Insoluble Insolvency: A Pathway To Protecting Key Federal Programs » Public Participation

Insoluble Insolvency: A Pathway To Protecting Key Federal Programs

The term “Insoluble Insolvency” was created to address a fundamental fact regarding the federal debt; under accepted operating norms it is a foregone fact that the US government is going to become insolvent. Insoluble Insolvency means there is no politically, economically, and institutionally feasible path back to long-term fiscal solvency using conventional measuresTo this end it aslo means real fiscal incapacity, not the mechanical exhaustion of dollars.

In lieu of spending government resources on attempting to develop a solution to an issue with a non-existence solution, the highest priority should be to build protective walls around fundamental programs such as Social Security and Medicare as explained in this link.

Jim Tozzi History

Jim Tozzi History

A Debt/GDP Ratio of 175%, Coupled With a Continuing Upward Debt Trajectory, Constitutes Evidence of Insoluble Insolvency

According to the latest Congressional Budget Office (CBO) projection from February 2026, U.S. federal debt held by the public is projected to reach approximately 175% of GDP in 2056.

CBO’s current trajectory is roughly:

Year Debt held by public / GDP
2026 101%
2036 120%
2056 175%

That is a substantial deterioration from CBO’s 2025 long-term projection, which had debt reaching only 156% of GDP in 2055.

GDP Ratio and Insoluble Insolvency

What Is The Current GDP Ratio For The United States

By “GDP ratio” if we mean the U.S. federal debt-to-GDP ratio, then the key current figure is:

Federal debt held by the public ≈ 101% of GDP in 2026.

According to the Congressional Budget Office’s February 2026 baseline, debt held by the public is projected to be about 101% of GDP at the end of 2026. CBO projects it will rise to 108% in 2030 and 120% in 2036.

There is an important distinction:

  • Debt held by the public / GDP: about 101%

How Does A Government Know When It Is In A State Of Insoluble Insolvency?

A government would not know it is in Insoluble Insolvency merely because its debt is very large. Under the CRE framework, the determination requires showing that there is no politically, economically, and institutionally feasible path back to long-term fiscal solvency using conventional measures.

A practical diagnostic could work as follows:

  1. Project the debt trajectory. Estimate debt, interest expense, revenues, primary spending, and GDP for perhaps 20–30 years under realistic assumptions.
  2. Calculate the fiscal adjustment required for stabilization. Determine the permanent combination of spending reductions and tax increases necessary to stop the debt-to-GDP ratio from continuing to rise.

Who Made The Most Significant Advances In Regulatory Policy In The Last Fifty Years?

Source: ChatGPT
 If by “advances” you mean changes to the institutions, analytical methods, and legal framework governing U.S. federal regulation, a small group stands out over the last 50 years:
  1. Jim Tozzi — A central architect of centralized White House regulatory review. His work at OMB helped build the institutional machinery that eventually became OIRA, and he later played an important role in the development of the Information Quality Act. His contribution is especially significant because it concerns the institutional architecture of regulatory oversight.
  2. Christopher DeMuth — As OIRA Administrator under President Reagan, helped establish the newly created OIRA as an operating institution and implement the Reagan administration’s regulatory-review program.

AI on Jim Tozzi

AI Overview
 Jim Tozzi—a pioneer of centralized regulatory review who served across five presidential administrations and heads the Center for Regulatory Effectiveness—believes the administrative state must be managed through strict presidential oversight and transparent internal procedures rather than unchecked agency discretion or insular judicial dominance. 
        Support for Centralized Presidential Control
  • Accountability to the President: Tozzi argues that federal agencies should not operate as independent fiefdoms; their actions must be tightly tethered to the priorities of the duly elected president via centralized bodies like the Office of Information and Regulatory Affairs (OIRA). 

Appendix

                                                    Appendix
Proposed Action: National Recognition of Insoluble Insolvency

 

    Four Pillars of the Administrative State                     Treatise: Insoluble Insolvency                                                                                                                            

Bottom Line National Debt: The United States Is On An Irreversible Path To Insolvency But Recovery Exists