Posted on 01/17/2012 6:54:19 PM PST by John W
The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.
"I will be unable to invest fully" the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress.
The House of Representatives is expected to vote on Wednesday on the Obama administration's request to raise the country's legal debt limit to $16.394 trillion.
(Excerpt) Read more at reuters.com ...
Not a good analogy at all. If the sewage were up to the ceiling you would need to walk away, nothing is salvageable no matter how much pumping is done. Of course the current system is also not salvageable, it must and will collapse, I have no idea what will eventually replace it.
“Do news organizations have an ounce of financial literacy?”
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What news organizations? I can’t think of anything that merits that title. If a Monopoly game is high finance then Reuters is a news organization and no, apparently they have no idea what financial literacy even is, let alone possessing any of it.
Hence my comment.
....laugh....
The Federal Government is spending money at a level that can literally, objectively be called “High Treason”.
They don't even have to do that. All they need to do is start a voluntary government annuity system and remove the tax deferral status from all 401(k) funds that fail to convert to the new program.
Most people will convert to avoid the new taxes and those who refuse to convert will get a huge bill for taxes and early withdrawal penalties.
Either way the government has most of the 401(k) money in its hands.
They have stolen 500 Billion from Medicare
Boehner voted FOR Obamacare?
This is just one more example of why it is not a bad idea to spread investments around, the most important being (in my opinion) having a place to live. Having said that, I don’t believe that the value of Exxon or P7G stock is going to zero.
Outside of gold (and ordnance), where else do you put your hard-earned money?
It's like the country and western song where the guy limits himself to 10 drinks ...
but can't remember the count....so has to start counting again...
It was sent to me, so pass it on.
Irony indeed.
“The problem with socialism is that eventually you run out of other people’s money [to spend].”
Margaret Thatcher
Good one and so true.
Yes, this move by B of A, Merrill Lynch and other member banks of the Federal Reserve was done to shore up already weak credit ratings because it allowed the derivative exposure to be insured by FDIC. It is seen as a move anticipating bankruptcy.
FDIC howled over such moves and were overruled by Geithner at Treasury and by Bernanke’s Federal Reserve.
It was said when these moves were made that it could lead to the Mother of All Bailouts, 50 to 75 trillion or more.
Such moves do indeed put a gun to the head of the Federal Government and thereby the American People to be ready to pay up.
Hence my tag line.
The House has the ability to defund any program. Boehner has led the House in approving spending for virtually every program of the Obama Agenda.
Sin's of omission are no less sins.
Sin’s of omission are no less sins.
that is the line I use with my children!
The House does not control spending. All revenue bills have to originate in the House, but they still require passage by the Senate and the President’s signature. You can blame Boehner for lots of things, but stealing $500 Billion from Medicare is not one of them.
“If marketable TBills are not honored, the US government has defaulted. The dollar will plunge at that point. However, I doubt that point will ever occur because the US Treasury can just create dollars. However, external parties will stop buying US debt and devalue the dollar.”
External parties have been buying treasuries because there are not many alternatives.
The USA is still seen as a safe haven of sorts.
Inflation is still low.
Treasuries still represent a good place to park money.
In a race to the bottom, the USA is not in the lead, yet.
Of course this situation cannot continue, and the current trend will get worse, much worse.
Revolution, Repeal of the 16th Amendment and the following Tax Reform will mark reversal of the trend:
http://www.fairtax.org/site/PageServer?pagename=about_faq
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