An Open Letter Chapter X - A Simple Sovereign Bankruptcy Procedure

An Open Letter Chapter X - A Simple Sovereign Bankruptcy Procedure

Full Title: Chapter X: A Simple Sovereign Bankruptcy Procedure | An Open Letter to Open-Minded Progressives | Unqualified Reservations by Mencius Moldbug
Creator: Mencius Moldbug (Curtis Yarvin)
Publication Date: June 19, 2008
Audio Link: An Open Letter to Open Minded Progressives - Chapter X - A Simple Sovereign Bankruptcy Procedure - YouTube

Brief Summary:

What to Call Ourselves?

  • Accused of pseudo-Hobbesianism, moldbuggery...perhaps reactionary will do? neoreactonary, postractionary, ultrareactionary?
  • Prefer restorationist

Progressives as Opponents

  • Progressive is the exact opposite of restorationist
  • For the set of people with progressive ideas, Brahmin works
  • For example of brahmin, reference video: Barack Speaks To HQ Staff & Volunteers - YouTube
  • Uniformly non-diverse: white high-Brahmin with elite degrees
  • A successful operation very good at winning presidential elections; no reason to believe it is good at anything else


  • Obama, the "Good One" will be a "good president" i.e. good at reading his lines, pretending to be an 18th century statesman
  • Reading the messianic coverage of Obama by the NYTimes similar to reading The Soviet Life
  • Cathedral's high Brahmins always had direct connections to the Soviet nomenklatura
  • Persuaded everyone else to follow the same party line on every political topic

Progressivism as Failure

  • First act of transitional restorationist government: escort Obama, his family and associates to Kenya
  • Deporting political opponents seems excessive?
  • Progressive perspectives on postcolonial African governments, liberation movements, like Mugabe's embrace violent resistance and murder (lit car tires full of gasoline around human necks) - they felt these extreme actions were warranted given the situation.
  • The progressive power structure lost connection with reality: morally and intellectually bankrupt. Also financially bankrupt


  • Restoration : a regime-change procedure designed to safely and effectively reverse the damage which progressivism has inflicted on civilization
  • Acts under principles of good government from late classical or Victorian period
  • Goal is to produce a new era of secure, responsible & effective government.
  • Best thought of as a sovereign bankruptcy with restructuring
  • Think of government as a corporation protected by its military, but still subject to laws of accounting


  • Temporary control given to a bankruptcy Receiver
  • Receiver's goal to make the bankrupt government solvent and profitable
  • Achieved by converting debt to equity, diluting existing equity holders, treating equal commitments equitably
  • Profitability achieved by receiver optimizing USG operations in order to produce max dividends for shareholders
  • Two years and total sovereignty to do so


  • Any sovereign restructuring must start with currency
  • Every dollar is a share, but of what? Fiat currency (dollar) is dubious equity
  • Printing new dollars is stock dilution
  • The USG denominates its accounting in its own stock, so very screwy accounting
  • To restructure currency, must:
  •  Fix the number of dollars in world
  •  Find all assets protected by USG's ability to print more money
  •  Print the money. Buy assets at a formal price. Fix number of dollars outstanding. Convert dollars to US shares as desired. Sell nationalized assets, exchanging for a commodity that new accounting system uses (gold?)
  •  Define rights divided among all dollar holders
  •  No inflationary after effect on market prices: virtual dollars simply become printed dollars
  •  Receiver declares any obligation of US a debt denominated in dollars, guaranteed by virtual dollars
  • Then US will acquire that debt, pay out with freshly printed dollars: mass equity dilution

USG Employees

  • Separate all outlays of the government into two classes: essential payments, and inessential payments
  • Inessential payments: dividends given to inessential employees, i.e. parasites
  • Should be retired on a pension, not fired, as it is good to keep your enemies placated- Most will support new government with doglike loyalty
  • For philanthropists, change out informal commitments for formal securities

USG Revenue

  • Tax using self-assessed tax on all land and fixed structures
  • Will keep books in gold, will collect taxes in gold
  • USG can also make a market for USG shares
  • Financial system will gradually return from equity to metallic currency

Repairing the USA

  • After financial restructuring, Receiver turns to enhancing the US: Receiver restores the Belle Époque
  • Gangs are a militias, should be treated as Nazis
  • For criminals: hard labor to repair the US, and solitary confinement with V.R. consoles to control, guide, evaluate
  • For other "Morlock" subcultures: if not employed, independently wealthy, or a supervised dependent of both, a person is essentially a ward of state: will get electronic tag for surveillance
  • Wards sent to relocation centers to receive social services: mandatory apprenticeship, language trainings
  • In two years:
  • All systematic criminal activity will terminate
  • Anyone of any skin color will be able to walk anywhere in any city, at any time
  • No graffiti, litter, or other evidence of institutional lawlessness will be visible
  • All 20th-century buildings of a socialist, brutalist, or other anti-decorative character will be demolished
  • Barbarism will be eradicated, and new society will look back at the old and see it as brutal and unlivable


#video #nrx

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