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US government shutdown

theserpent

Firecracker to the moon
The U.S. government could close its doors Tuesday if Congress can’t reach a deal on a temporary spending budget bill, and that would jeopardize the paycheques of more than 800,000 Americans, as well as the country’s economic recovery.

It's political bickering between Democrats and Republicans in both the Senate and the House of Representatives, along with Republican in-fighting, that has brought the country to the brink of a shutdown yet again.

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Once more, the U.S. Congress is deadlocked on a temporary spending bill that needs to pass in order to keep funding the federal government's operations, its employees and the services they provide.

Congress hasn’t passed any of the annual bills that fund various government agencies, so it has had to rely on stopgap measures that are known as continuing resolutions. The government needs to pass another one as soon as possible to keep the cash flowing beyond Sept. 30.

hi-obama-852-03912752
The battle started with a House vote to pass the short-term funding bill with a provision that would have eliminated the federal dollars needed to put President Barack Obama's health care overhaul into place. (Associated Press)

A government shutdown won’t mean the entire country will grind to a halt, but it will have an impact on the daily lives of Americans.

The rules governing a shutdown say federal workers must be classified as essential or non-essential, so that key government functions can carry on in the event of a fiscal crisis.

Air traffic control, the military, prisons, border security, mail delivery, anything related to national security and public safety, social security cheques, emergency medical care, and food safety inspection are examples of things that would be unaffected.

So what would happen?

Passports, other services could be on hold

Some 800,000 government workers could be told to stay home and go without pay. However, they might get paid retroactively once the shutdown ends.

Those missing paycheques would have an impact on individual bank accounts, but depending on how long the shutdown lasts, the loss of income could also affect the broader economy. The affected public servants would essentially be unemployed, pumping less cash into an economy that very much needs it.

The economy would also take a hit because it costs money to prepare for a shutdown, to carry it out, and start the government back up again. The last two shutdowns, which took place weeks apart in late 1995 and early 1996, cost taxpayers $1.4 billion, according to estimates from the Office of Management and Budget.

The shutdown would also mean an interruption in services. Visa and passport applications, for example, wouldn’t be processed.

Parks and museums could be shuttered

And the tourism industry would take a hit. Anyone planning a weekend getaway to one of the country’s 400 national parks would have to come up with something else to do, for example, since those parks would be closed. Tourists in Washington, D.C., in particular would have fewer options because most of the city’s famous museums would be shuttered.

Closing tourist attractions would also mean less revenue for the government from things like national park user fees.

A shutdown would also mean that small business loans would not be processed, government-backed insurance for home loans would not move forward, and some tax refunds would pile up.

Residents of D.C. would likely feel the effects the most. The capital city’s local government depends on the federal government for permission to spend money. A shutdown could mean city services such as garbage collection, street cleaning, motor vehicle offices, and libraries would be on hold or closed.

The city's mayor, Vincent Gray, is trying to get around the problem by declaring all of the local government “essential.”

Debt-ceiling crisis also looming

The potential government shutdown isn’t the only fiscal crisis looming for the U.S. The other is the debt ceiling, which is far more concerning.

Under U.S. law, the government must stay below a certain debt limit and Congress must pass legislation to allow the government to exceed that limit. If it doesn’t, the government can’t pay its bills and would have to default on its legal obligations.

That would have "catastrophic" consequences on the economy, according the the U.S. Treasury, which expects the government to reach the debt ceiling — currently sitting at around $16 trillion — by mid-October.

The U.S. federal government has never defaulted before so no one knows exactly how severe its effects could be, but there’s little doubt it would cause severe economic damage.

Congress has until Oct. 17 to figure out a plan for the debt ceiling, and until midnight Monday to deal with the budget spending bill. The clocks in Washington are ticking loudly.

U.S. government shutdown: What to expect if it happens - World - CBC News

World economy is screwed
 

Flash

Lost in speed
Re: u-s government shutdown

It will set out a Chain reaction, in the depending countries like China, India, etc..,

Time for "White House Down 2"..
 

Hrishi

******************
Re: u-s government shutdown

These guys spend so much on military expenditure , it makes the Entire Budget of any medium sized economy appear tiny.
Sometimes I really feel that there is a need for global economies to stop spending so much on arms and ammunition. Not sure if that is possible , but something like that can really change the shape of world.

I agree with the comment this guy wrote on that page . :
Quoting it directly.
The problem with U.S.'s weak economy is not only high debt, but high labour cost. 60 years' robotic strong economic boom since the end of WW2 has driven labour cost to unprecedented high level. Imagine a mechanical repair job charges $100 per hour? In under developing countries, people will be jumping for joy if they make $10 per day. Inter-national companies operate anywhere in the world where cost is lowest and profit highest, so we cannot blame outsourcing as the culprit for our weak economic growth. I guess the only way for U.S. to be strong again is not only the eradication of national debt, but wage roll back 1:10 to make U.S. more competitive in the world. But would you accept $2.60 per hour pay while you are being paid $26 per hour? No one would. So we have to wait until wages around the world rise significantly to our level. When average Chinese wage rise to only $3 an hour, some of the inter-national companies has already moved out of China into other under developing countries where labour cost is only under $1 an hour. It will be a very long time before those companies will come back to America.

There is no doubt that outsourcing is killing the Murican economy , and the very reason quoted above holds true.
The problem is that our country is highly dependent on their economy , so if anything bad happens there , we are in line for it.
 

Minion

Conversation Architect
Re: u-s government shutdown

Another economic crisis this time it will badly hurt us.
 

Ronnie11

Judgement Time!!
Re: u-s government shutdown

Another economic crisis this time it will badly hurt us.

Relax people..nothing of that sort is happening...the biggest hurdle here is the obama health care exp in the budget...will be resolved soon..they will crack under pressure
 
OP
theserpent

theserpent

Firecracker to the moon
Re: u-s government shutdown

But if US economy goes down?Won't investors actually prefer Investing In India? And Rupee will strenghten ?
 

Ronnie11

Judgement Time!!
Re: u-s government shutdown

But if US economy goes down?Won't investors actually prefer Investing In India? And Rupee will strenghten ?

US economy is on an upward trajectory..For investors investing in India is considered riskier than the U.S markets(hence the rupee depreciation).
About the US shutdown, if the shutdown last for about 2 weeks or more will the effects be seen as US will default on its payments.The US dollar depreciated today against all major currencies including INR(62.46)..Gold prices have crashed now and so have crude prices..IMO this wont last long.Its more of a ego battle between the two parties.The major issue is the obama healthcare program which the republicans are against...under pressure they will allow increase in debt ceiling.
 

Extreme Gamer

僕はガンダム!
Vendor
Re: u-s government shutdown

increase in debt ceiling.

Effectively allowing the US to behave like a credit card without any spending limits :|

The dollar standard is the only reason US monetary policy allows them to survive the way they do.
 

Desmond

Destroy Erase Improve
Staff member
Admin
I am glad our country is still functioning normally in spite of all the **** that's going on.

I don't think the shutdown will last for more than a couple of days. Just until the congress comes to terms and releases the budget.
 

amjath

Human Spambot
I am glad our country is still functioning normally in spite of all the **** that's going on.

I don't think the shutdown will last for more than a couple of days. Just until the congress comes to terms and releases the budget.

It is not running normal, job openings are lesser. IT industries are struggling get projects and intake has stopped.
 

bssunilreddy

Chosen of the Omnissiah
They have started to realize that war mongering is in fact bringing them debt. Obama has in fact done more good than bad and the fruits are yet to be seen. There is nothing to worry about.
 

Hrishi

******************
But it has not "shutdown".
We can't afford to have one.

They have started to realize that war mongering is in fact bringing them debt. Obama has in fact done more good than bad and the fruits are yet to be seen. There is nothing to worry about.

It's not just the Obama Govt. The govt. before it was also war monger , they have been like that since a few decade. They always want to poke their nose into affairs of foreign nation.

I am glad our country is still functioning normally in spite of all the **** that's going on.

I don't think the shutdown will last for more than a couple of days. Just until the congress comes to terms and releases the budget.

The country runs on "Jugaad".
 

Hrishi

******************
Where do these guys get the money for the war then? Am I missing something? :|

Tax payer's money . USA has huge military budget. Last time I read it was somewhere around 750Billion USD.
Which is close to 40% of World's entire military budget and almost 1/3rd of India's GDP.!!!!!!
 
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amjath

Human Spambot
Tax payer's money . USA has huge military budget. Last time I read it was somewhere around 750Billion USD.
Which is close to 40% of World's entire military budget and almost 1/3rd of India's GDP.!!!!!!

Also they sow all the money for the war and they reap XXXX times of it after war. Short time lose, long time gain
 
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