WASHINGTON — Treasury Secretary Jacob Lew told Congress on Friday that he'll once again have to take measures to keep the federal government under the legal debt limit after a suspension of the limit expires Sunday.
The Treasury Department explained its measures in a five-page document sent to Congress with Lew's letter. In it, the department specifically ruled out other alternatives — like selling off government assets to stay under the debt limit.
"Selling the nation's gold to meet payment obligations would undercut confidence in the United States both here and abroad, and would be extremely destabilizing to the world financial system," the Treasury Department said. Also ruled out: Selling the remainder of Treasury stock in institutions bailed out during the financial crisis, or selling its portfolio of student loans.
IF the nation has any gold...lol...
The Treasury Department may have more room to maneuver this time compared to previous debt limit crises. The Civil Service Retirement and Disability Fund, a pension fund for federal employees, will receive $46 billion on June 30 when an investment matures. Treasury will take that money to pay for current expenses, essentially borrowing from the federal pension plan.
In essence, the govt is borrowing from the govt to pay govt debt? Did I get that right?? What happens when they start taking the stash from Social Security and other federal pools?
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