I am prompted to mention this booklet by, and perhaps as an adjunct to, the fascinating series by Tereza [Czarina] Coraggio on her caret-based monetary system in her articles titled Caretology and Dreaming and Scheming (no doubt to be continued). Contents:
"The requisite impulse now came from one of the men who delivered lectures in the course I have already mentioned. This was Gottfried Feder.
For the first time in my life I heard a discussion which dealt with the principles of stock−exchange capital and capital which was used for loan activities. After hearing the first lecture delivered by Feder, the idea immediately came into my head that I had now found a way to one of the most essential pre−requisites for the founding of a new party.
To my mind, Feder’s merit consisted in the ruthless and trenchant way in which he described the double character of the capital engaged in stock−exchange and loan transaction, laying bare the fact that this capital is ever and always dependent on the payment of interest. In fundamental questions his statements were so full of common sense that those who criticized him did not deny that au fond his ideas were sound but they doubted whether it be possible to put these ideas into practice. To me this seemed the strongest point in Feder’s teaching, though others considered it a weak point.
[...]
When I heard Gottfried Feder’s first lecture on ‘The Abolition of the Interest−Servitude’, I understood immediately that here was a truth of transcendental importance for the future of the German people. The absolute separation of stock−exchange capital from the economic life of the nation would make it possible to oppose the process of internationalization in German business without at the same time attacking capital as such, for to do this would jeopardize the foundations of our national independence. I clearly saw what was developing in Germany and I realized then that the stiffest fight we would have to wage would not be against the enemy nations but against international capital. In Feder’s speech I found an effective rallying−cry for our coming struggle.
Here, again, later events proved how correct was the impression we then had. The fools among our bourgeois politicians do not mock at us on this point any more; for even those politicians now see – if they would speak the truth – that international stock−exchange capital was not only the chief instigating factor in bringing on the War [WWI] but that now when the War is over it turns the peace into a hell.
The struggle against international finance capital and loan−capital has become one of the most important points in the programme on which the German nation has based its fight for economic freedom and independence.
[...]
Thus the judgment arrived at by Gottfried Feder determined me to make a fundamental study of a question with which I had hitherto not been very familiar.
I began to study again and thus it was that I first came to understand perfectly what was the substance and purpose of the life−work of the Jew, Karl Marx. His Capital became intelligible to me now for the first time.
And in the light of it I now exactly understood the fight of the Social−Democrats against national economics, a fight which was to prepare the ground for the hegemony of a real international and stock−exchange capital."
• Adolf Hitler – Mein Kampf - CHAPTER VIII - THE BEGINNING OF MY POLITICAL ACTIVITIES
Oh thank you for posting this. Ever since you told me that Feder was the economic strategist behind Hitler's reformation, I've been wanting to read him. And I'm sure my neighbors could hear my hoot of laughter to see you'd included the Czarina moniker ;-)
From the first chapter with his nine points, I can see that his plan and mine have significant overlap. However I think there are some important differences. In 1, 2, 4 and 5, he's talking about the state's ability to create its own money for its own internal affairs and labor, including war, without borrowing from bankers with interest. Yes! Particularly 4 when he says that all banking should be a function of government and 5 that only the state can issue credit against real estate. We differ in scale, since I think a top down structure still leads to corruption, but not in principle.
I differ with him on #3 that all mortgages should have no interest. When I bought my house 40 yrs ago, the interest rate was almost 20%. That kept the price low. As the interest rate goes down, the same monthly payment will pay off a debt that's double or triple. That's how they rig inflation. The house becomes more expensive, so it can't be paid off sooner, and the additional money put into circulation when everyone refinances raises the bidding war.
The only benefit of those higher prices goes to the seller of the house. It makes real estate a racket for the rich. Under my system, when the interest rate reaches 5% and stays there, it will distribute the benefit of mortgages almost equal to the principles to everyone within that commonwealth. So interest is actually a brilliant thing, which is why the bankers have used it to make themselves so powerful. Don't give up the tool and make yourselves powerless. Your purpose as a commonwealth is to enhance the true wealth in security and real assets of the villages, hamlets, neighborhoods and families within your borders.
Thanks again for this and for reading so closely and considering my ideas so deeply!
"The requisite impulse now came from one of the men who delivered lectures in the course I have already mentioned. This was Gottfried Feder.
For the first time in my life I heard a discussion which dealt with the principles of stock−exchange capital and capital which was used for loan activities. After hearing the first lecture delivered by Feder, the idea immediately came into my head that I had now found a way to one of the most essential pre−requisites for the founding of a new party.
To my mind, Feder’s merit consisted in the ruthless and trenchant way in which he described the double character of the capital engaged in stock−exchange and loan transaction, laying bare the fact that this capital is ever and always dependent on the payment of interest. In fundamental questions his statements were so full of common sense that those who criticized him did not deny that au fond his ideas were sound but they doubted whether it be possible to put these ideas into practice. To me this seemed the strongest point in Feder’s teaching, though others considered it a weak point.
[...]
When I heard Gottfried Feder’s first lecture on ‘The Abolition of the Interest−Servitude’, I understood immediately that here was a truth of transcendental importance for the future of the German people. The absolute separation of stock−exchange capital from the economic life of the nation would make it possible to oppose the process of internationalization in German business without at the same time attacking capital as such, for to do this would jeopardize the foundations of our national independence. I clearly saw what was developing in Germany and I realized then that the stiffest fight we would have to wage would not be against the enemy nations but against international capital. In Feder’s speech I found an effective rallying−cry for our coming struggle.
Here, again, later events proved how correct was the impression we then had. The fools among our bourgeois politicians do not mock at us on this point any more; for even those politicians now see – if they would speak the truth – that international stock−exchange capital was not only the chief instigating factor in bringing on the War [WWI] but that now when the War is over it turns the peace into a hell.
The struggle against international finance capital and loan−capital has become one of the most important points in the programme on which the German nation has based its fight for economic freedom and independence.
[...]
Thus the judgment arrived at by Gottfried Feder determined me to make a fundamental study of a question with which I had hitherto not been very familiar.
I began to study again and thus it was that I first came to understand perfectly what was the substance and purpose of the life−work of the Jew, Karl Marx. His Capital became intelligible to me now for the first time.
And in the light of it I now exactly understood the fight of the Social−Democrats against national economics, a fight which was to prepare the ground for the hegemony of a real international and stock−exchange capital."
• Adolf Hitler – Mein Kampf - CHAPTER VIII - THE BEGINNING OF MY POLITICAL ACTIVITIES
Oh thank you for posting this. Ever since you told me that Feder was the economic strategist behind Hitler's reformation, I've been wanting to read him. And I'm sure my neighbors could hear my hoot of laughter to see you'd included the Czarina moniker ;-)
From the first chapter with his nine points, I can see that his plan and mine have significant overlap. However I think there are some important differences. In 1, 2, 4 and 5, he's talking about the state's ability to create its own money for its own internal affairs and labor, including war, without borrowing from bankers with interest. Yes! Particularly 4 when he says that all banking should be a function of government and 5 that only the state can issue credit against real estate. We differ in scale, since I think a top down structure still leads to corruption, but not in principle.
I differ with him on #3 that all mortgages should have no interest. When I bought my house 40 yrs ago, the interest rate was almost 20%. That kept the price low. As the interest rate goes down, the same monthly payment will pay off a debt that's double or triple. That's how they rig inflation. The house becomes more expensive, so it can't be paid off sooner, and the additional money put into circulation when everyone refinances raises the bidding war.
The only benefit of those higher prices goes to the seller of the house. It makes real estate a racket for the rich. Under my system, when the interest rate reaches 5% and stays there, it will distribute the benefit of mortgages almost equal to the principles to everyone within that commonwealth. So interest is actually a brilliant thing, which is why the bankers have used it to make themselves so powerful. Don't give up the tool and make yourselves powerless. Your purpose as a commonwealth is to enhance the true wealth in security and real assets of the villages, hamlets, neighborhoods and families within your borders.
Thanks again for this and for reading so closely and considering my ideas so deeply!
• Feder’s Genius
https://federsgenius.wordpress.com/
Articles:
• Background to the NSDAP’s Struggle Against International Finance Capital
• The Two Main Points of the Programme
• The Thralldom of Interest
• Exposing the “Sacred Cow” of Interest
• The Ivory Tower of Interest
• Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Problems
• The Rescue Plan
• Empire By Finance
• Private Property and Land Ownership in the National Socialist Economy
• Understanding the Problem – Debt-Based Fiat Currency
• The Solution – Labour-based Currency