US taps G fund to avoid passing debt limit
I know this has been talked about on the board in other places, but I think it needs to be here in the TSP News forum also...
"WASHINGTON (AP) -- Treasury Secretary Timothy Geithner says the government has begun borrowing from the federal employee pension fund to keep operating without surpassing its debt limit."
US taps pension fund to avoid passing debt limit - Yahoo! Finance
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
tsptalk
I know this has been talked about on the board in other places, but I think it needs to be here in the TSP News forum also...
"WASHINGTON (AP) -- Treasury Secretary Timothy Geithner says the government has begun borrowing from the federal employee pension fund to keep operating without surpassing its debt limit."
US taps pension fund to avoid passing debt limit - Yahoo! Finance
So, this is my question. Say the debt limit isnt raised does that mean our money gone if they never raise the debt limit?
Re: US taps G fund to avoid passing debt limit
What is amazing to me is that the TS can submit an 8 line letter to the politicians and play with $150B but we can't make a tax code fit in the library of Congress.
In any event the letter also says that TSP members would be unaffected.:embarrest:
Re: US taps G fund to avoid passing debt limit
I have guaranteed that I will be unaffected. Just moved all of my 'G Fund' assets out.:cheesy:
Also, I have just made the final change to zero out Kalefornea's tax increase. Since I am not a member of the 1% all I had to do was estimate the sales tax and property 'tax' increase and negate those. Governor Brown is counting on my $150, he ain't going to get it.
Go Broke Kalefornia. Go Broke...
And, Timmy, hope you ain't borrowing on my 'G Fund' money. It ain't there anymore;)
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
Boghie
I have guaranteed that I will be unaffected. Just moved all of my 'G Fund' assets out.:cheesy:
Also, I have just made the final change to zero out Kalefornea's tax increase. Since I am not a member of the 1% all I had to do was estimate the sales tax and property 'tax' increase and negate those. Governor Brown is counting on my $150, he ain't going to get it.
Go Broke Kalefornia. Go Broke...
And, Timmy, hope you ain't borrowing on my 'G Fund' money. It ain't there anymore;)
You are so Unpatriotic!!!
Obama: Paying More Taxes is “Patriotic” | The Blog on Obama: White House Dossier
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
clester
So, this is my question. Say the debt limit isnt raised does that mean our money gone if they never raise the debt limit?
I think your G fund money becomes like all those Social Security surpluses we keep hearing about. Just an IOU written on a piece of scratch paper with a promise that someone
will repay it.
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
Kaufmanrider
I think your G fund money becomes like all those Social Security surpluses we keep hearing about. Just an IOU written on a piece of scratch paper with a promise that someone
will repay it.
They use the IOUs for toilet paper at the Capital Building...
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
RealMoneyIssues
They use the IOUs for toilet paper at the Capital Building...
We know they're all full of it :)
Re: US taps G fund to avoid passing debt limit
Re: US taps G fund to avoid passing debt limit
Re: US taps G fund to avoid passing debt limit
Quote:
Originally Posted by
clester
So, this is my question. Say the debt limit isnt raised does that mean our money gone if they never raise the debt limit?
Nope,
Debt is paid before spending. There will be political gamesmanship. There will be demagoguery. And, there will be threats. But debt is paid before spending.
However, where does that leave our salaries. Debt is paid before spending, and our salaries are spending. Also, if Fitch's impending downgrade increases the cost of rolling over our debt every month than our weak cash flow situation will get weaker fast.
The only way the cash in the 'G Fund' can vanish is if they elect to default. That is one of the choices available. What a legacy that will be:)
Re: US taps G fund to avoid passing debt limit
time for amoeba to go birch-mode!