The Mathematically Perfected Economy

How the banks work: The bank does not lend money.  It is illegal for a bank to lend out its customers' deposits.  So where does the money come from?  When you fill out a loan form, or apply for a mortgage, you are promising you will earn the equivalent money to then give back to the bank.  The bank then publishes this promise in the form of cash, or credits to your account.  The bank risks nothing at all by doing this, and you then work to acquire the money to pay the bank back.  On top of this, the bank adds interest to the transaction, meaning that the only way there can ever be enough money in general circulation to pay the original debt, is for someone else to take out another 'loan' and add this to the general circulation. This means the 'borrowing' has to continually increase, meaning any reduction in borrowing, like the UK government are trying to do, will not leave enough in general circulation to pay both principal and interest, leading to payment only of the interest and general poverty for the masses. Mike Montagne, who came up with MPE (Mathematically Perfected Economy) over 40 years ago, calculated that the economy would not be able to continue to sustain itself past 2010, which is exactly what has happened. Quantitative easing means money above and beyond the usual borrowing has to be put into the banking system, just to cover the ever-increasing debt repayments. 

But that is not all. 

Since the money is created by a promise to earn the equivalent, once the promise has been fulfilled (by paying the amount back) the money should be retired and the account zeroed.  But the banks then claim this money as theirs! This means the banking system has ensured that it gets paid not just all the money used in order to create a product, but also all the money used to buy a product. In short,this system has enabled the banks to steal the entire material world from its rightful keepers, mankind. Any country that rejects this system and implements its own, nationalised system, is slandered in the worlds press and eventually destroyed. This is the real reason behind World War Two, the war in Iraq, the war in Libya, the war in Syria and the coming war in Iran. 

The MPE Solution: MPE provides a solution to this terminal indebtedness, as well as putting an end to inflation and deflation, which are not caused by market influences, but are caused by inflating or deflating the money supply at source, through making it easy or hard to obtain a loan. MPE proposes a unit of currency which keeps its value, due to the amount in circulation being equal to the value of the products available, and equal to the amount still owing on the promise to pay.  Money is paid back at the rate of depreciation on the product, meaning that if a house lasts a hundred years, the promise to pay back is spread out over a hundred years.  The promise to pay back is actually a promise to retire that amount of currency, since once it is paid back, the promise has been fulfilled and the publisher of the currency has no claim upon it.  There is no need for interest to be added, since all the currency issuer has done, is publish a promise. 

If MPE was to be implemented, all previous payments on loans and mortgages would be counted as payment toward the principal, leaving most people with 60% of their mortgage already paid off, and the rest being spread out over the life expectancy of the property. This is more than fair to the banks, since nothing has actually been loaned by them and any fees or interest are thus totally unjustified. Estimates range from 60 to 80% of the price of everything actually goes on interest, so prices would rapidly decrease, with far less work required to pay for production, as well as consumption.  

Publishing of promises to pay, would be dependant on the promiser's credit worthiness and breaking of promises would affect that credit worthiness. Any misappropriation of funds would show up instantly, since the money in circulation should always be the same as the remaining value of products and the same as the amount still owed. Taxes for creation of public infrastructure would be taken at source and rate of consumption, for example a percentage put on fuel for the cost of roads. Taxes would also be necessary for welfare, defence etc, but this would be much lower than now, since interest would not be required. There would also be far fewer welfare dependant people, since the abolishing of interest would mean the price of starting up a business would be substantially lower than now. 

NSDAP Germany introduced a stable unit of currency based on the amount of production Germany was capable of and it eliminated all inflation, increased wages by an average of 20% and unemployment dropped from 17,000000 to 1,000000.  

Under MPE, the unit would be a fixed value, but people would be free to determine how many units they thought their products or labour were worth.  Money to pay for services and repairs, would come from the same place it does now, from the general circulation of money generated by promises to pay. Government would no longer be beholden to bankers, but would be free to really serve its people, the same people who actually generate the real wealth in the first place. 

If enough people read and sign this mandate the banks would have to face up to the exposure of their crimes and implement MPE. 

Mandate: http://perfectedeconomy.org/members/register/signature_form 
More info: http://australia4mpe.wordpress.com/ http://perfectedeconomy.org/article_topical_groups 

Any solution that doesn't address the usurers hijacking of our economy will only lead to the same situation again. Mike Montange is on TNS Radio (http://tnsradio.ning.com/) Saturday nights at 8pm. 

More information available here and here