As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures to Allow Continued Funding of Government Obligations

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.

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As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures to Allow Continued Funding of Government Obligations

Today, the United States has reached the statutory debt limit. Secretary Geithner sent the following 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. For more information on these measures, please read this FAQ.

Last Friday, Secretary Geithner also responded to an inquiry from Senator Bennet regarding the fiscal and economic consequences of failing to increase the debt limit. That letter can be found here.

Secretary Geithner continues to urge Congress to raise the debt limit in a timely manner in order to uphold the full faith and credit of the United States.

The Honorable Harry Reid
Democratic Leader
United States Senate
Washington, DC 20510

Dear Mr. Leader:

I am writing to notify you, as required under 5 U.S.C. § 8348(l)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the portion of the Civil Service Retirement and Disability Fund (“CSRDF”) not immediately required to pay beneficiaries. For purposes of this statute, I have determined that a “debt issuance suspension period” will begin today, May 16, 2011, and last until August 2, 2011, when the Department of the Treasury projects that the borrowing authority of the United States will be exhausted. During this “debt issuance suspension period,” the Treasury Department will suspend additional investments of amounts credited to, and redeem a portion of the investments held by, the CSRDF, as authorized by law.

In addition, I am notifying you, as required under 5 U.S.C. § 8438(h)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the Government Securities Investment Fund (“G Fund”) of the Federal Employees’ Retirement System in interest-bearing securities of the United States, beginning today, May 16, 2011. The statute governing G Fund investments expressly authorizes the Secretary of the Treasury to suspend investment of the G Fund to avoid breaching the statutory debt limit.

Each of these actions has been taken in the past by my predecessors during previous debt limit impasses. By law, the CSRDF and G Funds will be made whole once the debt limit is increased. Federal retirees and employees will be unaffected by these actions.

I have written to Congress on previous occasions regarding the importance of timely action to increase the debt limit in order to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens. I again urge Congress to act to increase the statutory debt limit as soon as possible.

Sincerely,

Timothy F. Geithner

Identical letter sent to:

The Honorable John A. Boehner, Speaker of the House
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Mitch McConnell, Senate Republican Leader

cc:       The Honorable Dave Camp, Chairman, House Committee on Ways and Means

The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means
The Honorable Max Baucus, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance
All other Members of the 112th Congress

Colleen Murray is Spokesperson for Domestic Finance.

SOURCE: Treasury.gov

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4closureFraud.org

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Debt Limit Letter to CONgress

Comments
8 Responses to “As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures to Allow Continued Funding of Government Obligations”
  1. Tim Bryant says:

    The federal employees should look for work in the private sector. Let the bozos run the government themselves…

  2. l vent says:

    And Congress and the Nazi Boehner, will not doubt respond to his request, with a Heil Geithner!

    • l vent says:

      How dare any of them use the title Honorable. Nazi bastards, all of them.

      • leapfrog says:

        I’ve always thought that too… When ever I see a letter to the “Honorable” I always say to myself, “They mean the DIS-honorable”.

  3. keepon says:

    Sooo- is this for real, or just another Geithner imitating Paulson ‘the sky-is-falling’ tactic tightening the screws on us peasants for ‘talking back’ and enlarging the playing field for more banker/ wall street promiscuity? Maybe we should consult someone from outside the country? They ‘get’ the wealth control weapons being used against the masses in our once great nation.

  4. leapfrog says:

    That’s the banksters next plans, to steal pensions. I really wish I could get what’s left of my 401K out of “the system” before I lose it all. The banksters will be after that next. Unfortunately, the tax triggers on that would be horrible. The oligarches have designed it that way.

    • more and more lies says:

      i know i didnt invest in a 41 k when i bought my house because so many people i worked with last 1/2 i thought i was safe investing in my home.

      • StuckinSoPa says:

        Yanked my 401K back in 1999 when I retired (at 50.)

        I can see a repeat of Argentina, where the state seized all private pensions/401K’s,etc., to support the hopelessly corrupt government.

        The Argentinean people got I.O.U.’s.

        Yea, like those will ever get paid back.!

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