Credit Limit Reached: U.S. Treasury Department Suspends Pension Fund Payments

January 19, 2012 @

As the US government reaches yet another historic debt ceiling, requiring an additional $1.2 trillion credit increase from Congress just to keep the system from collapsing into a chaos, the first stop for a short-term loan is federal pension funds.

The US suspended investments into a federal employee retirement fund to avoid breaching the $15.194 trillion (Dh55.8 trillion) debt limit.

Treasury Secretary Timothy F. Geithner informed Senate Majority Leader Harry Reid of the move in a letter yesterday. The so-called G-Fund will be “made whole once the debt limit is increased,” Geithner said. Lawmakers this week will debate a symbolic vote on the debt limit. Under legislation passed in August after months of negotiations between the Obama administration and Republican lawmakers, the president has authority to veto any disapproval resolution that clears both chambers of Congress. The limit would then be raised on January 27. House Republicans plan to adopt a resolution tomorrow rejecting President Barack Obama’s request to raise the debt limit by $1.2 trillion, though the measure will die either in the Senate or by presidential veto. That will allow Obama to lift the cap on his own after Republicans have gone on record against it.

The debt-ceiling increase is to meet commitments already made by the government. The Treasury has been relying on accounting maneuvers to ensure the limit isn’t breached.

Read More at The Daily Sheeple

4 Comments → “Credit Limit Reached: U.S. Treasury Department Suspends Pension Fund Payments”


  1. BE

    7 years ago

    Americans are sooooo stupid. The easiest & safest way to destroy a country is to destroy it’s currency. Guess what???


  2. maggie

    7 years ago

    You hit the nail right on the head. Your comment should be heard by Congress over and over each and every day. Maybe, just maybe they will understand that raising the debt limit will only put us into the hole further. Which is the most valuable asset to BHO. Don’t they know he is doing all he can to bankrupt our country. They seem NOT to either care or know we are sinking more and more every day. WAKE UP YOU CONGRESSMEN/WOMEN WE KNOW YOU ARE NOT THAT STUPID OR WE WOULD NOT HAVE SENT YOU THERE. Of course you do know that we can change the entire Congress when the election rolls around? Do you want to keep your job? Do you want the USA to be bankrupt? If it goes bankrupt, YOU will have NO job either!!


  3. Holly Marcyoniak

    7 years ago

    WE AMERICANS ARE IN DEEP DO-DO WITH OBAMA AT THE HELM !!!


  4. Holly Marcyoniak

    7 years ago

    ON SECOND THOUGHT WE WILL ALSO BE IN JUST AS DEEP WITH A PROGRESSIVE LIKE NEWT !!!


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