Treasury Borrowing from G-Fund

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ksmoly04
Posts: 66
Joined: Thu Oct 06, 2016 2:08 pm

Treasury Borrowing from G-Fund

Post by ksmoly04 »

Just saw this over at Federal News Radio: Treasury eyes TSP’s G fund as stopgap way to avoid debt ceiling.

The quote I loved from this article was:
The G fund, which holds more than $222 billion, would be one of the largest pots of money the Treasury Department could borrow from. In addition, the CBO suggested that Treasury could also suspend its payments to the Civil Service Retirement and Disability Fund (CSRDF) and Postal Service Retiree Health Benefits Fund (PSRHBF).

By law, all three of these funds would eventually be paid back, with interest, after Congress raises the debt limit. A spokesperson for the Federal Retirement Thrift Investment Board, which manages the TSP, said federal employees and retirees will be unaffected by any temporary borrowing measures.

“As always, we want to remind our participants that the G fund will be made whole once the debt ceiling issue is resolved and that participants will not lose a penny, thanks to the statutory protections afforded to the TSP,” she said.
My question based off this is, while I know that there are 'statutory protections,' does anyone really believe that the borrowed funds will truly be repaid? I just see a repeat of the borrowing from the SS & Medicare pots of money with many, many IOUs.
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bad70nova
Posts: 245
Joined: Thu Oct 17, 2013 10:18 am

Re: Treasury Borrowing from G-Fund

Post by bad70nova »

I agree, SS had a large pot of money that they borrowed form and look what happened there. Looks like we might not have a safe place to run on our out of market time. 8 more years till I can dump the tsp and move it to a different place. I sure hope they do not make this move as it will be the one of the L funds for a semi safe haven.

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Treasury Borrowing from G-Fund

Post by cswift01 »

ksmoly04 wrote:Just saw this over at Federal News Radio: Treasury eyes TSP’s G fund as stopgap way to avoid debt ceiling.

The quote I loved from this article was:
The G fund, which holds more than $222 billion, would be one of the largest pots of money the Treasury Department could borrow from. In addition, the CBO suggested that Treasury could also suspend its payments to the Civil Service Retirement and Disability Fund (CSRDF) and Postal Service Retiree Health Benefits Fund (PSRHBF).

By law, all three of these funds would eventually be paid back, with interest, after Congress raises the debt limit. A spokesperson for the Federal Retirement Thrift Investment Board, which manages the TSP, said federal employees and retirees will be unaffected by any temporary borrowing measures.

“As always, we want to remind our participants that the G fund will be made whole once the debt ceiling issue is resolved and that participants will not lose a penny, thanks to the statutory protections afforded to the TSP,” she said.
My question based off this is, while I know that there are 'statutory protections,' does anyone really believe that the borrowed funds will truly be repaid? I just see a repeat of the borrowing from the SS & Medicare pots of money with many, many IOUs.
Funny, you just broke me the punch. I was about to post about this. I was about to think everything was a done deal until I woke up this morning and saw that Jones won. Now, I think there is the question to whether this Trump stimulus will get passed or not and if there will be a ceiling issue...although I hope it would never be used for political leverage again. I can't think of a dumber, worse thought policy than to hold the nation's credit as hostage.

Best,

Me


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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Treasury Borrowing from G-Fund

Post by ArrieS »

bad70nova wrote:I agree, SS had a large pot of money that they borrowed form and look what happened there. Looks like we might not have a safe place to run on our out of market time. 8 more years till I can dump the tsp and move it to a different place. I sure hope they do not make this move as it will be the one of the L funds for a semi safe haven.
Please, tell me what happen there with Social Security? They borrowed money from SS just like they borrow when they issue T-Bills. It's not an interest free loan. The borrowing will prolong SS ability to pay benefits because it is being repaid will interest. Otherwise the money would be sitting there earning nothing.

If you question the money being repaid to the G fund you are questioning if the government will pay its bonds. If that's the case you really need to worry about having a job.
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SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: Treasury Borrowing from G-Fund

Post by SnareMV17 »

First, the TSP G Fund is different than SS or Medicare because it is 100% non-tax-revenue dollars, in other words private investment. The government has absolutely no right to that money and is guilty of theft if they do not pay it back. SS and Medicare dollars however are all tax revenue and technically subject to however government decides to appropriate them. There would be a serious litigation and uprising from federal employees and hopefully the American people at large if something like that happened.

Secondly, the debt limit is a complete joke. They use it as political ammunition several times a year to hold uninformed Americans hostage over Washington's insane spending addictions. It's essentially a bailout of the federal government every time we raise the limit and extends the lack of accountability to even more aggregious proportions each time. So basically, shame on us for letting this continue year after year. Shame on us.
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Bologna13
Posts: 20
Joined: Mon Dec 12, 2016 9:55 pm

Re: Treasury Borrowing from G-Fund

Post by Bologna13 »

Don't believe them. They are thieves.

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evilanne
Posts: 2067
Joined: Thu May 14, 2015 6:52 pm

Re: Treasury Borrowing from G-Fund

Post by evilanne »

ArrieS wrote:If you question the money being repaid to the G fund you are questioning if the government will pay its bonds. If that's the case you really need to worry about having a job.
Good point! There are other issues, like reduced benefits or downsizing, that are more probable. I think downsizing should start with the intelligence agencies based on the current news cycle...seems like Government Intelligence is really an oxymoron these days.

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Treasury Borrowing from G-Fund

Post by Scorpio70 »

It is only a matter of time until many jobs that are computer based in nature are replaced by AI. In the very near future AI will be creating it's own software.

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Treasury Borrowing from G-Fund

Post by cswift01 »

SnareMV17 wrote:First, the TSP G Fund is different than SS or Medicare because it is 100% non-tax-revenue dollars, in other words private investment. The government has absolutely no right to that money and is guilty of theft if they do not pay it back. SS and Medicare dollars however are all tax revenue and technically subject to however government decides to appropriate them. There would be a serious litigation and uprising from federal employees and hopefully the American people at large if something like that happened.

Secondly, the debt limit is a complete joke. They use it as political ammunition several times a year to hold uninformed Americans hostage over Washington's insane spending addictions. It's essentially a bailout of the federal government every time we raise the limit and extends the lack of accountability to even more aggregious proportions each time. So basically, shame on us for letting this continue year after year. Shame on us.
Actually, the debt ceiling is the wrong place for what you mean. They overspend and then the debt ceiling is paying their bills. You mean their budgeting is terrible. I agree. It's looking like 1 trillion reasons to disagree are coming our way soon...

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bamafamily
Posts: 155
Joined: Wed Aug 23, 2017 1:18 pm

Re: Treasury Borrowing from G-Fund

Post by bamafamily »

This whole thing is a farce......
Personally, If I had a $20,000 revolving credit line....and was only making minimum payments.....do you think the sponsoring organization would let me increase my limit because I was getting close to not being able to make my payment??? Hell, no...! They would tell me to find the money somehow and make my payment....
This debt ceiling crutch does nothing but kick the can down the road....until our kids will have to pay for it....Makes me want to retire to a country with more fiscal responsibility....
cswift01 wrote:Actually, the debt ceiling is the wrong place for what you mean. They overspend and then the debt ceiling is paying their bills. You mean their budgeting is terrible. I agree. It's looking like 1 trillion reasons to disagree are coming our way soon...
Bama

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Treasury Borrowing from G-Fund

Post by cswift01 »

bamafamily wrote:This whole thing is a farce......
Personally, If I had a $20,000 revolving credit line....and was only making minimum payments.....do you think the sponsoring organization would let me increase my limit because I was getting close to not being able to make my payment??? Hell, no...! They would tell me to find the money somehow and make my payment....
This debt ceiling crutch does nothing but kick the can down the road....until our kids will have to pay for it....Makes me want to retire to a country with more fiscal responsibility....
cswift01 wrote:Actually, the debt ceiling is the wrong place for what you mean. They overspend and then the debt ceiling is paying their bills. You mean their budgeting is terrible. I agree. It's looking like 1 trillion reasons to disagree are coming our way soon...
To my knowledge, most countries do this like the US. Good luck on finding one that doesn't. ;-)

On the other hand, I am probably one of the few fore-standers of the government taking out loans (just not exuberant loans...like this tax cut which will give cash heavy corporations even more cash https://www.forbes.com/sites/timworstal ... 61fe093374). I like the loans because the government typically borrows to the rate of inflation. The money that it borrows, usually gets disseminated into the economy and sees a higher return, such as food stamps (https://www.theatlantic.com/health/arch ... ps/260015/) or infrastructure spending (http://www.businessinsider.com/infrastr ... er-2012-11). This goes contrary to some people's beliefs that the government is only wasteful and doesn't know how to do things correctly. I guess we'll always disagree on that topic (my statement isn't categorical, there is waste and abuse, naturally).

Thanks,

Me

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