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By:

Shoumojit Banerjee

27 August 2024 at 9:57:52 am

Paranoid Empire, Insecure Republic: America at 250

As the United States marks its semiquincentennial, its finest histories reveal a restless nation unable to escape the foundational neurosis of its own creation. Washington Crossing the Delaware (1851), by Emanuel Leutze. No painting has done more to canonise America’s founding myth. Yet beneath its heroic certainty lies the restless republic that historians from Charles Beard to Robert Kagan would relentlessly question. Behind the fireworks and the dutiful invocations of liberty marking...

Paranoid Empire, Insecure Republic: America at 250

As the United States marks its semiquincentennial, its finest histories reveal a restless nation unable to escape the foundational neurosis of its own creation. Washington Crossing the Delaware (1851), by Emanuel Leutze. No painting has done more to canonise America’s founding myth. Yet beneath its heroic certainty lies the restless republic that historians from Charles Beard to Robert Kagan would relentlessly question. Behind the fireworks and the dutiful invocations of liberty marking America’s 250th birthday lies the shadow of a more formidable counter-tradition. For over a century, the republic’s most vital chroniclers have functioned as its most demanding interrogators, systematically dismantling the comforting stories the nation prefers to tell about itself. This internal demolition is not some recent ‘progressive’ glitch but a deep-seated intellectual inheritance. It was most famously ignited when Charles Beard published his iconoclastic An Economic Interpretation of the Constitution of the United States (1913), a work that scandalized the establishment by ruthlessly stripping the hagiography from the Constitutional Convention and America’s revered ‘Founding Fathers.’ Beard reframed these secular saints - Alexander Hamilton, James Madison, and George Washington among others - not as disinterested architects of some timeless political philosophy, but as a property-owning elite property-owning elite eager to protect their personal financial investments from populist chaos. Demolishing Founding Myths In Beard’s telling, Hamilton emerged not as a romantic visionary, but as the aggressive champion of the urban merchant and banking class, eager to build a powerful central state that would guarantee public debt and protect big capital. Madison, revered as the ‘Father of the Constitution’ and its chief intellectual heavyweight, was recast from an eloquent theorist of democratic balance into a wealthy Virginia slaveholder whose primary practical anxiety was preventing a debt-ridden agrarian majority from using democracy to redistribute property. Even the first President George Washington, the towering military icon, was viewed through the cold ledger of Beard’s reality as the richest plantation magnate and land speculator in the colonies, whose vast western holdings required a powerful federal government to secure contracts and pacify the frontier. Beard’s iconoclasm laid the groundwork for a formidable intellectual tradition that would spend the next century turning over the stones of the American national myth. The works of historians belonging to this tradition essentially reveal that America has never been the coherent republic of its own imagination. It was born divided, grew through conquest, nearly destroyed itself in civil war, and emerged as a global hegemon while steadfastly insisting it had no imperial ambitions. The single thread running through this vast literature is a profound, systemic anxiety of the United States as a restless, schizoid nation, perpetually unsure of its own footing. No outsider understood the psychological consequences of this design better than Alexis de Tocqueville. Visiting the infant republic in the 1830s, the French aristocrat looked at America as a laboratory for the democratic future. In his seminal Democracy in America (published in two volumes in 1835 and 1840), Tocqueville diagnosed the foundational neurosis of the American character, catching (like none before him or since), the tragic irony of a population possessing every material advantage yet perpetually tormented by a vague dread of missing out on something better. This egalitarian equality, noted de Tocqueville, sharpened competition and magnified the smallest inequalities into existential slights for the American. In his famous chapter in Vol. 2 of his work, “Why the Americans Are So Restless in the Midst of Their Prosperity,” de Tocqueville observed that the American “clutches everything, he holds nothing fast, and he soon lets go of his prey to pursue new gratifications.” It was the earliest and most elegant diagnosis of the schizoid superpower: a nation whose unprecedented freedom bred not contentment, but a permanent and frantic melancholy. While the American superpower often appears monolithic from afar, the country that emerges from its most trenchant histories is one that is forever negotiating the chasm between lofty ideals and uncomfortable realities. Bernard Bailyn famously observed in his classic The Ideological Origins of the American Revolution (1967) that the nation’s founding was not merely a matter of economic grievance over taxes and tea. Immersing himself in the pamphlets and political tracts of the 18th century, Bailyn uncovered an almost obsessive paranoia regarding power itself. To modern observers accustomed to viewing 1776 as a straightforward triumph of liberty, Bailyn’s startling conclusion was that the language of America’s founders revolved less around abstract freedom than around corruption and the organic tendency of government to expand. America’s structural paranoia found its ultimate framework in the work of historian Richard Hofstadter, who understood better than anyone else, that the country’s recurring internal crises were often less about ideology than about collective psychology. In his masterwork The Paranoid Style in American Politics (1965), Hofstadter argued that American public life has repeatedly been animated by a sense of impending catastrophe, a conviction that shadowy conspiracies are poised to destroy the republic from within. From the anti-Masonic movement of the 19th century and the nativist panics over Catholic immigrants, to McCarthyism's hunt for communist infiltrators and the tremors of Donald Trump’s MAGA era, each American generation has imagined itself living through the nation’s final reckoning. For Hofstadter, this “paranoid style” was not clinical madness but a permanent fixture of American public life - a recurrent mode of political expression marked by heated suspicion and apocalyptic dread. It remains the most enduring diagnosis of America’s perpetual state of anxiety and explains why the world’s most powerful nation has rarely behaved with the cold confidence of an established empire, but rather with the nervous intensity of a hypochondriac patient, forever convinced that the experiment is on the verge of collapse. This pervasive anxiety ceases to be a mystery when one looks at how the American experiment actually began; the nation’s anxious psychology was forged in the sheer geopolitical volatility of its birth in the 18th century. The comfortable American myth of a pristine, immaculate conception is thoroughly dismantled by Fred Anderson in his superb Crucible of War (2000). Anderson demonstrates that the struggle that produced the United States was not a localized spark, but the messy offshoot of the Seven Years’ War (1756–1763) - the global conflagration between Britain and France that was fought across Europe, the Caribbean, and fatefully - India. Great Britain’s victory over France upended the old imperial relationship, forcing colonists to shoulder the financial burden of their own defense. The resulting revolution was less an inevitable, heroic march toward human freedom than the chaotic, unintended consequence of British imperial triumph. Alan Taylor further disrupts this providential unity in American Colonies (2001) and American Revolutions (2016) by upending patriotic simplicity. In Taylor’s telling, the American Revolution was another ‘civil war’ as it meant exile for the Loyalists; diplomatic collapse for the Native Americans and for enslaved Africans, it meant the tragic deferral of emancipation. Schizoid Superpower The most devastating challenge to America’s preferred self-image of a ‘reluctant power’ comes from Robert Kagan. Ironically, Kagan, the chief architect of modern neoconservatism, has taken a prosecutorial blade to the American foundational myth in his remarkable two-volume history, Dangerous Nation (2006) and The Ghost at the Feast (2023), which brilliantly lay bare the anatomy of the American mind. Kagan demonstrates that territorial aggrandizement was a founding American instinct. The Louisiana Purchase (1803), the displacement of Native nations, the annexation of Texas, and the war with Mexico were expressions of a political culture that saw geographic enlargement as the natural companion of liberty. ‘Empire’ was recast as ‘providence’ while ‘conquest’ became ‘destiny.’ Americans genuinely believed they were spreading freedom, distinguishing themselves from European rivals by the conviction that expansion itself constituted liberty. The westward march that Americans long celebrated as the triumph of the frontier was experienced very differently by the continent’s first inhabitants. For generations, the conquest of Native America was either romanticized as the inevitable advance of civilization or reduced to a succession of isolated “Indian wars” until Dee Brown’s unforgettable Bury My Heart at Wounded Knee shattered that complacency in 1970 by retelling the 19th century through Native voices, transforming public understanding of the frontier and becoming a landmark of revisionist history. Yet half a century later, Peter Cozzens’ The Earth Is Weeping: The Epic Story of the Indian Wars for the American West (2016) offers a broader and more nuanced account. Cozzens neither romanticizes Native societies nor sanitizes American expansion. Instead, he reconstructs the collision between two civilizations, showing how diplomacy, disease, fractured tribal alliances, settler violence, military innovation, and federal policy combined to produce one of history’s most consequential dispossessions. His achievement lies in restoring historical agency to all sides without creating a false moral equivalence. The domestic cost of America’s expansionist contradiction was a catastrophic internal reckoning. For all the endless tomes written on the U.S. Civil War (1861-65), James McPherson’s Battle Cry of Freedom (1988) remains the finest analytical single-volume history of the war. Unlike popular, novelistic accounts like Shelby Foote’s massive trilogy - which treat the war as a tragic, romantic epic of battlefield manoeuvres and character studies - McPherson provides a rigorous structural autopsy. His vital analytical choice is to begin the narrative not in 1861 with the firing on Fort Sumter, but in 1848, in the immediate aftermath of the Mexican-American War. By doing so, McPherson demonstrates that the Civil War was the direct, toxic byproduct of the empire’s expansion where the massive acquisition of new western territories instantly broke the fragile political equilibrium, thereby forcing a terminal collision between two incompatible constitutional visions of the republic’s future. For decades, politicians had convinced themselves that clever congressional compromises could indefinitely postpone the debate over human bondage. Each settlement merely bought time without addressing the underlying rot – that a republic founded on universal liberty had constructed one of the most powerful slave societies in human history. The war transformed the very grammar of American politics. It settled far less than its survivors wished to believe. As Eric Foner argues in Reconstruction: America’s Unfinished Revolution, 1863–1877 (1988), the brief, extraordinary moment where the republic sought to transform four million formerly enslaved people into equal citizens was ultimately abandoned due to Northern fatigue, Southern racial terror, and partisan compromise. Foner’s great insight is that Reconstruction is not a historical interlude but an unfinished conversation and that modern disputes over voting rights and citizenship trace their lineage directly to those turbulent, post-Civil War years. As the frontier consolidated in the late 19th century, a different kind of territory was conquered. By the close of the century, a republic born out of a profound distrust of central authority found itself confronting concentrations of private wealth on an unimaginable scale. Capitalism acquired a providential character, and industrialists were canonized as self-made titans. Messianic Robber Barons Ron Chernow’s hefty biographies - particularly The House of Morgan (1990) and Titan: The Life of John D. Rockefeller, Sr. (1998) - strip away the corporate hagiography of that era to reveal the architects of a modern power whose structural achievements cannot be uncoupled from the deep inequalities they engineered. Inevitably, these private and public aggregations of power began to flex their muscles globally. David McCullough’s riveting The Path Between the Seas (1977), a Conradian epic about the construction of the Panama Canal, illustrates a republic quietly assuming the mantle of a global empire and announcing that America’s destiny would no longer be contained by its own shores. The global mechanics of this imperial overreach find their most devastating chronicler in Fredrik Logevall, whose Embers of War (2012) lays bare the tragic architecture of the Vietnam conflict. Logevall reveals how intelligent policymakers repeatedly convinced themselves that one more escalation would preserve credibility and avert disaster, proving that history advances less through grand conspiracies than through accumulations of small certainties. His superb biography, JFK: Coming of Age in the American Century (2020), doesn’t treat Kennedy merely as an individual icon but as a lens for the entire post-war elite. Logevall shows that this generation was hyper-aware that they were inheriting “The American Century” (a phrase coined by Henry Luce in 1941), yet they were simultaneously terrified of losing it to the spread of communism. Taking Kennedy’s life as his scaffolding, Logevall expands his work into a portrait of a generation born into unmatched economic and military reach, where beneath outward American confidence lurked a paralyzing insecurity. The ultimate tragedy of America’s restless expansion is that the geography has finally run out. In The End of the Myth (2019), Greg Grandin revisits Frederick Jackson Turner’s famous 1893 “frontier thesis,” arguing that the endless western horizon long protected American democracy by absorbing its systemic economic and social shocks. Throughout the 20th century, America searched for synthetic frontiers overseas through military alliances and market dominance. As those external horizons close or become fiercely contested in the 21st century, the country’s unresolved traumas have violently turned inward. Immigration, race, identity, and historical memory have become the principal battlegrounds. At 250, the schizoid superpower finds itself trapped in a room with its original inheritance, learning the hard truth first glimpsed by Tocqueville: that a frontier can delay a reckoning, but it can never cure it.

India waits to lasso diamantaire Mehul Choksi

Mumbai: India rubbed its hands gleefully as the Belgium Police honoured its request to arrest the absconder diamantaire Mehul Chinubhai Choksi – more than seven years after he, along with his nephew Nirav Deepak Modi - allegedly duped the Punjab National Bank of nearly Rs. 13,800-crores.

 

The scam involving the ‘Mehul Mama-Nirav Bhanja’ erupted in Jan 2018, after the PNB lodged a complaint with the Central Bureau of Investigation (CBI).

 

By then the kin, along with many of their family members, winked and slipped out of the country, leaving a rattled India rubbing its palms in disappointment.

 

A political-cum-financial storm raged, embarrassing the Bharatiya Janata Party government of Prime Minister Narendra Modi a year before the Lok Sabha elections.

 

Multiple agencies launched a multi-pronged probe into what became the biggest banking scam in the past quarter century – and almost four times bigger than the stock market-cum-banking fraud the late Big Bull Harshad Mehta had inflicted on the Indian economy 33 years ago (in April 1992) – when it was just opening up.

 

In Belgium

According to official reports, Choksi was living with his Belgium citizen-wife Preeti in Antwerp, a global diamond hub, presumably for the past 18 months on a ‘residency permit’ acquired through questionable means, for medical reasons.

 

Earlier, he shot to the headers (June 2021) while being taken in a wheelchair to a court by the Dominican Republic's Police on charges of sneaking into the small country in the Caribbean Sea, North America.

 

Interestingly, as the Antigua & Barbuda government initiated the process to cancel his citizenship acquired through an investor visa, Choksi had suddenly gone ‘missing’ till he surfaced in the Dominican Republic.

 

The April 2025 action by Belgium followed a request by India’s CBI and the financial frauds specialist Enforcement Directorate (ED) to nab Choksi as the InterPol had revoked his Red Corner Notice in 2023.

 

Mama and Bhanja

‘Mama’ Choksi is the founder-owner of Gitanjali Group while ‘bhanja’ Nirav’s Firestar plus other companies – and the duo, with some PNB officials hand-in-glove – conspired to make a ‘mamu’ of not only PNB, but other banks, as it subsequently tumbled out.

 

After making a quiet exit, Choksi was detected living in the verdant Antigua & Barbuda Isles (West Indies), then attempted entry to the Dominican Republic, was sent back to Antigua & Barbuda and then went to Belgium where he was nabbed on Sunday.

 

Similarly, Modi was found sauntering on the streets of London and nabbed in March 2019. He remains in jail there since India's extradition is still pending.

 

However, India is keeping its fingers crossed that it may finally lay hands on Choksi, bring him to India and face trial in the PNB scam, though it may take time.

 

Born in Mumbai (1959) and educated in Gujarat, Choksi, 66, and wife Preeti have three children.

 

The Rs. 13,800-crore PNB scam

In the modus operandi revealed after India’s second-largest PSU bank PNB admitted it was scammed, Choksi and Modi used fraudulent Letters of Undertaking (LoU) to get overseas credits or loans from Indian banks.

 

The PNB first informed the Reserve Bank of India (RBI) of the fraud and then lodged a criminal complaint with the CBI in Jan. 2018, plus another CBI complaint in Feb, that led to a FIR against Modi and Choksi and their companies.

 

The ED entered the scene to probe the allegations of money-laundering through the LoUs – which they allegedly misused to avail short-term business finances from foreign branches of Indian banks.

 

The probe said that the duo were availing the LoUs from the PNB’s Brady House Branch from March 2011, and over the next six-seven years, managed to get a whopping 1,200-plus LoUs like a breeze with the help of some friendly bankers within.

 

Post-scam, the gold-diamond companies Gitanjali Group and Firestone Group with multiple operations in India and abroad have largely wound up, while some personal assets of the mama-bhanja have been auctioned to recover a part of the dues.

 

ED's plea to declare Choksi fugitive stuck for seven years

Even as absconding diamantaire Mehul Choksi, a key accused in the Punjab National Bank loan fraud case, has been arrested in Belgium, the ED's plea to declare him a fugitive economic offender has been pending before a court in Mumbai for nearly seven years.


Choksi, 65, and his nephew diamantaire Nirav Modi are the prime accused in the Rs 13,000 crore PNB bank loan fraud case. Choksi was arrested in Belgium following an extradition request by Indian probe agencies, official sources said on Monday.


The Enforcement Directorate had filed the application in July 2018, seeking to declare Choksi an FEO and confiscate his assets under provisions of the Fugitive Economic Offenders Act.


However, the matter has witnessed repeated delays owing to a barrage of applications filed by the accused in the PMLA court and the Bombay High Court alleging procedural lapses in the Enforcement Directorate's plea.


"The court is kept busy with frivolous applications, and hearing on our application to declare him (Choksi) an FEO has been adjourned for the past seven years,” an ED officer had said after the hearing was once again deferred this February.


"The court should have continued the hearing and taken a decision on the future course of action once the application was moved," the officer had said.

He had urged the court to take note of the repeated filing of similar applications and to not entertain them.


Choksi's lawyer had informed the court that the accused was undergoing treatment for suspected cancer in Belgium and intended to file an application in connection with his health.


Under the FEO Act, an individual can be declared a Fugitive Economic Offender if a warrant has been issued against him for an offence involving Rs 100 crore or more and he has left India while refusing to return. Once declared an FEO, the person's property can be confiscated by the investigating agency.


Choksi had challenged the ED's application in the Bombay High Court, alleging that the agency "had not followed proper procedure before filing the application and, hence, it stands vitiated".


However, in September 2023, the High Court dismissed his plea, ruling that the ED had adhered to the prescribed format under the FEO Act. It also vacated a stay on the special court's proceedings.


Despite this, the hearing on declaring Choksi FEO could not commence, with Choksi continuing to file applications before the special court through his lawyers.


While most of these pleas have been dismissed, a few remain pending. His latest attempt to stall proceedings through a plea to recall the notice issued on the ED's FEO application was rejected in December 2023.


According to ED officials, Choksi left India under suspicious circumstances in early January 2018.


Shifting stance

Choksi's counsel has argued that the ED kept shifting its stance on the material grounds for declaring him an FEO and that the suspension of his Indian passport made it impossible for him to return for investigation.

The court, however, rejected this argument, stating that the notice was issued based on accurate information and not based on "wrong facts or mistaken assumptions".


ED claimed the accused left the country under suspicious circumstances in the first week of January 2018.


Nirav Modi has already been declared as an FEO by the special court. He has been lodged in jail in London since 2019.

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