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Thread: US taps G fund to avoid passing debt limit

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    Default 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


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

    Quote Originally Posted by tsptalk View Post
    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?
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    Default 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.
    Likes RealMoneyIssues, CrabClaw liked this post
     
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    Red face 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.

    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
    Lookin' up at the 'G Fund'!!!

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

    Quote Originally Posted by Boghie View Post
    I have guaranteed that I will be unaffected. Just moved all of my 'G Fund' assets out.

    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

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

    Quote Originally Posted by clester View Post
    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.

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

    Quote Originally Posted by Kaufmanrider View Post
    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...

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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...
    We know they're all full of it
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    Default Re: US taps G fund to avoid passing debt limit



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





    Pretty Graphic stolen from here:
    Who Owns the U.S. National Debt? Summer 2012 Edition | MyGovCost | Government Cost Calculator

    So is that TSP in pretty orange at 5.1%?

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

    Quote Originally Posted by clester View Post
    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
     
    Lookin' up at the 'G Fund'!!!

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

    time for amoeba to go birch-mode!
    A sniper doesn't take many shots, but when he does, he makes em count.
    Current Allocation: 100% Birch-Mode

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