Customer Reviews

I.O.U.S.A: One Nation. Under Stress. In Debt

5 star:		(15)
4 star:		(4)
3 star:		(5)
2 star:		(5)
1 star:		(2)

 

 

I got this hoping to learn a lot about our national debt problem: what exactly it means, how big the problems are, what the causes are, etc. This book has almost nothing of that: whatever discussion there is of actual facts is just meant to make the reader understand this is a big problem--something anyone who buys this book already knows. That is to say, this book is very lacking in statistics and study of what they mean.

The book is arranged in two sections: the first part is the informative section, and the other half is a collection of interviews with supposed experts. Unfortunately, most of the information section is just a narrative walkthrough of how they made the movie: "While we were making the movie, we found out about this student group which is doing the same thing as us. They are on these campuses. 'The national debt is a real problem,' says the group's leader. Hopefully they'll continue their work." Nothing of actual substance. And at the end of each chapter comes a set of "solutions," offering nothing we haven't heard before. "Congress needs to begin making realistic decisions," "Leaders must be held accountable," etc.

Maybe the movie is better, but all in all, I wish I hadn't bought this.

It appears that this book was released as a companion to the movie/DVD of the same name. Problem is, the DVD has not been released; you can only see it if you attend film festivals or ferret out some limited viewing in a few cities. And it is not a substitute for the film, like reading a novel and then comparing it to the movie; rather, this is a support piece to the DVD itself.

The first 90 pages are an excellent introduction to, and summary of, an enormous problem that our country is facing, namely monstrous deficits and debt; I would give it 5 stars if the first half was the whole book - -perhaps a little 90-page book that cost [...].

But the second half of the book, the "complete" interviews of the folks featured in the movie, leaves me wondering if there is even any hope of ever agreeing on solutions, since it seems they all have different opinions on cause and effect, who is responsible for what, and where we might go from here. (The book came out before the recent financial collapse; so the opinions of some seem completely off-base.)

Anyway, I rate the second half of the book one star, giving the book an overall (generous) rating of two and a half stars. Perhaps my opinion will improve once I am able to see the movie and can then put the interviews in context; but it really seems like they should have released the DVD before the book; or, at least the book and DVD as a "combo" package. See the movie first; if you like it, buy this book.

Enlightening. I bought the book after seeing the movie. Both helped me understand parts of the debt crisis that I didn't fully get before. Some of the dangers it warns against seem to be unfolding now.

I've developed a far more skeptical attitude towards the stock market recently, largely because of IOUSA. This skepticism has helped me dodge some of the recent equity losses. I realize this is extremely short-term, but at least I'm aware of the arguments opposing Wall St's continual bull-pumping. The traditional mentality of "don't sell now, it's the best time to buy" is incredibly ingrained in our society. People forget that on occasion there are extended periods of time that are really really bad to invest in equity markets.

This book (and the movie it's based on) helped me realize these things.

This book was written right at the cusp of the current financial mess, making it very timely for those seeking one explanation as to why things are the way they are, and why they may not improve. The trouble is, anybody who reads Addison Wiggins web site (Daily Reckoning) or similar sites would already know most of what's in this book. Those who don't would still have heard most of the story by now. Most of the explanation part is contained in the front half of the book. The US owes tons of money, social security, medicare and every other entitlement program are going to go bust sooner than we think, etc.

The more useful part of the book is the second half, showcasing interviews with various financial people and politicians offering their explanations and opinions. In particular, I found those of Steve Forbes and Arthur Laffer to be most enlightening, while Robert Rubin put some serious spin on the Clinton administration (Clinton was indeed FOR a middle class tax cut and campaigned on it in '92 - Rubin said exactly the opposite), Warren Buffet sounded more like a politician looking for a vote, and Alan Greenspan acted like he had nothing to do with the situation at all.

Moreover, not long after the release of this book, Greenspan essentially admitted in front of Congress that he was significantly responsible for the current financial mess before running off the stage. Rubin just left the ailing Citicorp after personally assisting in its destruction, and Buffet also changed his tune, softening his approach shortly after the release of the IOUSA movie. He probably caught so much flack from his team over at Berkshire Hathaway. Not wanting to scare everybody and realizing just how bad the markets would be for the foreseeable future, he modified his stance somewhat. So hearing the "Aw, gee, shucks - we dunno what happened!" from some of these people is a bit hard to take.

The book is good, but not great. It could have been even better with a less deferential approach to questioning the various guests commentators. Many of them were too easily let off the hook, in some cases flat out contradicting themselves. Greenspan and Rubin in particular should have been held to the fire. But in fairness, even the doomsaying authors probably couldn't have imagined just how bad things would get not even a year after the book was published.

If you want a primer on what the country is facing in terms of debt and financial obligations, go for it, but there are probably better choices.

Good, solid educational read. I liked the voice -- very easy to follow. However, if you're not really analytical or into statistics, you might find this book a really,really slow read. I recommend trying to get your hands on the DVD if you want the information but aren't willing to sit down with the book.

The authors "reverse engineered" this book from the documentary film I.O.U.S.A. that debuted (first cut) at the Sundance Film festival in early 2008 and opened (final form) at theaters around the country on August 21.

The film was in turn conceived of as a way to publicize the message of an earlier book, "Empire of Debt: The Rise of an Epic Financial Crisis," William Bonner and Addison Wiggin, John Wiley & Sons (2006). See my review, which was lukewarm because the authors offered no solutions for the problems they diagnosed. (I prefer solutions to gloom and doom.)

Along the way, U.S. Comptroller General David Walker (now president and CEO of the Peterson Foundation) and Robert Bixby, President of the Concord Coalition became involved in the film and Walker wrote a foreword for the companion book.

Walker and Bixby were the prime movers of the Fiscal Wakeup Tour (2005-2008), by the way, which conducted town hall meetings in more than 30 states (primarily on university campuses). The film shows them in action as part of the effort to put a human face on issues of "dry" economic policy. Also, Walker's thinking about four U.S. deficits (budget, savings, trade, and leadership) became the structural framework for the film.

Given this complex background (book - tour - film - book 2), it is hardly surprising that the I.O.U.S.A. book lacks cohesiveness. So far as the "we are in a crisis that must be dealt with very soon" message is concerned, I would recommend the film instead. It is still showing in theaters, and will hopefully come out on DVD one of these days.

That being said, the personal views and motivations of many of the financial and government people who appeared in the film are neatly captured, both in the text (a brief 94 pages) and in appended interviews (166 pages) that put the comments in context and are easier to follow. The witnesses (if that's the right word) are Alice Rivlin, William Bonner, Robert Rubin, Peter G. Peterson, Ron Paul, Paul Volcker, Alan Greenspan, Warren Buffet, James Areddy, Paul O'Neill, Arthur Laffler, and Steve Forbes, and their views are well worth pondering.

As might be expected, I.O.U.S.A. draws a parallel between the economic ills that the authors and others have been predicting for some time and the subprime crisis and oil price spike leading us into recession situation that began in 2007 and is still in progress. "With any luck, we'll make fiscal responsibility hip in Washington again and inject the themes of the book and the film into the national conversation well before and long after the 2008 election."

Unfortunately, things appear to be headed in a different direction right now, with dramatically eased money policy and a trillion dollar deficit in store for fiscal year 2009. Time to write another book, maybe starting from scratch this time.

This topic needs to be discussed in American. I rank the word debt right up there with other four letter words. This book talks more about the movie and refers to "Empire of debt" another book by the same author, constantly. Maybe I should have read that book before, but the reviews on it were not that great.

You know how the book is usually better than the movie, I think this might be the first time it is reversed.

This public awareness is needed, but is it too late?

This review is primarily about the book, not the film. But the "IOUSA" film was produced and blended with this book written by Addison Wiggin, and the overlapping information about both the book and the film is relevant to IOUSA's basic message.

With IOUSA, the information regarding the coming calamity is finally being presented to the general public on a large scale. This is no longer an esoteric issue. Very few Americans were aware of this problem, until recently. The myopic public was and is, not concerned about this. People are too busy working, raising families, paying bills, and buying consumer products. The problem is insolvency. This issue is the #1 threat to the United States.

Here is the definition of insolvency:

"When an individual or organization can no longer meet its financial obligations with its lender or lenders as debts become due." Regarding the US government, we call "debts," to be the "promised payouts" (obligations) in the coming future as entitlements payouts.

THE BIG, OPEN SECRET:

This problem has been known about for several decades. But it wasn't discussed until now, because D-Day is arriving soon. It's right around the corner. There is no way out of it. There are reasons for omitting any discussion of America's coming insolvency to the US public for the last several decades, because 1. it's real 2. it's bad, and 3. there haven't been and still aren't enough politicians willing to address this topic. Number 4, is perhaps the biggest reason: there are no viable solutions, except to start radically reducing entitlements. But this is the Third Rail....

The I.O.U.S.A. book and film were produced and put together well. Financial numbers and demographical statistics can bore readers quickly, so the general presentation is a large part of IOUSA's effectiveness in print and on film. Other reviews have noted the lack of "meat." In my opinion, more "meat" isn't needed. These are basically numbers and population demographics: basic math.

The book accurately notes the foundations of this historical dilemma. The 4 deficits the US has had and still has are one, the savings deficit (lack of personal saving, and in governmental budgets) two, the trade deficit (current account deficit) three, the federal deficit (annual deficits and total national debt) and four, the leadership deficit, noted above already. (Leaders not only not doing anything, but actually contributing to this train crash.)

There are two sections in this book. The first is presenting the information and the second is comprised of interviews of analysts and well-known financial investors. Perhaps these famous investors were included to give some credibility to the statistics, which alone by themselves, are factually correct. There's no need to corroborate the math, or the projected numbers. Nobody is challenging these numbers.

Politically, finger pointing and shallow partisanship are irrelevant as they aren't a part of the solution. The entire government and public are responsible for the creation of this mess and they - we - are responsible for enacting the potential solutions.

The message in IOUSA is in coordination with the Peter G. Peterson Foundation which distributed the documentary film that was produced. A critical person in spreading the message is David Walker, the former comptroller General of the GAO. (The nation's top accountant.) Walker and Robert Bixby went on a "fiscal wake-up tour" across the nation, in an awareness campaign for IOUSA.

This book doesn't need to lead the reader toward skepticism and negativity. It's simply the truth. The truth based on mathematics. When mathematics and statistics are compiled honestly and accurately - the numbers do not lie.

Instead of pessimism one can adjust his/her life adequately to make the life-style and financial moves necessary because of the factual information in this book. On an individual basis you cannot stop what will happen, but you can plan accordingly.

The author gives a profound description of the crisis, how we got here, what it means and places it in historical context. I wish they had given a more detailed chapter on how the Federal reserve works recently with its expansion of powers--i.e., buying up toxic mortgages with money from where.......buying Bonds with money from where.....how banks and the Fed handle Repos,...and so on.

Overall a great book and an essential one imho.

What an eye opener. Everyone should read this to try and stop the red ink if it isn't too late. I just might betoo late now, but only time will tell.