Treasury tapping into retirement funds Geithner letter to Harry Reid

www.treasury.gov...

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.

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.
Sincerely,
Timothy F. Geithner

Huge news for people with pension funds. Although they say federal employees won't be affected, this shows just how shaky the economic foundation is when they need to tap into pension funds. Isn't there a saying don't eat your nest egg?

It just SEEMS like they're doing everything they can to scare the pants off of us if we don't respond they way they DEMAND we do.

Raise the ceiling debt or ELSE. And it will be Republicans fault.

Our system seems a little outdated.

I have friends in their 50's telling me Social Security won't go bad for at least 30years, so don't worry about it.

I went are you NUTS?

It's getting nuttier by the hour. Not years anymore.

401k's will be next to "save america"

and the effect is there already...
US dollar tumbling douwn.... euro was also dropping last week...
this morning the euro was 1.40 and an bit dollar..
now at evening 1.42 36... it goes fast...

money.cnn.com...

watch this superb vidieo that was made in holland in 2005... (englisch subtiteld)

a movie that plays an scenario of 24 houres

www.youtube.com...

reply to post by filosophia


This is so past insane. If I am in debt and can not pay it back, no bank in the world would let me borrow so much as a penny. They would allow me to become homeless and starve. But I am one person, not a nation. If a nation borrows and can not pay back, they simply borrow more..and more..and more. Until they can not even pay the interest on those loans. At some point, those creditors will demand their money and refuse to loan any more. Greece, Argentina, Iceland and many others beg for money just to survive. Who has any money to loan any more? It is just make believe funds and we as citizens pay the price. How many of us DON'T live paycheck to paycheck and work our tails off just to survive. We have a paid off house and paid off car, yet we still live paycheck to paycheck just trying to surive and pay bills that just normally occur. A 20% paycut from my employer with the knowledge I can't get another job because the economy sucks so bad. How much worse will it get before it all falls apart? I feel very lucky to have what I have and feel for those that have to worry about how they can maintain a mortgage, home repairs and upkeep, vehicle bills, welcome to the American dream. Indebt yourselves to the banks, they are your friends, buy everything you want and just pay it off..welcome to slavery.

I have been tracking how close it was getting to the ceiling at: www.usdebtclock.org...

Now the page is suspended?
What the heck?

NOW that is worrisome!
And it's all over the news.
www.cbsnews.com...
money.cnn.com...

So the question now is "now what?"
We knew it would happen, now it has. They will raise the debt ceiling, likely significantly, and at the rate we are headed it won't take long to hit that credit limit either, then comes the time when the debt is so high we cannot even pay the interest.
Then?? Game Over?

check oil versus dollar !
normally when dollar drops ..oil prices rice... and visa verce...
now they drop both... balance is gone today...not good!

Bold move by Geithner to further demonize the GOP for not lifting the ceiling. Geithner chose an interesting victim card to play. Think this will piss off the federal union base that has been one of the primary tools used by this administration? Geithner is playing political chess for keeps.

Any word on the drastically needed spending cuts yet?? You can't raise the ceiling if you can't make cuts. Otherwise, they might as well just tear the roof off of the entire nation and just say !@#$ it!!

reply to post by filosophia


Excellent thread. When I read the headline, my heart sank. Nothing is safe anymore. Right now, it applies only to federal worker's pensions, but how long will it before they tap into the private sector.

I keyed in on this section of the article...it shows how the government wants to fatten it's new found Golden Goose:

Administration officials have expressed interest in raising the amount that federal employees contribute to their pensions, sources told The Washington Post.

The Republicans have suggested that the civilian workforce contribute more to its retirement in the future, effectively trimming 5 percent from salaries. The administration has not been willing to go that far in talks being led by Vice President Biden.

www.washingtonpost.com...

I can't figure out why fellow ATSers aren't talking about this. I mean, I had to do a search to find this thread. Are we playing into the big distraction idea too? Just so confused right now. This is pretty big news is it not?

reply to post by wildoracle13


I think that many people are getting numb to the assaults on their version of the American dream. When the government can tap into the nest egg you've worked all your life for, without your permission, and with only a 'promise' of paying you back, and you have absolutely NO recourse, then you either give up, or flee. And some have given up.

And to think...the current money is on Obama winning re-election easily.:shk:

dbl post

The way I read that letter and according to the article on it over at google news, is they are not tapping into retirement and pension funds but rather halting payments of investments into the funds. That doesnt sound like they are taking out of it just not paying investment money towards it. Dunno, you decide.

Anyway, the op is about right,they arent investing in retirement, which means no gains/returns which means things are in a spot of trouble there.

Originally posted by Nephalim
The way I read that letter and according to the article on it over at google news, is they are not tapping into retirement and pension funds but rather halting payments of investments into the funds. That doesnt sound like they are taking out of it just not paying investment money towards it. Dunno, you decide.

Anyway, the op is about right,they arent investing in retirement, which means no gains/returns which means things are in a spot of trouble there.

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.

I added the bold. It's convoluted language (on purpose) but I think what it means is the Treasury will redeem a portion of the investments, and not the retirement fund redeeming portions of the investment.

reply to post by Nephalim

The way I read that letter and according to the article on it over at google news, is they are not tapping into retirement and pension funds but rather halting payments of investments into the funds. That doesnt sound like they are taking out of it just not paying investment money towards it. Dunno, you decide.

Anyway, the op is about right,they arent investing in retirement, which means no gains/returns which means things are in a spot of trouble there.

I was referring to this article:

Treasury to Tap Pensions to Help Fund Government

They make no bones about their intentions:

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.

Sorry for any confusion.

so social security isnt good enough anymore now they have moved on.

what more proof does anyone need to know dc is the most crooked part of america

forget wall street they got nothing on the federal government everything they do is legal.

i am just waiting for obama to do what fdr did and confiscate american gold.

fdr got away with it obama probably could to

but there is one thing i know for a fact a republican could have never gotten away with anything that obama has done.

when we elect crooks why should it surprise anyone what they do.

Originally posted by neo96


but there is one thing i know for a fact a republican could have never gotten away with anything that obama has done.

Totally agree. Republicans like Bush draw a large religious crowd, but non-religious view this as crazy, so the Democrats come in as being a fresh change, when in fact it's the exact same thing. "Bush's fault" really goes a long way.

reply to post by filosophia

Totally agree. Republicans like Bush draw a large religious crowd, but non-religious view this as crazy, so the Democrats come in as being a fresh change, when in fact it's the exact same thing. "Bush's fault" really goes a long way.

It's a whole lot more than religious tendencies. *Nobody* likes to have his pension messed with, be it zealot or atheist.

reply to post by bruisedhalo


You've just encapsulated how and why they keep lending debt-money to us. As long as we continue being lap dogs, they will loan to us while we lose our humanity and soul. That's why we can spend 100 billion/wk on war, but congress can't even settle a difference of 40 billion. Don't do what they want, and they will cut back on the money and our physical well being--pensions, retirement plans, infrastructure, social programs, etc. They have plenty of room with which to cut off, and the ignorant sheeple will blame everyone and everything except what counts. What I find funny is that while europe is talking about austerity, the US is having the same discussion only phrased a different way under the guise of the debt ceiling but the republicans are basically saying austerity for everyone as well. The only difference is that iceland, greece, etc said so what. They were brave. cowardly americans continue to lick israel's boots and go back to their crack dealers to beg for forgiveness.

oh well, you gov't workers are next in line, they've raided the SS fund to the point where it's a liability and no longer an assett...
onto better grazing fields!!! on to the pensions funds!!
but cheer up....
if you are real good public servants, maybe the gov't will transfer you to one of these new, and green dod buildings.....one with an atrium that is high enough to fit the statue of liberty in it!! yippy!!!
investmentwatchblog.com...

stop the danged crap spending, then come talk to us about us donating part of our pensions, part of our social security to help get this country back into fiscal shape!!

otherwise, who knows, maybe how much is an IMF chief worth?? maybe we could trade him for a bailout??