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
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.
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'!!!
RSI - Relative Strength Indicator DMA - day moving average
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%?
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
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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