Treasury To Tap Pensions To Help Fund Government
By Zachary A. Goldfarb, Washington Post, May 15, 2011
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, adding urgency to efforts in Washington to fashion a compromise over the debt.
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.
Apparently neither Obama nor Geithner understand that many recipients (if not most), present and future, either were or are members of government unions. Does he think he can do this and still retain their votes?
Will current recipients not receive their benefits? Not hardly. The administration is not that stupid. But what about the recipients? What will they think? Will they think the administration capable of taking more if it chooses? Will Obama plant in their minds a fear of government? If government can, at any time, dip into your pension fund, do you mean to tell me you wouldn't feel the slightest bit frightened, or concerned... even offended?
If Washington can do this, dip into pension funds to fund their irresponsibility, how soon before it believes it has the right to do the same with private pension funds? There were talks of doing just that in 2008... doing away with the 401k in favor of a government plan (which they could then tap). Who's to say such an idea cannot resurface (if it has ever truly died)? Who's to say such an idea cannot be implemented?
If Washington would simply bite the bullet and take SERIOUS steps toward balancing this nations budget and paying off our ever increasing debt. If government would simply stop spending beyond its obligations... perhaps we could save this country.
It appears our leaders can't stand to see a single dollar unspent. Every idle dollar is a token to be offered for more personal power and influence. Those idle dollars belong to us, the taxpayers. Not government. Our pensions belong to us. Not government.
If these assholes would simply stop spending.
Are you guys idiots or what? The US government has been borrowing from the country's biggest pension fund at least since the Reagan era. The borrowing is in the form of US treasuries which are guaranteed by the full faith and credit of the United States. Never defaulted.
ReplyDeleteIn fact, this practice is so "un-American" that US Corporations have been doing it for years. The only thing is, they don't do it with US Bonds. They just do it, and the pensioners are SOL.
the full faith and credit of the United States?
ReplyDeleteDo you have faith in the credit of the United Stats, Jim?
You work in a bank, I understand. Would your bank loan money to anyone with the credit rating the United States has, especially since Obama started spending us out of debt?
You know, the United States is in default. Does you bank make loans to people who are in default?
If so, may I borrow a 100,000 dollars from your bank? MY credit is at least as good as the United States. And my faith is better.
Oops, I meant, If I can't pay, you can just raise my debt ceiling. Yeah, that'll work.
ReplyDelete