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

“
Empire of Debt
is a wake-up call for all investors. Bonner and Wiggin masterfully illustrate why we should all take a much closer look at what our future holds.”

—
Marketwatch

“Tells the story of how all empires are eventually undone by the same ‘vain overreaching.’”

—
Times of London

“Read [
Empire of Debt
] and your views of the world around you will no longer be the same.”

—Nassim Nicholas Taleb Author of
The Black Swan

“The doom mongering is leavened with some waspishly witty writing.”

—
The Daily Telegraph

“The authors describe with sardonic humor—and no small amount of name calling—how America has become an overfed, imperial has-been and economic basket case.”

—
SmartMoney.com

“In addition to being accomplished financial analysts, Bonner and Wiggin are talented historical writers. And they put this talent to work in the cause of examining the political and economic effects of empire.”

—
The Huffington Post

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Published simultaneously in Canada.

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eISBN : 978-0-470-52870-9

INTRODUCTION

The Bubble Empire

The will of Zeus is moving toward its end.

—The Illiad

O
ne day in early spring 2005, we traveled by train from Poitiers to Paris and found ourselves seated next to Robert Hue, head of the French Communist Party and a senator representing Val d’Oise. He sat down and pulled out a travel magazine, just as any other traveler would. Aside from one Bolshevik manqué who stopped by to say hello, no one paid any attention. A friend reports that he was on the same train a few months ago with then Prime Minister, Jean-Pierre Raffarin, who was accompanied by only a single aide.

Many years ago, when the United States was still a modest republic, American presidents were likewise available to almost anyone who wanted to shoot them. Thomas Jefferson went for a walk down Pennsylvania Avenue, alone, and spoke to anyone who came up to him. John Adams used to swim naked in the Potomac. A woman reporter got him to talk to her by sitting on his clothes and refusing to budge.

But now anyone who wants to see the president must have a background check and pass through a metal detector. The White House staff must approve reporters before they are allowed into press conferences. And when the U.S. head of state travels, he does so in imperial style; he moves around protected by hundreds of praetorian guards, sharpshooters on rooftops, and thousands of local centurions. When President Clinton went to China in 1998, he took with him his family, plus “5 Cabinet secretaries, 1 6 members of Congress, 86 senior aides, 150 civilian staff (doctors, lawyers, secretaries, valets, hairdressers, and so on), 150 military staff (drivers, baggage handlers, snipers, and so on), 150 security personnel, several bomb-sniffing dogs, and many tons of equipment, including 10 armored limousines and the ‘blue goose,’ Clinton’s bulletproof lectern.”

Getting the presidential entourage and its armada of equipment to China and back, the Air Force flew 36 airlift missions on Boeing 747, C-141, and C-5 aircraft. The Pentagon’s cost of the China trip was $14 million. Operating Air Force One alone costs over $34,000 an hour.

Today, the president cavalcades around Washington in an armored Cadillac. The limousine is fitted with bulletproof windows, equally sturdy tires, and a self-contained ventilation system to ward off a biological or chemical attack.

The Secret Service—the agency charged with preserving the president among the living—employs over 5,000 people: 2,100 special agents, 1,200 Uniformed Division employees, and 1,700 technical and administrative wonks. Everywhere the president goes, his security is handled—by thousands of guards and aides, secure compounds, and carefully orchestrated movements. Security was so tight during a visit to Ottawa, Canada, in 2004 that some members of Parliament were refused entry into the building for lack of a special one-time security pass, an act apparently contradictory to the laws of Canada.

In late 2003, when Bush deigned to visit the British Isles, an additional 5,000 British police officers were deployed to the streets of London to protect him. Parks and streets were shut down. Snipers were visible on the royal rooftop.
¹After Bush’s stay at Buckingham Palace in London, the Queen was horrified by the damage done to the Palace grounds. They were left looking like the parking lot at a Wal-Mart two-for-one sale.
²

THE THEME OF THIS BOOK IN A NUTSHELL

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