This Work is neither against Money, as value in exchange, nor against the Accumulation
of Capital -- real, tangible, or intellectual. It is against Money as value in
subjugation and coercion -- Money as primal instrument for indenturing whole
populations unawares. It is against the radical evil1
indwelling Capitalism, in the form of perverted and corrupted maxims, rules, and
legislation -- in the so-called "free" marketplace. It is against
Capitalism* as technology for dominating Man as servitude pure and simple.
The marketplace is being deified by the priesthood of Capitalism. But Money cannot
be the center of life. Capitalism is a stupid Ptolemaic monstrosity. Its doctrine
is due for a major overhaul. Its foundations are not secure. Its supporters, like
the Dominican friars of the 16th century, have difficulties accepting that Capitalism,
like the Ptolemaic system, is a defective world order. Better systems are not only
possible, they are inevitable.
The work is organized around three Books:
Book I exposes the Phenomenology of, and the Extreme
Dangers from, Capitalism -- as Religion of Money. It is a Warning to leaders and
legislators about the potential global panics and dangers from Double
Runs on Banks and on the Justice System. To paraphrase the economist Ricardo:
against such panics, Creditors have No Security, on any Justice System; for Justice
must be purchased, and the Rule of Law enframes by design Net Advantages for the powerful
Book II discloses the Dark Side
of the Business Cycle. Assertions, proofs, and speculations are backed by hard
empirical evidence. Book II has a 47-page long Economic
Survey with Charts providing powerful corroborating support for the Ideas and
Models in the Books.
Book III lays the foundations for the Metaphysics and Physics
of Capitalism. It seeks and unconceals the causality and essence of
Capitalism and of the Business Cycle -- the genetic code of Capitalism and Servitude.
It discloses and defiles the causality and the schema of Darkness in Capitalism. It
explores the future of Science and Technology after the year 2000 and sets new grounds for
a Quantum Theory of Economics and Ethics.
While the focus is on modern Capitalism, as experienced by citizens in liberal
democracies, the Books deal with the broader issue that has troubled Man since the ancient
Babylonians and Egyptians: the way "out of the house of bondage."3 The investigative methods are those of modern science; they
also include philosophical inquiry techniques from Plato, Aristotle, Machiavelli, Galileo,
Hobbes, Leibniz, Locke, Hume, Voltaire, Rousseau, Kant, Hegel, Clausewitz, Schopenhauer,
Jefferson, de Tocqueville, Nietzsche, Freud, Bohr, Schrödinger, Heisenberg, Heidegger,
Schumpeter, Rawls, Bohm, Ricoeur, and others. Most important, the Books set new grounds
for broadening the horizons of Man and for moving Capitalism from Eternally Recurrent Dark
Servitude to Perpetual Enlightened Progress (from a
That vices indwell most men -- and the marketplace -- has been known for
millennia. "[S]elfishness," wrote Plato, is the "most serious vice innate
in most men's soul"; because of it "stupid people are always convinced of their
own shrewdness."4 Aristotle insisted that "[t]he market-place for
buying and selling should be separate from [the] public square and at a distance
from it . . ."5 [my italics]. Both Plato and Aristotle were against
usury. Plato admonished: "There must be no lending at interest because it will be
quite in order for the borrower to refuse absolutely to return both interest and
principal"6 [my italics]. For Aristotle, "[t]he
trade of the petty usurer is hated with most reason: it makes a profit from currency
itself, instead of making it from the process which currency was meant to serve."7
Capitalists believe that the force of progress requires a polarization of
society: a differenciation8 between rich usurers
(lords) and poor borrowers (bondsmen).9 The difference
between the usurer and the borrower is servitude. For the borrower, the difference
is nothing but the value of his servitude or slavery -- allotted, in advance, by the
usurer. For the usurer, the difference is the usurious "interest bred by money."10 Aristotle called this difference "currency the son of
currency."11 The usurious interest is justified as
the Natural Darwinian advantage of the usurer. The usurious compounding of this
advantage is what creates the increasing divergence between the rich and the poor.
It is what gives rise to the increasing heterogeneity of the marketplace. Polarity
as a manufactured advantage is, of course, an unnatural phantasm. The Darwinistic
seed, encoded in Legislation, cannot unfold except as a genetic process, a repetition:
DECEIVING - DECEIVED -
DECEIVING - DECEIVED -
CREATION - DESTRUCTION -
CREATION - DESTRUCTION -
EXPLOITING - EXPLOITED -
EXPLOITING - EXPLOITED -
This repetition is what perpetuates Capitalism as a Nietzschian Eternal Return of
the Same.13 The animalistic PREDATOR-PREY
darkness or superstition of Capitalism will endure so long as Legislation remains centered
in the IRRATIONAL-EVIL quadrant of the Philosophical Compass.
Legislation is the genetic code of society. It enframes14 the people's Destiny. If it is defective, then its
genetic flaws can multiply and fix Wickedness in the maxims and rules of the marketplace.
When the ground of all maxims is corrupted, Wickedness -- legal and illegal -- perverts
society and becomes what the German philosopher Kant called radical
Capitalism fails when whole populations are indentured with debts, as is the case
now in the United States, in Canada, and elsewhere. It succeeds when whole populations are
both free and wealthy. The perpetuation of servitude will remain
the real actual goal of Capitalism so long as the electorate continue to believe the
propaganda -- the "representational poetry"16
-- of the champions of Capitalism. Friedrich A. Hayek, a co-winner of the Nobel Memorial
Prize in Economics, and a champion of "the commercial ideal of individual freedom and
of English comfort,"17 wrote: "Man is not
and never will be the master of his fate . . ."18
If Man cannot master his destiny, who will? A few rapacious Capitalists? Man can and will
alter his destiny. Enlightenment -- Man's only Darwinian Advantage -- is his Selective
tool. Net advantages that perpetuate servitude must not be the hidden goal of
Legislation. The goal of Legislation must be to promote the Life Instincts19 of people. Enlightenment must be encoded in our Laws, and
Laws must favor Enlightenment: the freedom of the will to choose intelligently
good over evil.
Of course the change will not come without a fight -- perhaps even a World War (a
Clausewitzian Plan of War is discussed in Book I). The overwhelming evidence from the
marketplace unconceals it as a rigged, coercive, and dehumanizing "game of
catallaxy"20 -- the locus of much wickedness,
malevolence, deceit, usurpation, violence, greed, envy, fraud, stupidity, sadism, and
falsehood. The high priests of the marketplace will resist the transition to a new
world order based on zero tolerance for unmerited advantages. If so, I am afraid
they will be exorcised. The Holy Office destroyed Galileo; but it could not destroy
the Truth. The empirical evidence from Copernicus, Kepler, and Galileo was more enduring
than the Ptolemaic doctrines of the Holiest of Offices. Even Newtonian mechanics had to
give way to Quantum Theory and to Relativity. Capitalism, too, will have to give way to a
sounder doctrine. The whole philosophical foundation, the whole legislative and economic
configuration, the whole character, direction, and logic of Capitalism must change.
Conventional Theories of Economics are for the most part a sham. Their calculus does
not account explicitly for what every one knows to be the case: freedom
to choose true evil cannot be divorced from economic transactions. The propensity
to evil of the human will, which precedes acts,21 can
infect each and every economic transaction. Not only can individual acts in the
marketplace be evil, the ground of many rules and maxims can be insidiously
corrupted.22 Ironically, radical evil in the
marketplace often masquerades as meritorious virtue.23
Radical evil is not just contagious, it acts over long distances. In time,
it can corrupt the moral predispositions of whole populations.24
With globalization it can corrupt the moral predispositions of the whole world.
The explicit treatment of freedom to choose good or evil is missing from current
economic thinking. Economic outcomes are not just profit or loss, or surplus or deficit.
When whole populations are indentured, the tragic loss of freedom cannot be
dismissed as mere illusion. Surely, a positive Net Present Value for a few quasi
monopolies and corporate para-governments must not just mean fear, destruction, suffering,
misery, and loss of freedom for the multitude. Such dangerous and blatant disregard in
quantitative economics and finance of the human propensity for good and evil must be
remedied. My aim is to remedy this state of affairs. I therefore seek out and establish
new foundations for economics dealing explicitly with the central issues of our economic
In Book III, I issue the groundwork for the Quantum
Theory of Economics and Ethics. Henceforth, the FREE
and SLAVE dimensions of our Being -- the GOOD and EVIL dimensions
of our acts -- will be explicate and intelligible to all. The quantum jump -- from
Capitalist Darkness to Capitalist Enlightenment -- should now be around the corner.
EDWARD E. AYOUB
JUNE 20, 1998
* Important Note: In this volume, all negative characterizations of
Capitalism refer to DEBT-BASED CAPITALISM, and not to
pure Capitalism -- defined
as the freedom to create, own, and trade assets.
1 See Immanuel Kant, Religion
Within the Limits of Reason Alone, translated with an Introduction and Notes by
Theodore M. Greene and Hoyt H. Hudson, with an essay by John R. Silber, 1934, 1960, at
15-39 (The Radical Evil in Human Nature).
Ricardo, On The Principles of Political Economy and Taxation, Vol. 1, 1951, at
352-372 (On Currency and Banks), especially 359.
The ten commandments follow the message "I am the
LORD thy God, which have brought thee out of the land of Egypt, out of the house of
bondage"; see Exodus 20:2.
4 Plato, The Laws, translated with an Introduction by
Trevor J. Saunders, 1970, at 196 (Selfishness).
5 Aristotle, Politics, translated by Ernest Barker, revised
with an Introduction and Notes by R.F. Stalley, at 278-279 (1331a19).
6 Plato, The Laws, at 211-214 (The Possession of Money),
7 Aristotle, Politics, at 29-30 (1258a35).
8 My inspiration here is Deleuze's philosophy of difference.
See Gilles Deleuze, Difference and Repetition, translated by Paul Patton, 1968 and
1994, at 248-254.
9 For Hegel's philosophy of Lordship and Bondage, see
G.W.F. Hegel, Phenomenology of Spirit (1807), translated by A.V. Miller, with
Analysis of the Text and Foreword by J.N. Findlay, 1977, at 111-119.
10 Aristotle, Politics, at 29-30 (1258a35).
Ibid., at 30.
12 The characterization of the Capitalist process as
"Creative Destruction" is due to Schumpeter. See Joseph A. Schumpeter, Capitalism,
Socialism and Democracy (1942), with a new Introduction by Tom Bottomore, 1976, at
81-86, especially 83.
13 See Friedrich Nietzsche, The Will to Power, translated
by Walter Kaufmann and R.J. Hollingdale, edited with Commentary by Walter Kaufmann, 1967,
at 544-550 (The Eternal Recurrence).
14 The concept of "Enframing" [Ge-stell] is
Heidegger's invention. See Martin Heidegger, The Question Concerning Technology and
Other Essays, translated and with an Introduction by William Lovitt, 1977, at 19.
15 See Immanuel Kant, Religion Within the Limits of Reason
Alone, 15-39 (The Radical Evil in Human Nature).
16 Expression borrowed from Plato. See Plato, Republic,
translated by Robin Waterfield, 1993, at 354-362 (Poetry and Unreality), especially 359.
See Friedrich A. Hayek, The Road to Serfdom, 1944, 1972,
and 1994, at 186-187.
See Friedrich A. Hayek, Law, Legislation and Liberty,
Vol. 3: The Political Order of A Free People, 1979, at 176.
For a theory of life and death instincts,
see Sigmund Freud, On Metapsychology: The Theory of Psychoanalysis, Vol. 11,
translated under the general editorship of James Strachey, compiled and edited by Angela
Richards, 1955, 1957, 1958, 1961, 1962, 1964, 1984.
Hayek's expression; see Friedrich A. Hayek, Law Legislation
and Liberty, Vol. II: The Mirage of Social Justice, 1976, at 115-120 (The Game of
See Immanuel Kant, Religion Within the Limits of Reason
Alone, 1934 and 1960, at 23-27, especially 26. Note: Kant's discussion of radical evil
Ibid., at 27-34 (Man is Evil by Nature), especially 32
Ibid., at 33.
Ibid., at 34-39 (Concerning the Origin of Evil in Human
Nature), especially 35, and 88-89 (Man Ought to Leave his Ethical State of Nature in Order
to Become a Member of an Ethical COMMONWEALTH).