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U.S. Cannot Fund Debt Suspends Payments!
Looks like bookkeeping tricks are propping up the US from defaulting!Just like Greece!
http://cnsnews.com/news/article/terence-p-jeffrey/90-days-treasury-says-debt-has-been-frozen-18112975000000
serf
As you know, in February 2014, Congress passed the Temporary Debt Limit Extension Act, suspending the statutory debt limit through March 15, 2015," Lew said in his March 13 letter. "Beginning on Monday, March 16, the outstanding debt of the United States will be at the statutory limit. In anticipation of reaching that date, Treasury has suspended until further notice the issue of State and Local Government Series securities, which count against the debt limit."
State and Local Government Series securities, says the Congressional Research Service, are "customized securities available for state and local governments to hold proceeds of bond sales." They are considered part of the federal government debt that is held by the "public."
"Because Congress has not yet acted to raise the debt limit," Lew said in his March 13 letter, "the Treasury Department will have to employ further extraordinary measures to continue to finance the government on a temporary basis. Therefore, beginning on March 16, I plan to declare a `debt issuance suspension period' with respect to investment of the Civil Service Retirement and Disability Fund and also suspend the daily reinvestment of Treasury securities held by the Government Securities Investment Fund and the Federal Employees' Retirement System Thrift Savings Plan."
http://cnsnews.com/news/article/terence-p-jeffrey/90-days-treasury-says-debt-has-been-frozen-18112975000000
serf
As you know, in February 2014, Congress passed the Temporary Debt Limit Extension Act, suspending the statutory debt limit through March 15, 2015," Lew said in his March 13 letter. "Beginning on Monday, March 16, the outstanding debt of the United States will be at the statutory limit. In anticipation of reaching that date, Treasury has suspended until further notice the issue of State and Local Government Series securities, which count against the debt limit."
State and Local Government Series securities, says the Congressional Research Service, are "customized securities available for state and local governments to hold proceeds of bond sales." They are considered part of the federal government debt that is held by the "public."
"Because Congress has not yet acted to raise the debt limit," Lew said in his March 13 letter, "the Treasury Department will have to employ further extraordinary measures to continue to finance the government on a temporary basis. Therefore, beginning on March 16, I plan to declare a `debt issuance suspension period' with respect to investment of the Civil Service Retirement and Disability Fund and also suspend the daily reinvestment of Treasury securities held by the Government Securities Investment Fund and the Federal Employees' Retirement System Thrift Savings Plan."
Comments
I never heard of the issue....WOW.
Something only a politician would think of. Sell the people on the idea of taking on debt by enacting a law that only kicks in when the time arrives to pay up. That way they get to pretend that someone else is responsible for spending the money while they pretend to be "Fiscally Responsible" by refusing to pay a bill they were responsible for in the first place.