This essay reads Hannah Arendt’s Rahel Varnhagen (1957) alongside Sigmund Freud’s case history of paranoia, The Schreber Case (1911), two texts about 18th- and 19th-century personalities caught up in the gender and ethnic politics of their times. Noting affinities between the fantasies documented in Varnhagen’s and Schreber’s memoirs, I compare Seyla Benhabib’s and Eric Santner’s readings of these two texts as political, not psychological, documents. I propose a reading of paranoia positioned between Benhabib’s too optimistic dismissal of paranoia and Santner’s too tragic approach. The result is a new reading of Varnhagen’s story and an approach to paranoia as a potentially promising political affect. Might paranoia stand not just for world-withdrawal but also for world-building? If so, this would be in keeping with Arendt’s own treatment of her subject’s persecution fantasies not only as a “verdict against the world” but also as a desire for a world.