Author Topic: Treasury may borrow federal retirement funds in debt emergency  (Read 12154 times)

Offline fred.greek

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Re: Treasury may borrow federal retirement funds in debt emergency
« Reply #30 on: July 29, 2011, 12:36:07 AM »
If you examine the aspects of the treasury default with regards to federal employees retirement fund, and their 401(k) “TSP”… it would be entertaining if it was not “my” money that has disappeared.  (9 months to 30 years of federal civil service)

Both the retirement fund and TSP were “invested” in special treasury notes…

Meaning, Uncle and his friends had ALREADY borrowed the money. 

Those… “special” notes supposedly expire and get renewed every day.  When they hit the debt limit, treasury just didn’t renew the special notes… PRESTO, on the books debt turned into off the books debt, and ability to re-borrow the same money from somewhere else, without passing the (on the books) debt “limit”. 

Whether it is borrowed, or printed, new money spent in the US is inflationary.

BORROWED, we are on the hook for interest.

PRINTED, it pays of the debt.

Just print the money, pay the entire debt NOW, pay what everyone contracted for as it comes due, but don't make inflation adjustments...

Eventually, we need to get to a balanced budget, but do it after everyone gets EXACTLY what they contracted for.