Reproduced from QUORA
Jim Tozzi
Former Assistant Director at Office of Management and (1972-1982)
Ray Dalio warns debt crisis is ‘imminent’ Fortune
Implementation
A close read of the this link demonstrates that there is little chance that a sitting President will admit that the US is on a track to bankruptcy. [NB In theory the US Government will never go into bankruptcy because it will simply print more currency and allow rabid inflation take its toll.] The real question is whether a party leader would announce in the off season that conventional Debt Restructuring accompanied by:
(1) a consideration of the non-market benefits provided by the debtor nation
(2) the utilization of Notice and Comment Rulemaking in the conduct of the Debt Restructuring proceeding
(3) the admittance of affected oligarchs to the proceedings and
(4) a recognition of the Paris Club
is much preferred to the existing emphasis on “inflating our way to debt relief” or in the alternative to at least announce it deserves a public review. Our Interest? There are two ways to keep score; in bank books or in history books, the latter has a longer shelf life.
For additional analyses please see https://www.thecre.com/forum8/?p=11120
Jim Tozzi’s Answer: What is the relationship between debt rescheduling and income inequality?
