- Woman sleeping in car accused of attacking Cape officer (7/26/16)13
- Seeking new history: Centurion Development buys former Woolworth building at 1 N. Main St. (7/28/16)5
- Prosecutor says shooting by state trooper was justified (7/24/16)15
- Cape resident gets seven years in prison for shooting at man (7/26/16)1
- Former Scott City mayor refutes claims made about loss of curbside recycling pickup (7/26/16)
- Burglary of trailer leaves its residents homeless (7/27/16)4
- Golden Corral coming to Cape; may hire 100 workers (7/21/16)10
- Police: Child's video revealed stepfather's abuse of sibling (7/28/16)3
- Foot plots provide habitats and nutrition to attract wildlife, grow populations (7/18/16)
- City may spend extra park tax money on Cape Splash, skate park, other projects (7/25/16)10
U.S. Treasury to dodge default
WASHINGTON -- The Bush administration plans to shift billions of dollars of civil service retirement funds to non-interest-bearing accounts this week in a move to prevent the federal government from defaulting on the national debt.
The Treasury Department's action, announced Tuesday, would free up room for more government borrowing.
Peter Fisher, Treasury's undersecretary for domestic finance, said the juggling of funds could start today or Thursday.
The move is necessary because Treasury's request to extend the government's authority to borrow has been mired in a political fight on Capitol Hill. Lower than expected tax payments are putting a big squeeze on the government's cash flow.
Treasury Secretary Paul O'Neill has repeatedly asked Congress to boost the debt limit by $750 billion. The limit now stands at $5.95 trillion.
The juggling of federal retirement accounts will not harm federal employees' retirement next eggs, Treasury officials said.
Treasury dodged a default in April by temporarily shifting funds from the government securities retirement account.