Empire of Debt: The Rise of an Epic Financial Crisis

Bonner and Wiggin enumerate a long list of chronic ailments that imperil the American financial system--a massive trade deficit, soaring personal and government debt, a housing bubble, runaway military expenditures. These problems "hardly disturb the sleep of the imperial race," the authors write. "[But] all empires must pass away." Bonner and Wiggin argue that American imperial delusions are similar to the fantasies that fueled the dot-com market mania. They recommend readers buy gold as insurance in the event of a financial crisis. Empire of Debt flounders when discussing how America indebted itself; the authors blame the Federal Reserve Board's low interest rates but gloss over the fact that rates were slashed because the U.S. teetered on the brink of deflation in 2002 and 2003 (a topic they give more attention to in Financial Reckoning Day). As hardcore free-marketeers, Bonner and Wiggin also seem to long for the pre-welfare days of the 1920s but forget how that period's policies led to the Great Depression. That said, Empire of Debt contains many revelations that will open eyes. --Alex Roslin

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All Customer Reviews
Average Customer Review:
0 of 0 people found the following review helpful:

The shock value of this true book makes it a gripper and an epic classic, 2008-07-23
THE EMPIRE BUSTING BUBBLES;
Empire of Debt by Bill Bonner and Addison Wiggin
Page 48; in 1989, "American democratic imperialism triumphed unmistakably against its adversary-the Evil Empire. The Good Empire was the last one standing; God had shined its light on us and would never turn it off.
Many people said many dumb things in the twentieth century..."
The shock value of this true book makes it a gripper and an epic classic.
Page 317-318; "The oldest generation of Americans remembers the Great Depression. They borrowed reluctantly, saved eagerly, and made the United States the Greatest power on earth. Their children still talked their parents' talk, but didn't mind walking off in a different direction when the wind was at their backs. And their grandchildren? The newest generation seems to have no regard whatever for the virtues of their grandparents or the futures of their grand children. They disregard the wisdom of the dead, and load up the unborn with debt."



0 of 0 people found the following review helpful:

Epic Financial Crisis, 2008-07-06
I enjoyed this book. Mr. Bill Bonner is too political for me and sometimes he's just trying to be cute, but overall I enjoyed reading the book and I personally like the newletters put out by Mr. Bonner's Agora Inc. I am a paid subscriber to some of these news letter which gives good investment advice. Regards, Keith Renick, Peachtree City, Ga.


1 of 1 people found the following review helpful:

A witty book on finance and economics, 2008-03-08
It's rare that a book on the topic of deficits, consumer spending, economic growth, and globalization would also be this entertaining. Bonner and Wiggin have it right about the American empire: it is an empire of debt. As such, it is unsustainable.

Some reviewers here seem to think it is wrong to repeat the key ideas of a book. If these ideas had not been elaborated upon in different ways, you probably would've missed them.

Some see this book as too 'gloomy'. I understand. But surely it's better to try to see things as they are, rather than as you wish them to be.

Regarding gold, it seems clear that under a full-reserve gold standard, the kinds of financial chicanery that created this massive bubble would be impossible. (There will always be cons and hustles in finance, but they would be marginal rather than central to the system).


0 of 1 people found the following review helpful:

TOO MUCH EMPIRE, 2008-01-30
The authors' theory about the U.S. economy seems to boil down to saying about 500 times that having become an empire the United States is doomed to endure the fate of previous empires. To drive home the point, readers are treated to page after page about the travails of the Athenians, Romans, Mongols, Venetians, Spanish, British, etc.

The seeds of empire were sown in 1913, when the Constitution was amended to permit a federal income tax and the Federal Reserve System was created.

It seems that our country should not have gotten into World War I, most likely could have stayed out of World War II, and has no one to blame for 9/11 except itself.

The best U.S. presidents were not those whose faces are carved on Mount Rushmore, but men like Warren Harding who did very little during their time in office.

The reputations and motivations of various people, e.g., Woodrow Wilson, Ronald Reagan, George W. Bush, Allen Greenspan, Ben Bernanke, and journalist Thomas Friedman, are mercilessly lambasted.

Oddly enough, given their readiness to express opinions on so many other subjects, the authors shy off from explaining the Great Depression, beyond pointing out that FDR used it as an excuse to expand the scope of the government. "The causes of the depression have been hotly debated. They go beyond the scope of this book." Darned, just when things were about to get interesting.

When it comes to evaluation of financial matters, such as the fact that both as a nation and as individuals we are living beyond our means and financing it with debt that most likely cannot be repaid, the message of the book becomes more compelling. Such thoughts are not entirely new, however, and might even be characterized as obvious.

Worse, in my opinion, the authors offer no suggestions to get the United States back on a sounder track. Now that might be worthwhile, whereas mere hand wringing about the financial situation seems rather pointless.


1 of 2 people found the following review helpful:

Be scared, very scared, 2008-01-28
"Just when you thought it was safe to conquer the world" or "put down the credit card and step away from the arms dealers counter".

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