Government out of money, but still spending?
'Treasury's latest debt scam'
Geithner borrowing money from retirement accounts to leverage hike
With the $14.3 trillion debt limit reached today, Treasury Secretary Timothy Geithner began borrowing money from a new source – government worker retirement funds.
The organizer of a grass-roots campaign to persuade Congress to deny any hike in the debt limit sees the action by the administration as a trap – what he calls "Treasury's latest debt scam."
"The goal of Barack Obama and Geithner is to force Congress' hand to raise the debt limit," says Joseph Farah, who created the "No More Red Ink" campaign. "The latest trick by Obama and Geithner is to steal money from retirement accounts that must be repaid. They'll do anything not to curtail current and future spending levels. It's a shell game designed to coerce Congress to allow unlimited borrowing."
Farah explained the more Geithner is allowed to borrow, the more raising the debt limit is perceived as a necessity – if only to repay money confiscated from other funds.
"If Washington is given an unlimited credit card again, Congress' constitutional role in setting spending is thoroughly eroded," said Farah. "That's the goal. There is no need for Congress to pass tax increases, because skyrocketing debt will force responsibility for government's reckless spending on taxpayers through inflation and future tax increases. It is as if government has invented a new way to fund itself without being accountable to the people."
Farah says there is an answer – convincing House Republicans to take a stand through the "No More Red Ink" campaign.
There is only one way to stop this abuse of the Constitution with certainty," said Farah. "That is to persuade Republicans in the House of Representatives to say no to any hike in the debt limit. Anything short of that just keeps the nation on this repeating cycle of binge spending and ever-escalating debt. We can't possibly borrow our way out of this economic morass. We can't solve a borrowing problem with more borrowing."
Click here to learn more about the "No More Red Ink" campaign.
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