'There would certainly be an uproar,' says Tax Policy Center co-director Eric Toder." Uproar? Um, yeah, I would be PISSED OFF! ...
Want to talk about PISSED OFF!... try this on for size.
I am going to copy bits and pieces from this piece… but you’ll get enough of an idea that it will make you sick. I know it does me.
While New Year’s day isn’t until next week, those that invest in the G fund for their current or future retirement always find it of interest when there is a debate about raising the debt ceiling. The reason: The federal government has to come up with money until the debt ceiling is approved. Your G fund investments will help fund the government while our elected representatives haggle and debate over what to do about the ever increasing debt and the need to, yet again, increase the amount of debt that can legally be incurred by the government.
The Treasury recently announced a series of measures that will delay the day the government will exceed its legal borrowing authority as imposed by Congress. These steps could delay the inevitable for up to two months depending on how much the government spends each day beyond what it takes in during that time.
One of these first measures to be taken by the Treasury Department is to suspend investment in the G fund and, presumably, the Civil Service Retirement and Disability Fund. According to Treasury Secretary Timothy Geithner, these steps, including suspending investments in the G fund, “can create approximately $200 billion in headroom under the debt limit.”
We know from past experience that the Treasury Department can use some retirement funds of federal employees to avoid increasing the debt limit which is capped by law. That is likely to happen again if the debt limit is not raised by Congress.
When the debt ceiling limit was last raised in 2011 the debt ceiling went from $14.29 trillion to more than $16.39 trillion. We don’t know what the next debt ceiling will be, perhaps as much as $20 trillion or so. Of course, the federal government pays interest on the money that it borrows. While interest rates are currently at historically low levels, largely as a result of the Federal Reserve printing money and buying much of the debt, in 2011, these interest payments claimed $230 billion, or about 6 percent of the budget. Since the government is printing a large amount of money each month which is then used to purchase the government debt, there are inflationary pressures building in the economy. When or how large the ultimate inflation will be remains to be seen. But, when interest rates do finally go up, the amount of money spent by the government to finance the debt will go up rapidly.
In short, the current debt ceiling debate is only part of the problem. And, in addition to the pay freeze that has been in effect, federal employees are also helping with the problem through the involuntary use of G fund as explained above.
Once again the federal workforce is a ******* ATM to these folks. They have in the past (and possibly will agian real soon) invade our retirement acounts because they are too stupid to live within their means. God I need to quit this job. Everytime I turn around we are getting bent over with no lube.