To: Interested Parties
I have served as a career employee in five Presidential Administrations, including service as the Assistant Director of OMB.
The federal deficit is increasing at such a rate that it is highly probable that the United States will go into bankruptcy. When such an event occurs the normal response of a national government is to issue additional currency with the debilitating impact of massive inflation.
It should be noted that managing a private firm is focused primarily on making a profit; managing the United States government is focused on providing services to a very diverse public. The largest firm in the private sector (April 2025) has revenues of 1.4 billion; the federal government spends 16.9 billion per day.
The skills in each of the aforementioned sectors might be complementary, but it is questionable whether they are interchangeable.
The aforementioned observations should be given consideration when choosing those who are to lead a program for restructuring the federal debt:
CRE has taken a position on the bankruptcy of the United States government, if not opposed by the US financial community, most certainly has not endorsed by it.
That said, CRE does have three individuals who agree with its position on the forthcoming bankruptcy of the United States government.
The above ranking from beginning with the earliest to the most recent statement on the issue.
The Center for Regulatory Effectiveness (CRE) has been a student of the increasing federal debt for decades. Recently it has concluded that the the United States is on its way to an irreversible bankruptcy.
Historically other nations, when confronted with such an event, simply issue additional currency with the resultant impact of catastrophic inflation. CRE is in support of a different alternative–restructuring of the national debt. Restructuring of debt is commonplace in the private sector but less common in the public sector, particularly at the national level. The restructuring program advocated herein is probably the first of its kind because it incorporates many of the principles and programs traditionally used in Notice and Comment rulemakings.
