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Stage #6: The populace bears the brunt of debt repayment as empires raise taxes and debase the currency—to the maximum extent—until it causes internal instability.

Stage #7: Empires cannot finance their militaries because of their debt burden. This is usually the tipping point.

“The US federal government has the biggest debt in the history of the world. And it’s continuing to grow at a rapid, unstoppable pace.”

Debasing currency, a 50c way of saying printing money.

by Nick Giambruno

The ‘Empire Killer’ Strikes Again

One of the most potent and underappreciated forces responsible for the downfall of the most powerful empires throughout history has been debt.

While military defeats, political upheavals, and external invasions often dominate historical accounts of the fall of great powers, excessive debt—the “Empire Killer”—has quietly but relentlessly eroded the foundations of empires across the centuries.

From Rome to the Soviet Union, the over-extension of resources, poor financial management, and the inability to service massive debts have led to economic collapse, social unrest, and, ultimately, the demise of these once-mighty empires.

Understanding how debt has played a role in the fall of these empires gives us insight into the role it could play in the collapse of the US Empire.

Here is a summary of some prominent historical examples of this clear pattern.

The Roman Empire

One of the most iconic examples of debt’s destructive force is the Roman Empire.

At its height, Rome was the center of the known world, controlling vast territories, including much of Europe, North Africa, and parts of the Middle East.

Maintaining a vast empire required immense financial resources. The Roman government needed to fund its sprawling military, build infrastructure such as roads and aqueducts, and support the grandeur of its capital city.

Emperors financed the resulting debt by debasing the currency—reducing the silver content in Roman coins.

However, this led to rampant price increases and economic instability.

The more the Roman government tried to print its way out of debt, the worse the problem became.

As debt and inflation strangled the Roman economy, the empire struggled to pay its soldiers, undermining military morale and effectiveness.

Weakened by internal financial collapse, Rome became vulnerable to external threats. The combined weight of financial mismanagement, social unrest, and military decline led to the empire’s collapse.

The Spanish Empire

In the 16th century, the Spanish Empire was a global superpower.

The discovery of the New World brought an influx of gold and silver, filling the Spanish government’s coffers beyond imagination.

However, this newfound wealth bred complacency and extravagance.

The Spanish monarchy became embroiled in costly wars across Europe—including the Eighty Years’ War with the Dutch and conflicts with France and England—and indulged in lavish expenditures without regard for fiscal sustainability.

Spain borrowed heavily from European bankers to finance its ambitions, accruing enormous debts.

At first, the influx of colonial wealth allowed Spain to service its debts, but as wars dragged on, the costs began to outstrip the income from the New World.

Spain’s creditworthiness diminished as the debts mounted, and the economic decline became irreversible.

The inevitable consequence was a series of bankruptcies in 1557, 1575, and 1596.

Each bankruptcy weakened Spain’s creditworthiness, making it more difficult to borrow money on favorable terms.

The once-dominant empire lost its influence, illustrating how an abundance of wealth, when mismanaged and coupled with excessive debt, can precipitate a rapid descent from power.

The French Monarchy

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