Empire of Debt

It proved us right, but it was a hollow victory. Because the results of a conclusive report found that in 2005, one in every 53 American households filed for bankruptcy.

In typical imperial style, enactment of the 2005 bankruptcy law that drove so many hard-spending American's into insolvency will increase Federal budget deficits by about $280 billion between 2006-2010. It's this type of imperial financing that is changing your life forever.

None of your elected officials will fess up to their madness. But the Federal budget really is a bipartisan flim-flam. In the so-called corridors of power, the Democrats and Republicans combined have piled on more public debt in the two Bush administrations than in all the administrations and all the Congresses that came before them put together.

Even the Heritage Foundation cannot hide the ugly reality that Federal deficits will likely reach a migraine-inducing $1 trillion per year in the next decade. Or that the national debt is expected to triple to $16 trillion.

In the federal ledgers, much of this colossal debt can be traced to the empire's never-ending appetite for war, including the hot one in Iraq. It has already gone on longer than America's participation in World War II.

Since March 2003, the monthly cost of the war in Iraq has risen from $4.4 billion to $7.1 billion. That means the war will cost $266 billion than originally projected - and ultimately hit $1.2 trillion. Every American is writing a check to Uncle Sam for $727 to fund the Empire's Iraqi expedition - and it will get bigger.

Looking at it another way, Americans so far pay $46 million per Al Qaeda operative killed.

But what is America to do? As a declining empire, it seems that the only thing it has left to offer in a globalized economy is the soft warmth of her protection.

That's why the Defense Department's budget continues to soar. In 2002 it was $310 billion. Last year, it swelled to $420.6 billion.

As you know, we tried to tell our leaders in Washington that imperial financing rarely pays. On November 14th date, just after we rushed 537 copies of the Empire of Debt to the House and Senate offices, the White House and the Federal Reserve. Nothing happened. We got a few hundred form letters thanking us for the gift. And a few political agendas from Senators Reed and Feingold.

All while Congress was busy passing one of the biggest pork barrel budgets the nation has ever seen.

Every hour of every single day, the United States continues to rack up another $80 million of debt. Just try "googling" a debt clock. It's entertaining watching how quickly the $100 and $1000 dollar columns whiz buy. The renowned Levy Institute estimates that the United States will owe foreigners $8 trillion by 2008 - a breathtaking 60% of our gross domestic product.

Think about it: if we were trying to settle up on that debt $6 out of every $10 that we earn in America has already been spent. Thanks to China or Japan or South Korea or the rest of Asia, we're racking up a mortgage nobody can afford, not even the proud beneficiary's of the "resilient" the U.S. economy.

As if we need to point out what's worse, our trade deficit with China alone is expected to surpass $200 billion in 2005 - a 31% increase over the $162 in 2004. And that alarming imbalance includes nearly $4 billion that American executives are pumping into Chinese business ventures as foreign direct investments.

But who is really carrying the risk for those Wall Street big shots? In a not-so-indirect way, it is you and me.

Wal-Mart's biggest trading partner is China. Wal-Mart, the world's largest retailer, divulged it purchased some $18 billion in merchandise in 2004 from China, nearly 10% of all Chinese goods sold in the U.S. that year.

At the same time, one 200-employee Wal-Mart store may cost federal taxpayers $420,750 per year in various assistance programs for the poor. In 2001, the last year Wal-Mart had disclosed salaries for most occupations, sales associates earned on average $8.23 an hour for annual wages of $13,861. The 2001 poverty line for a family of three was $14,630.

For all of the empire's adventurism, Americans themselves are growing poorer. In fact, as an imperial citizen, you are sitting smack dab in the middle of all this debt.

Banks are taking back homes almost faster than they can finance them. In December 2005, 81,290 properties across America entered some stage of foreclosure. That's a 13.5% surge from the previous month - and the highest for the year.

The so-called hottest markets for real estate were also the most gruesome. Texas' December foreclosures took the dubious distinction of the highest anywhere - a 61% jump. Nevada and Utah, whose markets were even hotter than their summers, saw a 30% increase in December foreclosures. And in sunny California, 27% more people had to file for foreclosures around the holiday gift-giving season than in November.

For imperial citizens, personal wealth is as valuable as the paper that the first, second and third mortgage is written on. American's have stopped making things. Instead, our wealth is built on credit. The more we borrow the richer we feel, when in fact nearly every asset we own is made in some other country that we paid for with borrowed money.

That's why American trade deficit last year is expected to top $710 billion - surpassing the $617.6 billion of 2004 by 15%.

We keep importing things because America has given up manufacturing. The Gross Domestic Product (a measurement of our productivity) is forecast to nudge up in 2006 from $12.9 trillion in January to $13.1 trillion in December. That tiny annual expansion of 1.6% comes nowhere close to the 15% rise in our trade deficit.

In 2004, the annual government deficit already hit $7 trillion, according to the U.S. comptroller. That's roughly $24,000 the government owes for every American man, woman and child.

It's money that's coming out of your pocket, and I'm not just talking taxes…but also from higher gas prices, food bills, even college tuition. And be assured, Uncle Sam has no intention of paying you back.

At the same time, Americans keep spending more than they earn - as if they are entitled to.

Today, the average American household has $8,000 in credit card debt. And for every $19 Americans earn, they spend $20.

When you live on the edge, the smallest miscalculation can send you tumbling. The American Bankers Associated reported that gas spikes last summer actually caused 4.74% of Americans to fall 30 days or more behind in their credit card payments - the third highest level on record. Not surprising, the highest period of late payments occurred earlier in the year, when imperial citizens were completely caught off guard by run-away gas prices, causing 4.81% of them to slip by 30 days or more.

That was also the period when, for the first time in history, the savings rate of Americans dipped into negative numbers. Compare that to China's 25% savings rate, and you can see the looming danger as China buys up your future with cash to burn.

As CNN reported, "The American consumer has become deeply addicted to spending, running up ever higher levels of debt in order to live in a fashion that is beyond his means. And the world has become equally addicted to the consumer continuing to burn through cash."

That is great news for bankruptcy attorneys. They are the ones who are getting rich. Last year, they raised their fees by 100%.

A noted Washington, D.C. attorney who advises the American Bankers Association on bankruptcies explains it this way: Like divorce, bankruptcy does not carry the social stigma it once did.

So with no more concern than sliding a quarter into a parking meter, consumers' debt continues to rise toward an all-time high of $2.16 trillion - twice the cost of the war in Iraq.

Just look at the new credit card law that hit the books on Jan. 1, 2006. Thanks to your friendly banker, your monthly minimum payment has doubled for your revolving account. "They" say the higher payments are for your own good. Because if you are one of the 35 million imperial citizens who only make the minimum payment, and had the average credit card balance of $9,200, it would take you 15 years to pay it off.

But let's fact it. The lure is irresistible. Online holiday shoppers spent more than $30.1 billion online in the weeks leading up to Christmas 2005 - a 25% increase over the same overly festive season in 2004.

At Amazon.com, holiday shoppers charged the essentials of an imperial lifestyle. Last year's holiday best-sellers for the online superstore included the Mario Party 7 video game, an electronic dart board, the "March of the Penguins" DVD movie, 2 pounds of chocolate truffles and just about every version of Apple's Taiwanese-made iPod.

Many Americans have no idea what's coming. They've been blinded by "The 10 Delusions of Empire" that Bonner and Wiggin reveal. It's those delusions that the government has promulgated that have created the destructive, imperial attitudes that so many have come to believe. You see, there's a cadre of "imperial citizens" that can't imagine this Empire of Debt will ever end.

That's why the prestigious Economist Magazine named Empire of Debt one of the top 10 must-read books of 2005-2006. This book is a wake-up call -- as well as a call to arms to every American.

Empire of Debt is filled with the latest economic research from two internationally famous authors, Bill Bonner and Addison Wiggin. And what it finally uncovers is the whole secret story of how and why America has put itself into the worst financial crisis since 1929. And more importantly, how you can protect yourself and your assets from this crisis.

Worse yet, the man in the striped suit and tall hat is already asking for more…

Up until now, there's been little you could do to protect your wealth, your retirements and your way of life…

Inside Empire of Debt, you'll discover the specific steps you can take to protect yourself from the massive debt buildup and the secret funneling away of your funds.

Don't be caught off guard. Empire of Debt shares the five things you must do now to protect yourself - including buying the one investment you cannot live without. (If it's not already in your portfolio… you need to get it right away.)

They give forthright, candid and sincere views about how we, as Americans, have become freely unsatisfied to the point of destruction.

Empire of Debt may well be the most important reading you'll do in the next five years during this period of unrelenting crises.

Bonner and Wiggin wrote Empire of Debt to warn you of the danger and give you a clear path to profits. They give you the knowledge you need to protect yourself - and prosper - as the American empire flails upon itself.

Empire of Debt details how the government's irresponsibility has bled into society. Following the government's lead, Americans have felt free to spend, spend, spend - putting themselves in deeper and deeper debt.

With just a few simple steps, you can prepare your portfolio to weather the coming crisis. Empire of Debt will show you everything you need to know. And if you act now, you can get your own copy of Empire of Debt for just $18.45. That's a full 34% off the cover price, click below to order today.

We believe Empire of Debt, for less than $19, is the most important financial purchase you can make this year, more important than any stocks or index funds you can find.

"I strongly advise you not to miss the stunning truths exposed in this remarkable work."
-- Robert Ringer, author of Action! Nothing Happens Until Something Moves

"This book [Empire of Debt] was definitely on my list and had preordered it. I am in the last chapter and the book never ceases to have a sense of humor while discussing truths that would send your blood to boil. Well written to say the least."
-- S. Andrews (San Jose, CA)

"William Bonner [and Addison Wiggin] have done another fine job in writing this book through the eyes of an outsider looking down on the worlds superpower. Their analysis is sharp, witty and refreshing as well as taking a brave approach to criticise this current generation of gluttonous fools that prey on fools which are even more unexpectedly pure than themselves."
-- Richard H. (New Zealand)

"I loved the sarcastic approach with a tough message. The authors, Bonner and Wiggin put forward some hard cold facts that are easy to understand and sent chills up my spine. A must read for anyone who likes looking over their shoulder…just in-case."
-- Hilaire Atlee (New York City)

"You probably know the story of emperor's new clothes. Even as his royal majesty marched by, 'nobody wished to let others know he saw nothing, for then he would have been unfit for his office or too stupid. Never emperor's clothes were more admired… ' But he has nothing on at all,' said a little child at last." The little child speaks again, through Bill Bonner and Addison Wiggin, in Empire of Debt.
-- The Hindu Times

"Empire of Debt is probably the most important history book you will ever read. It puts the two great world wars, the Vietnam war, the Cold war, and the war in Iraq in a historical perspective that I've never seen anywhere else."
-- Dan Brown (Madison, AL)

"Empire of Debt: The Rise of an Epic Financial Crisis' will be a valuable resource for readers interested in learning about the direction in which America is headed in terms of its economic prowess. This is an important book in that it provides for its target audience some solutions which would more than likely enable them to avoid a potentially devastating financial crisis. Beyond that, it also addresses such concerns regarding the reasons for which the public debt is skyrocketing, the reasons for which making money in the stock market is a difficult task, the reasons for which Americans find themselves involved in expensive wars across the continent, and finally, the reasons for which the real estate market is valued beyond its worth. As such, `Empire of Debt: The Rise of an Epic Financial Crisis' is an excellent, essential book which is highly recommended for all readers."
-- KAC (Columbus, OH)

"In a society already encouraging people to 'buy now' and worry later, this book provides essential diagnosis and prescription for much-needed changes. Both authors discuss very pertinent financial information in a manner which makes the book interesting and readable to the 'average person' I included."
-- Robin Orlowski

"First reading of Empire of Debt left me thinking that Bonner and Wiggin are fatalists looking for a story. Giving it a second reading I no longer think so. Their bottom line is "the cake is baked" and now what? The humor alone is worth the read."
-- C. Sebrell (Naples, FL)

"I am so happy that your book, "Empire of Debt" is such a hit, it should be."
-- Philip Ireland (Baltimore, Maryland)

Related Articles On America's Debt:

The Dollar Hit Parade - 11/06/2005
by Justice Litle "So why is the dollar so popular? What gives America free reign to settle debts in its own currency, print more of it at will and impose its fiscal whims on the rest of the world?"

Shadows of Foreign Debt - 10/18/2005
by Hans Sennholz "The U.S. government itself is suffering huge budget deficits that amount to several hundred billion dollars annually…"A poor man's debt makes a great noise; a rich man's debt makes no sound."

The Smart Money Strategy - 09/01/2005
by Addison Wiggin "A shrinking dollar, growing federal debt, the housing bubble, rising oil prices…they all add up to financial vulnerability. But, as Addison Wiggin explains, there are steps investors can take to avoid loss - and profit…"

Federal borrowing raised to record level - From CNN "The government expects to borrow a record $188 billion in the January-March quarter, even more than it anticipated three months ago, the Treasury Department announced Monday."

National Debt Clock - The gross national debt is an eye-popping $8 trillion and counting…

Global Research - America's Spiraling External Debt and the Decline of the US Dollar

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