Math Bomb

Beginning with a few prerequisite comprehensions, it presents a complete paradigm to explain what Economic Depressions are. Which is currently unknown to professional Economists. It makes absolute predictions, some of which have already occurred.

It explains what we can know absolutely and what we can't, based on fundamental engineering principles. It also explains what we can do about it.

Originally we built our Monetary System to facilitate and discipline the Economy.

Then Legislated Monetary Policy allowed the Private Sector to implement another Function to create ever more Money. Trapping Central Bank Monetary Policy into supporting Monetary Inflation by the Private Sector.

That second Function is a Bi-modal Positive Feedback Function

between the two types of Money. Credit and Asset Valuation.

I call it The Monetary Progression Function.

It took off for its own sake, to become the Primary Function of our Monetary System.

Employing People to build ever more Monetary Machinery to breed ever more Money.

The Function can continue to inflate Money to infinity, but the Implementation of it can't.

At which point it reverses operational direction toward minus infinity.

Which it did in early 2007, signaling the beginning of the next Depression.

If you build a System which performs the Monetary Progression Function,

it will perform the Monetary Progression Function. It's that simple.

If we know the top level Function a System is built to do,

we can know absolutely what it will do, before it does it.

Though we can never know exactly how well or how fast the Implementation will do it.

It doesn't matter if you build a Machine out of Lehman Brothers,

Electronic Vacuum Tubes, or Tinkertoys.

All Systems do what they are built to do.