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Treasury Confirms Debt Ceiling To Be Breached Today; Will Tap Pension Funds

It's official: the US credit card has officially been maxed out, just as we predicted on Wednesday, and througout Q1 and Q2. The United States is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said. As Reuters reports further, The U.S. Treasury will settle $72 billion in maturing bonds on Monday, which will push the country right up against its $14.294 trillion borrowing cap, the official said. To all those who thought only the insolvent government of Ireland will plunder pension funds, our condolences.

Full release (no pun intended):

http://www.zerohedge.com/article/treasury-confirms-debt-ceil...



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Oh my gosh! They got another one. Clean as a whistle!

[Victrola plays "Secret Agent Man" in empty vault]
[Old whiskered man pushes broom cart. Enters vault trough back door]

Mudcat: Oh Lordy! Them rapscillions! Another empty vault. Clean as whistle!

[Rattle large brass key ring.]

Mudcat: Don't know the purpose of these keys. Confounded vaults don't need no alarm. Guarding our treasury with exorbitantly high-muck-a-mucks (1)?

Most ridiculous!

Turbo Timmy G used to work here too. Got paid $400K for years whilst supposedly watching (lording) over our money. Now he is over at the Treasury. What in tar nation is he watching? Nuttin? "Gone with the wind!" A monetary wind tunnel. I tell ya... $400K would a paid for a 1,000 guard dogs & some keepers. 500 more dogs, countin' Uncle Ben's take... 'stead a Uncle Ben's ad-vice.

I'll leave some more dog briskets... Strays... How many more vaults I got a walk through?

[Rattle brass key ring.]

[Victrola winds down, goes quiet. Fade to black]

Announcer: For a quick peek back at a previous empty vault scene...
Uncle Ben & Turbo Timmy G are the US IMF Foreign Agents
Submitted by Mark Twain on Mon, 05/16/2011 - 21:13.

---------------------- Notes ----------------------
(1) muck-a-muck: (see muckety-muck) - 1866, first use
muckety-muck: arrogant high-placed person - 1912, first use

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

It's ok

The Bulls are playing the Heat......

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

Time to Sell

Maybe its time to sell some assets.

The Obama Administration's Secret Plan to Hijack Your 401(k)s an

Report in PDF at:

http://www.assetpreservationinstitute.org/storage/pdf/ObamaA...

Follow me on Twitter for breaking news from a libertarian perspective

www.twitter.com/AbolishTheFed

Not to worry. Ron Paul opted

Not to worry. Ron Paul opted out of the retirement fund.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Ron Paul for President

We need a good president.
Every other candidate for the Republican party has no chance of winning.
A step in the right direction is Ron Paul for president.
Reach out to everyone you know and tell them the truth.
Each and every vote counts.
For every dollar owed the Federal Reserve will print two.
Under the Constitution this should not happen.
Congress needs to take control.
Keep up the faith.
Educate the people.
Demand your rights.

grant
Freely Under Christ's Kingdom Eternally Deemed

The Washing Post reports...

"....The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program....."

BAWHAHAHAHAHAHAHAHAHAHAHAHAHAHAH!

Gotta laugh, 'cause I'm all outta tears to cry.

Legality required? How? By printing more fiat money? Adding some more zero's at the end of ledgers? Soaking the rest of us workingstiffs dry to pay Federal IOU's?

This is what happens when a Gov't applies Keynesian economic voodoo to attempt to create value ex nihilo by human edict. King Canute had more chance to order the waves of the sea by royal command than the Fed does "legalizing" debt payments.

Conscience does not exist if not exercised

"No matter how cynical you get, it's impossible to keep up!
---Lily Tomlin

gaylbaby's picture

An 'In Your Face' Visual would be

a cartoon of a happy couple with their young children, calling in to Dave Ramsey's 'Debt Free Friday' Show, where people yell out "We're debt free!". In the offing would be Uncle Ben and Little Timmy, (listening in) with the $$$ rolling in their heads like slot machines, and smirking while they say something like, "I don't think so!"

Who is more passionate about protecting their future than people who have dug their own way out of debt?

Or a cut and paste video - or an animated cartoon. Humor (even dark humor) gets the point across in a memorable way. Can someone in the community do this?

Uncle Ben & Turbo Timmy G: Secret Agent Men. IMF Reps.

Getting out of debt? Such a foreign concept.

Getting in debt? Oh, ya. That too... a foreign concept.

Oxymoronic? Quixotic? Don Quixote charging at windmills made of nothing but credit?

What about the pesky USA debt:

  • 15 Trillion National Debt (Treasury Bonds & Notes)?
  • Federal Reserve Note (Cash is but debt; a bank note)?
  • $114 Trillion Unfunded mandates(Old Folk Home; Old Folk Medicine; & the similar promises others pay)?

USA Debt Clock ($114 Trillion unfunded mandates included)

So, precious few are out of debt. I suspect Dave Ramsey, Talking Picture Box Pitchman, is broadcasting debt reduction benefits... but avoiding all sexy talk of Nations promising any dang fool thing... with debt-money. Nations are promising faster than any can pay.

Cut up the IMF credit cards. Cut off the ability of our IMF Reps. Uncle Ben & Turbo Timmy G to loan you blind.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Absurdity! Never ending folly line of dancing dollars.

Mr Turbo Timmy G goes to get our retirement pension accounts! Lions & tigers & bears.. Oh my!

Who gave Timmy the key to our vault?

What will happen when the enters the vault? The vault with all our savings stacked neatly?

Will he see is own shadow? Will he hear is own echo?

I am ever hopeful that someone can make sense out of our use to "legal tender." Why do we do this to ourselves? Why does Timmy have access to our mythic retirement savings?

Here is a Reuters News story. They made no sense of this mischief either. In fact Reuters pulled the story as I wrote this. Here is all that is left.
U.S. dipping into pensions as it hits debt limit. Even the Timmy G parts were stripped from all but brief front page mention. The "Full Report" now refers to the US Treasury with a picture of Congressman Ryan's proposal & other usual suspects. Defuse the blame.

Wholesale Looting of the US Federal Pension

"U.S. dipping into pensions as it hits debt limit
Treasury Secretary Timothy Geithner told Congress he would start tapping into federal pension funds on Monday to free up borrowing capacity as the nation hits the legal limit on its debt....

SUSPEND STATE, LOCAL GOVERNMENT SECURITIES

The Treasury on May 6 suspended sales of State and Local Government Series securities -- known as "slugs" -- which are special, low-interest Treasury securities offered to state and local governments to temporarily invest proceeds from municipal bond sales.

Slugs, which count against the debt limit, have been suspended six times in the past 20 years to avoid hitting the debt ceiling. The last time they were halted was in September 2007. So far in fiscal 2011, which began on October 1, the Treasury has sold $47.4 billion in slugs to muni bond issuers.

CIVIL SERVICE RETIREMENT AND DISABILITY FUND

The Treasury will suspend investments on Monday in the Civil Service Retirement and Disability Fund, a government employee pension fund, and redeem certain investments. ...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

northstar's picture

Congress will wuss out

Someone will threaten them that the sky will fall and there will be martial law if they don't raise the debt ceiling and tell the public they had to do it and will worry about the cuts some other time.

Real eyes realize real lies

We want our country back

Every year is a year for Ron Paul!

Tapping employee pensions: If a corporation did this

Tapping employee pensions: If a corporation did this they'd be in SO much trouble...

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

This is bad!

Not because we need to borrow more, but because Treasury is doing what House and Congress should do; Allocate the money we have to spend.

Wirt your Congress man, Tell them to write a budget that spends only revenues. Now, before the Treasury does any real damage.

[I mean, Geittner has been fleecing us for a long time. If he gets pissed, he could do real damage. Will Congress let him?

Free includes debt-free!

I will write them

I will do it today.

But I live in Washington state, and all my reps, congress and senate, are Obama zombies.

Wish me luck!

Use capital letters and a 60

Use capital letters and a 60 point font. LOL.

Argentina seized retirement accounts.

If you've got an IRA or any tax-deferred retirement account and can cash out, you might be wise to do so. I did so in 2008. I don't trust the feds and neither should you.

New Hampshire and Ecuador.

My IRA was basically trashed

My IRA was basically trashed in the down market. If I hadn't bought new, undervalued stocks at the bottom of the market I'd be living out of my car right now.

Is it still legal...?

Is it still legal to roll all your IRA/401k into gold and then take delivery?

I ask because the company I used in 2006, Denver Gold Exchange, is no longer in business.

when the checks stop showing up people will wake up

and some might be a bit grumpy upon being awoken...

The check will always arrive

But at some point they wont be worth the paper they are written on.

Never fear! Arthur Anderson is in charge!

Never fear! Arthur Anderson is in charge! Lil Timmy Geithner got the smartest guys in the room over at Enron and sent them into Washington to make the problems (appear to) go away.

I thought OATELS and Pension funds were merged with the general Treasury fund decades ago??

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

Sorry. Trust Funds long since spent. Promises, promises...

"I thought OATELS and Pension funds were merged with the general Treasury fund decades ago??" - FightApathy

Theoretically, "Trust Funds," exist. Separately partitioned.

The US spent funds quicker than... Well? ... Instantly upon creation. Vault savings are mythology. Funds are gone. Savings never materialized. The pension fund accounts are chalked full of empty promises.

Yes, decades ago, the US Government created, "Trust Funds." Those funds filled with promises to pay. Other governmental agencies put IOU receipts in the vault.

Sorry to explain this. I wish it wan't so.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Y-Y-Y-Yes. It was a rhetorical question.

It was a rhetorical question: "How can they tap the pension trust funds when, as you point out, they were raided back in the Vikings' time?"

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

.

Some folks are going to be REALLY uspet when the finout the government (gasp!) lied to them about the "trust" funds.

.

.

"A living Constitution is a dead one" -Ron Paul

SteveMT's picture

Reality is a bitch. Lipstick will not work this time.

The American dream has become a nightmare of corruption, wanton spending, and plundering of the piggy-bank.

Private and public pensions Are history. Obama has destroyed

the republic with help from Clinton, Bush and The CIA run Pentagon and MSM. Help comes a little too late. There will be a civil war, food riots and total economic collapse. Millions will starve to death. You won't believe your eyes my fellow Americans.

Prepare for the worst and hope for the best. This will probably help Ron Paul get elected POTUS, However, there won't be much left in this nation to govern by that time.

So sad..

I don't think

things will get that bad. Look at Zimbabwe. There was still food, water, and shelter. I was there as hyperinflation was happening.

Some people starved and there were clashes, but the total collapse thing is not going to happen. Yes, the FRN will reach zero and be replaced by something. Things are not going to be fun, but there will still be food and water available.

For Americans, The End means no TV, A/C, SUVs, etc.

Oh come on. Zimbabwe might as well be another planet. A third world nation in the grips of utter grinding poverty is so beyond the ken of even the lowest of America's lower class.

For Americans, The End means no TV, A/C, SUVs, Bluetooth, etc.

Americans will be killing themselves en masse long before they need to address basic staples.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

I agree wholeheartedly.

Save yourselves. You do not have to be a casualty. Preapre with the Three 3's rule.

- 3 months food supply for your entire household

- 3 month Water supply for your entire houshold (a.k.a. 1 Katadyn Combi water filter)

- 3 Firearms (Preferably 1 Assualt/Hunting Rifle, 1 Shotgun, and 1 Pistol) with atleast 1000 rounds per firearm.

Wouldn't hurt to have a rural place to go once SHTF as well

"A living Constitution is a dead one" -Ron Paul