The Indisputable Threat to Banks: Deficit Financing
There is room for discussion regarding the threat posed by AI, but presently the United States is continuing on the path of the last twenty-five years to treat continued deficit financing as an issue to be addressed by a surreptitious increase in the money supply. If in fact such an event materializes the threat posed by AI will, in our opinion, become a second level concern.
I served as the Assistant Director of OMB as part of a career working for five Presidential Administrations. Additional background on the aforementioned issue is available through the following links on the website of the Center for Regulatory Effectiveness (CRE).
Under conditions of “Insoluble Insolvency“, regulatory policy must operate within binding sovereign capacity constraints. Centralized regulatory review shall function not only as an efficiency gatekeeper but as a protector of long-term fiscal solvency and intergenerational equity. Historical Note
The Center for Regulatory Effectiveness does not pretend to have an answer to all of the relevant questions but we have concluded that a federal entity should initiate a review of the available options by soliciting the views of the American public.
