US Treasury Starts Tapping Pensions To Help Fund Government

May 16, 2011 9:28 am 3 comments

Creative Commons - by Jay Tamboli&

And so it begins. As the US government exceeds it’s debt limit today, the Obama administration will begin to tap federal retiree programs to help fund operations after the government loses its ability Monday to borrow more money from the public.

But have no fear – Timothy Geithner said that “the measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program.”

Washington Post has the full story…

Treasury Secretary Timothy F. Geithner has warned for months that the government would soon hit the $14.3 trillion debt ceiling — a legal limit on how much it can borrow. With the government poised to reach that limit Monday, Geithner is undertaking special measures in an effort to postpone the day when he will no longer have enough funds to pay all of the government’s bills.

Geithner, who has already suspended a program that helps state and local government manage their finances, will begin to borrow from retirement funds for federal workers. The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program.

The maneuver buys Geithner only a few months of time. If Congress does not vote by Aug. 2 to raise the debt limit, Geithner says the government is likely to default on some of its obligations, which he says would cause enormous economic harm and the suspension of government services, including the disbursal of Social Security funds.

 

3 Comments

  • NadePaulKuciGravMcKi

    Honesty Compassion Intelligence Guts
    very few Republicans have it
    very few Democrats have it

    • The majority of the American people are Republican so i do think there are many who have “Honesty Compassion Intelligence Guts”

      Republicans are some of the kindest people i have met…and do you know who the meanest people i have met are? Its not the Democrats…

  • Legally required to pay it back with what? Is Timmy Geitner going to hand the American People a brief case full of IOU’s like Jim Carey in Dumb & Dumber?

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