On a Russian State cultural media website (Russia Beyond, to be precise), there was an article about the Soviet Ruble that featured a Josef Stalin quote which reads:
“If a Socialist country pegs its Currency to a Liberal Capitalist Currency, then this Socialist country must forget about an independent and stable financial and economic system.”
That would be the shortest summarization of Financial Warfare for Military Science. Financial Warfare is the Art of combining the concepts of Socialist Finance and Socialist Technology already discussed in the SMP Compendium to create “Socialist Fintech.” Socialist Fintech is to be wielded and understood by all citizens who actually do any kind of meaningful economic and financial activity in any capacity and are devoting themselves to the national defense against Imperialism.
There are two kinds of Imperialism in this world: the “Imperialism” of Liberal Capitalists and the “Social Imperialism” of other Socialisms. One does not become a true Anti-Imperialist by simply reading Vladimir Lenin’s Imperialism, The Highest Stage of Capitalism. Either one forges a United Front between Nationalists and Socialists or one does not. It was Carl Jung, not Karl Marx, who contributed to Psychology’s perfect argument for United Fronts against Imperialism: The Socialism of every nation is its “Masculine Anima,” its Nationalism the “Feminine Animus.”
The true Socialist depends on Nationalism to achieve the fullest expression of their Socialism. The true Nationalist depends on Socialism to achieve the fullest expression of their Nationalism. Like a woman not in touch with her Animus, the Socialist without Nationalism is so overburdened by Sovereign Schuld that they will betray the nation by projecting personal impotence and class egotism onto the Totality. And like a man not in touch with his Anima, the Nationalist without Socialism will betray the nation and the working class for the right amount of Kapital.
Victory in the conduct of Financial Warfare is measured by whether the Nationalists and Socialists are being committed to the fullest and purest expression of their Totality’s Authentic Dasein within their economic and financial actions. It is also measured by the extent to which they strive to uphold defend the social, cultural, traditional, ethical, theological, and political values of their nation without surrendering to corrupt notions of wartime opportunism and profiteering. This SMP Compendium entry is for the daring, courageous and selfless Socialist enough to build Solidarity with the equally daring, courageous and selfless Nationalist against Imperialism.
“Socialism in Words, Imperialism in Deeds”
Technology mobilizes revolutions to become the continuation of war and war to become the continuation of revolution. The Industrial Revolution in the 19th century had introduced the Total Mobilization of Production for Profit as well as the Production for Utility. Both enabled the industrialization of the Western world between the Napoleonic Wars and the World Wars. Western nations, armed with arsenals of economic and military firepower, overwhelmed and subjugated the rest of humanity. Colonies sprang up throughout the Americas, Africa, Middle East, and Asia, the non-Western Totalities forced to emulate the ways of living of the Western Imperialists. These Western Imperialists did not want to raise the standard of living for the rest of humanity. They wanted the vast riches of the world to sustain their increasingly extravagant lifestyle choices.
Liberal Capitalists struck a gold rush of Kapital to be had by financing the manufacture of weapons, research and development of Military Technology, and ways to enhance the Total Mobilization of Production for Profit. The Marxist Socialists, in an attempt to win power, became Reformists called “Social Democrats,” laying the groundwork for the Total Mobilization of Production for Utility towards the end of the 19th century. As the number of places to conquer dwindled, the Western Imperialists slowly convinced themselves to turn economic and military firepower on each other. They stoked the flames of enmity among the European Royal Families, the Houses of Nobility, and the Catholic Church. International finance, the majority of these bankers and investors scattered throughout the Western world, continued to expropriate the Arbeit and Geld from the technological revolutions.
The turn of the 20th century saw the armed race among the European colonial empires. America, Italy, Japan, Russia, and Prussia, all of them latecomers to this worldwide tragedy, succumbed to the temptation of building their own empires. In America, the seeds of Thomas Jefferson’s “Empire of Liberty”–what we know today in the 21st century as the “Liberal International Economic Order” (LIEO)–were being sown by his Liberal Capitalist heirs of the Democratic-Republican Party, the “Democratic and Republican Parties.” In Prussia, Chancellor Otto von Bismarck spent his final moments lamenting how Prussia and the German-speaking world were being subverted by Kaiser Wilhelm II and his delusions of grandeur. Italy devoured the rotting carcass of the ailing Ottoman Empire. Czarist Russia became alienated by Prussia’s inability to resist and confront Wilhelm II. Japan, reasserting itself for the first time since the “Warring States Period,” invaded and subjugated the peoples of Korea and Taiwan, its crosshairs set on Siberia and Mainland China.
All the benefits of Total Mobilization were now being repurposed to wage wars that left millions dead, millions more maimed and traumatized, and entire livelihoods destroyed in what amounted to a massive family feud among Europe’s Royal Families. This family feud dragged the whole world into the throes of a “Great War,” the Royal Families locked and loaded with enough Kapital and Schuld to turn Europe in a continental warzone. 1913 and 1914 were the years of living dangerously for the workers of the world. Socialists and Nationalists slowly began realizing that they did in fact were pursuing the same goals. 1914 could have played out differently, had it not been for the assassination of the Archduke Ferdinand.
These are the historical conditions which compelled Vladimir Lenin to write Imperialism, the Highest Stage of Capitalism. Lenin resented how Socialists and Nationalists in Europe were butchering each other on the battlefield, instead of opposing the Liberal Capitalists who profited from the death and destruction they caused in the trenches. Everything about the Art of Liberal Capitalist Finance is left unchanged since the First World War; what did change is the Technology.
Attrition Warfare under Financial Warfare
Liberal Capitalist Finance employs six strategies to conduct financial combat operations: earn all Kapital, save all Kapital, borrow all Kapital, lend all Kapital, invest all Kapital, spend all Kapital.
- Earn Kapital with the Taxation Rate.
- Save Kapital with the Interest Rate and Inflation/Deflation Rate.
- Borrow Kapital with Sovereign Schuld.
- Lend Kapital with Schuld Monetization.
- Invest Kapital with Government Bonds.
- Spend Kapital with government and consumer spending.
Liberal Capitalist Financial Regimes operate in the state of Total Mobilization of Production for Profit or Production for Utility. Everything depends on their Central Bank, their National Legislature, and their Head of State creating the highest Quantity of Kapital for the lowest Quantity of Schuld under the Incentives of Supply and Demand. Both are normal practices for them in times of both war and peace. Anything will alter the balance between Quantity of Kapital and Quantity of Schuld. The Financial Regime capitulates when the “Six Alls” become untenable.
- Unsustainable Taxation Rates and Austerity Spending
- Unsustainable Interest and Deflation Rates or Negative Interest and Inflation Rates
- Rapid Diminishing of Financial Firepower by Stagflation or Hyperinflation
- Economic Recession or Depression
- Unpaid Government Bonds past their Maturity Dates
- Sovereign Default by Parliamentary Democracy
The Liberal Capitalist Financial Regime, through a combination of those above conditions, will eventually grinds itself down, crashing and burning into the throes of what the International Monetary Fund calls “Sovereign Debt Restructuring.” It is interesting that the IMF’s Special Drawing Rights (XDR) also shares the same abbreviation with Sovereign Debt Restructuring. Most developing countries maintain some reserve of XDRs inside their Central Banks, which they can claim as Kapital in case of economic and financial collapse. The “Schuld,” however, involves conforming to what the dictates of the IMF and World Bank.
This is also where the Financial Warfare of Socialist Fintech converges with Attrition Warfare. Socialist Finance employs six strategies to conduct financial combat operations: Contribute Arbeit, Conserve Arbeit, Electrify Arbeit, Allocate Arbeit, Confer Arbeit, and Discern Arbeit. Everything up to this point in the SMP Compendium can now be summarized into six sentences.
- Contribute Arbeit with the Life-Energization Reciprocity (LER).
- Conserve Arbeit with the Mechanization Rate and Attrition/Inaction Rate.
- Electrify Arbeit with Life-Energization Reciprocal Electrification (LERE)
- Allocate Arbeit with Reciprocal-Reserve Banking System.
- Confer Arbeit with National-Socialized Financial Instruments (NSFIs).
- Discern Arbeit with the Transvaluation of all Arbeit.
A Socialist Financial Regime will experience its own set of financial difficulties. It too is capable of grinding itself down thanks to Financial Warfare relying on aspects of Attrition Warfare. The Work-Standard will be able to register these following effects for the Totality:
- Excessively low Mechanization Rate causes Currency Depreciation “Death by Overwork” due to an unsustainable Attrition Rate
- Excessively high Mechanization Rate causes Currency Appreciation and “Death by Inactivity” due to an unsustainable Inaction Rate
- Rapid diminishment of financial firepower due to deteriorating Quality of Arbeit
- Economic Recession by Currency Appreciation
- Unrealizable NSFIs past their Actuality Dates, especially for Work-Plans and Work-Tenures
- Unsustainable Taxation Rates, Austerity Spending, and Sovereign Default by Council Democracy
Notice how the sixth and final effect pertains to Taxes, Austerity, and Sovereign Default? This can also to a Socialist nation with its Currency pegged to the Work-Standard. But unlike the Liberal Capitalists, the Totality can mitigate it by always striving to live within their own means of production. The Totality controls the means of production through the State now. There must be fiscal discipline and balanced budgets for both the State and the Totality. Anything less will cause the Socialist nation to begin accumulating Sovereign Schuld.
Economic Warfare under Financial Warfare
The Market/Mixed Economy and the Planned/Command Economy engage in financial combat in everyday economic transactions. Both are capable of waging wars against each other through trade, goods and services as well as even their currencies. Knowing how the Market/Mixed Economy operates and how the Planned/Command Economy are crucial in order to exploit potential vulnerabilities or plug in defensive gaps.
Under Supply and Demand, the Parliamentary Democracy issues Direct Orders to Market/Mixed Economy in the form of Incentives. Financial markets, privatized commercial banks, insurance and investment firms allocate Kapital and Schuld to wherever they are needed. Kapital is created from the Market/Mixed Economy’s Natural Sector harvesting natural resources and refining them into Commodities, its Industrial Sector converting the Commodities into finished goods for the Service Sector to provide everyday services. Its Information Sector has advertising agencies, computer programmers, and computer scientists and engineers enhancing the greatest Quantity of Kapital for the lowest Quantity of Schuld. Its Government Sector offers “government contracts” to the Military-Industrial Complex of the Liberal Capitalist regime to serve its Parliament.
Under Command and Obedience, the Council Democracy issues Direct Orders to the Planned/Command Economy in the form of Intents. Kontore, State Banks, National-Socialized Banks, and State Commissariats allocate Arbeit and Geld to wherever they are needed. Everything else has already been explained in the rest of the SMP Compendium. What can be stated here are two considerations of relevance to Financial Warfare: all Planned Economies and Command Economies are not equal; and that the deployment of Socialist Fintech has tactics and operational capabilities exclusive to Socialism and the Work-Standard in particular.
Are there any differences between Planned Economy and Command Economy? How someone chooses to answer this question is pivotal to understanding how they employ “combined arms tactics and operational maneuvers.” For an American in 1991, the question is comparable to asking if they prefer the “United States Constitution” or the “Articles of Confederation.” For a Russian in 1991, the question is comparable to asking if they prefer the “Union of Soviet Socialist Republics” or the “Union of Soviet Sovereign Republics.”
Legally speaking, a “United States of America” and a “Union of Soviet Socialist Republics” will opt for Command Economy. There is a “Unified Socialist Student Economy” (SSE), a “Unified Tournament for all Federal, State, Municipal and Public Enterprises,” a “National Currency,” a “Council State with regional and local governments,” and “low Economic Foreignization.”
Meanwhile, a “Confederate States of America” and a “Union of Soviet Sovereign Republics” will opt for Planned Economy. There are several “Joint SSEs,” two or more “Joint Tournaments among Foreign and National Enterprises,” two or more “National Currencies,” the Council State coexisting with a “Deep State,” and “high Economic Foreignization.”
Both Command Economy and Planned Economy are capable of engaging in economic combat. The Command Economy prefers more overt operations involving rapid breakthroughs, superior financial firepower, and direct engagements. It can also conduct cloak and dagger infiltration and subterfuge, but not as effectively as a Planned Economy. The Planned Economy prefers traveling light to take advantage of the element of surprise and relying on camouflage to conceal its own movements. It can be more be more direct in its economic activities, but its dependence on Economic Foreignization due to geography, language, large ethnic and sectarian minorities is where it falters when compared to the Command Economy. The “VCS Economy” discussed throughout the SMP Compendium is capable of accommodating both.
Some locations may benefit more from the Work-Standard than others. “Utah,” “Atlantic City,” “Las Vegas,” “Boston,” “Panama City,” “London,” “Switzerland,” “Vatican City,” “San Marino,” “Andorra,” “Gibraltar,” “Belfast,” “Königsberg” (Kaliningrad), “Prague,” “Frankfurt am Main,” “Israel and Palestine,” “Leningrad” (St. Petersburg) and “Vladivostok,” “Ukraine,” “Poland,” “Hong Kong” and “Macau,” “Shenzhen” and “Shanghai,” “Okinawa,” “Tokyo,” “Singapore,” and “Hawaii.” These places on the world map are actually restricted in terms of capabilities, assuming their state of Total Mobilization is either Production for Profit or Production for Utility. Production for Dasein, however, will cause all of these places to change how they conduct their economic activities. But at the same time, it is also possible that each of them may have some untapped potential which only the Work-Standard can unlock for them.
Currency becomes the ammunition for economic weapons like luxury and consumer goods, everyday home appliances, computers and electronics, alcohol and tobacco. Examples include Cuban cigars and rum, French champagne and women’s apparel, German firearms and sportscars, Russian caviar and armored vehicles, Persian rugs, Japanese anime and manga, Swiss watches, American movies, television shows, and video games. The effectiveness is measured by its propaganda value as instruments of power projection. The countermeasure here is to come up with sufficient alternatives for the whole nation.
Financial Warfare, when combined with Economic Warfare, opens the door to many possibilities. There are the usual methods where the Planned/Command Economy can deny access to Equipmentalities or find ways to covertly access Equipmentalities. For more information, consult the SMP Compendium entries under the Section entitled “International Trading Policies.”
Electronic Warfare and Cyberwarfare under Financial Warfare
In the previous century, Electronic Warfare was more about trying to find ways to jam or interfere communications and radar capabilities. Aircraft and vehicles have been designed to do just that, in addition to providing effective countermeasures. Financial Warfare enhances Electronic Warfare by addressing the influence of unmanned vehicles and aircraft than be piloted remotely or automated. Since they will no doubt rely on frequencies between the unmanned vehicle and the machines controlling them, it may be possible to conceptualize ways to interfere with their capabilities because there will be no “Internet-of-Things” in a Socialist world order.
Cyberwarfare under Financial Warfare has its physical offline component and digital online component. The Planned/Command Economy may have an Information Sector devoted to the creations of Digital Arbeit and Digital Geld on the national Intranet. The national Internet, despite being controlled by the World State Organization (WSO), has Enterprises from different nations creating Digital Arbeit and Digital in real-time transactions. Computer malware and spyware may no longer be issues in this “Splinternet,” but this changes in the event of a cyberwar. A cyberwar will be focused on infiltration, sabotage, breakthrough, and destruction of computer networks, confusing the enemy and harassing them at their every move. It is possible that the WSO’s international Internet, “Heliopolis,” may become a digital battleground for control of that digital realm in the event of a cyberwar.
Both Electronic Warfare and Cyberwarfare, it should be prefaced, are currently limited under Liberal Capitalist conceptions of Finance. Socialist Fintech can be vulnerable to either or both if the Socialist nation employing it is not already aware of this. Investing in cyberdefenses and cyberweapons may be more expensive than it is actually worth. Most cyberweapons fielded by today’s militaries have never been employed on a large-scale conflict. It is up to the Totality and their Council State to decide how much they should be dependent on digital technologies. How they design their Socialist Fintech is related to their digital Wehrhoheit (Military Sovereignty).
Worldview Warfare under Financial Warfare
(“How the Work-Standard turns Political Warfare, Information Warfare and Psychological Warfare into a Unified Grand Strategy”)
Saving the best of this Compendium for last, Financial Warfare is capable of synthesizing Political Warfare, Information Warfare, and Psychological Warfare into a single unified grand strategy. The best way to refer to this grand strategy is probably “Worldview Warfare,” because the latter three forms of warfare deal with how people perceive and interpret themselves, other people, their government and its policies. Another aspect of all three is how they alter everyday perceptions by either manipulating them or encouraging them. All of the other forms of prior to this discussion can now be appreciated for what they are with Worldview Warfare and Financial Warfare in sync.
The Work-Standard, if applied in actual practice, is malleable enough to conform to the national culture, traditions, languages, social customs and norms of every nation. The Socialism of any nation is about as powerful and influential as the manner in which it conducts itself on the world stage. Building good relations and recognizing the multiplicity of different Socialisms around the world is key. The most aggressive decision is not always going to be the wisest course of action. Certain situations require specific military tactics and diplomatic ploys.
A nation may broadcast radio and television signals to other countries in order to present a different image of themselves. Their Totality may publish works of fiction or non-fiction that cast an entirely different presentation of past historical events. The possibility is also there for them to exploit political polarization and subvert everyday expectations and experiences.
A nation may adhere to a specific interpretation of Socialism exclusive to itself. Even if that version of Socialism has its own historical experiences and expectations for the future, understanding them can also serve as a great way to understand one’s own Socialism. If one does not appreciate a particular version of Socialism, they can always provide their own conception from within the framework of their culture, tradition, language, history, social customs and norms.
Letting students of the SSE receive their education abroad may provide another avenue of helping them understand their own Socialism. Those experiences early on in life is helpful if the current world order is Socialist, where international law falls under the legal jurisprudence of the WSO.
Participating in international Tournaments can be a great way to demonstrate national prowess. Anyone from a Planned/Command Economy can express themselves and their nation based on specific dress, cuisine, philosophy, methods, and so on. Again, this depends on whether the WSO is allowed to exist as part of a Socialist world order.
The concept of “Intellectual Property” will continue to exist in a Socialist world order as a sort of propaganda weapon to manipulate the cultural attitudes of other nations. Imitations and knockoffs may be the crudest form of flattery or they can be counterfeits intended to harm people and deprive them of their Arbeit and Geld.
No matter what happens, always ensure that the Planned/Command Economy of their nation stays true to their Authentic Dasein. No Individual, no Class, no People, no State, no Church, and no Totality are perfect. Original Sin affects all of humanity, and the Catholic Church is another great way to build diplomatic relations. The Pope may decide to canonize a Saint from the Socialist nation. It never hurts to allow Catholic laity from other countries to go on religious pilgrimages.
I can keep providing more examples, and there are plenty of case studies to choose from. It should be clear by now that there is no exact Science behind the Art of Socialist Finance. How the Fintech is designed, how it functions and how it is implemented can reflect the national identity of a Totality. Whether it is for peace or for war is left to the discretion to the Totality of every nation. The Work-Standard and the rest of the SMP Compendium can be remolded to suit different national contexts, identities, and personifications. The need for authenticity in the state of Total Mobilization will always be great, even in a world order without Liberal Capitalism. The 20th century never ended; it lives on through the 21st century.