Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Treasury dips into pension funds to avoid debt
Reuters ^ | January 17, 2012 | Reuters

Posted on 01/17/2012 6:54:19 PM PST by John W

The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.

"I will be unable to invest fully" the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress.

The House of Representatives is expected to vote on Wednesday on the Obama administration's request to raise the country's legal debt limit to $16.394 trillion.

(Excerpt) Read more at reuters.com ...


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: barackrupt; bhofascism; borrow; broke; corruption; debt; democrats; fraud; govtabuse; liberalfascism; nobama2012; nodemocrats2012; obama; pension; pensions; socialistdemocrats; spend; treasury; turbotimmy
Navigation: use the links below to view more comments.
first 1-5051-100101-111 next last

1 posted on 01/17/2012 6:54:26 PM PST by John W
[ Post Reply | Private Reply | View Replies]

To: John W
how do they plan to pay it back and make the pension fund whole??

Does the WH know they will surely cause great upheaval and distress among the fed employees - or is this part of THE plan?

2 posted on 01/17/2012 7:01:56 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

We are in debt up to our ass, They have stolen 500 Billion from Medicare, they are killing Social Security and now they are fugging over the Pension system.

WTF is going on? They are bankrupting America.

No wonder they want to take our guns.


3 posted on 01/17/2012 7:02:28 PM PST by Venturer
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

how do they plan to pay it back and make the pension fund whole??

Does the WH know they will surely cause great upheaval and distress among the fed employees - or is this part of THE plan?


4 posted on 01/17/2012 7:02:37 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

how do they plan to pay it back and make the pension fund whole??

Does the WH know they will surely cause great upheaval and distress among the fed employees - or is this part of THE plan?


5 posted on 01/17/2012 7:02:37 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W
Why even have a debt limit if all you do is raise it?

It's like a drunk limiting himself to 15 drinks, and then raising it to 16.
6 posted on 01/17/2012 7:02:47 PM PST by Question Liberal Authority (I also think that Obama should be defeated.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Our federal government borrows and spends roughly 70% more money than it takes in!

If the average American household with an income of $50,000 were somehow able to do the same thing, they’d be borrowing $35,000 a year and spending $85,000. In 14 years their debt would be up to $500,000, and at the historical interest rate of 5%, they’d be paying out $25,000 annually in interest, or 50% of their total income. Obviously it would not have been long before they went belly-up.


7 posted on 01/17/2012 7:03:09 PM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Since most of the government unions back the donkeys (or in some cases, mules), there is a certain rich irony here.


8 posted on 01/17/2012 7:06:09 PM PST by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Does anyone think they will attempt to seize private bank accounts?


9 posted on 01/17/2012 7:08:01 PM PST by NoKoolAidforMe (I'm clinging to my God and my guns. You can keep the change.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: elpadre
The federal workforce is about 30% black, and maybe 70% democrat, so they f* with the FERS at their peril.
10 posted on 01/17/2012 7:09:33 PM PST by hinckley buzzard
[ Post Reply | Private Reply | To 2 | View Replies]

To: elpadre

are you serious?

When they get the debt limit increased, THEY WILL BORROW MONEY and pay back the pension fund. Sheesh. don’t worry about those precious government workers. They will get their pensions. YOU(and all taxpayers) will pay through the effing a** though!

Chumps.


11 posted on 01/17/2012 7:09:33 PM PST by mamelukesabre
[ Post Reply | Private Reply | To 4 | View Replies]

To: NoKoolAidforMe

I have heard the 401ks are in their sites.


12 posted on 01/17/2012 7:10:21 PM PST by Donnafrflorida (Thru HIM all things are possible.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: NoKoolAidforMe

I have heard the 401ks are in their sites.


13 posted on 01/17/2012 7:10:35 PM PST by Donnafrflorida (Thru HIM all things are possible.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: elpadre

Lets elect ANOTHER Big government Big spending RINO-RAT, what could possibly go wrong?


14 posted on 01/17/2012 7:11:00 PM PST by jpsb
[ Post Reply | Private Reply | To 2 | View Replies]

To: John W

So what? They have been doing that for some time with Social Security fund and never worried about paying it back. Let the government employees face the same fate.


15 posted on 01/17/2012 7:12:34 PM PST by freeangel ( (free speech is only good until someone else doesn't like it)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NoKoolAidforMe

“Does anyone think they will attempt to seize private bank accounts?”

That is what INFLATION is for.


16 posted on 01/17/2012 7:13:59 PM PST by desertfreedom765
[ Post Reply | Private Reply | To 9 | View Replies]

To: John W

I’ll wager congressional pensions are off limits.


17 posted on 01/17/2012 7:14:15 PM PST by P8riot (I carry a gun because I can't carry a cop.....Eagle Scout since Sep 9, 1970)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum; TigerLikesRooster; blam; LucyT

ping.


18 posted on 01/17/2012 7:14:31 PM PST by Jet Jaguar (Romney=Gun Grabber. Go Newt!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nachum; TigerLikesRooster; blam; LucyT

ping.


19 posted on 01/17/2012 7:14:40 PM PST by Jet Jaguar (Romney=Gun Grabber.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Donnafrflorida

On a serious note, how far do you think Obama will go with seizing our retirement and cash accounts?

Or is this the stuff of Alex Jones and Gerald Celente?


20 posted on 01/17/2012 7:17:01 PM PST by NoKoolAidforMe (I'm clinging to my God and my guns. You can keep the change.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Donnafrflorida

this from April 2010:

Unions want to dump pensions on taxpayers

Legislation introduced last week could shift costs of union pension plans to taxpayers in an attempt to stave off organized labor’s pension funding crisis.

Senator Bob Casey, Pennsylvania Democrat, introduced the Create Jobs & Save Benefits Act of 2010 to address the funding problems faced by union-administered multi-employer pension plans.

Multi-employer pension plans have to cover the benefits of members, even if their companies are defunct.

(Excerpt)

http://dailycaller.com/2010/04/06/troubled-labor-looks-to-federal-government-for-help-on-pensions/


21 posted on 01/17/2012 7:18:52 PM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: John W

If Geithner and all the other Obama crooks would pay their back taxes and then pay 75% of their wealth into the Treasury, our economy would be in good shape. But nooooo! They are keeping their money for themselves and screwing the American taxpayer/worker, again, and without vaseline.


22 posted on 01/17/2012 7:20:16 PM PST by MadMax, the Grinning Reaper
[ Post Reply | Private Reply | To 1 | View Replies]

To: NoKoolAidforMe

Democrats have been talking about doing this for a long time. I watched Richard Gephardt being interviewed more than a decade ago and he was floating the idea, rationalizing it with ‘private investment of retirement funds needs to be done by the federal government because individuals won’t know how to do it without getting burned.’ The democrap party went european socialist decades ago. We’re just starting to realize how much they hate the We The People Republic.


23 posted on 01/17/2012 7:23:47 PM PST by MHGinTN (Being deceived can be cured.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Venturer
We are in debt up to our ass, They have stolen 500 Billion from Medicare, they are killing Social Security and now they are fugging over the Pension system.

And the "they" are Republicans led by Democrat plant, Crybaby Boehner.

24 posted on 01/17/2012 7:25:20 PM PST by Prokopton
[ Post Reply | Private Reply | To 3 | View Replies]

To: John W

Lesson 1:
 
Why the U.S. credit rating was downgraded:
 
• U.S. Tax revenue: $2,170,000,000,000
• Fed budget: $3,820,000,000,000
• New debt: $ 1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cuts: $ 38,500,000,000
 
Let’s now remove 8 zeros and pretend it’s a household budget:
 
• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385
 
Got it?
 
OK, now Lesson #2:
 
Here’s another way to look at the Debt Ceiling:
 
Let’s say, you come home from work and find there has been a sewer backup
in your neighborhood, and your home has raw sewage up to your ceilings.
 
What do you think you should do?
 
1. Raise the ceilings, or
2. Pump out the sewage.
 
 
Your choice is coming in November of 2012. 


25 posted on 01/17/2012 7:26:52 PM PST by Linda Frances (Only God can change a heart, but we can pray for hearts to be changed.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NoKoolAidforMe
Does anyone think they will attempt to seize private bank accounts?

Bank of America is using customer deposits as margin for their derivatives. You would think that should be completely illegal (think MF Global) but it's just another day in the incestuous relationship between a TBTF bank and the government.

BTW, "nobody should make the mistake that BofA is alone in this move: every other bank that has major derivative exposure and has a depository base has certainly been forced to do precisely the same..."

http://www.zerohedge.com/news/bank-america-forces-depositors-backstop-its-53-trillion-derivative-book-prevent-few-clients-dep

26 posted on 01/17/2012 7:28:14 PM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
[ Post Reply | Private Reply | To 9 | View Replies]

To: elpadre
They have done this on multiple occasions and never once paid the monies back. The worst one was back in the 90’s when they took money out of this fund and paid WELFARE while working folks had to beg for charity to feed their kids and were still required to show up for work. They also stopped all Veteran payments too.
27 posted on 01/17/2012 7:37:02 PM PST by 95B30 ( The Professional Left: "Their morals are crooked, their take logic is flawed, their honor is stolen)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Jet Jaguar; Berlin_Freeper; Hotlanta Mike; Silentgypsy; repubmom; HANG THE EXPENSE; Nepeta; ...
Image and video hosting by TinyPic

Treasury dips into pension funds to avoid debt

The Treasury on Tuesday started dipping into federal pension funds in order to give the 0hbummer administration more credit to pay government bills

Thanks Jet Jaguar.

28 posted on 01/17/2012 7:39:35 PM PST by LucyT ( NB. ~ Pakistan was NOT on the U.S. State Department's "no travel" list in 1981. ~)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Question Liberal Authority
.

.

29 posted on 01/17/2012 7:43:57 PM PST by Cobra64 (Common sense isn't common anymore.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: elpadre
how do they plan to pay it back and make the pension fund whole??

During the government 'shutdown' under Clinton 'because' of Newt, the Treasury robbed from several pension plans and furloughed many 'workers.' When Newt's GOP caved not only were the pension plans made whole, but the 'furloughed' were granted their normal pay for those days. Even though they hadn't done any work! And afterwards it came out that the unions had planned the whole paid vacation in advance with Clinton, well before the 'crisis' ever started.

30 posted on 01/17/2012 7:45:09 PM PST by JohnBovenmyer (Obama been Liberal. Hope Change!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: John W

This action is a non event. There is no pool of assets to dip into unless this involves the personal retirement accounts. I assume that Little Timmy does not have access to the personal retirement accounts for federal employees. There is no asset pool for the FERS plan (nor CSRS either). Any money put into the FERS fund is immediately spent on other programs. It makes no difference if the money is put into the fund or not. It is simply an accounting gimmick (fraud is more accurate) to dupe the public and give government employees a reason to gripe.

The reporting on government finances is atrocious. Do news organizations have an ounce of financial literacy?


31 posted on 01/17/2012 7:51:35 PM PST by businessprofessor
[ Post Reply | Private Reply | To 1 | View Replies]

To: JohnBovenmyer

I think Tim Geithner did this before.

He takes money out of the TSP -— the federal employee 401(k) system.
Basically it’s stealing the Federal Employees’s own money.

Then he pays it back later. Probably the G fund, Treasury fund.

Of course, it sounds like Mr. Jon Corzine— let me just take these customer
funds which are supposed to be segregated! !!!!!

Pretty soon the Feds are coming after your 401(k) not just federal employees!!!


32 posted on 01/17/2012 7:53:56 PM PST by preamble
[ Post Reply | Private Reply | To 30 | View Replies]

To: NoKoolAidforMe
We've gone through this many times.

Eventually "they" will need to detach federal employee retirement systems from the government ~ maybe simply vest us in public lands or something that can be sold or used profitably.

So, folks at the moment I'm subsidizing you!

33 posted on 01/17/2012 7:59:47 PM PST by muawiyah
[ Post Reply | Private Reply | To 9 | View Replies]

To: John W
Where's the SEIU outrage?

There is none....because they KNOW taxpayers will be leaned on to make up the shortage.

Let the government Union employees have cuts to their pensions!

34 posted on 01/17/2012 8:00:11 PM PST by traditional1 (Free speech for me.....not for thee)
[ Post Reply | Private Reply | To 1 | View Replies]

To: businessprofessor
It is simply an accounting gimmick (fraud is more accurate) to dupe the public...

Not exactly.

What they are "borrowing" from is the G fund of the Thrift Savings Plan that covers federal employees under FERS and the military.

The TSP is the equivalent of a 401k that employees have contributed to with a 5% matching by the employer (Fedgov).

The G fund is a close as the TSP comes to having a cash account and is invested in special issue treasury bonds.

This is not the first or the last time that retirement accounts have been raided.

35 posted on 01/17/2012 8:01:41 PM PST by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
[ Post Reply | Private Reply | To 31 | View Replies]

To: seowulf

“The G fund is a close as the TSP comes to having a cash account and is invested in special issue treasury bonds.”

Special issue treasury bonds are just another fraudulent accounting scheme. You have been duped into believing that these non marketable TBills have some economic significance. The Social Security Administration has a warehouse full of this fraudulent and worthless paper.

The only possible significance is if Congress prevented Obama from spending beyond the debt limit. Since Congress will lift the debt limit, this transfer is just a non economic event.


36 posted on 01/17/2012 8:08:39 PM PST by businessprofessor
[ Post Reply | Private Reply | To 35 | View Replies]

To: Linda Frances
"Let’s now remove 8 zeros and pretend it’s a household budget:

Excellent!

37 posted on 01/17/2012 8:12:49 PM PST by jpsb
[ Post Reply | Private Reply | To 25 | View Replies]

To: businessprofessor
Special issue treasury bonds are just another fraudulent accounting scheme.

Probably no more or less fraudulent than any other treasury bond or dollar bill for that matter.

When push comes to shove, they're all only worth what the government tells us they're worth.

38 posted on 01/17/2012 8:16:15 PM PST by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
[ Post Reply | Private Reply | To 36 | View Replies]

To: traditional1
Where's the SEIU outrage? There is none....because they KNOW taxpayers will be leaned on to make up the shortage.

I true tinfoil hatter would say the unions are okay with it because they know the market is about to take a big dump. So, they'll liquidate some of the retirement funds' investments now, but the feds have promised to wait to pay it back until after the big dump occurs. You know, sell high, buy low.

39 posted on 01/17/2012 8:17:52 PM PST by Go Gordon (President Poverty - President Downgrade - President Food Stamp - President Pantywaist - B. H. Obama)
[ Post Reply | Private Reply | To 34 | View Replies]

To: P8riot
And--probably--so are the TSP accounts. You know, those PRIVATE RETIREMENT ACCOUNTS each and every Congress critter has (or can have if they wish) since, circa 1985, Fed employees were switched from Civil Service Retirement System (CSRS) to FERS. TSP (Thrift Savings Plan)is a system whereby Fed employees can take a percentage of their pay and INVEST it in private accounts--of varying risks. At one time, the Government even matched those investments (at a rate of 5%, I think).

I know personally of one Fed employee who earned $50,000 over 7 years, with a MINIMUM investment.

Just think how much the Congress critters have been able to put away, especially those who have been there over 25 years (since 1985).

So why do the Dems in this Congress RAIL against ANYONE who suggests allowing non-government employees to have PRIVATE RETIREMENT ACCOUNTS????

40 posted on 01/17/2012 8:18:12 PM PST by milagro (There is no peace in appeasement.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: P8riot

No, congressman pension plans are same as federal employees.


41 posted on 01/17/2012 8:19:21 PM PST by scbison
[ Post Reply | Private Reply | To 17 | View Replies]

To: JohnBovenmyer

” the Treasury robbed from several pension plans and furloughed many workers.”

Stop spreading misinformation. The Treasury did not rob the pension plans because the bank was empty. There were no assets to steal. The Treasury simply made book keeping entries that permitted the government to keep operating. For the furloughs, I understand that every government employee was given backpay so government employees simply received extra vacation time.

A day of reckoning is coming over unsustainable government spending. The day of reckoning will involve real economic events, not fraudulent government accounting.


42 posted on 01/17/2012 8:21:33 PM PST by businessprofessor
[ Post Reply | Private Reply | To 30 | View Replies]

To: John W

Thanks for this thread.


43 posted on 01/17/2012 8:24:08 PM PST by Graewoulf (( obama"care" violates the 1890 Sherman Anti-Trust Law, AND is illegal by the U.S. Constitution.))
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W
at the end of the article, with no explanation of what fund being talked about....

The Treasury Department has already tapped another seldom-used fund in order to allow the government to continue borrowing without running afoul of the country's laws.
44 posted on 01/17/2012 8:28:52 PM PST by stylin19a (obama - "FREDO" smart)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W
The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.

Same thing the State of Illinois did. Raided the state pension funds, left a bunch of IOU's in them, and left the Illinois Taxpayers on the hook to make up 80,000,000,000 in shortfall.

Obama certainly learned that lesson well while a state Senator.

45 posted on 01/17/2012 8:29:09 PM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
[ Post Reply | Private Reply | To 1 | View Replies]

To: seowulf

“Probably no more or less fraudulent than any other treasury bond or dollar bill for that matter.”

The Treasury sells marketable TBills. These TBills are not marketable so they just represent additional government borrowing or money supply creation (more likely money supply creation since there is a limit on the amount of TBills that can be sold). If marketable TBills are not honored, the US government has defaulted. The dollar will plunge at that point. However, I doubt that point will ever occur because the US Treasury can just create dollars. However, external parties will stop buying US debt and devalue the dollar.


46 posted on 01/17/2012 8:31:00 PM PST by businessprofessor
[ Post Reply | Private Reply | To 38 | View Replies]

To: Linda Frances

Mind if I use that?


47 posted on 01/17/2012 8:37:19 PM PST by P8riot (I carry a gun because I can't carry a cop.....Eagle Scout since Sep 9, 1970)
[ Post Reply | Private Reply | To 25 | View Replies]

To: elpadre
how do they plan to pay it back and make the pension fund whole??

Ground Air Force 1 and Michelle.

48 posted on 01/17/2012 8:38:11 PM PST by lonestar (It takes a village of idiots to elect a village idiot.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Jet Jaguar
Dip, dip...dipping.

This should get more than a few agencies, bureaucrats and fed retirees' attention.

BWTH, it's Disney World and fund raiser on this weeks agenda. Surprised this news was released so early in the week....not the news itself.
49 posted on 01/17/2012 8:42:47 PM PST by BIGLOOK
[ Post Reply | Private Reply | To 18 | View Replies]

To: NoKoolAidforMe

“Does anyone think they will attempt to seize private bank accounts?”
___________________________________________________________________

Ultimately, they will attempt to seize everything, and they WILL seize anything they can get away with.

The ensuing push back - from those who try not to let them get away with it - will give them a reason to declare martial law.


50 posted on 01/17/2012 8:45:01 PM PST by dagogo redux (A whiff of primitive spirits in the air, harbingers of an impending descent into the feral.)
[ Post Reply | Private Reply | To 9 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-100101-111 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson