What is the conceptual bridge?
At an early stage of our research and development, we were fortunate to meet an asset-backed securitization analyst from Houston, Texas. This analyst had been a Ph.D. candidate in economics at Harvard University, but had finished ABD (all but degree). The reason, he had finished without a degree, was that he had proposed to resolve inflation for his dissertation; but could never quite work it out. Nonetheless, at that point, he had spent more time thinking about inflation, than we had. His advice was simple: As soon as you begin to denominate a financial instrument, such as a mortgage, in real terms; then you are inherently beginning to create a real monetary system. Your problem is, that the rest of the world operates upon a nominal monetary system. If you want people to understand the benefits of using a real mortgage, then you must create a conceptual bridge; so that the people can understand the benefits of using real mortgages in the nominal terms with which they are accustomed to
