With the debt crisis in the Eurozone, the realization is dawning that not only Third World countries can go bankrupt. The question is even being raised: Is the Federal Republic also on the path to state bankruptcy, which struck Germany twice in 1923 and 1948? This volume traces the journey of the Federal Republic into a debt state. The problematic experiences with economic policy in the 1970s, the costly expansion of the welfare state, and the debt-financed restoration of German unity are addressed, as well as misdevelopments in tax law and the federal financial constitution. Against this backdrop, the contemporary history of financial policy gains a disturbing relevance. Every citizen seeking an impartial education that goes beyond the random figures of daily reporting will find it here.