U.S. Treasury suspends government retirement, health fund payments as debt limit resets

[libertybele]

U.S. Treasury suspends government retirement, health fund payments as debt limit resets

U.S. Treasury Secretary Janet Yellen on Monday took additional steps to preserve the federal government's borrowing capacity under a reinstated debt limit, suspending some investments in government employee retirement and health benefits funds.

In a letter to House of Representatives Speaker Nancy Pelosi and other congressional leaders, Yellen said she was suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund that are not immediately required to pay beneficiaries.

A two-year suspension of the federal debt limit expired on Saturday, reinstating the cap at the current debt level of about $28.5 trillion.

The Congressional Budget Office has estimated that the extraordinary measures could claw back more than $340 billion in borrowing capacity under the limit. CBO said these actions, combined with the Treasury's current cash balance of about $459 billion, would allow the government to avoid a payment default into October or November as a partisan fight unfolds over a new suspension or increase in the debt cap..................
 
https://www.reuters.com/world/us/us-treasury-suspends-government-retirement-health-fund-payments-debt-limit-re-2021-08-02/

[Hoodat]

Why don't they simply stop spending money they don't have?

[libertybele]

Why don't they simply stop spending money they don't have?

That would actually require a budget!

[sneakypete]

Why don't they simply stop spending money they don't have?

@Hoodat

You're kidding,right?

How are they supposed to buy votes if they did that?

[Hoodat]

That would actually require a budget!

My checking account doesn't require a budget.  Each payday, my paycheck gets deposited into my account, giving my account a positive balance.  I am then able to draw funds out of that account until they run out.  When they do, I don't get to draw any more funds until the next payday.

The same is true for the US Treasury.  Each payday, taxes are taken out of our paychecks and turned over to the Treasury.  This is the limit (or budget) that the Treasury has to work off of.  And when those funds run out, they can't pay anything else until the next payday.  It is no different than what the average American faces.

The Executive Branch is in charge of the spending.  They get to make the hard decision on what gets paid and what does not.  It is their Constitutional obligation.

[Wingnut]

Deficit spending and borrowing is not a problem, until it is.

[sneakypete]

My checking account doesn't require a budget.  Each payday, my paycheck gets deposited into my account, giving my account a positive balance.  I am then able to draw funds out of that account until they run out.  When they do, I don't get to draw any more funds until the next payday.

The same is true for the US Treasury.  Each payday, taxes are taken out of our paychecks and turned over to the Treasury.  This is the limit (or budget) that the Treasury has to work off of.  And when those funds run out, they can't pay anything else until the next payday.  It is no different than what the average American faces.

The Executive Branch is in charge of the spending.  They get to make the hard decision on what gets paid and what does not.  It is their Constitutional obligation.

@Hoodat


YUP!

With one exception. The number of zeros in front of the period.

People like thee and me don't write overdrafts for trillions.

[Hoodat]

Deficit spending and borrowing is not a problem, until it is.

It shouldn't be a problem for the current coup since they don't give a damn about the law anyway.  I fully expect them to continue printing up money and sending out checks regardless of what the law says.

[Hoodat]

@Hoodat
YUP!

With one exception. The number of zeros in front of the period.

People like thee and me don't write overdrafts for trillions.

@sneakypete

The big flaw in the scenario presented is that every single dollar paid in federal income taxes is not enough to cover direct cash payments to other individuals.  Our entire federal income tax system is a wealth redistribution scheme, with not a single dollar of it going to pay the cost of actual government.

[cato potatoe]

This marks the second fiscal year in which half of the budget is debt-financed.  Our annual deficits are larger than the GDP of all countries except China, Japan, and Germany.  With more spending planned, you have to believe the S will HTF sooner than expected.

[sneakypete]

@sneakypete

The big flaw in the scenario presented is that every single dollar paid in federal income taxes is not enough to cover direct cash payments to other individuals.  Our entire federal income tax system is a wealth redistribution scheme, with not a single dollar of it going to pay the cost of actual government.

@Hoodat

You are clearly an intelligent man/woman/multiple choice.

Do you REALLY think the people voting to spend this money don't know that,and that is the reason they are doing it?

Name one better way of destroying a government and replacing it with a dictatorship than destroying the economy and have people rioting in the streets.

Let it get bad enough,and the citizens will  be BEGGING the left to declare Martial Law and suspend the US Constitution.

Yeah,the rank and file left are dumber than a crate of hammers,but the leadership know what they are doing.