Paper Promises

Debt, Money, and the New World Order

By: Philip Coggan

Narrated by: George Backman

Length: 12 hrs and 1 min

Publisher's summary

For the past 40 years Western economies have splurged on debt. Now, as the reality dawns that many debts cannot be repaid, we find ourselves again in crisis. But the oncoming defaults have a time-worn place in our economic history. As with the crises in the 1930s and 1970s, governments will fall, currencies will lose their value, and new systems will emerge.

Just as Britain set the terms of the international system in the 19th century, and America in the 20th century, a new system will be set by today's creditors in China and the Middle East. In the process, rich will be pitted against poor, young against old, public sector workers against taxpayers, and one country against another.

In Paper Promises, Economist columnist Philip Coggan helps us to understand the origins of this mess and how it will affect the new global economy, by explaining how our attitudes toward debt have changed throughout history, and how they may be about to change again.

©2012 Phillip Coggan (P)2011 Audible, Inc.

Educational book on money (i.e. credit) and....

Philip gives compelling arguments on the reasons why the nature of "money" is on the verge of yet another change. He does state that the change will not be precipitous, but explains why it is inevitable.

Vision...
The author definitely is not a fan of the present structure of global finance and explains why it must eventually collapse. Is he a prophet? Having written this work 10 years ago, he's definitely ahead of Ray Dalio (in 2022) in his anticipation of the changing world order.

Biases...
Philip doesn't seem to have a bias. He's all about understanding history. He likes views held by Austrian Economists. He even states that. Simultaneously, he fully appreciates the virtues of Keynes and isn't shy about making a departure from the Keynesians.

What I like the most...
He does take the time to bring up compelling economic phenomena to support his arguments. For a book on economic history, he writes so in an entertaining way and explains things in a way that everyone can understand. Although he cares most about sound money and protecting creditors, he took the time to explain the importance of debt forgiveness and when it's appropriate.

What I didn't like...
Unlike the US, China isn't a "new country". He doesn't spend enough time looking at Chinese history to understand why China may shoot itself in the foot. [Although this may not matter since he explains the sins of the "Anglo-Saxon" (US/UK) approach managing credit.]

Overall...
I may now be Philip's greatest fan. I enjoyed this book so very much. He doesn't go into detail on a few issues that he thinks we all understand. I was hoping he would walk through the mechanics a little more on those occasions, but it's a balanced book and very educational. It's suitable for contemplation if you worry about what to do with your wealth.

Great intro and overview on money, banking, debt

This book is well-organized, very clear, and very comprehensive on its subjects. It has 10 books' worth of stuff, as I have rummaged around through similar titles picking out scraps of what is all laid out here, a-b-c, 1-2-3: the terminology, the history, etc. It gives a very complete history of money and debt, without bogging down in incidental details (as some authors seem tempted to pack in, perhaps to give an impressively big book). This is one of the better-edited books I have read. The author has positions and opinions, but always gives plenty of room in the discussion, indicating various voices on the important topics of the world's handling debt imbalances going forward. The narrator has a fine voice and style that serves the material well. This is not a personal finance book. As the title suggests, it is about the big picture, but I find it very pertinent to my political thought, plans and expectations. I wish I read a book like this long ago.

A Must Read

Anyone wanting an objective view on how the current economic crises came about - minus the political biases of course - this is a great book to start with. It's not an exhaustive study, but a good primer that will lead the curious truth seeker to other good research as well.