My Twitter Feed

August 28, 2014

Breaking News:

BREAKING: New Coal Disaster In West Virginia -

Tuesday, February 11, 2014

U.S. Hostage Freed by Colombia’s FARC Rebels (Video) -

Monday, October 28, 2013

Here’s Why The Zimmerman Verdict Matters -

Sunday, July 14, 2013

BREAKING! UK Government Spied On Allies At TWO G20 Summits (Video) -

Sunday, June 16, 2013

Swiss Support Tougher Asylum Legislation as Refugee Numbers Spike -

Monday, June 10, 2013

American Woman Killed in Syria Fighting for Terrorists, Syrian TV Claims (Video) -

Friday, May 31, 2013

CO2 in the Air Reached its Highest Level in Human History -

Friday, May 10, 2013

Terms of the New Abortion Bill Agreed by Irish Cabinet -

Wednesday, May 1, 2013

Boston In Lockdown As Manhunt Intensifies -

Friday, April 19, 2013

2 Dead, Dozens Injured After Boston Marathon Bombing -

Monday, April 15, 2013

Fast Food Workers in New York Stage Surprise Strike -

Saturday, April 6, 2013

N. Korean Rhetoric Provokes Missile Shield Deployment -

Wednesday, April 3, 2013

Eyewitness Accounts from Meiktila Massacre -

Wednesday, April 3, 2013

Sudan to Free All Political Prisoners -

Monday, April 1, 2013

A New Free Press In Burma Juxtaposed With Genocide: The World Will Be Watching -

Friday, March 29, 2013

Pressure Builds to End Ethnic Violence in Myanmar -

Friday, March 29, 2013

Activists Demand Action As Further Genocide Looms -

Tuesday, March 26, 2013

Cyprus Reaches Last-Minute Bailout Deal With EU -

Monday, March 25, 2013

Myanmar Muslims Brace for Possible Genocide -

Sunday, March 24, 2013

IMF Chief Lagarde’s Home Searched over Tapie Scandal -

Wednesday, March 20, 2013

US Taps Pension Fund To Avoid Debt Limit Default

tim-geithner-treasury-secretary-01

The day after Christmas, Treasury Secretary Timothy Geithner has informed congress that the government will reach its borrowing  limit of $16.4 trillion on December 31, after which “extraordinary measures” will have to be taken in order to avoid the debt limit.

Yesterday, in a letter to congress he announced that the government had begun  borrowing from the Federal Employee Pension Fund (the G Fund) to keep operating without surpassing the limit.  The move he said, will free up $156 billion in borrowing authority while Congress debates increasing the $16.4 trillion debt limit.

Meanwhile the gridlock between the President and the House Republicans over increasing the debt limit persists; GOP standing firm on their decision not to raise it unless the President acquiesces to significant spending cuts.

Geithner has been warning the government for months that the borrowing limit would soon hit the $16.4 trillion debt ceiling — a legal limit on how much it can borrow.In his letter to the congressional leaders,Geithner said the Treasury expects to exhaust those measures by mid-February to early March.

The latest action has been taken by other Treasury Secretaries in the past and will not put in jeopardy any monthly pension payments. The measure won’t have an impact on retirees because the Treasury is legally required to replace the funds removed from the pension account after the borrowing limit is raised.

Photo Credit: Reuters

Nkorni Tankwa (3 Posts)