Does the Tea Party owe approximately $378 Million in Interest?

By Patricia L Johnson

The consequences of default on U.S. Government obligations would be so horrific that U.S. law allows the Treasury Department to utilize various methods to avoid default, including suspending investments into the Civil Service Retirement and Disability Fund and eliminating daily reinvestment of the G fund.

Federal law (Sections 8348 and 8438 of U.S. Code Title 5) then requires the Treasury Secretary to reimburse both the G Fund and the Civil Service Retirement Fund once the debt ceiling issued is resolved, including paying back any interest that was lost on the investments.

According to an article in Government Exec, Tom Trabucco, Director of External Affairs for the Board, estimates the interest to be approximately $378 million dollars.

The report on the May 16, 2011 through August 2, 2011 debt limit suspension period will soon be sent to the Federal Retirement Thrift Investment Board.

Advertisements
This entry was posted in Economy, Government, National Debt, News and politics and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s