A few days ago, Treasury Secretary Timothy Geithner told Congress that the federal government would reach its debt limit at the end of this year. As of January 1st, Secretary Geithner will be taking “extraordinary measures” to buy another two months’ time for Congress to resolve its self-created fiscal cliff/debt limit crisis.
What are those “extraordinary measures”? Almost all of them involve using the retirement funds of federal employees and postal workers to create artificial “headroom” under the debt limit. You can read the details here.
Create your own fiscal crisis… then use it as justification to borrow from employees’ retirement funds (while complaining that long-promised retirement benefits are “not affordable”). That’s what politicians tried to do here in New Hampshire, back in the early 1980s.
We’re having déjà vu all over again, watching the same scenario play out on the national stage all these decades later.
As of Tuesday, federal and postal employees’ retirement funds will become “headroom” under the debt limit. Maybe the extra two months will give Speaker Boehner time to reconsider the GOP’s allegiance to the ultra-rich. Maybe it will give Congress time to fix the crisis it created.
In the meantime: to all those federal employees and postal carriers out there, “Thanks for the headroom!”
Read more about political attacks on federal employees here.
Read more about political attacks on the US Postal Service here.