(Editor’s Note: I’m still traversing the labyrinth on a whopper of a story, but felt this news item was definitely worthy of more than just a mention considering it is a possible preamble to a news story that broke last October, and a glimmer into just how bad the moos are being screwed yet again. See y’all soon…)
What happens when no one is buying your debt anymore, you can’t keep buying your own debt, and you need cash and collateral?
Last October, I picked up the news story about the feds holding hearings on confiscating private 401(k)s in order to more fairly redistribute the wealth. The next day, I posted an in-depth article about the people behind the plan to seize your 401(k) leading back to a progressive university and George Soros.
Enter TurboTax Tim Geithner with a proposal to ‘borrow’ from ‘federal retiree programs’ to keep the government running. Just how bad is it when the Treasury is yet again using a special measure to keep the bloated federal government afloat? How badly is the average corporate owned moo going to be raped on this go round? Just keeping the F.I.R.E. economy from completely crashing in 2008 cost us trillions. There can only be two explanations for what is happening all around us. Either the folks running our government are incredibly stupid or they are collapsing America on purpose; either way – they gotta go.
The Obama administration will begin to tap federal retiree programs to help fund operations after the government lost its ability Monday to borrow more money from the public, adding urgency to efforts in Washington to fashion a compromise over the debt.
Treasury Secretary Timothy F. Geithner has warned for months that the government would soon hit the $14.3 trillion debt ceiling — a legal limit on how much it can borrow. With that limit reached Monday, Geithner is undertaking special measures in an effort to postpone the day when he will no longer have enough funds to pay all of the government’s bills.
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.
Treasury secretaries have tapped special programs to avoid default six times since 1985. The most protracted delay in raising the debt limit came in 1995 after congressional Republicans swept to power during the Clinton administration.
But today, the government needs far more money to cover its obligations than in the past, making the special measures less effective than they used to be. The government needs about $125 billion more a month than it takes in each month.
Alex Jones interviewed Nomi Prins on May 17th about how the Federal Reserve is holding America hostage. Nomi slams Geithner and the Fed right out of the gate with the news that the Federal Reserve is sitting on $4 trillion dollars in assets, securities, and cash (liquid reserves) the banks are storing and earning interest on. If this isn’t more proof that the private banking cartel needs to be audited on it’s way to extinction, I do not know what would be.