Feds to stuff IOUs in pension “lockbox”
What? No room in the Social Security "lockbox" for any more?
And so it begins.
The Obama administration will begin to tap federal retiree programs to help fund operations after the government loses its ability Monday to borrow more money from the public, adding urgency to efforts in Washington to fashion a compromise over the debt.
Rather than find somewhere to cut spending, Obama and Geithner will start raiding pension funds of federal retirees. No doubt they feel that this will cause the seniors and unions to start pressuring the GOP to cave on allowing increased borrowing from China to replace increased borrowing domestically.
I love this part.
Geithner, who has already suspended a program that helps state and local government manage their finances, will begin to borrow from retirement funds for federal workers. The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program.
Sure, for this and the Social Security IOUs the government can just print enough money to cover the debt. The money might only be worth 25 cents on the dollar to what it was the day before, but hey that’s just a technicality.
The Obama administration has warned that it is dangerous to make a vote on raising the debt limit contingent upon other proposals. But Boehner is demanding that Congress use the debt vote as a way to bring down government spending.
Funny, it seems like Obama’s going away party for Osama is being used as an excuse that Obama should be given anything he wants, including a “clean” debt ceiling vote. So he can tie OBL to it, but the GOP shouldn’t tie anything like oh let’s say cutting spending to it.
I hope a significant percentage of average Americans can see through this nonsense.