... Say, at a downtime in the market like this, you have all of your money in the G fund and it totals over $100,000. Is it insured? Are there any safeguards to keep it from being liquidated if the banking system fell apart?
The "G" fund is U.S. Government treasury notes. It is backed by the full faith, and (taxing ability), of the United States Government. As long as the United States Government doesn't go bankrupt (here that Geroge? ) then you will get paid in Federal Reserve Notes.
The TSP is officially still a U.S. Government Agency, and therefore as long as the U.S. Government continues to exist, (remember, Congressmen and Senators also have TSP funds, so the chance of them deciding to phase it out is pretty remote), and as long as the Bureau of Engraving and Printing continues to print "Federal Reserve Notes", you should be able to get "Federal Reserve Notes" given to you for all the digits in your G fund.
Congressman hold TSP accounts. Senators hold TSP accounts. The President holds a TSP account, and the U.S. Supreme Court judges all are eligible for a TSP account.
And yes, the guys and gals who print the notes every day, the hard-working men and women of the Bureau of Engraving and Printing, all hold TSP accounts.
So they ALL have an incentive to make sure the TSP cannot fail- at least not your G fund. It won't fail. Ever. period. As long as the U.S. Government exisits.
Note: I did not say money.
We are no longer on the gold standard (as Ron Paul points out regularly), so what we exchange today is simply peices of paper that have had the Bureau of Engraving and Printing place some pretty pictures on.
As long as everyone agrees to accept the little pieces of paper with pretty pictures on them, you'll be o.k.
If that stops- well, then we have bigger problems to wonder about, now won't we? :nuts:
To see your Bureau of Engraving and Printing at work, making those cute little pieces of paper with pretty pictures, see:
http://www.moneyfactory.gov/
