For Immediate Release:
June 22, 2006
Contact: Ian Mathias, 410-864-1652, imathias@agorafinancial.com www.dailyreckoning.com: Government Spending Quietly Erodes U.S. Financial Stability Baltimore, MD: President Bush signed a bill last week approving an additional $94.5 billion to be spent on the war on terror and hurricane reconstructive efforts. Since then, the signing of this bill has received trivial media attention. An expert on debt is shocked that the government is able to sink the U.S. deeper into deficit with little to no dissent among the masses. “Americans are still under the impression that deficit and debt are without consequences,” said Addison Wiggin, author of The New York Times best-selling Empire of Debt and editorial director of The Daily Reckoning. Wiggin was amazed that the president’s decision to spend an additional $94.5 billion evoked little press attention and even less public outcry. “Our debt is totally unsustainable,” said Wiggin, “and it’s unnerving that the average American believes that debt is a non-issue.” According to Wiggin, the American public has yet to grasp the gravity of our debt. “Massive foreign debt puts future financial decisions of this country out of our hands,” said Wiggin, “and into the hands of those who may not have our interests in mind.” He believes that money owed to foreign creditors gives them a dangerous stake in our future. “We perceive ourselves as being the wealthiest of all nations,” said Wiggin, “but so much of our empire is built on the shifting sands of debt.” “If a creditor nation like China or Japan chose to unload their U.S. debt, our interest rates could increase dramatically,” said Wiggin. The Federal Reserve recently announced that Americans increased their household debt by 11% in the first quarter of 2006, which, Wiggin said, “would leave the average household completely incapable of adjusting to significant interest hikes.” “The current American way of life seems more in keeping with the end of a great empire than the beginning of one,” said Wiggin. “We should be asking ourselves if we can continue to spend our way into prosperity.” Addison Wiggin is the editorial director and publisher of The Daily Reckoning, a daily, free e-letter that weaves information about the financial world, investing and everyday life into an educational and entertaining format. He also serves as the executive publisher of Agora Financial, a multi-million dollar financial research firm and publishing group based in Baltimore, Maryland. SOURCE: http://www.dailyreckoning.com ### | 
