The Double Pyramid Scheme

Hitler just wanted what America already had. Lebensraum is a town in Wisconsin. In the utterly unreadable Mein Kampf (should really be called Dein Kampf), Hitler pointed out the superiority of the American White supremacy, saying,

Many contemporary European States are like pyramids standing on their apexes. The European territory which these States possess is ridiculously small when compared with the enormous overhead weight of their colonies, foreign trade, etc. It may be said that they have the apex in Europe and the base of the pyramid all over the world; quite different from the United States of America, which has its base on the American Continent and is in contact with the rest of the world only through its apex. Out of that situation arises the incomparable inner strength of the U.S.A. and the contrary situation is responsible for the weakness of most of the colonial European Powers.

Even a stopped Nazi is right now and then. The Nazis that won had a base on the pre-genocided American continent and this gave them an incomparable inner strength. Until they occupied Europe and inherited Europe's problems. As George Slavetooth Washington said in his farewell address, "Why forego the advantages of so peculiar a situation? Why quit our own to stand upon foreign ground? Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor or caprice?" Why indeed, but the deed is done. As the Notorious BIG said, more territory, more problems.

The Pyramids

A pyramid can stand on its base a long time, but on its head not long. If I may illustrate the Hitler quote, let me draw the two pyramids. America right-side up, Europe upside down, and their connection to the world as a blue circle above. I don't know why I put it above but I'm not redoing it now.

Any resemblance to states living or dead is purely coincidental

You can see Europe, in grey, with its base in the big blue world, India, Africa, and parts of Asia at the time. Then you can see America right-wing up, with a whole genocided continent to rest on, and another America to spare. You can see how this gave America a stronger base and plenty of lebensraum. Meanwhile France and England's resource and population bases were not in Europe, which made them inherently unstable and easy to topple. As both the American 'Revolution' and Hitler proved.

However, after 'winning' World War II, America inherited the European world empire and all of its discontents. America had its Americas base, true, but another upside-down triangle tacked on too. And all the time, the wide world grew.

America running White Empire was fine as long as the world (in blue) remained the size it was – and as long as they could cut communist rebellions down to size, making Hitler proud – but as the world grew 'bigger' this meant the relative size of America became smaller and smaller. A pyramid that rested on its base became more like a Star of David, resting more and more uneasily on its apex. This shape is always on one point somewhere, necessitating forever war, everywhere.

When America was young, they were like a young vagabond playing with Shakespeare's Falstaff, "Why then, the world's mine oyster, which I with sword will open." They had a wide base and a sharp point to their sword, giving them leverage to move the world. But when America won the world in World War II (1937-1991) their situation quickly became another Shakespeare play, "Uneasy lies the head that wears a crown," as Henry IV bitterly intoned. Until, finally, weighed down by their own usurpations, they are end up like Macbeth, slain by enemies they thought impossible.

Macbeth thought he could only be slain by someone 'not born of woman' and America suffered from that other European malady. White supremacy. As Carl von Clausewitz said, “We will never find a savage who is a truly great commander, and very rarely one who would be considered a military genius, since this requires a degree of intellectual powers beyond anything that a primitive people can develop.” Well, ya did. Just as Macbeth was slain by Macduff (c-section), America has been slain by Yemen and Iran (emerging from tunnels). Now they stand over the decapitated Fifth Fleet, saying "Behold where stands, Th' usurper's cursed head. The time is free. I see thee compassed with thy kingdom's pearl."

The Falling Rate Of Profit

The kingdom's pearl was energy. Hitherto floating in inflated dollar rafts from the Persian Gulf to the Red Sea. America is now net energy exporter, but remember that America has not just been America for nearly a century. It is the White Empire now, with many moths to greed. Now – with its chips in Taiwan and its bank in Japan – it has stretched its supply lines permanently over the oceans. And if you cut these lines, they do bleed. As we've illustrated, White Empire is two conjoined triangles, the more stable colonization of the Americas and the more upside down European legacy. Now it's all teetering over Palestine, like an unbalanced Star of David.

Remember that colonization has always been a business proposition and always in the shape of a pyramid scheme. New colonies and colonizers must constantly be procured because what's an empire if it's not imperializing? As Ryan Perkins puts in his current magestrial work along the same lines,

For five centuries, the system survived its internal contradictions—the falling rate of profit, the crisis of overaccumulation—by reaching for a spatial fix: new continents, new labor pools, new markets. But the map was finite and by the dawn of the 20th century, the imperial powers had divided it between themsleves. Trapped in a closed system, they turned on each other in two world wars of inter-imperialist rivalry. The violence that had built the system turned inward, consuming the old empires in a cataclysm that cleared the ledgers and balanced the books with corpses and opened the door for a new hegemon.

Let us discuss his first point, the most important one, the falling rate of profit. This is discussed by Marx and further back but economists keep having to rediscover it. It's basically the second law of thermodynamics, things fall apart. Entropy, or the arrow of time under words. In thermodynamics, heat goes from warm areas to cool (in an isolated system) until it reaches thermodynamic equilibrium. In colonialism, this almost literally happened with energy going from warm south to the cold north (the source of Whiteness, they got less sun) until, now, we reach some sort of global equilibrium. This defeats the point of colonialism and the colonizers cannot live as equals, so they shake things up again with world wars to keep things unlevel.

The rate of profit is both the doing and undoing of capitalism. This is the vital subject, really, because profit is the point of colonialism, not land per se. Colonialism started, in earnest, as joint stock companies like the VoC (Dutch East India Company). It's not a coincidence that the first IPO (1602) was for such a colonial company. Capitalism and colonialism are connected in that colonialism offers a spatial fix to this contradiction of capitalism. If you run into a declining rate of profit somewhere, just colonize somewhere else.

The problem with winning a world war, however, is that you run out of world. You create an isolated system (world trade) which trends towards a declining rate of profit, ie thermodynamic equilibrium with colored people (color is just the imprint of solar energy on generation) and this is, to White Empire, intolerable. But it's happening. The rate of profit has been falling across the core White Empire for generations.

The post-war order, in fact, defaulted in the 1970s and has just been going by default. America defaulted on gold in the 1970s and has been running on fossil fumes ever since. Around the same time, they opened up to China, and began depending on communist production to paper over their own contradictions. The empire has no clothes, but everyone was too afraid to call it, until now.

The Bretton-Woods economy died in the 1970s and since the 1980s they've just been making it up. That's literally what financialization is. Like a pyramid scheme, they have depended on promises of future growth and when that couldn't materialize, they just made it up. So we've got successive booms of speculation and overproduction followed by busts. The dot-com bubble, the property bubble, then failed attempts with crypto and virtual reality before settling on AI as scam that worked. Capitalism was always like this (see the South Sea Bubble, the biggest ever) but now the cycles are getting tighter and tighter as they spiral.

What capitalists are fighting, artificially, is the declining rate of profit, which is almost a law of nature. Everything that lives dies, including the greed they incarnated as corporations. It's well known within even White economics that competition forces profits down. Even monopolies will eventually get competed around (where's the VoC and IBM now?). To put it plainly, what goes up must come down.

Marx discusses this in Capital Volume III. Talking about the falling rate of profit, he said,

The main thing about their horror of the falling rate of profit is the feeling that capitalist production meets in the development of its productive forces a barrier which has nothing to do with the production of wealth as such; and this peculiar barrier testifies to the limitations and to the merely historical, transitory character of the capitalist mode of production; testifies that for the production of wealth, it is not an absolute mode, moreover, that at a certain stage it rather conflicts with its further development.

Marx was talking about this in the 1800s, the contradictions were already creaking, but the capitalists kept deferring a transition to socialism through imperialism and internal fascism (you'll see this repeating). You can see this in practice in what the West calls 'outsourcing' or 'deindustrialization' as if they were just choices capitalists made which could have been made differently. But Marx explains this theoretically, and the theory checks out.

Sectors like mining and manufacturing saw declining rates of profit, which led to declining investment. Western countries should have nationalized those industries, but that would be communism, which is anathema to them. So they just outsourced it to actual communists in China lol. Now they're like, why do those damn commies control all the vital minerals (or the precious bodily fluids, as the man said in Dr. Strangelove). Well, it's because communism is the next stage of development which you just refuse to advance to, standing athwart economic history with a gun, yelling STOP! I'd say put the gun in your mouths and shut up, but you don't even have the raw materials to make bullets now.

Karl said the falling rate of profit forms a natural barrier to the development of the productive forces under capitalism. He said,

The rate of self-expansion of the total capital, or the rate of profit, being the goal of capitalist production (just as self-expansion of capital is its only purpose), its fall checks the formation of new independent capitals and thus appears as a threat to the development of the capitalist production process. It breeds over-production, speculation, crises, and surplus-capital alongside surplus-population." He also said, "Capitalist production seeks continually to overcome these immanent barriers, but overcomes them only by means which again place these barriers in its way and on a more formidable scale. The real barrier of capitalist production is capital itself.

I dunno if you're reading this fully, but the highlights are important. They explain what's happening now. Facing declining rates of profit and unwilling to evolve to communism, the capitalist moves onto over-production, speculation and, if we're being honest, outright fraud. White capitalism has lurched from one bubble to another, the over-production and speculation of the dot-com bubble, the over-production and speculation of the real estate bubble, and now the over-production and speculation of the AI bubble. It's one everything bubble because they refuse to move onto the next stage of historical progression, which would finally be post-colonialism and post-capitalism.

They keep trying to get past the natural barrier that should redirect them to socialism and instead try to continue capitalism with some bullshit. Leading up to the AI bubble, they tried crypto and VR first before finally settling on AI as some bullshit that at least appeared to have use value. But even with AI, you can see that communist China can produce the same use value without some inflated exchange value. Which ruins the whole proposition, which was not making AI, but making a bubble! Capitalist America actually needs the costs to go up, because they are using AI as a vehicle for speculation, not to go anywhere in particular. They keep trying to push past the barriers that should redirect them to communism, but they can only "overcome them only by means which again place these barriers in its way and on a more formidable scale." Hence you get the everything bubble today. A pyramid scheme in place of a functioning economy.

The AI Bubble

The entire (growth in the) US economy is AI now, and it's all a bubble. It's NVIDIA loaning customers money to buy its chips and then packaging that 'compute' like ENRON packaged energy, as objects of further speculation. It's SpaceX changing the listing rules at NASDAQ to quickly dump its shares on retail investors. It's all a 'stock-jobbing swindle' in Marxian terms. In modern terms, Jamie Merchant talks about how the rise of index funds (like the ones forced to gobble SpaceX up) have led to the 'abolition of the market without planning.' Markets no longer process information because they only thing anybody wants to see is 'line going up', and if anything happens, the US government just prints money to make it happen. As Merchant said in The Brooklyn Rail,

As the premier capitalist country, the US essentially takes on the mounting costs of reproducing the deteriorating conditions for global capitalist production, which show up as an exploding Fed balance sheet and national debt. At the same time, the expansion of governance into private finance and of finance into government erodes the basis for the market’s competitive function. The further this dynamic progresses, the more the scope for the market shrinks; the more the market shrinks, the less profitable private production becomes relative to the revenues to be collected through finance; the less profitable private production becomes, the more the accumulation of capital is exhausted, requiring ever more drastic state intervention just to keep its heartbeat going, which further erodes the basis for the market. Traditionally, some form of planned economy is taken to be the alternative to market institutions, but there is not much planning happening here. Rather, this is something new: the abolition of the market without planning.

What they are trying to to is prop up the deteriorating conditions of capitalism with fraud and, if that doesn't work, with violence. The deterioration of capitalism, diverted this way, leads not to naturally to communism, but artifically to fascism. So we end up where we started, with Herr Hitler. What Marx understood intelligently, Hitler also understood in his artificially intelligent way. You can't stand a pyramid on its head, and if people start catching onto your scheme, just hit somebody instead. Which is precisely what America, as the heirs to White Empire and Herr Hitler, are doing. But the productive forces are not strong with them anymore and it is, inshallah, a losing battle. As you can see from all the battles they're losing.