They never come out and tell us the truth; there’s always either spin or a coverup.
Is this shutdown to create anarchy when people don’t get social security checks, food stamps, etc.?
OR, is it their way of saying they are being removed from power? If so, of course they are not going to tell us why. I guess we’ll soon find out, but I hope you took the advice you were given and stocked up on essentials, food, meds, gas, etc., to prepare for anything. Just WHAT will happen is anyone’s guess. – BP
I hope this announcement helps the masses understand the government is broken beyond repair. Raising the debt ceiling, or cutting Obama care is not going to fix it. It’s time for the old to come crashing down…it’s the only way something brand new can be created.
House Republicans were demanding that the Senate negotiate their calls for a one-year delay in making millions of people buy health insurance under President Obama’s 2010 health care law. Minutes before midnight — the end of the financial year in the US — the White House ordered a shutdown.
The shut down impacts Americans’ ability to get government services ranging from federally-backed home loans, services for veterans, to supplemental food assistance for children and pregnant women.
For many Americans who are civilian employees of the federal government, it means no more pay checks as they’re forced onto unpaid leave. For those still working, it means delays in getting paid.
Some workers are allowed to work a few hours on Tuesday to change voicemail messages or fill out time cards. But after that, they’re under strict orders to do no work, even check their email.
And for the economy as a whole it spells disaster. The country is still struggling with high unemployment and consumer sentiment is waning.
The last time the federal government shut down, for three weeks in the winter of 1995-96, the American economy felt a jolt but recovered quickly. But this time, the country is in a far more fragile state.
Markets are likely to be traumatized if there is no quick solution to the next fast approaching crisis.
Christine Lagarde, who took over the financial watchdog-and-rescue organization in 2011, said global finance ministers assembled for meetings in Washington last week feeling like Japan had finally turned the corner and that economies in the U.S. and Europe were on the upswing.
“And then they found out that the debt ceiling was the issue,” she said Sunday on NBC’s “Meet the Press.” “They found out that the government had shut down and that there was no remedy in sight. So it really completely transformed the meeting in the last few days.”
Ms. Lagarde, a lawyer from France, added a global perspective to the standoff that has roiled Washington for weeks and befuddled overseas investors who typically view the U.S. as a paragon of financial rectitude.
“Creative accounting is not the solution,” she said, “and markets know that.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping yet again into a recession.”
The United States has to get serious about entitlement spending down the road, but slashing spending in the near-term could be counter productive, she said.
When it comes to the U.S. economy she said, the IMF tends to say, “Hurry up, but slow down.”
“Hurry up because measures have to be taken now to deal with entitlements, as you suggested, because there is a level of entitlement coming up and big liabilities coming up as well in terms of interest payment,” she said. “But we say slow down because the point is not to contract the economy by slashing spending brutally now as recovery is picking up.”
The assumption that our various obligations can be paid is a fantasy. No mention is made in the mainstream media about that fact that our $17 trillion economy is wholly insufficient to service debts and future obligations. Nominal GDP is not a measure of the ability to retire debt. Just as revenues do not equal profits or salaries equal net paychecks, obligations can only be repaid with the net, not the gross.
At the family level, people need food, shelter etc. The same is true for the nation as a whole. So take a fraction of that much touted number, and that is what is available, at best, to pay for our annual deficits, let alone retire future obligations. The math is inescapable. The current system is done. Reset is our only remaining option. The only question is whether we suffer through the traditional hyperinflation if we choose to push the fantasy out a few more years, or if we do the reset soon? We will have too sit back and wait for that answer.
Meanwhile, China reported record accumulations of gold, iron ore, copper and oil.