The New Empire of Debt: The Rise and Fall of an Epic Financial Bubble

The New Empire of Debt: The Rise and Fall of an Epic Financial Bubble

Addison Wiggin

Language: English

Pages: 368

ISBN: 0470483261

Format: PDF / Kindle (mobi) / ePub

An updated look at the United States' precarious position given the recent financial turmoil

In The New Empire of Debt, financial writers Bill Bonner and Addison Wiggin return to reveal how the financial crisis that has plagued the United States will soon bring an end to this once great empire.

Throughout the book, the authors offer an updated look at the United States' precarious position given the recent financial turmoil, and discuss how government control of the economy and financial system-combined with unfettered deficit spending and gluttonous consumption-has ravaged the business environment, devastated consumer confidence, and pushed the global economy to the brink. Along the way, Bonner and Wiggin cast a wide angle lens that looks back in history and ahead to the coming century: showing how dramatic changes in the economic power of the United States will inevitably impact every American.

  • Reveals the financial realities the United States currently faces and what the ultimate outcome may be
  • Weaves together the worlds of politics, economics, and personal finance in a way that underscores the severity of the situation
  • Addresses the events leading up to the implosion of the U.S. financial system
  • Looks ahead to help you avoid the pitfalls presented by a weaker United States
  • Other titles by Bonner: Empire of Debt, Financial Reckoning Day, and Mobs, Messiahs, and Markets
  • Other titles by Wiggin: I.O.U.S.A., Demise of the Dollar, and Financial Reckoning Day

The United States is heading down a difficult path. The New Empire of Debt clearly shows how this has happened and discusses what you can do to overcome the financial challenges that will arise as the situation deteriorates.



















had found the ultimate truth and reached the end of history. Your authors have never killed anyone, but we read the obituaries with approval and interest. We look for the distilled wisdom of saint and sinner alike. (The editorial pages, by contrast, we read only for entertainment.) The trouble with the news is that it is impossible to know what is important when you must rely solely on the judgment of people who happen to be breathing. The living can imagine no problems more urgent than the ones

Merrill Lynch dodged the scaffold; but it becomes a ward of the state, almost like Fannie and Freddie before they were taken over completely. The old regime on Wall Street was dominated by just five large investment companies. In just a few weeks, in the fall of 2008, their debt bombs blew up . . . and the entire, independent investment banking industry disappeared. NOBEL PRIZE LOSERS The financial industry was widely criticized. But it was just doing what it always does—separating fools from

caused a drop in stock prices—wiping out much of the liquidity that might be sopped up for wartime finance. The European nations needed to borrow vast amounts to cover the war expenses. But each additional unit of currency further reduced the gold cover, or the ability of the borrowing nation to pay its debts with real money. Readers will be quick to notice the parallels to the global financial system of 2005. The Europeans wanted to increase the consumption of war materiel. Now, Americans

attacked. The French were able to hold their ground while the Vietminh staggered away. In a single night, Giap lost 3,000 men. If the French were going to destroy themselves in Southeast Asia, they had to find a better way. They found it at Dien Bien Phu.The broad outlines of the battle were as follows: French parachutists took control of the airfield followed by 15,000 troops under Colonel Christian de Castries. The French dug trenches and set up bases, to which they gave women’s names. Dien

mute. But by the year 2005, both facts and theories had become blabbermouths. The trouble was that the facts had been corrupted so they no longer told the truth. And the old theories that might have been used to interpret the facts had been abandoned in favor of new, more convenient delusions. Americans could now run up as much debt as they wanted, said the new theorists. The American economy may or may not have been “growing” in the G. W. Bush years. But if traditional, time-tested theories

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