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IOUS A

Addison Wiggin

and Kate Incontrera

with Dorianne Perrucci

Foreword by David Walker

John Wiley & Sons, Inc.

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I O U S A

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IOUS A

Addison Wiggin

and Kate Incontrera

with Dorianne Perrucci

Foreword by David Walker

John Wiley & Sons, Inc.

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Copyright © 2008 by Addison Wiggin and Kate Incontrera. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

Book design by Figaro.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750–8400, fax (978) 750–4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748–6011, fax (201) 748–6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose.

No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

The opinions and views expressed in this book and its foreword are solely those of their respective authors, and not those of I.O.U.S.A., LLC or the Peter G. Peterson Foundation.

The Peter G. Peterson Foundation and I.O.U.S.A., LLC did not write or edit any portion of this book, do not endorse it and are not receiving any compensation from its sales.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762–2974, outside the United States at (317) 572–3993 or fax (317) 572–4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com.

ISBN 978–0–470–22277–5

Printed in the United States of America.

10 9 8 7 6 5 4 3 2 1

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For Jennifer, Meritt, August, and Elizabeth, who make all the late - night pacing worthwhile ffirs.indd v

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Contents

Foreword ix

I.O.U.S.A. Cast of Characters xvii

Acknowledgments

xix

Part One: The Mission

The Mission

3

Chapter 1 The Real State of the Union

15

Chapter 2 The Budget Defi cit

23

Chapter 3 The Savings Defi cit

43

Chapter 4 The Trade Defi cit

59

Chapter 5 The Leadership Defi cit

75

Epilogue 93

Part Two: The Interviews

The Interviews

97

Alice Rivlin

99

William Bonner

111

Robert Rubin

127

Peter G. Peterson

139

Ron Paul

147

Paul A. Volcker

161

Dr. Alan Greenspan

169

Warren Buffett

175

vii

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viii Contents

James Areddy

197

Paul O’Neill

205

Arthur Laffer

225

Steve Forbes

245

Additional Resources

261

Index 263

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