US will borrow from federal employee pension fund to avoid passing debt limitSubmitted by meekandmild on Wed, 01/16/2013 - 11:34
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner says the government has begun borrowing from the federal employee pension fund to keep operating without surpassing its debt limit.
Geithner says in a letter to congressional leaders that the move will free up $156 billion in borrowing authority while Congress debates increasing the $16.4 trillion debt limit.
As of March 16, 2010 Social Security holds $2.5 Trillion in IOUs from the Federal government.
PARKERSBURG, W.Va. | The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
One bond is worth a little more than $15.1 billion, and another is valued at just under $10.7 billion. In all, the agency has about $2.5 trillion in bonds, all backed by the full faith and credit of the U.S. government. But don’t bother trying to steal them; they’re nonnegotiable, which means they are worthless on the open market.