Wall Street Is Sounding the Alarm on U.S. Debt. This Time, It’s Worth Listening
Jim Tozzi
A Strategy for Addressing Federal Bankruptcy
Debt restructuring has been used in select instances outside the United States but nothing near the scale of the proposal that follows; recent innovations include:
Offsets
Reducing the debt load of a debtor participant to capture the previous provision of non-market goods and services such as military and environmental protections.
Income Inequality
Having spoken with a number of groups , this issue is the highest priority to a substantial number of groups.
Notice and Comment Rulemaking
A number of interested parties argue that the deliberative process must be governed by established rules.
Unfunded Obligations
Technically unfunded obligations are not covered by the term : “debt” But their presence will have to be discussed. Social Security has some 22 trillion in unfunded obligations and Medicare has approximately 53 trillion. These programs dwarf a debt of 36 billion. [ Third-party verification of data needed.]
Additional details are available by vising the Center for Regulatory Effectiveness website. The controlling recommendation is that the Federal Reserve Board should perform an analyses of the strengths and weaknesses of adopting a Debt Reconstruction .Program.
BTW A page of links to key research documents is available by placing the following text into a Google search: CRE Current Events: Federal Bankruptcy.
NB My ancestors ruled the world for centuries; if their paramount influence could vanish so might that of the United States.
