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Thread: US taps G fund to avoid passing debt limit

  1. #13

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    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by RealMoneyIssues View Post
    They use the IOUs for toilet paper at the Capital Building...
    I.O.U's....kind of like Federal Reserve Notes, eh?

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  3. #14

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    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by James48843 View Post
    I.O.U's....kind of like Federal Reserve Notes, eh?
    Backed by the full faith and credit of the US Government !!

    Full Faith And Credit Definition | Investopedia

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  5. #15

    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by RealMoneyIssues View Post
    Backed by the full faith and credit of the US Government !!

    Full Faith And Credit Definition | Investopedia
    perhaps it should read "secured by the next two generation's potential productivity and pounds of flesh of the u.s. homosapien calf crop". make no mistake what the collateral for those iou's is: your blood, sweat, and tears. charge it forward.
    100g

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  7. #16

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    Default Re: US taps G fund to avoid passing debt limit

    robbing Peter to pay Paul... nothing more. Actually robbing Peter to pay Peter

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  9. #17

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    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by CrabClaw View Post
    robbing Peter to pay Paul... nothing more. Actually robbing Peter to pay Peter
    Good point, why do we pay interest to ourselves?

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  11. #18

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    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by RealMoneyIssues View Post
    Good point, why do we pay interest to ourselves?
    I dont know.

    This whole thing concerns me; Ye have little faith in the current state of affairs regarding our country's finances... and the people managing them.

    The beast IS starting to consume itself.


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  13. #19

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    Default Re: US taps G fund to avoid passing debt limit

    Generally when banks are flush with cash or have an unlimited supply of cheap money you don't get crap on interest rates on your accounts. The reverse is true when money is limited. It would seem to me if the FED is limited on where they can go to borrow money, G funders should be earning better than 2% to borrow their money
    In Dog Beers I've only had two.

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  15. #20

    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by RealMoneyIssues View Post
    Good point, why do we pay interest to ourselves?
    To deter borrowing. If I could take out an interest free loan, I'd take out as much money as possible even if I don't need it...why not? As long as inflation stays positive, that money is worth more today than it will be tomorow.


    Does anyone know if the G fund return rate rises when the government 'borrows' from it? I would think it would.

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  17. #21

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    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by k0nkuzh0n View Post
    Does anyone know if the G fund return rate rises when the government 'borrows' from it? I would think it would.



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  19. #22

    Default Re: US taps G fund to avoid passing debt limit

    Was just sent these links and thought I would share it with you all.

    Petition Filed Asking to Leave G Fund Out of Debt Limit Fight

    Petition Filed Asking to Leave G Fund Out of Debt Limit Fight - FedSmith.com

    Stop Withholding Payments to the TSP's G Fund
    https://petitions.whitehouse.gov/pet...-fund/jPL8H7VQ

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  21. Default Re: US taps G fund to avoid passing debt limit

    "As we await legislation on raising the federal debt limit, I would like to address your concerns about the possible suspension of issued securities to the Government Securities Investment (G) Fund. In the event that the U.S. Government reaches the statutory federal debt limit, the federal government may temporarily be unable to issue new securities to the G Fund because to do so would exceed the present debt limit. However, G Fund investors are always fully protected and G Fund earnings are fully guaranteed by the Federal Government due to statutory protections in the Thrift Savings Plan Investment Act of 1987. This protection, known as the "make-whole" provision, will work to ensure that G Fund investors are completely unaffected by the limitation on securities issued by the U.S. Treasury. G Fund account balances will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected."

    So far the numerous times they've done this before they've followed the law and made whole the GFund... Lets hope that trend continues.


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  23. #24

    Default Re: US taps G fund to avoid passing debt limit

    Quote Originally Posted by ChiTown View Post
    "As we await legislation on raising the federal debt limit, I would like to address your concerns about the possible suspension of issued securities to the Government Securities Investment (G) Fund. In the event that the U.S. Government reaches the statutory federal debt limit, the federal government may temporarily be unable to issue new securities to the G Fund because to do so would exceed the present debt limit. However, G Fund investors are always fully protected and G Fund earnings are fully guaranteed by the Federal Government due to statutory protections in the Thrift Savings Plan Investment Act of 1987. This protection, known as the "make-whole" provision, will work to ensure that G Fund investors are completely unaffected by the limitation on securities issued by the U.S. Treasury. G Fund account balances will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected."

    So far the numerous times they've done this before they've followed the law and made whole the GFund... Lets hope that trend continues.

    Hmm so maybe I had it backwards, and the Gov tapping into the G Fund would actually make the fund's return rate go down because its not being invested into securities...

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