For Immediate Release
November 23, 2005
Contact: Kate Incontrera, 410 454-0417 or kincontrera@dailyreckoning.com www.dailyreckoning.com: Capitol Hill Gets a Wake-up Call on America's Debt -- But Will They Listen? Baltimore, MD: In an effort to get their message into the minds of government leaders, NY Times bestselling authors Addison Wiggin and Bill Bonner sent copies of their recently released book, Empire of Debt to the offices of every U.S. Senator and Representative. Additional copies are going to the Federal Reserve and President Bush. Accompanying the book was an open letter stating that since Alan Greenspan took office on Aug. 11, 1987: - Consumer credit has skyrocketed from $672.2 billion to $2.1 trillion
- Outstanding household debt has grown $2.7 trillion, to $10.764 trillion
- Domestic business data shot from $1.9 trillion to $5.2 trillion (a 174% jump)
- The trade deficit has plummeted from negative $150.7 billion to negative $756.8 billion
- The total of foreign-owned U.S. assets has shot from $1.7 trillion to $11.5 trillion.
Based on the continued practices of the Fed, it doesn't appear that many inside the beltway are concerned with the nation's balance sheet. And as the government goes, so goes consumer behavior. "We have been saying for years that consumer spending cannot make people rich; insead, it makes them poor," says Bonner. "You don't get rich by spending; you get rich by saving…and building new businesses, new factories, and new and better products. You get rich by foregoing consumption in favor of production - so you can produce better automobiles, for example, than your competitors. But the United States has done just the opposite. In consumes…and allows its competitors to invest and produce." Bonner and Wiggin believe that the coming correction will impact corporate bottom lines…and shatter American consumer confidence. "There are a number of financial crises are already in progress," adds Wiggin. "The dollar is vulnerable. So are T-bonds. So are stocks and house prices. My guess is that house prices will stop rising, causing a cutback in consumer spending. The end result will be a recession for the US economy." In addition to sending the book to Washington insiders, Wiggin has urged readers of his newsletter, The Daily Reckoning (www.dailyreckoning.com), to call or email their Representatives and request that if nothing else, they at least read the introduction to Empire of Debt. However, Wiggin is not hopeful the politicians will do what is necessary. "You can always count on politicians to do the wrong thing," he says. "It's important for everyone to understand the danger and to prepare for what could happen when the government's response to this financial crisis falls short." For more from Bill Bonner and Addison Wiggin, see http://www.dailyreckoning.com. Brought to you by Agora Financial, and written by the NY Times bestselling authors, Bill Bonner and Addison Wiggin, The Daily Reckoning is a daily, free e-letter that weaves information about the financial world, investing and everyday life into an educational and entertaining format that has been engaging their readers for over six years. SOURCE www.dailyreckoning.com #### | 
