Obama dips into US retirees' funds
US: The US administration has temporarily halted payments to the
retirement and federal pension accounts of workers after the government
hit its debt limit. The American administration has also begun to dip
into federal worker pension funds after reaching the United States'
$14.3 trillion debt ceiling on Monday. The latest development prompted
the government to start borrowing from pensioners, Treasury Secretary
Timothy Geithner informed US Congress, DPA reported.
Geithner sent a letter to Senate Majority Leader Harry Reid, warning
that the government can move money around for about 11 weeks but if a
new debt ceiling is not agreed to by August 2, the US government could
effectively default on its obligations to its creditors. He also warned
of "catastrophic economic consequences for citizens." "We're trying to
figure out what to do about the budget. The situation creates an urgency
to do something to the budget in order to get that debt ceiling
increased.
Government pensions or agriculture will probably see a lot of
changes, to make us able to lift that debt ceiling," said Maya
McGuineas, the head of the Committee for a Responsible Federal Budget.
Wednesday,Presstv
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