Treasury dips into pension funds to avoid debt

Reuters ^ | January 17, 2012 | Reuters

[Brookhaven]

Like they haven’t been borrowing from it before?

Who wants to bet that the federal government’s pension funds are “invested” 100% in T-Bills?

Duh! If the money is put in T-Bills, then it’s already been loaned to the government.

Moving a bunch of paper around on a table doesn’t change the fact that it’s all still on the same dang table.

[stylin19a]

I'm guessing that's the fund..... From Wiki

The Exchange Stabilization Fund (ESF) is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention.

The U.S. government used the fund to provide $20 billion in currency swaps and loan guarantees to Mexico....

On September 19, 2008, U.S. Treasury Department announced that up to $50 billion in the ESF would temporarily be made available to guarantee deposits in certain money market funds

looks like it's turning out to be a slush fund....

[seowulf]

T bills certainly are more marketable than G fund T bills, but the G fund is not entirely unmarketable, but it only has one buyer (the treasury).

Participants can trade out of the G fund into a corporate bond fund, and various stock funds and the TSP board immediately redeems the T bills with the treasury to make up for the decrease in funds.

If everyone trades out of the G fund, there are no funds for little Timmy to borrow.

[redgolum]

When you eat your seed corn, you are in deep trouble.

[Prokopton]

You can blame Boehner for lots of things, but stealing $500 Billion from Medicare is not one of them.

How many times has the Crybaby voted to continue spending on all of Obama's programs, even to the extent of going into incredible debt with the necessity of continually increasing the already overwhelming debt ceiling? Time after time after time after....

Boehner has the ability to stop it, but because he is a Democrat plant, he continues to do Obama's bidding.

[Silentgypsy]

I’m sure that the various levels of government will avail themselves of all private and public sector assets. No one will remain unplundered.
We really need to present a united front, people.

[greeneyes]

Silver dollars and US coins, and land. Undervalued stock of companies with little or no debt.

Long lasting goods for trade in case SHTF. Honey, ammo, salt, sugar etc etc. With all the talk about laws against salt on tables at restaurants, I have stocked up double on that LOL.

[combat_boots]

They will have to. MF Global comes to mind.

[MinuteGal]

I fully expect to see Mitch McConnell on Hannity and John Boehner on Greta tonight passionately expressing their outrage at this latest theft and corruption being perpetrated by Obama, Geitner and other evil minions.

Anyone else here think we'll see them on the tube?

(yuk, yuk, yuk....)

Leni

[expat2]

Bingo. Exactly right.

[CPT Clay]

If a company did this, they would be slapped with fines and their officers imprisoned.