The End of Hamilton's Fiscal-Military State

It is indeed surreal, not to mention profoundly perturbing, deeply disconcerting, and beyond worrisome to have arrived as a nation at this point where in less than a fortnight the very really possiblity exists that the United States will default on its external debt for the first time 1790 (there was a purposeful technical default on domestic debt in 1933 related to the repayment of gold-based obligations). That 1790 default, perhaps lost in the fog of history, merits greater attention given our current predictament for out of that default our present system of government financing began to take shape.

One of the early crises, and probably its most salient, of the early Republic was the tremendous debts, largely held by the states, that were a legacy of the Revolution. The post Independence crises of 1780s were primarily two fold. First, the Articles of Confederation and Perpetual Union drafted in 1777 but not ratified until 1781 gave each state veto power over legislative decision-making. Then Rhode Island was quite obstinant and effectively shot down every attempt to deal with the other great problem faced by the country, the debts assumed by the various states to finance the struggle for independence. 

The debts incurred by the states proved quite burdensome stiffling the economy.


 

The End of Hamilton's Fiscal-Military State

It is indeed surreal, not to mention profoundly perturbing, deeply disconcerting, and beyond worrisome to have arrived as a nation at this point where in less than a fortnight the very really possiblity exists that the United States will default on its external debt for the first time 1790 (there was a purposeful technical default on domestic debt in 1933 related to the repayment of gold-based obligations). That 1790 default, perhaps lost in the fog of history, merits greater attention given our current predictament for out of that default our present system of government financing began to take shape.

One of the early crises, and probably its most salient, of the early Republic was the tremendous debts, largely held by the states, that were a legacy of the Revolution. The post Independence crises of 1780s were primarily two fold. First, the Articles of Confederation and Perpetual Union drafted in 1777 but not ratified until 1781 gave each state veto power over legislative decision-making. Then Rhode Island was quite obstinant and effectively shot down every attempt to deal with the other great problem faced by the country, the debts assumed by the various states to finance the struggle for independence. 

The debts incurred by the states proved quite burdensome stiffling the economy.


 

The End of Hamilton's Fiscal-Military State

It is indeed surreal, not to mention profoundly perturbing, deeply disconcerting, and beyond worrisome to have arrived as a nation at this point where in less than a fortnight the very really possiblity exists that the United States will default on its external debt for the first time 1790 (there was a purposeful technical default on domestic debt in 1933 related to the repayment of gold-based obligations). That 1790 default, perhaps lost in the fog of history, merits greater attention given our current predictament for out of that default our present system of government financing began to take shape.

One of the early crises, and probably its most salient, of the early Republic was the tremendous debts, largely held by the states, that were a legacy of the Revolution. The post Independence crises of 1780s were primarily two fold. First, the Articles of Confederation and Perpetual Union drafted in 1777 but not ratified until 1781 gave each state veto power over legislative decision-making. Then Rhode Island was quite obstinant and effectively shot down every attempt to deal with the other great problem faced by the country, the debts assumed by the various states to finance the struggle for independence. 

The debts incurred by the states proved quite burdensome stiffling the economy.


 

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