The highly advertised 3% of GDP program to control the ever growing national debt is either not enforceable or when if it becomes law it will not be enforced based upon my sixty- year tour in Washington where I have witnessed similar proposals. Furthermore the operable deficit is nearly three times the reported deficit. The country is on a free fall to insolvency, see Insoluble Insolvency.
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 ever expanding deficit financing as an issue to be addressed by surreptitiously increasing the money supply. If in fact such an event continues the threat posed by AI will, in our opinion, become a second level concern.
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.
Jim Tozzi
