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Treasury Taps Into Federal Retirement Funds As Government Hits Debt Ceiling

May 18, 2011 by  

Treasury taps into Federal retirement funds as government hits debt ceilingThe United States government has officially hit the debt ceiling limit, prompting the Treasury Department to undertake emergency measures in order to avoid the nation’s first-ever default.

On May 16, Treasury Secretary Timothy Geithner told Congress that the government had reached its $14.3 trillion debt limit. He added that the Treasury would, among other measures, use Federal pension funds in order to make debt payments until early August.

Geithner urged lawmakers to increase the debt limit by Aug. 2 “to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens,” according to media reports.

Speaking to financial executives at the Economic Club of Chicago on May 16, Representative Paul Ryan (R-Wis.) reiterated his party’s stance: A deal on raising the debt limit would have to be accompanied by significant spending cuts.

“For every dollar the president wants to raise the debt ceiling, we can show him plenty of ways to cut far more than a dollar of spending,” said Ryan, quoted by Reuters.

Last week, while speaking at the Economic Club of New York, House Speaker John Boehner (R-Ohio) said that spending cuts should exceed the debt-ceiling increase granted by Congress. He emphasized that reductions should be “in the trillions of dollars, not billions.”

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  • http://aol.com sean murrey

    Like i said before no raising of the debt ceiling we need to cut now.

    • http://burkecomputers.blogspot.com/ DanB

      I agree on the debt ceiling. I just don’t like this dirty financing. Why? Simple. We are now on the hook for all the extra debt whether or not the debt ceiling is raised. I didn’t like the idea that they were talking about using financing tricks a couple months ago. Everyone seemed to think this was a great way to fund the government until a settlement can be reached. Going this way isn’t really about reaching a settlement but rather guaranteeing their side wins. You can no longer proceed without raising the debt ceiling. They know very well that the politicians in Washington DC are surrounded by those who will be impacted most by having their pensions raided. And raiding federal pension funds? Does that mean that the pension funds for our military may be raided as well?

      I don’t see things going well from here.

      1. They raise the debt ceiling and it is already spent to pay for the pensions and other funds raided. And if these funds are being raided, whose keeping track of how funds are raided and won’t money be lost in the process too?

      2. They do not raise the debt ceiling and now not only do we have the interest on existing debt eating into the federal budget but also an obligation to return the funds raided during this slight of hand. It will be increasingly hard to run all those government programs that no one wants to cut. So either they will have to make those cuts and fail to get reelected, or they will have to raise the debt ceiling after all.

      Either way I see it, America is in financial trouble while these money games are played. And with the pension funds being raided, doesn’t this guarantee that a large voting block will vote for the politicians that will raise the debt ceiling and will raise spending overall as well? Imagine if they raided the troops pension funds. How many of us would vote RINO or Democrat just to return the money for the troops? Could they get an entire dominantly conservative organization to swing progressive? Could they break the Tea Party (a lot of us care deeply about our men-in-arms)? The plan they talked about is to keep the government going until August if no deal is reached, right? Even if they aren’t hitting the troops pension funds now, how long until they start sweeping across a lot of those reserved funds? Troops pensions. Medicare. Medicaid. Housing funds. Social security. A whole lot of people could suddenly find that they have no choice except to vote progressive. No one will be willing to hold the politicians accountable because everyone is far more interested in getting their investment back as opposed to admitting that we’ve been scammed and the money is gone, gone, gone.

      Okay, the pessimist in me has spoken. This remarkably pessimistic view of America’s future is why I believe I need to become a better capitalist myself. Because I believe I will need the work ethics and skills to survive, even though in the new America those very ethics and work skills may make me an “enemy of the state.” I must stand for freedom in the hopes that my children may know what it is and that some future generation may taste it again. Sweetly, my gut tells me that this path which might bring a remembrance of freedom for a future generation is also the same path that might just be my part in a grander design to restore freedom here and now.

      • 45caliber

        They don’t plan to return the funds they raided from SS so why do you believe they will return the funds they take from the federal retirement funds? I’m expecting the 401Ks to be raided next. There is supposed to be over 6 trillion in those funds. They are already looking at them quite hungrily. In fact, there is a court suit going on now because someeone cashed his 401k and tried to move the money off-shore where they couldn’t reach it. The government’s argument is that all money belongs to them and it was illegal for the real owner to try to keep them from taking it.

        • James

          45caliber, 401K retirement plans are requied by law, now, to invest a certain percentage in Treasury bonds. And there is a stiff penalty for withdrawing any funds from a 401K prior to retirement.

          • 45caliber

            This guy had already retired.

        • Raymond Babcock

          iam not very smart i have short term memory lose it takes me years to learn things even i can see right through obama he is dead ted kenndy on steroids iam worried about my future even when i slept under the bridge i felt better then i do now

        • http://burkecomputers.blogspot.com/ DanB

          Your point works perfectly. They don’t have to actually return the funds for us to obligated to pay the funds back out to the recipients over time, thus ensuring that we continue to pay for this year’s indulgences for many years to come. Plus, they can raise the debt ceiling even more under the auspices of paying these debts incurred but instead spend the money on their usual waste and big government agendas.

    • OleJer

      There is no excuse for raising the amount of money any government department spends. After all, is they could run the government for, say $100 last year, the can certainly run it next year for the same amount. That’s a Duh. They can probably even run it for the same amount as in 2009. Government screwed up the economy so let them finance the solution.

      • James

        OleJer, Starting this year, every day, 3,000 baby boomers sign up for Social Security benefits. That entitlement alone, will increase by hundreds of billions of dollars per year.

        • Waldomountainman

          James
          Social Security is not an entitlement, all those baby boomers paid a portion of their weekly paycheck for decades to be put into savings for them to draw on at retirement. The government has raided this fund and raped it so now the funds are not there and thus progressive talking heads like you insist this is going to cost tax payers billoins when in fact the government needs to quit spending so much on aiding the rest of the world and take care of our own. The government is handing out free health care to millions of illegals, social security to millions of illegals, free education to millions of illegals, and even spending billions renovating mosque’s in the middle east and supplying the renovated buildings with free internet so they can create websites to recruit candidates to commit jehid on us. When are you going to wake up and smell the coffe?

          • professor

            Waldomountainman, you are absolutely correct. Social Security is NOT a “benefit!” Working Americans had money deducted out of their paychecks for decades as they contributed to this plan. All the while the government promised that money would be there for them later in life.. Evidently, this was a big “ponsi scheme” as the government spent their money instead of it being kept in a “lock box” for the participates..

            American citizens have be robbed! The Social Security they paid for is being given to illegals, to buy their votes. These illegals never paid into the system, but they are being given money that the government stole from real Americans!

            Save money, stop giving Social Security to those that have never paid into the program! No wonder the government insists on calling this money a “benefit!” It IS a free benefit for all the illegals!

        • Rod

          James… What most people do not understand is that Soc Sec has not added one cent to the Federal deficit. This year there is a 63 “billion” dollar surplus in that fund. By law Soc Sec cannot borrow funds to finance itself. The Soc Sec oversight committee estimates that even without the Federal Government payback of the “trillions” of dollars that it has borrowed from the Soc Sec fund that Soc Sec will be solvent for at least 25 more years.. All of the borrowed funds are guaranteed by Government bonds. Don’t just listen to those Liberals/Democrats that want to scare you with their lies. Research the facts. Good hunting.

          • James

            The reason Social Security has not added to the deficit is because the inflow (taxes) has been greater than the outflow (payments). That is about to change dramatically with the retirement of baby boomers. From now on, Social Security payments will add tremendously to the deficit. Because of government proposals to allow benefits to people who have not paid in, it will happen even faster.

    • EddieW

      According to Geitner, The Sky is falling, the sky is falling!!! We need to spend far more than we take in!! surpirsed he just didn’t print a few billion more, that’s the usual way out, and hit us with the inflation tax!!
      Also…they always ‘cut’ where it will hurt the most people..so called ‘entitlements’, yet the many retired Senators never get an entitlement cut, in fact ALL got a 3,000 raise this year, whether they work the 3 days a week or not!! CUT the WAR…Save hundreds of BILLIONS per month!!!

  • http://www.diyyardandhome.com Dan

    Is this where we start paying our debts with money that doesn’t exist? Or are Government retirement funds not included in the annual budget? Smoke and mirrors as usual. And now we will have to borrow money to replace the government retirement funds that doe not exist.

    • Wapitiman

      It’s my understanding that while the government raped the social security funds to pay their excesses over the last generations, they did not touch a penny of their own retirement funds. Is this not the money used to gold-plate congressional pensions?
      It’s long overdue that the government throw in their own precious resources to help pay the bill which they are responsible for.
      They must really have painted themselves into a corner to be this desperate! Boo-hoo !

      • 45caliber

        I believe that the FIRST federal retirement funds to be used ashould be those allocated for Congress.

      • http://PersonalLibertyDigest Virginia

        Who says they’re touching congressional retirement funds. That’s government employees! Get it!

      • James

        Wapitiman, The Social Security Trust Fund owns 17.9% of the national debt. The U.S. Civil Service Retirement Fund owns 6.0%, and the U.S. Military Retirement Fund owns 2.1%. Stated otherwise, none of these funds have any cash reserves. The 17.9% owed to the Social Secuiry fund amounts to $2.54 Trillion. Just this year, the FICA taxes received by the federal government, fell below the outgo in payments.

        • Rod

          I agree with your numbers. What many may not understand is that the part that Soc Sec plays in the national debt is not because Soc Sec is borrowing from the Fed… it’s because the Fed is borrowing from Soc Sec. 2 1/2 trillion dollars is a lot of money. It shows that, for now, Soc Sec is solvent. At least it would be if the Fed’s would stop raping this fund for their own greed.

  • Warrior

    Timmy went to his local Post Office and borrowed around $75 Bil that just happened to be some excess cash laying around.

  • labouton

    So now Federal retirees have to pay for the incompetency of Congress??

    • wandamurline

      Why not…the social security recepients had their retirements stolen from them in 1964 under Lyndon B. Johnson, Democrat. The government has been issuing IOU’s since then…the IOUs total over 1.5 trillion dollars…money that has been spent and will never get returned. The federal employees just got screwed by this administration….a repeat of 1964…don’t expect to get your money back.

      • 45caliber

        I agree. The people didn’t rebel over SS so why should anyone get upset because they decide to take the federal retirement funds?

  • Bitter Libertarian

    Both this MOVE and raising the debt ceiling are unacceptable. However the Politicians have 60% of Americans shivering at home with Duct tape & gas masks afraid that the Ghost of Osama Bin laden will attack them. Until Americans realize that they are Just as safe today as When Osama Bin Laden Worked for the CIA setting up Al-Qaeda against Communist Russia, we are destined to face a collapse Like Russia did.

    Social Programs have never broken a nation whether we like them or not.

    To Stop and Reverse this collapse we need to do 3 Things Immediately:
    1-End wars, Pull troops back and keep our DEFENCE STRONG.
    2-CUT Foreign Aide, Corporate Subsidies, Corporate Welfare.
    3-Pass legislation to Dissolve the Federal Reserve.

    That would Halt the Collapse.

    • labouton

      Putting Ron Paul in office would do just that.

      • Bitter Libertarian

        Lets Not Forget that the RINO’s and future wolf’s in sheep’s clothing are going to FIGHT him. If that doesnt work…its Going to be what this time? A Heart Attack? Cancer? Some sort of BIO attack on DC that Kills the POTUS???? Mark my words…The severity of the Responce if RP is elected is directly proportional to how much good he would do for the People.

        • JC in CA

          The fight in congress over to renew the 1st / 2nd National Banks’ charters were nasty…The fight to repeal the Fed. Reserve Act and other monetary acts will be devestating…like cutting all your nails to the quick and having to tunnel through the Rockies bare handed.
          Prepare your fingers yesterday. I am currently reading Ron Paul’s book ‘End The Fed’ and it’s chillingly simple how they have been pillaging our Treasury through congressional corruption and lies to us all. Ron Paul and his son Rand, tell us the truth and lay it on the line. It’s up to those who understand to teach those who do not.
          Continue supporting Conservative-Constitutional-Libertarians. Our fight for our freedoms will be arduous at best as the forces of evil have supplanted the will of far too many. Educate and disseminate.

          A well regulated J.C. in CA

    • Anthony

      You hit the nail on the head!!!!!!!!!! I would love to see that happen!!!

    • 45caliber

      BL:

      Social Programs have never bankrupt a nation?

      You should study more history. It broke Rome. And it has certainly broken quite a number of nations in Europe today. They may be nice to have in a feel-good way but when the costs go up, we need to cut. It’s like giving to charities; if you get to the point that you can’t afford to buy food for yourself, you have to cut somewhere – and charities are a good place to begin.

      • Bitter Libertarian

        I read history and the majority all agree that the fall of the Roman Empire, was NOT due to anything other then they were Occupying every land they conquored, their overextended wars, their war “industries”, and debasing their currency to fund their wars & Military.

        Yes they has social programs, but it was trivial (as ours is) compared to their war debt (as ours is).

        • DanB

          And why were they occupying other lands and all this conquest? I seem to recall there is financial benefits to conquest…. Sure, at a point they did overextend. And here is America starting to act like the new Rome, conquering foreign lands (i.e. “nation building”). So how far apart have we come from that history?

          • Bitter Libertarian

            Not far from that, too far from our Foundation.

            The Problem with Freedom & Liberty in the USA really isnt the Politicians..they are just spineless saps who would bendover for the next lobbyist gift.

            The problem Lies in our people…they have been misled, mis-taught, bought & sold on Lies, misinformation, and manipulation to further the globalists goals. And now at the crossroads, many are convinced the Lies they believe in are TRUTHS worth fighting for. Some are Violent in their stance, others are apathetic. Both are useless.

          • Silver Bullet

            ……B.L.
            ….You got that right. The people of America are responsible. They allowed the most foul creatures in our society to run for elected office. McCain is a second generation Senator and lifetime Politician. That automatically means he has a political machine set up to get him reelected every time no matter what the conditions. Ted Kennedy, may his soul burn forever, wrote the Clinton Death Tax Law and when he died had $872 million in an offshore Cayman account that was exempt from the Death Tax with a special inclusion in the Law as well as many other wealthy Democrats.
            ……We stopped teaching our children to be Americans. I said the pledge of allegiance at least once a day while in school and then as a Cub Scout, Boy Scout, and Sea Scout sometimes twice a day. Today I think it is outlawed in the Chicago Public Schools, and at the very least is forbidden.
            ……If America doesn’t or can’t stop the war on Christianity or doesn’t or can’t stop the war on Capitalism or doesn’t or can’t stop the War on the American Family, then there is no proper course of action. We’re not fighting back because these wars are waged by AntiAmerican citizens using our own institutions against us. They kill five thousand (roughly)Americans every month before they are old enough to defend themselves. They have been dismantling the American Family since the sixties when they convinced Americans to stop having so many children and use birth control. By nineteen seventy-eight America was at Zero Population growth while the rest of the world exploded in population.
            ……And there you have it. I don’t believe there are enough Americans left (not counting AntiAmerican Democrats) to make change happen. It takes about seventy three million votes to vote in an American government. I think you all gave up on “American” long ago and tried to get as many of those greenbacks as possible. Well, now you’ve got them and look at what they’re worth. A five pound bag of sugar was eighty nine cents on November second two thousand eight. It’s now $2.66. That’s 150% a year. That’s three times what it was under Carter ladies and gentleman.
            …..You should have bet on “American”. You shouldn’t let these savages murder our babies and cut our population to ribbons. I think you’re close to the conclusion of it all. We all deserve exactly what we have coming. The family is extinguished by the headlines today in the Mass Mania – Homosexuals unite in Chicago Holy Matrimony.

      • professor

        It was said that, “The sun never set on the British Empire.” To preserve their own financial security the British gave countries like India their freedom… They couldn’t afford to support the large populations of these other countries. The foreign peoples became British citizens and were afforded all the benefits thereof, until it nearly broke the Empire.. Sound familiar!

  • Former Walmart person

    Am I missing something here? I thought our entire economy was going to collapse, martial law would be in the streets, and the world as we know it would otherwise fall apart if our debt ceiling was reached. Doesn’t this prove we don’t really need to raise the debt ceiling?

    • Bitter Libertarian

      Raising the debt Cieling only pushes the problem months into the future it DOES NOT REMOVE the problem.

      The Problem remains and in fact will be worse if not dealt with IMMEDIATELY. Throwing Money at the problem will only make recovery worse! If we stop the programs (war-subsidies-corporate welfare)that are bleeding us now with the Dollar index at 74.55 we stand a chance…if the raise the debt limit it will further LOWER the Dollar index (by printing more dollars) to a point where people around the Globe will RAPIDLY shed their dollar hoildings crashing the dollar…pushing Inflation through the roof…. So its either stop spending or crash. Printing will only delay the crash and make it WORSE when it does crash.

      • 45caliber

        I agree with you on this except I also believe that the Welfare Department is also one of the major causes we are going into debt. As well as Foreign Aid, Charities, rebuilding Iraq and Afghanistan (why should we be doing that?), etc.

        • Bitter Libertarian

          Your 100% correct, I forgot to include those in my “haste” to post.

          • James

            Do you think we should stop sending foreign aid to Pakistan?

          • 45caliber

            James: Yes.

  • http://non dave bulshitski

    the elite and powerful, the arrogant and useless lying rich don’t seem to realize that the game is up. the dollar is going to crash, and their money will be worth less (or worthless). the old adage that “it’s better to never have had money, than to have money and lose it”, is going to raise its ugly face in america. the rich and spoiled, who have been looting america for years, will have to flee to europe or south america to hide from the ones they have looted.

    they get what they deserve.

    • professor

      The rich didn’t get rich by being “stupid or lazy.” Even if they were, they could hire all the “brains” they need.

      The rich are NOT going to be the ones to suffer! They are always “ahead of the game” and will have taken their money out of our system and put it in other currencies and countries. So if you are trying to draw “solace” out of the fact that they are going to be among the “losers,” think again!

  • Anthony

    May 16, 2011
    Parasites on the Beach
    Posted by Lew Rockwell on May 16, 2011 09:33 AM

    California government lifeguards are paid between $100,000 and $200,000 a year, and can retire with a 90% pension after 30 years, at—say—51. Like all government employees, they do far better than the hosts they mooch off. Time for a revolution?

    I think this is one of many places to start cutting!!!

    • Al Sieber

      I second that.

    • 45caliber

      Most federal government workers get paid almost double what they could get working in the private industry. So less than half of us is giving salaries to the rest of the nation at twice what we can get ourselves.

      And don’t fall for the argument that they pay taxes. All their pay comes from those of us not working for the government. They are simply given a salary that shows they pay taxes to keep the rest of us from screaming. It’s only on paper that they pay a tax at all.

  • http://twitter.com/doitathometoday Ken

    The debt ceiling should be set up like s.s.i. for ever 1 dollar they float over x number they must cut 2 dollars from the current budget.Geithner should be dismissed. We should quit dealing with the Fed. Reserve Bank, they are just a private printer and the govt. can hire anyone to print probably at a better price.

    • 45caliber

      Actually, Ron Paul is convinced that the Federal Reserve is printing trillions more than is known that they then take to Europe and trade (sell) for other currencies. That’s why he wants to audit them.

    • James

      Ken, The U.S. Treasury prints and coins our money.

      • 45caliber

        James:

        The US Treasury is OWNED by the Rothchilds in the Netherlands. It has been privately owned since 1933 when FDR declared bankruptcy of the US. At that time it was deeded to four familes, one of which was his. The Rothchilds bought them out. The Rothchilds also provide the script for most of the various countries of the world including all of Europe. Their income comes from buying and selling money between countries. When I first heard this, I asked my aunt who worked for the banking system. She verified it.

        • professor

          And this gives them power over the civilized world! They make or break a country. They decide which will be wealthy and which will not, what wars are fought, and who wins. It all comes back to control of currencies…”Follow the money.” Basically, there already is a “One World Order.” They are just tightening the vice on the countries..including ours…impatient for total control.

          Destroying the Fed is the only way to keep our sovereignty.

  • Gary

    Stop giving all that foreign aid to the ungrateful countries that hate us and only use our money to help destroy us.

    • 45caliber

      Exactly. One of the stupider ideas of our politicians who are trying to buy friends. Actually, I’ve wondered if they give that money so they can have a place to run if their voters start looking for them with tar and feathers – or a noose.

  • Robert Stuhrman

    I am sorry, but; it would not be a first time default. Look up the history of the Liberty Bond 4th Issue. Holders of that issue were screwed when the government devalued the dollar and refused to pay in gold coin, which was promised when issued. Some people lost thousands of dollars. Every holder of that issue lost. It was a default of the part of the United States Government.

  • Steve

    I have to say – THANK YOU – to PLD for keeping your articles short and to the point. Presenting the information in a “Cliff Notes” format is what other news organizations and bloggers can’t seem to figure out.

    Who has the time to read all of their over worded articles that usually get deleted before one can finish reading them; simply due to everyday time limitations. It gets the message lost and defeats the purpose of sending out the blogs and reports, to begin with.

    Final result? Lost effort, lost stories, lost points, lost 2012 elections. KISS = Keep It Short & Sweet.

    Thanks again, PLD.

    • TIME

      Steve,
      On one hand I agree with you, as time is always an issue.

      On the other hand whats gotten us into this mess we face, is just that; “SOUND BITE NEWS.”

      Saddly we face a mass of issues that will either totaly destroy what we have known as America.
      Or we will surive and go forward to create a better America.
      The choice is up to all of you, do you wish to have freedoms?
      Or do you wish to be told what to do and when to do it?

      What the “Professional Political Law Maker” class has in store for all of us is not going to be pretty, it will lead to us all being told what to do and when, or even if you can breath air anylonger.

      • Al Sieber

        TIME,I second that also, I want my freedoms and will fight for them, I’m not good at being told what to do, never was.

    • 45caliber

      Steve:

      I agree except for one thing. KISS = Keep It Simple – Stupid.

      • Louie

        Not if you want it to mean…keep it short & sweet…it can mean anything one wants it to mean…even dumbass…that was my old donkeys name.

  • catzpaw

    The whole federal government is corrupt. They think nothing of stealing from those the are supposed to represent. It is okay for them to not pay their taxes while living high on the hog at the expense of hard working Americans. It would do America a lot of good just to though the whole bunch of them into prison. What do these freeloaders think they are going to do when the United States crashes and burns because of the crooked scheming?

    • 45caliber

      catzpaw:

      They fear that they might be thrown into prison so they set up the prison they would be thrown into. I heard about it some years ago. It is in Missouri somewhere. Each “prisoner” is given a house where he lives with his wife and family. They are also “loaned” two cars. The “prisoners” can check out of the prison to go to town and can actually work jobs in town if they like. They can submit requests for food (like steaks and lobster) and it will be provided free. There is also golf courses, tennis courts, swimming pools, etc. on site and there is a country club as well, where they can go for free dinners with entertainment and can get free liquor as well.

      Don’t you feel sorry for those prisoners?

    • James

      Catzpaw, My guess is they would celebrate.

    • andrea

      I wouldn’t worry about them ! They are rich, powerful, and oh, so devious. Americans need to get informed as to how they can take care of themselves, because when this country goes completely down, the government is not going to be there for us !!! I reccomend that those who want to survive what is coming and soon, start by looking on the internet under SURVIVE ! You will find info on plans to provide for your family .Some of our natural disasters have made Americans aware that depending on federal help to come when you need it may not be a good thing for you and your family, as they will probably be inadequate and overwhelmed. So don’t waste any time ,friends ! “You don’t have to be a weatherman to see which way the wind blows”

  • http://hotmail Jay

    And like the social security trust account that Congress stole 6 trillion from they have already stolen the funds from federal retirement accounts.

  • 45caliber

    They have already “borrowed” all the money SS payees were putting back for retirement. So why not go after the retirements of the federal workers too? They are going to pay all of it back, right? The only thing I hope is that they also “borrow” the retirement funds of all the Congressmen.

    They might actually get something done now that they want to “borrow” the retirment funds of the federal workers. As long as they weren’t involved in losing money from SS due to the looting of that fund, they didn’t care. I suspect they will get concerned now.

  • Amy Aremia

    The President and Congress are looking in the wrong places to cut the budget, and stealing from SS funds which is not a tax, by a retirement fund paid by the employee and employer….

    Congress needs to cut out Billions of dollars in seconds by stopping all this money going directly to foreign countries as Foreign Aid…we need it at home.

    Give the Federal Reserve to Congress where it belongs, thus eliminating Billions more paid out in interest to international Bankers cranking out our money and charging high interest….

    Bring home our military scattered arouind the world in 138 countries, that would safe Billions more and have the “protection” we need at home….

    Congress could rescind the $13,000. yearly raise they gave themselves, plus the cost of living increase which they refused to give to the “working class>

    And surely, there are more wasteful project which we don’t know about that Congress can eliminate quickly…
    TIME FOR A CLEANOUT OF CONGRESS AND THE E XECJUTIVE ADMININSTRATION….We have one more chance in 2012.

    • Louie

      Amy, like I have been saying…we aint gonna clean (it) out by voting…we can only clean it out by…..THROWING THE DAMN BUMS OUT ON THEIR EARS!

      • James

        There is a fast way to start getting back a small portion of our money. Has anyone been at Wallmart on Friday. Just watch the Customer Service Desk, you will see a line of illegals sending $500.00 each back to Mexico. That is money that is paid under the table and is UNTAXED.
        Make it mandatory that if no current paycheck stub is shown, The money that is wired back to Mexico is taxed at 30%. Give the money to the STATE for all the costs of Social Services that that state incures.
        Next close the borders down and ship all of the Illegals back to there country’s.

        • James

          I tend to agree, but I’m not the ‘James’ who wrote this. I’m the ‘James’ in the above comments.

  • http://www.SantaClaritaShortSaleBlog.com Bill Boyd

    They should tap into the polititians retirement funds first.

  • CSense

    The writing is on the wall. They will not and have no intention of balancing any budgets. They will continue to steal money from any source necessary to finance their political agendas

  • Higgs

    I’d be willing to bet every penny I have and will have in my life that this does not include the pensions and retirement accounts of the Congress members and the “upper” government officials including the President’s. I’ll bet it’s the “lower” level pensions that are going to be “robbed” instead. Don’t think for a moment that these clowns would use their own retirement money or even consider including their personal retirement accounts to be included in this thievery. Government pensions today, everybody else’s tomorrow. What would happen if we all “cashed in” our retirement accounts now? Sure, we’d pay penalties and taxes, but they would get only a portion instead of all of it with another government “promissory note,” in other words, another worthless piece of fancy government paper.

    • 45caliber

      I agree with you. In fact, their money isn’t even in the account as the rest of the workers. It is in a special account that gets funded first each year.

  • http://YAHOO.COM B.FRANKLIN

    Hey Timmy if all you fools in congress payed your taxes. And stopped that B.S. traveling on taxpayer money,we wouldn’t need a DEBT LIMIT. If Barry got rid of all his Cazars,we would not have a DEBT LIMIT. If wew cleaned out Washington we would not have a DEBT LIMIT.

  • nw

    This country is a disaster and the administration and Congress are all looters. The government has been raping and pillaging our freedoms and rights under the Constitution and we are powerless unless we fight to restore those God given liberties back to the people. Raising the debt limit is not the solution. Stop Spending across the board. Every citizen will have to make sacrafices, our way of living has to change. It’s getting critical, just plain looting by our government. Everything is just being stripped and soon there will be nothing left but the ruling elite and the servants they control.

    • 45caliber

      nw:

      Every tax-paying citizen is already cutting back. It’s the bozos in Washington who believe there is an unlimited amount of money out here that aren’t.

      Actually, I believe that they believe all the money is their own anyway; they are just being nice about letting us have some of it. The fact that we worked for it is meaningless to them.

    • professor

      I would rather the people that have pillaged and plundered our country, and fed at the trough of the taxpayers…be the ones to “Sacrifice!” Hard working Americans have been sacrificing by paying all the bills for everyone!

      I do not “Play into” the Libs’ “Shared Sacrifice” theme song!!

      Lets start at the top with all the sacrificing! Cut out the lavish benefits and retirements of the Elite politicians in Washington! Cut out all the “Champagne and Caviar” appetites and vacations, cut out the limos, cut out the 40 Czars, cut out the $300 per pound steaks…(I could go on and on about the abuse of the taxpayers.)

      I don’t want to hear anything about real Americans have to sacrifice
      because of the communists, the Fed, the illegals, the politicians that have all been looting our country!

  • mtnmedic1

    This smacks of another direct attack against the military. Don’t forget that soldiers who served this nation for 20 or more years are first retired military and second FEDERAL RETIREES!
    The progressives have every intention of forcing all of us to live off the federal teat, starting with those who are easiest to attack, the military. Better stop this garbage soon or this nation is going to boil over!

    • professor

      We need to take great care of our Military! They are grossly under-paid and abused, yet they are the ones asked to sacrifice the most!
      Citizens may at some point have to depend on our Military for their very lives…..prepare them to defend us! Do NOT weaken them and their morale. They are patriots!

      • 45caliber

        I totally agree!

  • EdinNola

    This is pretty typical of the current Administration. Steal from government workers future, so that they can’t see that they are doing it, rather than reduce spending. Drive Progressives out of the country. All of them, even if they admit to being Communists, or even claim to be Democrats. They exist to destroy America, one way or another,

  • Shaddee

    I thought the UNITED STATES already defaulted on March 9, 1933.
    So this will not be our first default. The US is already insolvent
    and in receivership.
    Isn’t that so?

    • 45caliber

      Shaddee:

      You are quite correct. And we never came out of receivership to my knowledge. That is why the Federal Reserve is privately owned now. If we try to declare bankruptcy now, I suspect there would be a lot of court cases as other countries would be suing for their money back. And I expect that the judges would be deeding a lot of American property over to them.

      That may be part of their plan, however. I’ve heard that the PTB want to tie all money in the world to land with the idea that each country would own parts of other countries to the point where none would have any borders any more, making a one-world government manditory.

      • professor

        Hence the diabolical end of times and the sign of the beast! It will never work. There would be endless wars with no winners. The Apocalypse!

  • dhellew2

    One thing everyone seems to forget is that government employees did not pay into their retirement fund. The fund is paid by privates sector taxes.

    Government retirement is unfunded retirement which simply means that the fund exists on paper only, ie tax revenue is shifted from one genera ledger account to another but never really exists. Government retirement, including social security, is a pay as you go plan. Current payments are made with current taxes, none of which are paid by government employees.

    Government workers pay is tax revenue taken from the private sector. Government does not generate income, only expense. You cannot pay taxes with taxes.

    • 45caliber

      SS was not meant to be pay-as-you-go but is now because the politicians “borrowed” all the money there. However they quit even trying to borrow it about 15 years ago. Now they just take any they want and declare the SS account empty.

  • Steve Coy

    I have a better Idea! We have saved the world twice in two world wars at the price of over 500,000 American lives (our young mostly) and several Trillion dollars. We then went back and spent hundreds of Billions of dollars rebuilding all of the nations friends and foe. China, Germany, France and Italy mostly and Great Britan and Russia and many Arab countries. Why not tell all these Countries we are even on our debt and drop the $13.6 Trillion off our books. They wouldn’t have a Country without the U.S.so screw them. We should be taking several Billion Barrels of oil from Iraq, Saudi Arabia and all the other oil producing countries we have save since 1990. By the way Obamanation we aren’t arrogant we are PROUD and we do not apologize to Germany for starting 2 world wars and murdering 15 Million innocent civilians and we especially do not bow to the JAPS.

    • 45caliber

      And if we did, you would see all sorts of court suits as they sued us. And you would see all those judges declaring it illegal for us to deny any debt and giving ownership of large portions of the US to them. And most of that land given to them would be owned by us taxpayers rather than the federal government.

  • Skeptic

    In do not understand how those in power within the government can think for one second that unless major changes are made our country will FAIL. It is quite simple to understand that you can not borrow from Peter to pay Paul and then borrow from George to pay Peter and Paul and then borrow from Stan to pay Peter, Paul and George and so on. In order to reduce debt you have to reduce spending. We continue as a country to provide aid to other countries, we provide aid for numerous programs that “train” society to have attitudes of entitlement, we even provide aid to illegal aliens who do not pay taxes and do nothing to support the country that is giving them free hand outs!

    Our government seems to think they can simply go on as business as usual SPEND SPEND SPEND and take the attitude that paying the debt is the future generations problems. The time has come to pay the piper. We must remind the govern,ent of who they answer to … we the people!!! If we the government to stop spending a clear message must be sent by the masses. The sad part is so many of the masses are IGNORANT!!! They are either uninformed or are lemmings and believe everything they read in the media.

    While some may think I am off my rocker, I think we need someone like Dave Ramsey as the next President. Not another slimmy politician. We need someon who has proven they understand debt and what it takes to get out of debt. We need someone who has a proven track record of action and making solid common sense decisions, not someone who can read “pretty” speeches. And we need to stop letting the media direct this countries path!

    • 45caliber

      If you or I go out and borrow money, we have to pay it back. To pay it back, we have to cut spending to make the payments.

      But the politicians are borrowing money – against OUR incomes. They do NOT intend to pay it back – we have to do it. This is the only system in the world where the borrowers can get the money and spend it but don’t have to pay a penny of the money back. That’s why the politicians love it so.

  • chuckb

    this is really a simple matter, our debt could be reduced immediately by abiding the law. remove the illegal population, that would guarantee the democrats lose the next election. shut down the epa agency, “one of the most dangerous operations in the world”, shut down the energy and the education department. break up the oil company monopoly and open up drilling in the u.s. remove our troops from the middle east and put them on our border.
    we don’t need anymore political opportunism such as these politicians offering all these cures over the next twenty years such as paul ryan is suggesting, we can do this now. the problem is the politicians write these bills considering their own opportunity of spending. ryans bill would be just another memory five years from now and we will still be in deep debt. clean the rinos and democrat liberals out of the congress and senate, remove this idiot in the white house that some seem to delight in honoring him as intelligent, he’s a fraud and incompetent.

    • James

      Chuckb, Brilliant! How do you propose we remove the 15-20 million illegal aliens?

      • 45caliber

        James:

        It is easy. Just require all employers to verify citizenship and deny jobs to the illegals. Any employer who is caught hiring them goes to jail and all property is confiscated. At the same time require proof of citizenship to draw welfare and the other bennies. Any who apply immediately get picked up and sent back. Most would simply go back to Mexico or wherever else they came from.

      • mrrzk

        THE SAME WAY THEY GOT HERE—–ONE AT A TIME…………….

    • Marty S.

      Chuck, great ideas and don’t forget to hire Dave Ramsey for president although Im sure he’d turn down the job.

  • BOOHOO

    So what happens when those federal pension that they are using to continue their spending spree become due to the federal employee? We the taxpayers are going to have to pay them. I have cut everything but necessary living expenses from my budget, I expect my government to due the same. This is ridiculous and HAS TO STOP..

    DO not raise the ceiling and CUT CUT CUT all earmarks, NPR, Planned parenthood, NEA ,Acorn and ll that crap that only benefits only the liberal elite.. I can barely afford to eat much less that a vacation DO YOU HEAR ME MICHELLE.. Stop spending my money!!!!

  • http://com i41

    Geithner was another over paid Wall Street puke who failed at his last job at a Wall Street banking firm who got a bonus of 21 million. When people were losing jobs the close corporation friends of Onumnutts and his radical freaks all have gooton up to 22% bonuses and raises. So go figure who and why Onumnutts wants everyone to post who they give to in campaign season. Another marxist control method of be my lap dog or we are going to dispose of you. Any pus brained puke that would vote for any dumbocrap, is dumber than piss ant or a slug.

  • ONTIME

    Government theft is again taking and using what they promised to protect, there is no sanctity, no safe place for you to keep your wealth or protect it, no matter what form it takes or where you intend to stash it. This government refuses to stop their growth, spending and impossible demands on the individual, business or industry, the method of making crucial decisions is now in the hands of political cronyism, favors being granted by a disgusting politician and no word of racketeering charges being bandied about. We are going to suffer setbacks of the worst sort and we will deserve this because good men are letting this evil take place.

    • Marty S.

      The ratio of crooks in our government has never been so high and that is why nobody is being called on the carpet from within government circles. The machine is out of control folks and there will not be much we can do until it completely implodes on itself. It is about ready to happen so until then prepare as if it depends on us and pray as if it depends on God.

  • Bob from Calif.

    Hey Timmy make sure you start with your own pension, then work your way through all the presidents pensions, then start utilizing the pensions of the House, Senate, and Supreme Court. I doubt that once you start down this road, that your theft of Americas retirement funds will continue for very long. If you want to set an example this is the route that you should follow. Otherwise keep your Dammed fingers out of our pie!

  • http://com i41

    BooHoo, I have called several Sen and Rep offices and ask their staff why the retired and their pensions and benfits are not being slashed. Only Michelle Backman has replied and said live time retirement of all federal employees need to be more right what private business does and wages should be returned to what the average citizen gets. I’m waiting for my elected smucks to wander around the state durning the summer on taxpayers dime, we have not had any dems show up in over 2 1/2 years so I doubt they will show since they only have by invatation meeting and only allow hand picked questions even from local papers. I want to ask why they are such bunch of overpaid leeches who don’t live off of social security as citizens have to?

  • chuckb

    james, how did they get here? it works in both directions. the catholic church archdiocese in los angeles should be a benefactor in seeing that the huge population in los angeles gets a ride back to the border. cardinal mahoney has instigated hundreds of thousands if not millions of illegals to come to the city, so let them help these people back to their home country.
    we should refuse them welfare, jobs and schooling. the politicians only interest in these people are the votes they can produce. barry would have closed the border in a minute if there was no chance of getting their vote. as it stands they are the ticket for barrys re-election.

    all the bleeding hearts should donate to feed and clothe these people who are concerned for their welfare, it’s not the tax payers responsibility. the majority of these people have no concern for the law or our country, their allegiance lays with mexico, so send them back before they get homesick.

  • Fed Up in Texas

    The government got us into this mess….let them get us out….I say pay ALL congresspersons and Senators minimum wage and NO retirement benefits and that will save billions…..they are up there to serve US , NOT themselves….it’s supposed to be an honor , not a lifetime JOB !

  • Raymond Babcock

    i have my faith all we need to do go to your secert place and ask god to save us god will open the windows of heaven and we not be abel to recive the blessing god will send

  • Constance

    What a mess we are in and the average citizen knows nothing about it. When I tell them the value of the dollar keeps going down and other countries want to start a new federal reserve currency, people can’t believe it. It never happened before, so they think it can’t happen. Most people worryinng about this are investors and those who actually watch their “portfolio” and get on the internet to see what is going on. MSM will never tell us the truth. They are like entertainment and a waste of time. Boehner better not agree to push the deficit up again. He must be one of those Bilderburg or in the Trilatel Commission – something like that. He better listen to the majority or eventually I hope we get him out. May God have mercy on our country. The One World People want chaos by pushing immorality (gays, abortion, birth control, eugenics, etc.). We are playing right into their hands. Obama is a communist and I am pretty sure their puppet!

  • Bill

    Lets put it this way! You max out your credit card (s) you can’t pay any more for anything, you are maxed out. You call the bank and the bank raises your credit limit 5000 more dollars. You take your credit card and use up that 5000 dollars. Now you couldn’t pay down your debt before you got your credit raised, how would you pay an additional amount toward your debt. You have either got to cut your expenses some way or another, like sell your house, car, boat, guitar, cash in your insurance policies, or what ever but you have got to cut your expenses or….you could rob money or property off your fellow citizen and attempt to pay off your debt. The government find the latter way the most expedient. Just take it off the citizens. Raise the taxes, especially from the rich,to pay off the debt or just to stay afloat. Now the rich, or business people, have to borrow more money to make payroll or to just stay in business or they have to lay off people to get rid of some expense, Now the people being layed off are out of work and have to use up their saved money or property, (same thing), to stay alive or they can go to the bank and borrow more debt which puts them further into debt or they go the the government hand out unemployment line, bread line, soup line, welfare line or what ever other line to stay alive. In order to keep all these lines moving the govennment of course has to tax people and businesses more to these lines moving which puts the nation into further dept so they have to raise the debt ceiling again so that they have to borrow more money that puts them further….Get it? Great! Don,t get it, get!

  • James A.

    Good description of what is going on today. There is another way as well which was used by Germany in the 1920s to pay off their war debt from WW I. Inflate the money supply by declaring that more “liquidity” is needed in the economy! Mr. Bernake is doing that right now. He is calling it “quanitative easing”. The debt will still be there, but it can be paid off in dollars that aren’t worth much. It is an effective way to rob those who have put away savings for retirement and medical care. I have talked to elderly Germans who were victimized by that method. We are seeing the effect already in higher oil prices. The arabs know that the dollars are being inflated.

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