Mr. & Ms. America:
Managers Note
Debates on the national debt accentuate the significance of the debt but shed little light on a strategy for eliminating the debt. In a nutshell, Jim Tozzi and the Center for Regulatory Effectiveness have concluded that there is no immediate solution to one of the problems—the United States is on the path to inevitable insolvency, Insoluble Insolvency to be precise. The continued moaning about the size of the national debt has to be augmented by developing and implementing strategies that minimize the impacts of national insolvency but at the same time take the initial steps to refine and modify the existing financial regime in the United States.
As the initial starting point, specific actions should be taken to protect Social Security and Medicare. For those who disagree with our analysis there is no downside of developing contingency plans in the event our reading of events captures reality, particularly given the fact there is little on the horizon that would suggest that massive deficit spending will not continue for the foreseeable future.
The central proposition which differentiates this strategy from many others is: The United States government can be insolubly insolvent without the United States economy becoming insolubly insolvent. The hallmark of the strategies set forth herein is that they are custom designed to address workable solutions for both private and public entities.
Coexistence Strategy Under Insoluble Insolvency
Coexistence is a strategy for maintaining a viable private economy alongside a sovereign government that can no longer restore long-term fiscal solvency through conventional economic, fiscal, or monetary measures. The applicability of the term “Coexistence” to an Insoluble Insolvency state was first used by the Center for Regulatory Effectiveness.
Under the concept of Insoluble Insolvency, the federal government’s fiscal condition need not dictate the economic fate of the entire nation.
The central proposition is:
The United States government can be insolubly insolvent without the United States economy becoming insolubly insolvent.
Immediate Action Plan
The literature is filled with excellent presentations on the seriousness of the problem; unfortunately. the literature is nearly replete with a serious strategy for developing a solution to the potential demise of the Social Security program. Fortunately, the authors have had decades of experience for developing and implementing solutions to federal budget and regulatory issues as noted below.
Recommended Next Step
It is recommended that affected organizations. such as professional oversight groups, insurance firms and medical groups, distribute this communique to their colleagues and solicit their views on the program described herein. It is also recommended that the aforementioned views be sent to CRE at contact@thecre.com. CRE (Center for Regulatory Effectiveness), will publish the said reports on its website and will furnish the summary report to federal officials. On occasion CRE may request that the author(s) of a particular report provide additional information at the request of a federal official. All of the affected groups may publish this communique.
Center for Regulatory Effectiveness
