Treasury to tap pensions to help fund government
By Zachary A. Goldfarb, Published: May 15
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.
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That will work for a week.
Yeah but the government isn’t borrowing money from the public. The Federal Reserve buys in the vicinity of 70% of Treasury debt, so the government is borrowing money that it doesn’t have from itself. This is why raising the debt limit will not work.