Of course, Republicans will be blamed.
Not to worry. They’ll put in IOUs to replace the funds.
All is well in Lala Land.
For every low rent brain dead Obama bot he entices into his social justice moral equivalence hell hole, a federal worker will be flipping him the bird.
I like it. Government got us into this “Spending” problem, and they should be the FIRST to pay up.
All of that pension money is cash that will be physically withdrawn from the bank vault where it is sitting at the present time ... which means the Fed won't have to print any more money ... and Congress will not authorize replenishment of the pension funds in the event a deal is not reached ... so my boys are not stepping over the legal debt limit ... and they are not creating more inflation ... and all of this is the honest and for real absolute truth ... or my name isn't Helicopter Ben!
Well, theyve been tapping Social Security for 75 years.
And just about every government, at every levelmunicipal, county, state, and federal, has been tapping pensions, or underfunding them.
But now I suppose Boehner will cave when they all scream that its his fault.
Hey, Boehner, how about just pointing out that theyve been doing this for decades, and that the problem is that Democrats and their Republican accomplices keep spending money that they dont have?
use the cash, replace with IOUs, and ‘by law’ return the cash...ponzi is jumpin sharks again...
poetic Justice! the first thing the usurper has done that I approve of. It really is our money, money the fed stole from us to bribe their flunkies.
That's okay, government will replace the pension fund with a promise that THEY will take care of everyones retirement. /s
I can see it now..........
"The government worker is making a sacrifice, time for you clingers and whiners to step up too"
BFD "Plugs" Biden
So now the taxpayers are going to owe the money twice?
(1) Federal pensions are invested in T-bills—government bonds—the governemtn is already on the hook to pay this money back with interest.
(2) Now the gov. is going to borrow money from the pensions—which means they are on the hook to pay this money back a second time (again with interest I assume).
So the gov. is going to borrow money against the T-bills, or they are going to borrow the T-bills? In any case, this is just borrowing money from your left pocket, putting it in your right pocket, and pretending both pockets have money in them.
There are no real funds in the government pensions.
Just like there are no real funds in Social Security and MediCare.
Gov Christie goes him one better. NJ ignores paying in the government’s share of pension costs so he doesn’t have to take it out.
So, the Treasury is evidently taking existing U.S. debt, which is held by the retirement funds, and will sell that debt in order to raise cash to run the government. And, the Treasury is "legally required" to reimburse that pension fund.
The result will be that the U.S. will have exactly the same debt total due to paper obligations of the U.S., but IN ADDITION will owe reimbursement to the pension fund.
Though there is a claim that there exists a law which permits this, it is hard for me to imagine how such a transaction can be considered anything other than an increase in debt.
The Federal Reserve has been buying U.S. debt. Imagine now that the Fed gives back the debt instruments so that the U.S. can sell them a second time. The government got the dollars the first time the debt was sold to the Fed. Then the government gets the money a second time when it "redeems" the debt, taking back the paper without paying back the cash, and then sells the paper to somebody else.
Am I missing something about how all this works?
Make this a permanent feature of our budgeting process.
So the Treasury can overstep congress and do this?
What about the pesions of Congressmen? Will they be touched?
This article is a hoot!
First it says “The measure wont have an impact on retirees because the Treasury is legally required to reimburse the program.” AND then immediately after it says
IF IT defaults it won’t be able to meet it’s obligations!