Wake up, America! We’re on the brink of a financial meltdown.
Got your attention yet?
That’s the outlook for supporters of the soon-to-be released documentary entitled: I.O.U.S.A.: One Nation. Under Stress. In Debt., which centers on the shape and impact of the United States national debt.
As described on their website, this documentary boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. The film’s premise is that burdened with an ever-expanding government and military, increased international competition, overextended entitlement programs, and debts to foreign countries that are becoming impossible to honor, America must mend its spendthrift ways or face an economic disaster of epic proportions.
With surgical precision, the film’s director interweaves archival footage and economic data to paint a vivid and alarming profile of America’s current economic situation. The ultimate power of I.O.U.S.A. is that the film moves beyond doomsday rhetoric to proffer potential financial scenarios and propose solutions about how we can recreate a fiscally sound nation for future generations.
According to an excerpt from it’s Wiki site:
The film focuses on Robert Bixby, director of the Concord Coalition, and David Walker, the U.S. Comptroller-General, as they travel around the United States on a tour to let communities know of the potential dangers of the national debt. This is a tour carried out through the Concord Coalition, and is known as the “Fiscal Wake-Up Tour.” In February 2008, Walker announced that he would be resigning from his post as Comptroller General to become the president and CEO of the newly established Peter G. Peterson Foundation. His term was supposed to end in 2013. He states that he feels he can more freely draw attention to the serious issues the U.S. is facing from this position.
I.O.U.S.A.: Live with Warren Buffett, Pete Peterson & Dave Walker in an exclusive one night event in select movie theaters nationwide (including Tucson and Phoenix) on Thursday, August 21st. This event will include a LIVE discussion about America’s economic crisis and what we can do to change course, and will be shown at 8:00pm ET / 7:00pm CT / 6:00pm MT / and tape delayed at 7:30pm PT.
After the showing, the live discussion with America’s most notable financial leaders and policy experts, including Warren Buffett, CEO of Berkshire Hathaway; William Niskanen, chairman of the Cato Institute; Bill Novelli, CEO of AARP; Pete Peterson, senior chairman of The Blackstone Group and chairman of the Peter G. Peterson Foundation; and Dave Walker, president & CEO of the Peter G. Peterson Foundation and former U.S. Comptroller General, promises riveting dialogue and keen insight into the crisis we currently face. The panel will be moderated by Becky Quick, co-anchor of CNBC’s morning news show Squawk Box.
This should be an interesting movie, and hopefully will make more people aware of just how large and out-of-hand our national debt has gotten. According to the movie’s “Take Action” email form:
Did you know that the federal government is in a $53 trillion financial hole? A hole that’s growing by $2 trillion to $3 trillion every year? That amounts to a burden of $175,000 on each and every American citizen.
[Source: Peter G. Peterson Foundation]
However, according to the national debt timeclock, current obligations are more like $32,000 per person. Not as frightening as $175,000, but still a significant amount.
If you happen to be one of the first to watch this movie, please stop by afterwards and let us know what you thought about it. Here’s a sneak peek.
As most smart savers know, creating and maintaining an emergency fund should be a priority before branching into investment and speculation.








Junk Bonds as Market Indicator
I’ve been in a 100% cash position with my retirement portfolio for a while now and I’ve been asked a “couple” of times (I don’t get a lot of readership), how will I know when it’s time to “get back in”?
But, one gauge that I use to evaluate whether the stock market is “really” reversing it’s trend is the junk bond market, specifically, the Vanguard Group’s High-Yield Corporate Fund, Investor Shares (VWEHX) because it contains “higher-grade” junk.
My reasoning is that junk bonds prices are directly correlated with stock market prices. If both stock and junk bond market prices continue to rise, then it could be indicative of a turn-around. If stock market prices leap, but VWEHX falls or remains the same, I view it as short-term speculative movement, not a reversal of course.
For example, the stock market really bounced back at the beginning of the week, and like most investors betting on a bear market, it caused me a little concern. But, my anxieties were allayed once I saw that VWEHX didn’t move at all. As a matter of fact, VWEHX is at historic lows, and the outlook for junk looks pretty grim. According to a Bloomberg.com article today:
That speaks more to me than any short-term stock market gains.