Monday, 16 May 2011

Maxed out the Credit Card?

Today the US has reached its debt limit of $14,294,000,000,000. And if Congress (a hostile Congress) doesn't approve a higher limit (Obama and Turbo Timmy Geithner want $21Trillion) things will get ugly at the house of Uncle Sam.

How ugly?

Emergency measures to dip into Pension assets.

The Honorable Harry Reid
Democratic Leader
United States Senate
Washington, DC 20510

Dear Mr. Leader:

I am writing to notify you, as required under 5 U.S.C. § 8348(l)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the portion of the Civil Service Retirement and Disability Fund (“CSRDF”) not immediately required to pay beneficiaries. For purposes of this statute, I have determined that a “debt issuance suspension period” will begin today, May 16, 2011, and last until August 2, 2011, when the Department of the Treasury projects that the borrowing authority of the United States will be exhausted. During this “debt issuance suspension period,” the Treasury Department will suspend additional investments of amounts credited to, and redeem a portion of the investments held by, the CSRDF, as authorized by law.

In addition, I am notifying you, as required under 5 U.S.C. § 8438(h)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the Government Securities Investment Fund (“G Fund”) of the Federal Employees’ Retirement System in interest-bearing securities of the United States, beginning today, May 16, 2011. The statute governing G Fund investments expressly authorizes the Secretary of the Treasury to suspend investment of the G Fund to avoid breaching the statutory debt limit.
Each of these actions has been taken in the past by my predecessors during previous debt limit impasses. By law, the CSRDF and G Funds will be made whole once the debt limit is increased. Federal retirees and employees will be unaffected by these actions.

I have written to Congress on previous occasions regarding the importance of timely action to increase the debt limit in order to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens. I again urge Congress to act to increase the statutory debt limit as soon as possible.

Timothy F. Geithner

Identical letter sent to:
The Honorable John A. Boehner, Speaker of the House
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Mitch McConnell, Senate Republican Leader
cc:       The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means
The Honorable Max Baucus, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance
All other Members of the 112th Congress

Watch those numbers roll:

Look! Even the nodding dashboard poodle is on board...

Barack Obama has warned of global financial chaos if the United States' $14 trillion debt ceiling is not raised soon.

The US president says any signal that the world's largest economy might default on even some of its debt could spook financial markets and plunge the nation into another recession.

America's debt clock is racing towards midnight - with the current limit for borrowings of $US14.3 trillion set to be reached on Monday US time.
Soon, US debt will be through the ceiling with the government adding about $US135 billion every month just to keep current programs running.

President Obama is in a battle with both Democrats and Republicans to have the ceiling raised to around $US21 trillion.

But speaking in a town hall meeting broadcast by the CBS 60 Minutes program, president Obama spoke of the unthinkable and the potentially catastrophic impact that even talk of a US debt default would have on the global financial system.

From Australian ABC.

(sorry that the pic doesn't show the Goldman Sachs puppetmaster's hand jammed up his arse)

I hope the grizzled Navy SEAL or Army RANGER retiring after 30 year in, gets his pension or someone in treasury is going to get a can of whoop ass opened in his proximity.

They did it to GM where the workers that accumulated decades of retirement benefits were given the heave ho via chapter 11 bankruptcy and restructure.

Lets eat into the public service coffers. Take Master Sergeant Hammer's money off him, I dare you. 

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