July 30, 2011 in Uncategorized
1. Daily indexed units of account since they also authorize:
2. The Constant Item Purchasing Power Accounting model under which there is no stable measuring unit assumption ever which means that:
(i) only constant items are always and everywhere measured in units of constant purchasing power (not inflation-adjusted because inflation is always and everywhere a monetary phenomenon: inflation has no effect on the real value of non-monetary items) on a daily basis in terms of a daily index unit per se during inflation and deflation and in terms of the daily parallel rate or daily index rate during hyperinflation automatically resulting in the complete elimination of the cost of the stable measuring unit assumption (universally mistakenly taught and understood to be the same as the cost – the net monetary loss or gain – of inflation/deflation/hyperinflation) amounting to hundreds of billions of US Dollars per annum in the world´s constant item economy (the above values per annum to be maintained instead forever);
(ii) all variable items are measured in terms of IFRS and all historical variable items are updated (not inflation-adjusted: see above) on a daily basis in terms of a daily index unit during inflation and deflation and per se in terms of the daily parallel rate or daily index rate during hyperinflation;
(iii) all monetary items are inflation-adjusted on a daily basis in terms of a daily index unit during inflation and deflation and in terms of the daily parallel rate or daily index rate during hyperinflation resulting in the automatic complete elimination of the cost of or gain from inflation, deflation and hyperinflation from the economy.
The combination of the above results in CIPPA automatically maintaining the constant purchasing power of capital constant forever in all entities that at least break even during inflation and deflation – ceteris paribus.
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