Thread: The Govt is monkeying with our savings again

Originally Posted by Vnc1701

I have two questions re our current state of affairs...What would be the impact on the G Fund be if the US defaults? And what would the impact be on treasuries if the US is downgraded?Thanks for all who contribute here.Vnc1701 in DC

Welcome! I think it's the uncertainty that is the problem. Not many people know what to expect from a default except probably higher interest rates. I don't have any real answers. It would hurt likely stock and bond prices, but I'm not sure what they'll do to the G-fund.

Hopefully nothing of the sort happens but if it does it seems like laws regarding these funds would have to be amended since my understanding is that investments made re G have to be AAA.. I have my fingers crossed

Treasury:

Treasury Secretary Timothy Geithner warned Congress on Wednesday that the nation will hit its debt ceiling on New Year’s Eve — but that the administration will again take a series of so-called extraordinary measures to hold off default.

The 'extraordinary measure' is the process of borrowing against your 'G Fund' assets - yuk, yuk. Borrowing using existing debt as collateral. Only in the government.

By the way, how many of us are going to loan them the cash with our 'G Fund' holdings?

I'm thinking of holding my assets in the 'G Fund' and seeing if I am able to IFT assets out. Don't like any of our funds right now - so I guess that means I like the 'G Fund' the best. It would be interesting if we all agreed to yank 10% from the 'G Fund' and place it somewhere else when the Treasury plays this game. It might make them sit up and take notice. Wonder if they will freeze the IFTs

the letter from treasury linked in your article was rather disturbing. it said the assets of G fund are 156 billion dollars imediately freed up to pay the bills. i don't think it matters if we all transfered everything out of the G fund it would just be a ledger entry wink/nod on blackrock's book. in fact, i think they would prefer we transfer out in that scenario because if the market tanks that's less they don't have to pay back.

i had to go to a mainstream media website to figure out what the letter was really saying. http://cnnmoney.mobi/primary/article...t-ceiling.json

the third paragraph was interesting, it seems to indicate that also the contributions to our pensions (not tsp) are subject to the same. so it comes out of your check on january 10 but doesn't go into the pension 'lockbox'.

luckily payments to existing retirees will not stop as they will be paid from the new investor's deposots coming in. sniff, sniff, yep smells like ponzi.

oh well, possession is nine tenths of the law as they say. it appears my three-legged stool is really just a plank. maybe i can use it for a paddle since i'm up crap creek.

Buy GOLD! monypot2.gif

I said this last year, now I'm really not that sure. http://www.tsptalk.com/mb/g-fund/266...tml#post314985

Originally Posted by burrocrat

the letter from treasury linked in your article was rather disturbing. it said the assets of G fund are 156 billion dollars imediately freed up to pay the bills. i don't think it matters if we all transfered everything out of the G fund it would just be a ledger entry wink/nod on blackrock's book. in fact, i think they would prefer we transfer out in that scenario because if the market tanks that's less they don't have to pay back.

When I retire, probably Jan 2014 the way things are going, I am moving all my TSP into my Schwab IRA. At least I'll know my money is real and not an IOU from the gobernment. And I'll have far more investment opportunities.

Originally Posted by Kaufmanrider

When I retire, probably Jan 2014 the way things are going, I am moving all my TSP into my Schwab IRA. At least I'll know my money is real and not an IOU from the gobernment. And I'll have far more investment opportunities.

well i got a good 20 years to go so i'm not really counting my chickens just yet. i've been drawing a paycheck with fica withheld since age 14, that's 30 years. for the last 10 years i've also had fers retirement and tsp taken out too. needless to say i'm a little disenchanted that folks can just borrow it when they want and none of seems like real money, or like it's mine, or like i'll ever see it.

even more disturbing is with all the feds past and present who have 'money' in the G fund, it only totals 156 billion and can only float our current spending for about six weeks.

i have a schwab ira too but nnuut might be on to something. no matter what the investment choices or trading freedom, if i want to spend it i have to convert it to USD first and the dollar is really just debt owed to the privately owned federal reserve, a note so to speak. and the dollar seems rather heavily indebted at this point. maybe that's why it's value keeps shrinking.

i guess the best i can hope for is this big ole borrow and spend wheel just keeps spinning merrily along. it's good for the economy i hear.

Geitner's letter to Congress- outlining the "Extrodinary Measures" they are doing to avoid bankruptcy during the "debt ceiling" fight.

http://www.treasury.gov/connect/blog...12-26-2012.pdf

I am avoiding the "G" fund- they can't take my money while I am invested in stocks.

F' them.

Originally Posted by James48843

I am avoiding the "G" fund- they can't take my money while I am invested in stocks.

F' them.

So you say we should go in the F-fund?

James and I are definitely on the same wavelength!!!

Here they come, all dressed in white. Extraordinary Measure every other year!!!

Surprisingly, Frixxxx just noted a 150 basis point in the 'G Fund' interest rate. Interesting, eh. Maybe they need to entice the enticeable. There is a new sucker born every day.

Originally Posted by James48843

Geitner's letter to Congress- outlining the "Extrodinary Measures" they are doing to avoid bankruptcy during the "debt ceiling" fight.

http://www.treasury.gov/connect/blog...12-26-2012.pdf

I am avoiding the "G" fund- they can't take my money while I am invested in stocks.

F' them.