Wednesday 29 June 2016

Debt: The First 5,000 YearsDebt: The First 5,000 Years by David Graeber
My rating: 5 of 5 stars

Back to the Future of Credit

Despite its title this book is really a deconstruction of the idea of money. The economist's idea is that credit (loans, cash advances etc.) arises in a well-developed monetary or 'cash on the barrel head' society which in turn had been an improvement on the previous system of barter.

Not so says Graeber and rather convincingly: credit, or more precisely the ledger of who owes what to whom, is the most primitive form of commerce which is only supplemented by either barter or immediate monetary exchange when social conditions deteriorate sufficiently to make credit arrangements impossible. Wars, revolutions, and various social upheavals are what cause the demand for cash, that is, the immediate settlement of commercial transactions.

Cash only becomes king when there is no trust, either between parties to a transaction or in the stability of the social environment. Credit in a very practical sense is the fundamental invention and promoter of civilisation.

Graeber's thesis is in fact confirmed by recent technological developments like Bitcoin. Bitcoin is in its simplest terms 'merely' an unfalsifiable ledger of who has 'rights' in the community and how much, essentially what members of the community are worth to each other.

The Bitcoin ledger differs from bank accounts because (among other things) it cannot be interfered with either by criminals or governments. In other words the ledger can be trusted even when its members have no personal knowledge of each other. The social system is its own guarantor.

If only Immanuel Kant (not to mention Leibniz) were alive to see it! He spent his life trying to find a way to guarantee the integrity of life's accounts, in every sense of the word. Double-entry bookkeeping was a start but not enough to warrant complete trust. With modern technology it looks as if we might be able to create enough trust to return to the most efficient commercial system possible: pure credit. Without the need for banks or their regulators. Or for that matter, their scams and frauds.

Fascinating, provocative and stimulating. If you have an interest in uncovering the myths of economics and how those myths become part of what you then see in the world, this is a must read.

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An Addendum

This article appeared in my feed today. It is yet further support for Graeber's position and the superiority of an unmediated credit economy: https://www.commonwealmagazine.org/in...

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Sunday 26 June 2016

The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic OrderThe Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order by Paul Vigna
My rating: 4 of 5 stars

Competing For Trust

Just as light is considered as both a particle and a wave in modern physics, the new forms of exchange that have been developed using the technology of the Internet are both currencies and commodities. This is another way of saying that neither in physics nor economics do we have an adequate description of either light or money, although we might temporise and muddle on regardless.

Surprisingly perhaps, we may be further ahead in developing a unified theory of money thanks to the 'experiments' that have been undertaken over the last two decades that involve so called cryptocurrencies - DigiCash, bit-gold, b-money, hashcash and Bitcoin among many others. What this experience shows is that money isn't really either a 'medium of exchange', that is a special kind of thing which neutrally denominates the value of other sorts of things. Nor is it really a 'store of value' that is a commodity like gold which can from time to time be converted into or even used as currency.

Rather money is in reality 'merely' an entirely symbolic entry in a ledger, that is a system of rights and obligations, that is accepted as accurate and trustworthy in a community. It is the perceived integrity of the ledger that is the essential condition for money to exist. Whether it exists as a currency or a commodity is a secondary consideration at best. If nothing else, this is the manifest lesson of both the successes and failures of bitcoin technology in its most general applications.*

That is the story of this book. And like the best of post-modernist fiction, it is a story without a definitive denouement. No one can predict the ledgers that will be created and trusted. There are good reasons to trust the (still evolving) system of regulated money that is based in banking and governmental control (it works most of the time for most people in the developed world). And there are equally good reasons to mistrust it as well (most of the world is in fact excluded and governments have a natural tendency to abuse their power).

And the same can be said of the new cryptocurrencies (the logical unassailability of distributed blockchain technology doesn't guarantee the integrity of the software which puts this logic into commercial practice nor does it ensure the integrity of the necessary connections - dealers, exchanges, storage facilities etc. - between any cryptocurrency and the rest of the world).

So whatever the outcome, the future of money is going to involve both a system of regulation and a less than free-for-all proliferation of ledgers. Minimally, the competition for trust will be interesting. Let's hope it isn't disastrous as well. To the extent that Goldman Sachs is involved, my hope diminishes.

*Ensuring the integrity of the ledger requires just about every philosophical strategy available in the epistemological playbook. See here for some details: https://www.goodreads.com/review/show...

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Digital Gold: The Untold Story of BitcoinDigital Gold: The Untold Story of Bitcoin by Nathaniel Popper
My rating: 4 of 5 stars

Hacking the Central Banks

If there is only time to read one book about Bitcoin, this should be the one.

Bitcoin is not just a practical technology, it is also a philosophy and an economic ideology. Popper gives a reasonable nod to all three (Arguably it is the last which has proven essential in its initial successes but which has now run out of steam). But like all philosophies it has a problem.

As a self contained system Bitcoin is a masterwork of self-verifying logic. This logic is an ingenious combination of Kantian analysis (the blockchain is a giant double-entry ledger which automatically identifies errors) and Hegelian dialectics (any blockchain can only be integrated into the system through competitive trial and error toward the solution of a mathematical problem) and Lockean consensus (if there is disagreement about who wins in block competition, the consensus within the network rules). There is even a nod to Leibnizian monadology (the encryption of the blockchain allows an extreme compression of the entire ledger so that it an be stored simultaneously throughout the network of Bitcoin users). This combination of four philosophical solutions to the problem of integrity makes Bitcoin itself (but not necessarily its software) tamper-proof.

Economically this means perfect efficiency: zero fraud, virtually no transaction cost, and almost instantaneous execution of transactions (well, ten minutes). Ideologically, libertarians see this as a way to become independent of central banks which may be tempted either to debase the currency (the maximum Bitcoin supply is 21 million, an amount which will be approached only asymptotically at a predictable rate) or to control where and when it can be used (there is no effective way to control cross-border flows of Bitcoin since they never leave the ledger).

The problem arises not within the system but in the relation of the system to any other monetary system. This connection inevitably involves brokers and dealers and exchanges and traders which are not covered, as it were, by the Bitcoin guarantee of integrity or insulation from outside authority.

So to the extent Bitcoin is accepted as a convention it is indeed significant. But getting into it or out of it is fraught with the same dangers, inefficiencies, and regulatory arbitrariness as any other currency. And as long as governments don't accept Bitcoin in payment of taxes (which makes fiat currency currency), Bitcoin is a monetary sideshow mostly of interest to the underworld (not necessarily criminal) which is forced to hack the currently dominant monetary system to survive. This alone is likely to be sufficient to ensure Bitcoin a place in economic and social history.

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Wednesday 22 June 2016

The Shadow of the Wind (The Cemetery of Forgotten Books, #1)The Shadow of the Wind by Carlos Ruiz Zafón
My rating: 1 of 5 stars

Forgettable Indeed

Disappointing. The genre is uncertain without being creative. The story is complex without being interesting. The prose is increasingly trite as the book progresses. Improbable coincidences abound. The structure involves constant repetition rather than elucidation. I'm sure Zafon has the same editor as Donna Tartt, the one who allows the book to reach print about 60% too long. Talk about prolix! Don't let the first few chapters fool you. This book goes nowhere and has no discernible point except its own endless exposition. One in the eye for the listers of best sellers I'm afraid.

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Tuesday 21 June 2016

 Everything Is Illuminated by Jonathan Safran Foer

 
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really liked it
bookshelves: jewishamerican 

Funny In a Tragic Way

What would the English of a bright Ukrainian who had learnt it largely from local pop culture and a thesaurus sound like? Hilarious actually. Especially in the telling of a tale which has both been told so many times, and can never be told adequately: the Holocaust. 

There are two protagonists, the author, a young Jewish man off to find his roots in a now famous but obliterated shtetl near the Polish/Ukrainian border; and a young, ambitious lad from a disfunctional family in Odessa who acts as guide and subsequent interlocutor. The author writes history (of a post-modernist sort); the lad writes of the trip and comments on the author's text. 

It is these latter comments that are most compelling because they reveal both the essential irrelevance of the destruction of European Jewry to the lives of those who have inherited the unexpurgated guilt of the massacres, and the way in which that guilt remains an essential but unspoken feature of life. Without the comedic language to make this contradictory point, the book would likely fall flat. With that language, and it's gradual 'normalisation' during the course of the tale, the book becomes a story of revelation.

The American ReligionThe American Religion by Harold Bloom
My rating: 5 of 5 stars

Authoritarian Bufoonery Explained

America - from Jefferson to Trump - cannot be understood apart from its peculiar religious culture. Bloom makes a brilliant case that that culture is essentially neither Christian nor European but Gnostic and Middle Eastern. The ultimate expression of the American religious culture is Mormonism, the religion of the perfection and deification of mankind through its return to its original unity with the universe. Put another way: Transcendentalism is inherent in American being. From 'inalienable rights' to 'American greatness', this gnostic tendency is pervasive and persistent. Bloom recognises his own gnostic preferences, so this is not so much a reproach as an appreciation of the uniqueness of American culture, including its wackiness in alien abductions and Trumpian non-sequiturs. Americans do indeed live in an alternative universe. Recently Terry Eagleton's 'Across the Pond' (https://www.goodreads.com/review/show...) and Chris Lehmann's 'The Money Cult' (https://www.goodreads.com/review/show...) both provide interesting confirmation of Bloom's thesis.

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Thursday 16 June 2016

The World as I Found ItThe World as I Found It by Bruce Duffy
My rating: 4 of 5 stars

Rumpelstiltskin, Hamlet, and Dionysus: The Dynamic Logic of Human Association

A psychological drama as complex and sustained as that in The World As I Found It must have a theory lest it fall apart into narrative chaos. Although there are necessarily numerous references to Freudian theory given the importance of Vienna to the central character of Ludwig Wittgenstein, I don’t think the book relies on Freud for its dynamic structure. Rather, the framework is markedly Jungian.

Although Freud had a well-developed theory of the individual personality, he had little to say about how personalities interacted. Jung, on the other hand, built his theory on a social conception of psychic health. Jung’s theory provided a much wider freedom of action for the psyche in search of what he called ‘integration.’ So, as in Freudian analysis the individual could seek to understand his own personality as a consequence of its history; or, and much more commonly, enter into relationships which ‘balance out’ one’s personal deficiencies.

This latter tactic may not be as effective in the long term as therapy in ‘adjusting’ a personality to reality. But it has the great advantage of being far less painful... and far less costly in terms of the time and money devoted to analysis. The fact that relationships are essentially temporary - absence and death are inevitable - and unstable - love and hate have their independent effects - means that one must constantly strive to recreate a sort of relational equilibrium among others who are trying to do the same. A complex task indeed.

The central figure of the book is Ludwig Wittgenstein, a personality forged in a large family with a domineering father and a collusive mother. The family also includes two ‘ghosts’ of brothers who have committed suicide before Ludwig had reached his teens, probably in revenge against paternal tyranny. Ludwig survives by developing an extremely strong and extremely abstract ‘inner life.’ In Jungian terms, he is markedly Subjective, that is, he is relatively immune from external pressure. In fact, under the tutelage of his father, he barely notices what goes on around him.

Ludwig is so extreme in his Subjectivism that he is overtly solipsistic. He seriously questions the existence of other minds. And he insists that only propositions about the world are what exists. Eventually as he matures he will moderate his enthusiasm for solipsism; but as he enters the academic world of Cambridge he is seriously close to a sort of intellectual insanity: “Witt-gen-stein, that fractious weather system of remembering and forgetting which finally consumes the life of the thing remembered.”

Ludwig has also learned through his father’s insistent bullying how to resist the forces in the world which might want to change him. By attacking the world head on he has found that he can change it before it has a chance to change him. He is an accomplished Jungian Extrovert, constantly seeking to change those around him lest they intrude on his ‘mission,’ whatever that may be.

Subjective Extroverts like Wittgenstein are awkward folk. They appear to have little sensitivity to others and are constantly imposing their will by whatever means available. In extreme cases, like that of Wittgenstein, their dogged intransigence causes others in their orbit to adapt themselves to his presence, often in ways that are not really healthy for the individuals involved but do create a sort of relational equilibrium.

So, for example, Wittgenstein’s appearance in Bertrand Russell’s life at Cambridge has a dramatic, almost immediate effect. The pair are drawn to one another because Russell is the Jungian opposite of Wittgenstein, an Objective Introvert who is relatively sensitive to his environment and habitually adapts himself to circumstances.

Because Wittgenstein is such an extreme case, he, a student, essentially forces Russell, his mentor, to move even further into his Objective Introversion, a condition noticed and responded by his colleagues at King’s College High Table: “to Russell, Wittgenstein was infallible — sibylline.” Russell even allows Wittgenstein to be the judge of his life’s work: “Despite appearances, though, Russell was slipping by with mounting difficulty. One big problem was his craving for Wittgenstein’s imprimatur, as when he asked Wittgenstein to read the proofs for the third volume of his Principia Mathematica”

Chief among these is the philosopher George Moore, Russell’s long-term collaborator. Moore is a sort of joker in the pack. He is in Jungian terms the most Centroverted of the bunch. That is, he has a reasonably wide repertoire of psychic abilities. He is at times quite sensitive to what’s going on around him; and at other times he prefers to ‘live in his head.’ And although he does attempt to change what’s going on around him in college life from time to time, he is quite capable of shutting his mouth and letting things ride.

Moore was not so much the peacemaker as the balancer of the group, the one who ensured it remained functional. As both Wittgenstein and Russell conduct their wild dance, Moore compensates for the most bizarre moves of each, shifting the centre of gravity of the group. This was the role he had always played, even in his professional life as an ethicist. “Moore admitted that it was at first a little dispiriting to realize that ethics was really a matter of brokering, in a given instance, something better than worse, and likely rather worse than good.”

Moore’s intermediate position between Wittgenstein and Russell is a precarious one however. They come to rely on him to maintain the stability of the triad no matter how extreme their behaviour becomes. Moore is the force which maintains a semblance of normality, a sort of unrecognised touchstone for the other two. He is trapped in their joint psychic drama. His prospective marriage, and consequent absence from the relationship, threatens disaster for both Wittgenstein and Russell.

This, I believe, is the basic structure of the psychodrama which Duffy has created. Any such drama is necessarily situational - the actors would all act differently when placed in different circumstances. Nevertheless Duffy has created a fiction which fits the circumstances as defined by historical documents. His book is both insightful and informative about what might be called the background of genius. His use of a quote by Wittgenstein as an epigraph seems exactly right: “I once said, perhaps rightly: The earlier culture will become a heap of rubble and finally a heap of ashes, but spirit will hover over the ashes.”

The spirit in question is, it seems to me, that evanescent but real relationship among three men: Rumpelstiltskin (Wittgenstein’s fantasy life), Hamlet (Russell’s drama with his dead father), and Dionysus (Moore’s easy-going life of both the mind and the stomach), who somehow formed a temporary but cohesive whole enabling each other’s talent as well as their complementary neuroses. Duffy’s interweaving of a fairy tale, a Shakespearean tragedy, and a Greek myth is masterful, and very, very Jungian indeed.

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Monday 13 June 2016

The Death of NapoleonThe Death of Napoleon by Simon Leys
My rating: 4 of 5 stars

But I Really Am He

Simon Leys has written an antidote to the What If Novel. What if Napoleon had used a double to escape from St. Helena? Well perhaps nothing significant except that he saves a failing fruit business in a Paris suburb and gets loved up by a plump widow. The fly in the strategic ointment is that by the time of his return to national politics there is an entire hospital devoted to men who believe they are Napoleon. Could have been, why not?

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Thursday 9 June 2016

The SeaThe Sea by John Banville
My rating: 4 of 5 stars

The Depths of Vocabulary

John Banville loves words just as they are. Words like losel, and finical, gleet, scurf, bosky, cinerial, and merd that will really screw up your spell-checker. It's part of his masterful charm. Add his ability to put these words together in velvet sentences, and combine sentences into exquisite narrative, and voila: a writer worth his salt...as it were, especially with a title like The Sea. Inspired by Henry James? Very possibly, particularly by The Turn of the Screw and its permanent mystery. Nonetheless, uniquely and unmistakeably Banville.

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Tuesday 7 June 2016

Man Walks into a RoomMan Walks into a Room by Nicole Krauss
My rating: 4 of 5 stars

Painful Memories

Man loses memory entirely: nothing to write about; man loses all but the last ten minutes of memory: almost nothing to write about; man loses 24 years of memory from the age of twelve: an interesting premise for literary investigation, particularly about the relationship between memory and feeling. How much is feeling invested memory? What happens to feeling when memory disappears? What happens to memory when it becomes more concentrated in some personal epoch? Krauss's explorations are sensitive and perceptive. They are also highly emotional. The last two pages will make you gasp...unless of course you have already lost too many memories.

For a much fuller appreciation 0f this book both in terms of its content and its contextual import, see: https://www.goodreads.com/review/show...

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The History of LoveThe History of Love by Nicole Krauss
My rating: 4 of 5 stars

Being Moved

If you like your schmaltz delivered hot, thick and with plenty of gravy, Krauss is your writer. I mean no disparagement by saying that nobody does Holocaust survivor-tragedy better than she. The old man in the empty Manhattan apartment whose pregnant Polish sweetheart had left him years ago for America, and whose closest contact with his son is at the son's wake is tragedy with punch. As is the teenager who desperately wants to reconstruct memories of her dead father through a relationship with yet another survivor-figure who is obsessed with the work of an obscure South American poet (he a betrayer-survivor). Identities blur and flow into one another until the reveal becomes complete. The way human beings deal with chance, particularly the randomness of death, and the role of the long-term tragedy of chance itself become pitiable. With her remarkable skill, Krauss entraps (I have no better word) the reader into her emotional universe. Her oeuvre is emotion and as one of her characters says, "The oldest emotion in the world may be that of being moved; but to describe it - just to name it - must have been like trying to catch something invisible." She does a good line in making much that is invisible if not entirely clear then at least something to be considered seriously, savoured like a good kosher meal.

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Great HouseGreat House by Nicole Krauss
My rating: 4 of 5 stars

How to Extract Empathy

Krauss is a mistress of extracted empathy. She can drag it out of you even when you fight it, particularly empathy for writers: for Nadia, a writer prevented by success from writing what she ought; for Dov, an Israeli, prevented by apparent paternal sadism from becoming a writer at all; for Lotte, an Holocaust-traumatised emigre writer, who reportedly goes skinny dipping every day on Hampstead Heath; for Isabel, a failed Oxford student (presumably a writer, if only of essays), who makes some bizarre personal decisions. Their stories touch each other just enough to amplify the empathy one feels for each.

It intrigues me how she does this. The fundamental theme is one of alienation - from loved ones, from family, from the world, from oneself - as described by four narrators. But the variations on this theme overlay each other to absorb the reader into the desperation of each. How are they connected? Are the stories about the teller or the one told about? Is the central theme the awkwardness of living with authors, even with oneself as an author? Or is the real story that of people coping with emotions buried so deeply that they can only be alluded to and discovered in a sort of psychoanalytic process carried out in print?

The literary devices in Great House are as complex as the variations on the basic theme. The thin thread of a piece of furniture is used to keep the parts together. But there are numerous recurring tropes: The collapse and inversion of time over decades; the random interjection of discontinuous events; the phrase “after what happened” without explanation, used unexpectedly to queue up a later revelation; narrative characters (and narrators) left unidentified for extended periods; the teasingly repeated denial of expected resolutions; open family secrets never discussed; the homecoming after years of absence; and withal the withholding of any suggestion of purpose until the end. The effect is one of not just suspense but an experience of a pressing need to know how the characters survive, if indeed they do.

So, a complex, challenging and rewarding work by a pro. Can’t ask for much more.

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Friday 3 June 2016

 

Regeneration (Regeneration #1)Regeneration by Pat Barker
My rating: 5 of 5 stars

Agony in the Garden 1917

Historical fiction is the antithesis of murder mystery. We already know who done it, how it was done, and why. The only possible plot involves the psychological drama which lies behind the action, not the motive but the motivating forces which establish the dramatic tension that leads to a motive.

So from the start the reader knows the outcome of Regeneration: Siegfried Sassoon goes back on the line. He needn’t have gone back to the front; he was already a decorated hero who had been assigned a post in a training command. How and why he manages to put himself there is the substance of Barker’s story.

The story has a dynamic, a flow of forces which has an uncertain result until the end comes. It starts in medias res at the point that Sassoon has already committed himself to a Christ-like course of action. Or rather to a Christ-like aspiration since he has been thwarted by his friend Robert Graves, an anti-Judas, from presenting himself before a courts martial of fellow officers, the equivalent of the prefecture of Pontius Pilate.

Sassoon’s emotional state is at this point profoundly confused. As a platoon leader he has an intense loyalty to the men he commands, which is amplified by an equally intense need for the camaraderie that he finds with them at the front. However he also has an overwhelming revulsion for the horrors he and these men have experienced. And that revulsion is then associated through a sort of psychological transference with anyone who has not experienced those horrors yet remains enthusiastic for the war effort.

So Sassoon hates more or less everyone except his fellow soldiers - senior officers, non-combatant soldiers, opinionated civilians of all ages and professions, and the civilization of which they are parts. It is this hatred which has driven him to throw his Military Cross into the Mersey and to write and publish his Declaration condemning the war - much in the spirit of Christ’s righteous anger at the merchants of the Temple. Sassoon recognizes that both actions are futile. But, even more to the point, they prevent him from exercising the fraternal love he has for his fellows. If he succeeds in being publicly judged, he will be permanently separated from them.

The process of ‘regeneration’ is therefore one of clarifying the criterion for correct action in what is an intolerable situation. This is Sassoon’s agony in the garden. Each gospel account of Christ’s contemplation of the motivation for his own self-sacrifice provides sparse and different details. Barker’s account could well be the missing content of these gospel stories. The essential issue of both the gospels and Barker’s fiction is not what to do but why to do it.

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It is through his poetry and the poetry of his friend Wilfred Owen that Sassoon finds the proper criterion for action. Both elements - the writing which objectifies the situation, and the relationship with Owen and others which corrects and amends the creative object - are necessary for the discernment of what constitutes Reason in a patently unreasonable world. Fortunately, unlike Christ’s friends, Sassoon’s didn’t sleep through his efforts.

I am captive to the thought that Barker’s title refers not merely to Sassoon’s struggle but also is a Joycean double entendre for the agony of an entire generation.

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Small Gods (Discworld, #13)Small Gods by Terry Pratchett
My rating: 5 of 5 stars

Winning in Heaven

Pratchett at his theological best: there are many gods, varying in size and power depending on the numbers who believe in them. The obvious theological/economic issue which then arises is 'How does a small god survive?' Stiff competition calls for creative solutions.

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Going Postal (Discworld, #33; Moist von Lipwig, #1)Going Postal by Terry Pratchett
My rating: 5 of 5 stars

Monetary Relativity

No better theory of money exists than Pratchett's: money is founded on postage stamps that got out of control. Understanding that fact helps to explain the world better than relativity theory.

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Making Money (Discworld, #36; Moist Von Lipwig, #2)Making Money by Terry Pratchett
My rating: 5 of 5 stars

Pratchett's masterpiece on monetary economics. How it all really works, including the central role of the Post Office in continuing mass delusion.

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