In 1790–91 Alexander Hamilton founded the American System of political economy by writing his Reports to Congress on the subjects of a National Bank, Public Credit and Manufactures. From this point forward all competent political economic debate has been based on describing the battle between the American System and the teachings of the British East India Company.
For the past 220 years there has been a never-ending battle between these two irreconcilable systems. The American System is based on protecting the interests of democratic republics and the British System is based on protecting the interests of the old empire system of imperialist financial oligarchy.
Alexander Hamilton challenged the Old World financial oligarchy and created a new system that would create low-interest credit for the physical requirements of human populations. Hamilton understood that the survival of our democratic republic required a national bank that worked together with a for-profit commercial banking system to create credit for internal improvements (infrastructure), agriculture, and manufacturing.
Alexander Hamilton’s Reports to Congress were a rejection of the policies and ideas of the British East India Company. The Haileybury Training College, which trained the employees of the British East India Company, taught all kinds of crazy non-scientific ideas to justify the policies of parasitical looting and never-ending warfare. The tragedy is that these East India Company policies and ideas continue to infect our educational and political systems to this very day.
Today we are faced with a collapse in employment and a collapse of the tax revenue base of our federal, state and municipal governments because we have failed to reject the teachings of British East India Company.
Every category of infrastructure in our nation is now either beyond its design life, near the end of its design life, or beyond its capacity due to population pressures.
Our bridges, dams, highways, railroads, power production and distribution, industries, water management, agricultural structures, hospitals, and schools have all been in decline since the 1970s. And now the housing and computer/telecom bubbles have burst and the world’s financial system is about to provide us with our next dose of reality.
The British System is now demanding that all nation states dramatically lower their standard of living, severely cut budgets, and radically increase taxes to insure the survival of the international financial system that is dominated by out-of-control self-destructive derivatives securities.
Wrong! We are the United States of America! We will lead an international bankruptcy reorganization similar to the Bretton Woods Conference in 1944.
We must accept the fact that we have wrecked our own nation because we failed to heed the warnings (teachings) of Alexander Hamilton. There must be a Chapter-11 style bankruptcy reorganization of our Federal Reserve System to expunge the derivatives securities using a Glass-Steagall standard because we are citizens of the United States and we refuse to live in poverty for the rest of our lives.
Our nation requires a new discount window at our reorganized Federal Reserve that effectively acts as a Hamiltonian National Bank that promotes a science and technology infrastructure lead recovery. State, municipal and local governments must now stand up and identify those projects they see as a priority with an emphasis on projects that increase overall physical productivity.
The solution to every economic financial collapse in the history of the United States has required a rejection of the British East India Company’s teachings and a return to Alexander Hamilton’s American System. The question today is whether our nation will once again learn this lesson.
