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Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach

Posted By admin On July 6, 2011 @ 3:32 am In Money Watch | Comments Disabled

Tyler Durden
Zero Hedge [1]
July 6, 2011

As the chart below shows, while at the end of every quarter, the US Treasury is traditionally supposed to fund a quarterly payment into the various government retirement funds (previously discussed here [2]), this time around, instead of putting in even one penny into G and CSRD Funds, Tim Geithner has decided to defraud government retirees by the most since the US debt ceiling was breached, or, specifically, since intragovernmental “holdings” became a mere plug to make room for marketable debt. So while the debt held by the public increased by $21 billion following the settlement of last week’s auctions, in order to stay under the $14.294 billion ceiling, the Treasury was forced to “disinvest” another $20 billion from retirement funds. At this point the various funds that fall under this umbrella are underinvested by at least $120 billion and likely much more. Of course, this is not an event of default as per Geithner’s fine print: as soon as the debt ceiling is hiked, these will be the first funds that are replenished. On the other hand, if there is no debt ceiling hike, and courtesy of marketable debt having priority to intragovernmental debt, government retirees are increasingly becoming the impaired class in what may be shaping up to be the world’s biggest bankruptcy filing in history.

Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach  Introgov%20Holdings9 0 [3]

Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach  030511banner3 [4]

Stock up with Fresh Food that lasts with eFoodsDirect (AD) [5]


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URL to article: http://www.prisonplanet.com/instead-of-funding-retirement-accounts-as-mandatory-treasury-proceeds-to-plunder-the-most-since-debt-ceiling-breach.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/article/instead-funding-retirement-accounts-needed-treasury-proceeds-disinvest-most-debt-ceiling-bre

[2] discussed here: http://www.zerohedge.com/article/quantifying-treasurys-plunder-retirement-accounts-80-billion-between-g-and-csdr-funds-debt-c

[3] Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/draghi/Introgov%20Holdings9.jpg

[4] Image: http://www.stansberryresearch.com/pro/1103PSIEOAVD/PPSIM375/PR

[5] Stock up with Fresh Food that lasts with eFoodsDirect (AD): http://www.efoodsdirect.com/

[6] Treasury Prepares To Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week: http://www.prisonplanet.com/treasury-prepares-to-plunder-another-45-billion-from-retirement-funds-as-it-issues-110-billion-more-debt-next-week.html

[7] Treasury Continues To Dip Into Retirement Accounts, Prepares To “Take Out” $66 Billion Chunk To Make Room For New Bond Issuance: http://www.prisonplanet.com/treasury-continues-to-dip-into-retirement-accounts-prepares-to-take-out-66-billion-chunk-to-make-room-for-new-bond-issuance.html

[8] Total US Debt Hits $14.195 Trillion, $99 Billion Away From Debt Ceiling; Treasury Revises Breach Date To As Soon As April 15: http://www.prisonplanet.com/total-us-debt-hits-14-195-trillion-99-billion-away-from-debt-ceiling-treasury-revises-breach-date-to-as-soon-as-april-15.html

[9] Here We Go Again: US $25 Million Away From Debt Ceiling Breach: http://www.prisonplanet.com/here-we-go-again-us-25-million-away-from-debt-ceiling-breach.html

[10] Retirement Fund Plunder Update: $206 Billion So Far, $62 Billion Left: http://www.prisonplanet.com/retirement-fund-plunder-update-206-billion-so-far-62-billion-left.html

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