“Thus the man who is responsive to artistic stimuli reacts to the reality of dreams as does the philosopher to the reality of existence; he observes closely, and he enjoys his observation: for it is out of these images that he interprets life, out of these processes that he trains himself for life. It is not only pleasant and agreeable images that he experiences with such universal understanding: the serious, the gloomy, the sad and the profound, the sudden restraints, the mockeries of chance, fearful expectations, in short the whole ‘divine comedy’ of life, the Inferno included, passes before him, not only as a shadow-play — for he too lives and suffers through these scenes — and yet also not without that fleeting sense of illusion; and perhaps many, like myself, can remember calling out to themselves in encouragement, amid the perils and terrors of the dream, and with success: ‘It is a dream! I want to dream on!’ Just as I have often been told of people who have been able to continue one and the same dream over three and more successive nights: facts which clearly show that our innermost being, our common foundation, experiences dreams with profound pleasure and joyful necessity.”-Friedrich Nietzsche, The Birth of Tragedy, ca. 1872
Part III of “Hamiltonian Federalism and Friedrich Nietzsche” covers a vast range of topics that all share the same set of issues with the Liberal Capitalist Fractional-Reserve Banking System. One could say that I was trying to pierce the metaphysics of a recurring pattern that ended up becoming a sort of Divine Comedy about the social and political ramifications of Fractional-Reserve Banking. Therefore, I have decided to break everything down into three Unities of Opposites:
“Federalist Quadrille” sets the stage for the point of origin when the US Fractional-Reserve Banking became synonymous with the US Military-Industrial Complex, tracing its developments from the Civil War to the First World War. It delves into how the Gilded Age came into being and discuss its significance for the “Death of Bretton Woods” proclaimed by the SMP Compendium.
“Urban and Rural Life” addresses how the Fractional-Reserve Banking System contributed to the rampant Producerism and Consumerism in the US, both of which were made possible by Liberal Capitalist attempts to restore the Gold Standard. The Intent is to discuss about whether it is possible for America (and the world by extension) to revisit the concept of the “shopping mall” by rediscovering the Implicit Intents of its Socialistic creator, Viktor Grün (born Viktor David Grünbaum).
“Crosses of Bitcoins and MMT” takes its name from the Cross of Gold Speech by William Jennings Bryan towards the end of the 19th century. Here, I discuss about the potential rivals of the Compendium’s Reciprocal-Reserve Banking System, Cryptocurrencies and Modern Monetary Theory (MMT). The Intent here is to address how and why both not only fail to resolve the problems of Fractional-Reserve Banking, but also embolden it insofar as they represent two halves of this Economism forewarned by Vladimir Lenin.
Finally, “Tourism and Terrorism” has me tying together some important loose ends scattered throughout the previous three. Nowhere in America is anyone going to find elements all three Unities of Opposites coexisting than at the World Trade Center in Lower Manhattan. Continuing with my overriding argument about why the Fractional-Reserve Banking System has remained unchanged in spite of the changeover from the Silver and Gold Standards to the Debt-Standard, we must realize that there is a growing instability and volatility between Fractional-Reserve Banking and Neoliberalism. It is a very recent phenomenon involving the Y2K Bug, the 9/11 Attacks, the Great Recession, and the Coronavirus Pandemic.
“Incidentally, those who were shocked by Bush the Younger’s shout that we are now ‘at war’ with Osama should have quickly put on their collective thinking caps. Since a nation can only be at war with another nation-state, why did our smoldering if not yet burning bush come up with such a war cry? Think hard. This will count against your final grade. Give up? Well, most insurance companies have a rider that they need not pay for damage done by ‘an act of war.’ Although the men and women around Bush know nothing of war and less of our Constitution, they understand fund-raising. For this wartime exclusion, Hartford Life would soon be breaking open its piggy bank to finance Republicans for years to come. But the mean-spirited Washington Post pointed out that under U.S. case law, only a sovereign nation, not a bunch of radicals, can commit an ‘act of war’. Good try, G.W. This now means that we the people, with our tax money, will be allowed to bail out the insurance companies, a rare privilege not afforded to just any old generation.”-Gore Vidal, Perpetual War for Perpetual Peace, ca. 2002
Resuscitating the Federalist Party vis-à-vis Hamiltonian Federalist Socialism demands a Unity of Opposites. Henryist Anti-Federalism has four of the nine required ideologies–Anarchism, Ultramontanism, Environmentalism, and Nationalism. Hamiltonian Federalism also has four of the nine required ideologies–Authoritarianism, Statism, Traditionalism, and Socialism. What unites them is of course Conservatism. However, a delicate combination of critical and creative thinking is required because average Americans are going to be appalled over what they perceive as grotesque contradictions of US politics. They are never told in their US history classes about the obscure historical realities that define Hamiltonianism nor are they truly compelled to learn that America is in actuality a Socialist nation. Their US history classes rarely make it to contemporary decades, preventing any serious development toward an intimate understanding of why the 20th century lives on in this century.
US History textbooks are notorious for omitting key historical facts that ought to be understood due to their implications for the Union. Seriously, am I the only one in these United States who knows why the Gilded Age happened? That what began the Gilded Age marked the “Death of the Silver Standard” in 1873, a whole century before the “Death of Bretton Woods” in 1973? This widespread ignorance has led many to believe that because the Civil War ended the Chattel-Slavery of the Southern States, “Slavery ceased to exist” when the Union entered the Gilded and Progressive Eras. But the Debt-Slavery of the Northern States, which predated the Civil War, continued because the Slave Morality of Liberal Capitalism survived. All kinds of Americans knew this back in the Gilded Age as part of their justifications to get the US Currency off the Gold Standard. How many Americans are aware of the Cross of Gold Speech from the Anti-Federalist personality of William Jennings Bryan, the coalescence of Nationalism and Socialism by Edward Bellamy, or in the Anti-Consumerist and Anti-Producerist rhetoric of Thorstein Veblen (more on him and his works later)?
The Gilded Era in US History was a byproduct of extraordinary circumstances related to the “Great Depression.” Yes, that was the original name Americans at the time gave to refer to the Long Depression of 1873-1896. After the Prussians emerged victorious in the Franco-Prussian War, Prussia reunified a portion of the German-speaking, eventually and rightfully eliminating the Reichsthaler (Reich Dollar), which was pegged to the Silver Standard. In response, the Jeffersonians inside of Congress passed the infamous Coinage Act of 1873, switching the US Currency’s Peg from the Bimetallism (Silver and Gold Standards) to the Gold Standard. As with anything involving the Gold Standard, there is never enough Gold in existence.
The Jeffersonians’ Fractional-Reserve Banking System rapidly lost a massive Quantity of Kapital and also expanded its Quantity of Schuld, which is the exact opposite of what are optimum conditions for Liberal Capitalist Finance (“the greatest Quantity of Kapital for the least Quantity of Schuld”). This massive Quantity of Schuld was caused by the rapid Speculation-fueled expansion of US Railroads beyond the Mississippi River, the Quantity of Schuld overburdening businesses in the urban cities and the farms in the rural countryside. The “Panic of 1873” was at hand, becoming the first international financial crisis in Western economic history. What had essentially happened was a Financial Contagion on par with the actual Great Depression of the early 20th century and the Great Recession of the early 21st century. The entire Western world, including Prussia, was badly affected by this single decision.
That all kinds of Americans in the Gilded and Progressive Eras were caught in an existential crisis over an inability to distinguish Hamiltonian Federalist Socialism from what I had referred to in the SMP Compendium’s Conclusion as “Madisonian Federalist Socialism?” Why the Union celebrates Labor Day on “the first Monday of September” as opposed to May 1?
The Jeffersonians in both halves of the Democratic-Republican Party understood the ramifications of Hamiltonianism returning to forefront of the American Way of Life, even if the people going on strike did not realize it themselves. They knew that the Implicit Intent behind why Socialist nations and parties celebrate Labor Day on May 1 was to honor the Americans who died for a 40-hour work-week in a forgotten tragedy known as the Haymarket Massacre of 1886. The decision to introduce Labor Day as a Federal holiday on the first Monday of September was authorized under the presidency of Grover Cleveland in 1896. Cleveland never allowed Labor Day to be on May 1 because of the circumstances related to the Haymarket Massacre.
Within the same timeframe, the “third best-selling” novel in America after Uncle Tom’s Cabin and Ben-Hur: A Tale of the Christ of the period became renowned for its coalescence between American Nationalism and American Socialism in 1888. Edward Bellamy’s novel, Looking Backward: 2000-1887, was set in Boston during the year 2000. In it, America’s Nationalistic tendences were unfurled, but its Socialistic half left much to be desired as Bellamy subconsciously wanted American Socialism to go beyond Utopian Socialism and Scientific Socialism. Looking Backward also contained subtle clues from Bellamy that the Fractional-Banking System was going to be consolidated by the Jeffersonians in charge of the Federal government.
Is this why 1913 marked the opening phases of the Jeffersonian Empire of Liberty? It is peculiar for everything past 1913 to be a heavily-censored presentation of historical realities because most US history textbooks present the decades afterward as though it were a dystopian Utopia or utopian Dystopia. Some of the more egregious conspiracy theories and misconceptions in the American Way of Life can be traced back to this year. What happened that year was the inception of Income Taxation and the potential wartime implications that it would later have for World War I as well as the conversion of the US Congress to Councils to the “US Congress of Parliaments.” I had stated in Part II of “Taxation and the Work-Standard” that Income Taxes were never meant to be about a so-called “Redistribution of Wealth”; for it was the first step to preparing Fractional-Reserve Banking for the Total Mobilization of Production for Profit. Debt-Slavery soon became normalized in the First World War thanks to the Debt Ceiling and Deficit Spending paving the way for the subjugation of the whole world by the Jeffersonians towards the end of the 20th century.
Everyone free is to agree or to disagree with my counterfactual view of 20th century by insisting that the 21st century is its continuation. After all, there was Absolute War in the 1910s, 1940s, and 1960s; Absolute Peace in the 1920s, 1950s, 1980s and 1990s; and the 1900s, 1930s and 1970s being somewhere between Absolute War and Absolute Peace. The 1900s, 1930s and 1970s are often well-disliked, historians describing the American people as the tightrope walker between the Slave Morality of the Democratic-Republican Party and the Master Morality of the Federalist Party. But they can be reinterpreted as the Union’s greatest moments: everyone during those decades desperately searched for alternatives beyond the desert-like countryside and urban forests, crime-ridden street corners and smoke-filled rooms.
Urban Life and Rural Life
“One of the obvious danger signs that we may be on our way to bring into existence the ideal of the animal laborans is the extent to which our whole economy has become a waste economy, in which things must be almost as quickly devoured and discarded as they have appeared in the world, if the process itself is not to come to a sudden catastrophic end. But if the ideal were already in existence and we were truly nothing but members of a consumers’ society, we would no longer live in a world at all but simply be driven by a process in whose ever-recurring cycles things appear and disappear, manifest themselves and vanish, never to last long enough to surround the life process in their midst.”-Hannah Arendt, The Human Condition, ca. 1958
Why are we crammed into overcrowded cities and leaving others to die in urban decay? Why should we allow speculators to subjugate them by dictating the Prices of their land, houses, tenants and buildings so commercial banks can create Kapital out of thin air? Why must we be forced to abandon our homes and apartments in search of Meaningless Work for Kapital? Why must the Midwest, Great Lakes, and New England States continue to suffer, its people’s communities deported to the Southern States and the Southwest? Why are Californians exploiting the Texans and the Texans exploiting the Californians just to appease the Jeffersonians among them?
The Total Mobilization of Production for Profit, which had been helping the Jeffersonians’ Fractional-Reserve Banking System grow in force and mass between the Gilded and Progressive Eras, had realized the vision of mass production for mass destruction, mass creation for mass consumption that nobody. Either the Union produced more than what it consumes or else it consumes more than what it produces: such is the tragedy of Producerism and Consumerism forewarned by Thorstein Veblen. The 1960s Counterculture should be reinterpreted as the logical response to an emerging existential crisis (and later, environmental crisis) posed by suburban life splitting urban life and rural life into two different ‘Americas’.
The Vietnam War only made this more obvious. The suburban sprawl throughout the Union had been fueled by the greatest Quantity of Kapital for the greatest Quantity of Schuld. The diligence of Dwight Eisenhower was able to keep the US National Debt at the cost of leaving behind a rather dull and uninspiring presidency. Whole towns and cities were now capable of wiping themselves off the map voluntarily by allowing their local governments to Default on their Schuld.
[Note to Reader: The rest of this Blog post has yet to be completed.]