Treasury Department Announces Plans To Plunder $66 Billion From Federal Retirement Accounts To Make Room For New Bond Issuance…
If you did this in the “real” world you’d be arrested and thrown in jail.
(Zero Hedge) — Today, very quietly, the Treasury released its latest refunding announcement, in which it disclosed it would issue another $66 billion in 3, 10 and 30 Year notes next week. The irony of course is that the US is and continues to be at its debt ceiling limit (or just $25 million short of it), at a total of $14,293,975 million. Furthermore, as was also disclosed by the Treasury, this gross issuance will also be the net amount added in marketable debt, as upon settlement on June 15, there will be no redemptions of maturing bonds. Which simply means that the continued “disinvesting” (which is merely a polite word for plundering) from intragovernmental debt, also known as retirement accounts, is about to kick into high gear.
As a reminder, the only solution that Geithner currently has to run the government, at least until August 2 when even this runs out, is to slowly drain the debt in non-marketable accounts, in the form of Suspension of G-Fund and ESF reinvestments, as well as the Redemption and suspension of of CSRDF Investments, measure which when combined will provide a short-term buffer of $232 billion. Yet for all practical purposes, what is happening is that retirement accounts are now being seriously plundered, and if the unthinkable were to happen, and the debt ceiling would not rise, not only would the US be in technical default, but various retirement funds, which already are underfunded, would find themselves even more severely in the Red.
As the chart below shows, the total amount of intragovernmental debt currently outstanding, has dropped to levels last seen in early April, even as total debt has continued its steadfast move higher. The scary thing is that by the time August 2 rolls around, the current total of $4.608 trillion in various Trust Funds, will drop to well about $4.4 trillion, or an implicit 6% underfunding in 2 months merely to keep the bloated government operating for a few more months.
Posted by ZIP on Friday, June 3, 2011, at 11:56 pm | 
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The government has raided everything that has a couple of nickels in it. Who is going to stop this nonsense?
Not. Good.
The current administration is a rogue administration and I sincerely hope when the tide turns that these people will be brought to account for the games they have been playing to keep from cutting spending … I can’t believe the moonbat government workers are still rosy eyed about prospects with Obama and the Democrats. These people will sink the boat with all hands.
Investigation, prosecution and incarceration for all of them.
So if I understand this correctly, Timmy is pulling an Enron.
Who is going to jail for this?
So, will the government workers still support the Kenyan now that he’s going to steal their money too?
After the retirement funds have dried up Ubama will have his boys out breaking into parking meters and soda machines for funds.
But in reality Ubama is playing the game just as planned. Bring the country to it’s knees and then start up the Marxist dream machine.
ZeroHedge has been all over this horror story for days. This is absolutely unreal and there hasn’t been a goddamned peep about it from either the MSM OR the Republicans. I may be sitting out this next election if the Republicans don’t come out of hiding and start fighting for something. Has anyone heard from them?
Oh, and you folks think this is bad? Wait till these funds run out and the government turns to the last remaining treasure trove – your IRAs.
We should be marching in the streets over this and a dozen other outrages already.
I hope and pray they raid EVERY SINGLE PENNY of the feds retirement fund.
Somewhat O/T (but perhaps not–ironmaiden’s “the last remaining treasure trove” made me think of it).
Can’t recall where I saw it, but someone somewhere posted an article postulating that the reason IMF bigshot Strauss-Kahn was arrested was that he had discovered that there is no more gold in Fort Knox (there’s the “treasure trove” connection).
That sounds pretty bizarre…but these days, seeing what’s been going on almost hourly, I’d believe almost any catastrophic story coming out of DC.
This is bad too…
China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills
http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin
China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.
As of the close of business on Thursday, the total U.S. debt was $14.34 trillion, according to the Daily Treasury Statement. Of that, approximately $9.74 trillion was debt held by the public and approximately $4.61 trillion was “intragovernmental” debt.
@Rob–
Yeah, I saw that too!! Not reassuring.
Government shutdown looks more and more appealing to save money.
Folks I love you all.
This is very serious. We could very well not make it to the elections.
I predict that we will be hunting Democrats with dogs before this is over.
i want some one i can trust to say my fdic deposits are still going to be solvent during obummers term.
How about raiding the Senator’s retirement fund???
Ahhhhh-this is so cool the un-civil workers are going be just like the rest of us @ retirement time!!! Bite the big-1 Government workers the DemoRats are giving your pension monies away.AH-hahahahaha :O
A-hooooo-DOGS WILL HUNT!!! Got plenty of 12ga buck-shot for Treed-Dems
buck-shot for Treed-Dems
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Personally… I prefer slugs… leaves no question about who got hit…
@ law lizard
No, your FDIC deposits are not safe. Here are Biden’s words specifically on their “reasoning” as to why the government should control your IRA;
“Some have suggested the creation of Guaranteed Retirement Accounts (GRAs), which would give workers a simple way to invest a portion of their retirement savings in an account that was free of inflation and market risk, and in some versions under discussion, would guarantee a specified real return above the rate of inflation.”
Also the below link illustrates the government’s intent to control your money;
‘The upshot of that clunky prose is that the Obama administration believes that employers cannot be relied upon to adequately manage the 401(k) retirement accounts it provides for their employees, therefore the federal government will relieve them of that responsibility and take sole discretionary control of those funds, thus eliminating the risk of mismanagement. In other words, the Obama administration is planning to divert the “stream of income after retirement” and channel it right through Washington, D.C. ‘
Here’s the link:
http://www.thenewamerican.com/index.php/usnews/politics/3478-obama-administration-plans-to-seize-4%20%2001k-retirement-accounts
And since the government can’t handle a fucking whorehouse (Google IRS and Whorehouse), they sure as hell will not handle your IRA. When retirement rolls around, all you will get will be an IOU that will never be repaid.
Fuck this nonsense, it’s time to rid DC of the disease that is plaguing this country!
This is how societies collapse. I would not doubt if the went after our personal retirements next. This very troubling and this is a borderline dictatorship.
This country can not absorb this type of abuse for much longer.
@Credit Man–you are right, this is very serious.
Put your money into disaster preparedness and 2nd amendment supplies (plenty of overlap there). And have some spare Bibles on hand to give away–more and more people are going to discover that God’s Word is “true” gold.
Someone explain this a little better to me:
1) This raiding of the public pension fund is the Federal workers’ pensions only, correct?
2) How does the government intend to pay this money back?
3) In all seriousness, what is the chance of this money really being paid back, or is the govt. just planning to print more?
WOW! osama obama is a genius and clearly knows how to run a government ant make a country solvent. In Bizzaro world!!!
@ironmaiden–
I choose door #3.
@ ironmaiden
I’ll try to answer
1) It would seem to me it this amount would suggest all retirement accounts; civilian, military, postal – the whole thing.
2) It, like everything else, will not be paid back. It will have notes of payment from other government agencies just like Social Security. It’s just a shell game; nothing else.
3) 0% – like everything else.
Communists in Washington DC
STOP the world, I want to get on! See what I did there? Changed an old saying to fit the obamination. CHANGE you can count on! obama!… obama!… obama! …obama!… obama makes GOD look like a MORON!!! Oh, I love obama!!!
Bizzaro world is now the new normal. In osama obama world SHIT is worth more than Gold, even Platinum! I love obama, I flush him down the sewer each day, and the sewer treatment facility ships the gold bricks to Fort Konx and upgrades the U.S. credit rating each day! obama!… obama!… obama!.. obama!!! islam is heaven!!! obama!… obama!… obama!.. obama!!!
allah ( pig slime is his blood) loves my lord obama!!!
Bizzaro? or Main Stream?
Soooo…we shouldn’t count on getting our militiary retirement check then…doesn’t matter that we’ve earned it with blood, sweat and many many tears over the last 20+ years I guess.
This is exactly what New Jersey politicians did to, what was, the richest public pension system in the country over thirteen years ago. They stopped paying the state’s obligation and used the money for their boondoggle projects and no-show buddies. The legislators put any group they had to pay-off into the pension system, who had never contributed into it.
Then they permitted the municipalities to stop paying their portion. The only ones left paying their obligated portion into the pension system were the employees. In fact, they raised the amount that the employees had to contribute. To finish things off, the state tried to make up for their theft with desperate and unprecedented high risk investments that resulted in miserable failure. The pension was sucked dry.
When the case against the state was finally taken through the court, the state was ordered to make their payments but no one went to jail or even lost their job. The current governor, Christie, blew off the court order, refused to pay the state obligation, and blamed it all on greedy pensioners. (By the way Christie gets 3 NJ pensions) The politicians stole all the pension money and now the state taxpayers are on the hook because the pension is broke.
And in Ireland as well as other countries in Europe, they’re seizing private pensions:
Private Pensions For Public Spending
http://tinyurl.com/425s53v
European Nations Seizing Private Pensions
http://tinyurl.com/3tnoxfg
You noticed that this info hits the wires on Friday.
I’ve looked around at the Liberal blogs. None seem to have this info, but there is an undercurrent of disturbance at the unemployment numbers. My guess is that there are a lot of people on the Liberal blogs that are sitting in their parents basement looking for the next X-Box games. They truly seem to be disoriented. Most of the Liberal screed of tax the rich wealth envy type of speech.
I would guess that the tea party would be where to get involved.
From the Huffington-Puffington website:
“The government has already reached the limit of its borrowing authority, $14.3 trillion, and the Treasury is using a series of extraordinary maneuvers to meet financial obligations.
By no longer would making investments in two big pension funds for federal workers and beginning to withdraw current investments, for example, the Treasury created $214 billion in additional borrowing headroom.”
Tax cheat Timmy Geithner and President Ubongo are writing IOUs all over the place in an attempt to keep putting bonds out on the street so they can keep paying off their union buddies, the car company executives, and the welfare bums so dependent on Ubongo Bucks for the vote in 2012. This is fucking criminal! Soon our government will be totally out of money and the likes of that fucking Steny Hoyer will be shouting and screaming for tax increases so they can keep writing worthless checks, which brings on more spending, which brings on more taxes, which brings on more spending, which brings on more taxes for more spending……………..you get the point.
Geithner always looks to me like someone who knows they are doing the wrong thing.
He appears in many photos to be wrestling with personal doubts, and if he has one, his conscience.
Perhaps he fears discovery by patriotic Americans and one day being tarred and feathered – or worse.
There also appears to be fear there of Obama and his handlers.
He reminds me of a character in a gangster movie – the accountant being paid by the gangsters to fiddle the book
They’ve raided everything else. The next stop’s your kid’s piggy banks! Redistribute the wealth my ass.
Checks and Balances??? LOL
I don’t know if anyone here beside I think Larry reads the White House Insider. but a few weeks ago he said this was going to happen and Timmy was going to go down for it. he also hinted that Holder was going down and Issa had the information to do it.
If Holder goes down so goes obama he is one of the keepers of the secrets.
I hope this guy is real part of me doesn’t believe it because of this huge nightmare were in with obama. but a small fraction of me needs to put her hope into someone.. God likes to work through people a small percentage of me hopes in this guys round about screwed up liberals ways he still loves America and wants to save her from these beast.
http://newsflavor.com/politics/us-politics/white-house-insider-eric-holder-is-gonna-fall/
@Chicken_Shitte:
“But in reality Ubama is playing the game just as planned. Bring the country to it’s knees and then start up the Marxist dream machine.”
and @Sniffy Pop Tuna Scented Popcorn:
“This country can not absorb this type of abuse for much longer.”
Exactly. Everything, and I mean EVERYTHING this man does is for destruction… er, “fundamental transformation.” It would indeed be nice to have checks and balances, but Dear Leader seems to proceed without challenge.
whthfk,
I saw that, too. The WH insider is usually pretty good with his predictions and info. But I think it’s hard to believe that Issa is going to do much. Holder may fall, but it will likely be due to the RATS who have long knives out for Zero and his regime. I have very little reason to think that most R’s will do anything heavy to Zero–unless they have to.
__________
As far as Geithner and this regime of grifters, the plunder never stops. They will want gold teeth eventually. Reminds me of someone….
The real tragedy is that other men in positions of power who could do something about this are sitting on their thumbs and doing NOTHING. I find myself asking the only logical question I can ask, which is, “Why are the men who can stop Obama doing NOTHING?!?!?!”.
Then I try to answer that question and the most reasonable answer I can come up with is this… that they won’t do anything to stop the Obama Administration from doing this (and many other things) because they are more concerned about keeping the positions of power they have (out of selfish ambition), more than their desire to do what is really for the good of all Americans.
I’m so glad that I never worked for the federal government.
Get busy and write your Congresscritter; I did last night and threatened mine that I would run against him if he didn’t stop this insanity.
@Larry7.
I think I mentioned you would be one of the first to know this and most likely posted it and that’s how I got there.
I worry about the R’s more then the D’s. The R’s can stop this all they have to do is be as aggressive as the liberals. But they still play by the old political handbook and haven’t done their summer reading of Saul Alinsky seems to me.
If you hadn’t posted the link to the insider I would have never found it.
Like I said he gives me hope even if he’s in it for whatever gains taking down obama means taking help from and all regardless of their motives. Scary huh?
@Sentinal.
Thats funny maybe I’ll try that.
With no resistance from the r’s, and no mention of this in the lsm, barry and nwo proceed with the destruction of America unimpeded!
In return for taking PRIVATE 401′s,IRA”s etc. there plan is give the “holders” T-bills ( like war bonds)! We all know what those bonds will be worth, not even good for toilet paper!
These are evil, evil people! Like I’ve said before, Timmy’s parents where part of the Ford Foundaion, as was barry’s commie mom (Beck has talked about this a number of times, with proof), they are nwo people bent on the destruction of America as we know it!
Now that Social Security is penniless it’s time to raid the Federal Union Pension Fund. Unionistas are protesting in Wisconsin over a bill requiring State workers to personally contribute a small percentage to their pension and healthcare plans but not a peep when the Feds drain every last cent. Stunning!
The tick continues to look for blood as the host dies from it’s bites.
I agree w/ comments to next take the retirement $ from Congress – time to get some “skin in the game”.
This is typical of socalist regimes. They crater out their natural resources. The government’s only natural resource is the “Full faith and credit” of the United States Government. The government unnions could at least figure this out surely.
I’m sure if the Lame Stream Media would put this one bit of news on the evening time slot, it would be the wake up call.
The picture of Geitner does look like a small time grifter swallowing hard, and realizing he’s in the big house now, some scary risks Obama is taking. Hope he gets his before he get ‘all’ of ours.
I was disturbed that Boehner is going to play ‘let’s hit the silly little ball around’ with Bozo. The picture of Boehner in his baggy boxers and his big ass in the picture makes me think we should send him home to his mother, right away.
I think there are good Conservatives working on the hill, but the magnitude of the mess has grown exponentially since Bozo became the ringmaster, and they are trying to figure out how to best deal with him and his whip. They are not intrinsically lawless, so they are slow to join the melee.
At least that’s what I still hope.
The fact that 90+% of Americans believe in God gives me some hope that not all the lemmings will follow Bozo off the cliff. But I do wish the Conservative men would start throwing down openly and with outraged indignation.
To hell with their careers, they won’t make any difference if the country fails.
@Credit Man
Sign me up and I’ll go get a dog.
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BigJake says:
June 4, 2011 at 10:45 am
The tick continues to look for blood as the host dies from it’s bites.
I agree w/ comments to next take the retirement $ from Congress – time to get some “skin in the game”.
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Absolutely….great idea
take the pensions and healthcare benefits away from Congress…
defund the Congress Critters…
they should know exactly how their constituents live every day
Poor Federal Employees…
I’m sorry, you are just more Employees…NOT up to Political Class…
Our pensions are different… sorry about yours.
And don’t fret… we will pay it right back.
I knew once they ran out of cash they would start to eat their own…
I always hear the same song and dance, I worked 30 years…I earned my pension. Guess what government drones, we ALL
I knew once they ran out of cash they would start to eat their own…
I always hear the same song and dance, I worked 30 years…I earned my pension. Guess what government drones, we ALL worked 30 years, where the hell is our pension on the private side…Social Security? The Fed has regulated and burdened every corporation and small business with so much bureaucratic bullshit that no private sector employee gets shit anymore. Welcome to the depression mother friggers!
“The last official act of any government is to loot the treasury.” ~ George Washington
Much of those retirement accounts belong to Army/Navy/Airforce service members who served their twenty years, while defending this nation.