'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.Land of the Free? Budgetary restraint? What you save is yours? All of that counts for nothing when left-wingers 'need' to preserve what they 'need' to fund. The money may have run out (see Liam Byrne in the UK) but that won't stop them spending it. Left-wing governments don't admit their mistakes they just keep on spending and find new sources of income. If you think that the US Federal Government will stop at suspending payments into state pensions then you are wrong. How long before they follow the Hungarians and force you to either remit your individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it)? How long before they follow the Bulgarian government and try and transfer private early retirement savings into the state pension scheme? The US government is screwed, the money has run out and they will not cut back, or if they do it will not be by anywhere near enough.
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.
Secretary Geithner sent a letter to Congress this morning alerting them to actions that have be taken to create additional headroom under the debt limit so that Treasury can continue funding obligations made by Congresses past and present.
The Secretary declared a “debt issuance suspension period” for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments.
He also suspended the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan.'
In the US, and elsewhere, the future is more Quantative Easing and thus inflation, more debt (only reducing because of that inflation) and more much more taxation and misery.
Unconvinced that I am right, sure that the US government (and others) would not take this sort of action? Really sure?
The Elevation Group include this handy reminder:
'What do people in power do with that power? Do they willingly give it up, or do they abuse it?
* What do people in power do with opportunity? Do they let it pass, or take it?
* What do people in power do when they make mistakes? Do they do what’s right for the masses at their own expense, or do the protect themselves and their friends first?
* What do people in power do with responsibility? Do they accept it, or pass it on to someone else?
* What do people in power do? What’s right for others, or what’s right for them?
* So ask yourself… What will our politicians, lawmakers, bankers, and traders do?
Will they face the pain of their decisions and do what is right to fix the problem, likely losing everything they have and all of their power in the process, or will they do everything then can to try and keep their power, and above all else, protect the status quo?'
Still convinced that I am wrong?