It's what happens when you look at the lessons of "Politics is the Mind-Killer" and "Reversed stupidity is not intelligence", and decide to ignore them because affective spirals are too much fun to give up.
But it's difficult to choose whether the correct reversed stupidity in politics should actually be libertarianism or monarchy. The former seems more popular among LW crowd, but that also makes it kinda boring; the latter seems more original, but is usually defended by worse arguments. So you invent a libertarian-ish monarchy world, where the freely competing subjects are not the puny average humans, but the Gods-Emperors of different states. (You call all other regimes "demotist" to show that they are actually all the same.)
Of course, putting it this way is not attractive, so you have to hide it in hundreds of pages written in obscurantist language, so that no outsider is really sure what you are actually talking about. Then you insert some interesting historical facts, and a lot of criticism of political left, some of which is insightful.
And then you keep promoting the new teaching in LessWrong debates, because clever contrarianism is your selling point, and LessWrong has a weakness for clever contrarians. And then you use your presence at LessWrong as a proof that rational people support you, despite the fact that your fans are actually a tiny minority here (probably even smaller than religious people; and LW is explicitly atheistic).
Better analysis can be found here: "Reactionary Philosophy In An Enormous, Planet-Sized Nutshell", "The Anti-Reactionary FAQ". The first article explains the ideas better than the original sources, and the second article shows that this map doesn't fit the territory.
EDIT: Ignoring the beliefs and focusing only on behavior, Neoreaction is LessWrong's creepy stalker.
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One problem with this is that the amount of effort you can spend on a set of problems of this sort is nearly unbounded. If the problems are simple enough that a decent understanding of the subject leads you to get them all correct, you will only have to spend as much time as it takes to finish the assignment, and then you're done. If a decent understanding of the subject only leads you to get 50% correct, then you'll probably be in a position where you can spend another hour and raise that to 55%, and another hour for 57%, etc. You don't know (until after the fact) how much you need to get correct to actually get a good grade, so you're stuck not knowing how much effort is reasonable.
Furthermore, if it's graded on a curve, this will result in a race to the bottom where everyone spends an extra two hours for that 7% advantage over everyone else and since everyone's spent it, the overall effect is just that everyone spent an extra two hours for little benefit.
And woe be it if you have two such assignments at the same time. Not only do you have to worry about spending unlimited time because you don't know when you're done, it's going to be very difficult to work on the assignments in order without shifting between one and the other constantly so you don't spend all your effort on increasing one by 5% when that same effort could have increased the other one by 10%.
Woah! I sure hope not! The two or three times I had challenging assignments in school (my school encouraged undergraduates to take graduate classes if interested) they were tremendously valuable. If thinking about difficult problems and solving them has no marginal benefit, I can't imagine what part of schooling does! (perhaps the diploma mill would be ideal in that scenario? I'm having a hard time simulating this hypothetical student).