Much clearer now!



A pleasant surprise! Finally somebody seriously read one of my articles (and later also another one) and responded to it! That doesn’t often happen. Otherwise I’ve been largely ignored.

I really appreciate this effort. Here you can see the result: Refuting R. Harmsen at Very well written by David Ardron. It makes a lot of things clear about MPE (Mathematically Perfected Economy) and CMI (Common Monetary Infrastructure; formerly called CMF – Common Monetary Foundry).

Mr. Ardron’s article specifically clarifies many practical issues about the CMI that I hadn’t grasped earlier on.

What I learnt

Pay down fast or slow by self-enforced obligation

I quote David Ardron:

What is voluntary is our right to issue an * unexploited * promissory obligation , which is an enforceable commitment thereafter the issuance by an obligor , to pay down ( not pay back ) & rightfully  retire the principal at the rate of the obligors choice of consumption or depreciation of the related property .

OK, so someone who bought a house, can pay it down over a period of a 100 years, but also faster, or slower again. The obligor (the one who issued the promissory obligation) determines the rate of depreciation, and so, of periodic payments.

Looks like a very relaxed kind of economy.

It is the obligor who enforces their commitment or obligation by signing & issuing a promissory obligation.

Self-enforced obligations! I like it.

Free pizzas

The ” related property ” is property subject to a promissory obligation, your pizza will be more than often NOT subject to your promissory obligation when you purchase it . The every day cost of groceries are generally paid out of ones earned savings or earned profit ,which is the result of someone else issuing a promissory obligation on new represented property upon a sale, that you likewise earn as its spent further in circulation .

Money under MPE is promissory obligations that people themselves can issue, without any intervention of banks. But pizzas in the supermarkets generally do not require promissory obligations. So they are essentially free. They can be paid for by promises by others, earned by working for them, but these promises need not be passed on to the supermarkets.

Cool! (Pun intended.)

Apple trading


What about consumables in a Mathematically Perfected Economy?

What follows that header is quite clarifying. It explains how under MPE/CMI you can become a farmer, producing apples, or set up a fruit shop to sell those apples. I think it makes sense and could really work like this! Maybe we should give it a try!

Building or buying a house

The $ 83.33 example is pertaining to the sale of a house subject to representation, paying down $100,000 house with life span of 100 years & rightfully retiring $83.00 a month  at the rate of the obligors consumption of the related property . NOT necessarily the cost of a builder nor any workers that may construct the house if they finance that construction with earned saving , simply because your not accounting for any earned profit which is always a further sum volume of principal created before , during & after construction , [...]

Right. The house costs 100,000 dollars, which the occupant pays with a promissory obligation, which is retired from circulation at a pace of $83.33 per month. However, this is not payment for the contractor who built the house, because he could pay the construction workers from his earned profit, or principal created by building the house.

It seems somewhat surprising at first, but when you think about it for some time, it makes sense and it is quite smart!

I recommend to read David Ardron’s full explanation, I cannot quote it all. Do include the part starting:
Most if not all employees wages or salaries in MPE will be paid out of the employers profit line ( earned profit ) , [...]


Your debit card in MPE is NOT a promissory obligation , it represents a further representation of a promissory obligation , more than often what one draws from their savings account using a debit card is earned profit which is the result of another’s promissory obligation that’s been spent further in circulation.

OK, so I can do business, be paid by promises, which is money, save that money before the promise to pay is fulfilled, and use that to pay in the supermarket.

Sounds good, I like it! And the supermarket can do the same:

The supermarket does not directly use your promissory obligation or your debit card to pay their own obligations ? However the supermarket can pass on a further representation ( published money ) of your promissory obligation such as cash or debit card savings  , which the supermarket  earns out of a general circulation much like yourself,  in the case of a supermarket its earned when you purchase groceries or a frozen pizza , which further representation earned by the supermarket can likewise pay down any promissory obligation the supermarket may also have .

Pizzas are free and so is running a shop. Promises, promises.


As I said, after reading David Ardron’s explanations I have a much clearer picture of how MPE and the CMI can function in practice. I really think we should give it a try, so it gets a chance of showing how well it works in day-to-day life.

Of course, implementing the CMI requires software. As my humble contribution, I already set up a first attempt to write a module that may be of some use as part of the CMI infrastructure.

Addition 5 September 2013

The Australian refutation has also been republished on the Danish MPE site.

Copyright © 2013 R. Harmsen. All rights reserved.