AIM Framework glossary
Jubilee Theorem
Canonical definition
The Jubilee Theorem is the result that neither the M-Tax nor the Jubilee corrects a claims-saturated economy alone, and that their conjunction does, executed once. The M-Tax, holding the re-lent portion of Interest at the critical fraction, freezes an accumulated stock of claims where it stands; below the critical fraction it corrects only on the timescale of generations; and where accumulated claims depress generative capacity there is a band of serviceable positions from which no admissible restraint prevents the crossing of the Interest-Only Threshold. The Jubilee, executed with the re-lent portion unbounded, re-crosses the same threshold in finite time, on a schedule that shortens as the clearance is less complete. Clearance under a standing M-Tax leaves the cleared state permanently safe: the Jubilee removes the accumulated stock that defeats the M-Tax, and the M-Tax removes the drift that refilled every clearance executed without it.
Explanation
Neither instrument works by itself. The tax on the Premium stops new claims from piling up, but it cannot dig out the pile that already exists — at best the pile shrinks as slowly as the economy grows, and if the pile is heavy enough to drag on the economy, no tax rate digs it out at all. The payout clears the pile, but without the tax, lending at Interest simply rebuilds it, on a schedule that can be computed, which is why every historical debt clearance had to be repeated. Do both — clear the pile once, keep the tax standing — and the system stays corrected. Each instrument supplies exactly what the other lacks. The principle is named for the component that acts once; the M-Tax was derived independently and stands regardless.
Epistemic status
Framework-Specific Named Result. Derived at Appendix 12A, Section 12A.8, within the claims-against-generative-capacity system; conditional on Object Parasitism, that lending which carries the Premium does not raise generative capacity one-for-one.