The Treasury Department is having to use “extraordinary measures” to offset hitting the debt ceiling, and that includes using money from the G Fund to help pay for government operations.
Borrowing money has become commonplace for the federal government to fund its operations. What is this likely to mean for future tax rates? The author provides an analysis.
What impact does the debt ceiling have on Social Security? Social Security will have money to pay the check. Will the rest of the government will have the money to mail it?
As we quickly near the latest debt ceiling limit for the federal government, the G fund will again by eyed as a temporary way to continue government spending.
The TSP issued a statement saying that balances in the G fund will be unaffected by the recent steps the Treasury has taken to avoid hitting the debt ceiling.
The debt ceiling limit will again be reached on February 7th so the government will take “extraordinary measures” to fund the government. This means that retirement assets of federal employees, including the TSP G fund, will again be used to help fund government expenses.
Investors in the TSP’s G fund could be considered patriots for having their retirement investments used to help with the nation’s debt. Unfortunately, it isn’t voluntary as the government uses these funds to finance the debt because it has the authority to do so.
Another few months have passed since the debt ceiling was raised and time for another raise in our debt. How will your retirement annuity payments and your G fund investments be impacted?
Treasury Secretary Timothy Geithner said that the government has begun borrowing from the federal employee pension fund to keep operating without passing the approaching debt limit.
TSP Executive Director Greg Long said in a recent letter to TSP participants that in the event of hitting the debt ceiling, it is possible that the government can use money from the G fund to help pay the federal debt.