Geithner Taps Into Pensions as US Hits Debt Ceiling

Monday, 16 May 2011 10:39 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
WASHINGTON– U.S. Treasury Secretary Timothy Geithner told Congress he would start tapping into federal pension funds on Monday to free up borrowing capacity as the nation hits the $14.294 trillion legal limit on its debt.

The U.S. Treasury will issue $72 billion in bonds and notes on Monday, pushing the nation right up against its borrowing cap at some point during the day, a Treasury official said.

Geithner said he would suspend investments in two government retirement funds to give the U.S. Treasury additional room to borrow.

"I will be unable to invest fully" in the civil service retirement and disability fund and the government securities investment fund, he said in a letter to congressional leaders.

The Treasury has said the suspension of the investments and other measures it could take would give the government until about August 2 before it will start defaulting on obligations, such as paying bond investors.

Congress is in charge of increasing the debt ceiling, but Republicans are demanding deep cuts to federal spending for the price of their support in doing so.

Geithner reiterated previous pleas for action. "I again urge Congress to act to increase the statutory debt limit as soon as possible," he said.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama at Fundraiser: 'The World's Always Been Messy'

Friday, 29 Aug 2014 19:39 PM

President Barack Obama told a group of Democratic donors today that despite turmoil in Ukraine and Iraq the U.S. faces l . . .

Harry Reid's Alma Mater Strips His Name from Building

Friday, 29 Aug 2014 16:31 PM

Southern Utah University, where Senate Majority Leader Harry Reid went to school, is stripping his name from one of its  . . .

Judicial Watch: 'Imminent' Terror Attack Warning on US Border

Friday, 29 Aug 2014 15:16 PM

Islamic State and al-Qaida terrorist cells are operating in a Mexican border town and are plotting to attack the United  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved