Zerohege reports today that Turbo Tim and friends have skipped the mandatory quarterly funding of federal employee retirement funds, and instead, have disinvested (“borrowed”) another $20 billion OUT of those same retirement funds.

Should the unthinkable ever occur and a debt increase not be passed in August, there will be quite a few rather surprised Federal employees when Turbo Timmy drains their pensions completely dry.

From Zerohege:
instead of putting in even one penny into G and CSRD Funds, Tim Geithner has decided to defraud government retirees by the most since the US debt ceiling was breached, or, specifically, since intragovernmental “holdings” became a mere plug to make room for marketable debt. So while the debt held by the public increased by $21 billion following the settlement of last week’s auctions, in order to stay under the $14.294 billion ceiling, the Treasury was forced to “disinvest” another $20 billion from retirement funds. At this point the various funds that fall under this umbrella are underinvested by at least $120 billion and likely much more.
Click here for more from Zerohedge:

  1. Thanks for this article! I keep a daily tab of the debt and GDP numbers so I can project when we will hit 100% of GDP. I also like to see the rate of debt increase acceleration. I've also related the rise in GDP to the rise in gold prices and project these numbers.

    I've been wondering how Tiny, (I call him Tiny Tim because of the striking resemblance), will reconcile the large difference in the debt he ascribes to "being subject to the debt ceiling" and the real debt which is already at 14,474,978,000,000.

    On August tooth…(Aug 2nd), just to keep the debt under the $14.294 ceiling, Tiny Tim will have artificially taken a bite out of the official debt to the tune of $241,187,876,952 ($241 billion). This money must be paid back with interest. The accounting gimmicks of this administration are very alarming to say the least.

  2. even if it does pass…can you imagine the extra $220 billion in treasuries they will have to sell to pay back the retirement funds…can you imagine selling those without QE!?!

  3. I don't think they will pay the money back. They will just stick an IOU in there just like with Social Security.

    We are now so close to a severe USD devaluation it just does not matter anymore.

  4. Congress and the president needs to be impeached for embezzlement and comingling of government pensions. These are a bunch of low down scoundrels that steal from the people that make this country work. If a company takes money from a 401k they would be put in prison for embezzlement and comingling of funds. Congress nor the president is above the law, these are the dummies that made the rules.

Leave a Reply