Posted on 05/16/2011 7:16:36 AM PDT by blam
As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures To Allow Continued Funding Of Government Obligations
By: Colleen Murray
5/16/2011
Today, the United States has reached the statutory debt limit. Secretary Geithner sent the following letter to Congress this morning alerting them to actions that have be taken to create additional headroom under the debt limit so that Treasury can continue funding obligations made by Congresses past and present. The Secretary declared a "debt issuance suspension period" for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments. He also suspended the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan. For more information on these measures, please read this FAQ.
Last Friday, Secretary Geithner also responded to an inquiry from Senator Bennet regarding the fiscal and economic consequences of failing to increase the debt limit. That letter can be found here.
Secretary Geithner continues to urge Congress to raise the debt limit in a timely manner in order to uphold the full faith and credit of the United States.
The Honorable Harry Reid Democratic Leader United States Senate Washington, DC 20510
Dear Mr. Leader:
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.
In addition, I am notifying you, as required under 5 U.S.C. § 8438(h)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the Government Securities Investment Fund (“G Fund”) of the Federal Employees’ Retirement System in interest-bearing securities of the United States, beginning today, May 16, 2011. The statute governing G Fund investments expressly authorizes the Secretary of the Treasury to suspend investment of the G Fund to avoid breaching the statutory debt limit.
Each of these actions has been taken in the past by my predecessors during previous debt limit impasses. By law, the CSRDF and G Funds will be made whole once the debt limit is increased. Federal retirees and employees will be unaffected by these actions.
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
Identical letter sent to:
The Honorable John A. Boehner, Speaker of the House The Honorable Nancy Pelosi, House Democratic Leader The Honorable Mitch McConnell, Senate Republican Leader
cc: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means The Honorable Max Baucus, Chairman, Senate Committee on Finance The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance All other Members of the 112th Congress
Colleen Murray is Spokesperson for Domestic Finance.
So, this is nothing new.
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.
Excerpt...
Note: “Each of these actions has been taken in the past by my predecessors during previous debt limit impasses. By law, the CSRDF and G Funds will be made whole once the debt limit is increased. Federal retirees and employees will be unaffected by these actions.”
Assumption is it’s a game which will be won, again and as usual, by permanent increase in debt.
“[pleasant announcer tone] All of this has happened before, and it will all happen again.
[pleading] Please, please, please...
[sadistic] Aw ha ha ha!
[scream]”
- Information Society, Seek 200
Soooo...Which one is Geithner??
Obama is awesome! He had the foresight to pick TurboTax cheat Tim Geithner as his Treasury Secretary because he knew that somewhere, somehow, putting a guy who can’t do his own taxes in charge of a multi-trillion dollar economy would be a great move. I’m 63 years old, and I think I’m getting a tingle down my leg. No, wait, sorry—I just peed my pants.
Well, not really visible. Inside that thing "afloat" are a bunch of pipes. Follow them to the low point of that "afloat" thing, a basin sort of construction. He is in there.
The American people are being scammed and robbed blind, ya think? Start a list of those who must be sent home in 2012. Start with Crybaby.
I know what this thread needs...
A dozen freepers to come and and tell us that their special interest program funding should not be cut.
Lets hear it for all those freepers who can’t separate the men and women in uniform from the military industrial complex raping of the US Treasury.
Let’s hear it, “there is other stuff to cut, don’t cut off the Pentagon!”
That will work for a week.
It all needs to be cut including the military. I’m not saying not to defend ourselves but our global days should be reduced significantly.
Time to cut off all foreign aide as well..
Time to cut all retired lawmakers pensions, deplete them, they got us into this mess.
Well, providing for the national defense is at least covered in the constitution.
So how much longer until fedzilla implodes and we can press the reset button?
the CSRDF and G Funds will be made whole once the debt limit is increased.
Just like the SS funds? You know these folks are so stupid. Now guess who will suffer when they begin to realize that they might run out of funds in 50 years or so (or sooner). The folks that worked 30 or more years. What crap this government is.
The governments primary responsibility is to provide for the common defense of the United States. An argument can be made that those who have served this nation in uniform and been severely injured should be financially and medically taken care of. Past that I say cut everything.
I am sure that there are things even militarily that can be cut but providing for the common defense is paramount. Should we bring all of our troops home? Yes we should. Should we “willy nilly” cut defense without defining what that would mean in real world terms? No.
“All is timed appropriately for marital law to be put in place on the eave of the elections.”
Outlaw adultery?
:o)
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