Please cite the following paper as:
Paul Grignon, (2013), Proposed new metric: the Perpetual Debt Level, World Economics Association (WEA), Conferences, No.1 2013, Conference on the political economy of economic metrics: 28th January to 14th March, 2013.
A critical metric in economics is missing: the Perpetual Debt Level. This is the amount of bank credit money in circulation that is not available on time nor free of any other debt, to extinguish the debt to a bank that created it. This creates a borrow from Peter to pay Paul and vice versa Perpetual Debt situation in which the amount of the principal involved can never shrink, and the timing of its delivery can never slow down without causing mathematically inevitable defaults. Therefore, to avoid such defaults, it is, in practice, necessary to maintain growth of the money supply at all times. (1) I further claim that there is no escape from this destructive arithmetic problem within the concept of money as a quantity of a thing-in-itself, and especially within the current practice of money created as a debt-of-itself. The only remedy is radical, a total transformation of our concept of money.