $60,000. The rate of depreciation of that home may be assessed (by standardised calculations) to be 100 years. She would therefore be required to pay $600 per year or $50 per month out of circulation (i.e. cancelled from her account and cancelled out of existence) over 100 years. Under the old system, taking into account the interest payments, she would have been required to pay $1,666 per month back to the bank. So she will be $1,608 per month better off under MPE.
In other words, as the house depreciates in value, so the amount of money which corresponds to the value of that house is removed from circulation. Thus, the 1:1:1 ratio between the circulation, the value of outstanding obligations and the value of the remaining assets would always be maintained.
This obligation would be transferrable to a new agreement should Ms Smith decide to sell the property, should she die or should some other factor impede her obligation. The standard insurance cover would apply to any misfortune that may occur.
6.In a similar manner, all new money that was brought into circulation by individuals, businesses or government (although all government spending would be subject to the approval of the people) would involve the creation of new obligations to pay out of circulation according to specific schedules of payment in exact ratio to the depreciation of that property or asset so the the immutable value of the currency would always be maintained.
7.Under MPE, there would be very little need for taxation as the government would not pay any interest on money it created for specific purposes (such as essential services and infrastructure). The majority of the taxation we currently pay goes to service government debt and spending on bureaucratic infrastructure for taxation, social services, unemployment benefits and military spending. Most of this would be unnecessary and undesirable under MPE, and as decided by the people within a real democratic, consensual government and would be subject to a direct vote of the people. Governments would have a very small function to serve the people and all services provided by government infrastructure would be, by law, under the necessary scrutiny and agreement of all citizens under the constitution which enshrined obligations of the government to consult the people.
8.Approximately 60% of all earnings by individuals, industry and businesses would be retained by each. It is difficult to assess exactly the amount this would be but you can make a calculation of this based upon
1.there being no interest payments on any ‘loans’ and
2.no hidden interest payments in all the products we purchase,
3.virtually no taxation,
4.no hidden taxation in all the goods we purchase i.e. VAT and business tax which is embedded in the prices of everything we buy,
5.no inflationary price pressures to cover accumulating interest payments etc…
So there would be a huge amount more money left in the hands of people and businesses to spend, reinvest and save as they wished.
“I am only one, but I am one. I can’t do everything, but I can do something. What I can do, that I ought to do, And what I ought to do, By the grace of God, I shall do!”
--- Edward Everett Hale