Pages: [1]
|
 |
|
Author
|
Topic: Thoughts on Mathematically Perfected Economy™ (Read 2994 times)
|
|
TruthOrConsequences
|
Does anyone here have knowledge of Mathematically Perfected Economy™? If so could I get your opinion on it? MPE is a must for a monetary system to be truly representitive of the people, in my opinion. Here's what it is....MPE is a monetary system which at all times maintains a 1 to 1 to 1 ratio between an economys wealth, money, and obligation to pay back out of circulation.
What needs to happen, I believe, is to separate monetary policy from the free market enterprise system. The former is really very simple but where most of us make our mistake. Money represents wealth, that's its function. You need to represent that wealth in what MPE terms a 1 to 1 relationship. This achieves directly what the gold standard would do. The gold standard represents a single commodity (gold) and may or may not accurately reflect the true wealth of the economy (pretty close though). MPE on the other hand exactly reflects the true wealth as defined by the people when they choose to buy products and services (not a single commodity but EVERY commodity in the economy). How does it accomplish this?
Every time you purchase a product, money is created to exactly equal this new wealth, a perfect 1 to 1 relationship. Gold cannot expand to equal new wealth and that's always been its downfall. You might say it doesn't need to, that our money backed by gold would just be worth more but creating deflation in this manner has a negative impact on business. To see this take it to the logical extreme, lets say the wealth of the nation increased 10 times overnight, now business gets paid 1/10 for its products. Hows it going to stay in business? It could cut employee wages by 1/10. what about operating expenses? Business fails and we go into a recession. Eventually business readjusts itself and new businesses take the place of failed business, but why do it this way?
In Mike Montagne's MPE system it's always a 1 to 1 relationship between wealth and money. What could be simpler? Now gold has a further drawback in that it takes capital formation (savings) to make it work. This means the person who saves money needs incentive to save. This comes in the form of charged interest. Banks need incentive to lend these savings and as a result charge further interest. The end result is the rich become richer but the poor and middle class become poor, so much so that future generations can barely break even let alone join the rich through savings. The monetary system should not be a means of exploitation. It's only purpose should be to exactly represent existing and future wealth as it is created. How does MPE accomplish this then?
MPE eradicates the charging of interest. When new wealth is created, money is issued into existence to exactly represent this new wealth. When you cannot afford a product but want to purchase it now and pay over time a person goes to what is called a Common Monetary Foundation to check their credit worthiness and ability to pay the debt. If all checks out, money is issued, interest free and what backs it is the product they buy (true wealth representation). The money is paid back at the rate of depreciation, meaning the amount owed equals the existing value of the product, maintaining at all times a perfect 1 to 1 representation between wealth and currency. What a great system!
How about infrastructure and money to run the government, schools, etc? Our present system costs us about 3 times the actual value of what we get due to again, you guessed it, INTEREST. Google Mike Montagne if you're interested in the details of this. Mathematically Perfected Economy is a true representative of economy. Under MPE it comes from the people, a true representation, without outward manipulation. This is in keeping with the true principles of liberty and freedom, coming from the people and not from the top down by an elite oligarchy. This is very important to understand in keeping with the principles of liberty which our founding fathers championed so eloquently.
|
|
|
|
|
Logged
|
|
|
|
|
John Edward Mercier
|
Money shouldn't be considered as representation of wealth. Money should be thought of as currency (exchange barter) and commodity (store of wealth). By trying to group the two into one, is where the process seems to fail.
|
|
|
|
|
Logged
|
|
|
|
|
amateur libertarian
|
Hi there!
Wow - A Mathematically Perfected Economy? The title alone sounds like something from A Brave New World ...
I agree that money - especially fiat - shouldn't be perceived as a representation of wealth. Unfortunately, we are dealing with with perception of value and not real value here so the idiocy of the majority rules - thanks to coercion from the state.
At the end of the day, economics isn't about math. It's about psychology.
|
|
|
|
|
Logged
|
Amateur Libertarian is dedicated to learning and sharing libertarian principles of freedom, justice, and sound economic prinicples -- to join in the fun visit *Link Removed*
|
|
|
|
John Edward Mercier
|
There is no money that is not 'fiat' once the combination of currency and commodity are combined.
|
|
|
|
|
Logged
|
|
|
|
|
maxxoccupancy
|
It's not the guy with the money who really runs things. Is the seller who decides what he is willing to accept for his wares.
|
|
|
|
|
Logged
|
We're in need of volunteers to help out with Freedom Expo. PM one of the organizers (like me) if you'd like to help. "The Free State Project is an agreement among 20,000 pro-liberty activists to move to New Hampshire, where they will exert the fullest practical effort toward the creation of a society in which the maximum role of government is the protection of life, liberty, and property." Freedom Expo is at Trinity Parish House, Seabrook, April 27, 2013! (right next to the Post Office)
|
|
|
|
beetle559
|
Embrace deflation  Deflation isn't bad for business at all, don't forget that businesses are also buying cheaper materials and labor during deflation. It's during deflation that people would start withdrawing their savings to buy luxury and durable goods...which will lead to inflation...which will lead to saving....which will lead to deflation....which will lead to spending and so on and so on.
|
|
|
|
|
Logged
|
|
|
|
|
John Edward Mercier
|
Deflation tends to see consumers not expending their savings... because the purchase will be cheaper in the future. Its the threat of inflation (higher future prices) that create the earlier purchase.
Its like knowing something will be on sale in the future... if its not an immediate necessary... the consumer will most likely wait. While if the consumer knows that the price will be going up in the future... the consumer will most likely make the purchase now.
|
|
|
|
|
Logged
|
|
|
|
|
Pages: [1]
|
|
|
 |