logo

US Shutdown – “Playing With Fire”

TAGS:     

THEME:   NATION

By SisiBroad | October 6, 2013 7:49 pm

The shutdown situation is a product of the US democratic system. The President Obama is both head of state and head of the federal government, without a guaranteed majority in either of the legislative bodies where new laws are debated and voted upon.

The shutdown situation is a product of the US democratic system

The shutdown situation is a product of the US democratic system

It’s the first shutdown since 1995-1996, when Bill Clinton and the House of Representatives (and its speaker, Newt Gingrich) also failed to agree on a budget to fund federal services. That row ran for 28 days (over two stages).
But it was a more regular event in the 1980s, usually for a few days at a time. In total, the US government has partially shut down on 17 occasions before today.

Moody’s Analytics reckons that a two-week shutdown would cut 0.3% off US GDP, while a month-long outage would knock a whole 1.4% off growth.

America has a legal limit on its borrowing of $16.7tn dollars, and it’s likely to hit that point in mid-October. U.S. Treasury Secretary Jack Lew accused Congress of “playing with fire” over an approaching deadline to raise the debt ceiling, as Republican opponents of the White House vowed to not pass a clean bill over the issue.

Lawmakers have until Oct. 17 to increase the government’s borrowing limit, or face an embarrassing default on its sovereign debt for the first time in history – a development that experts say could reverse the fragile U.S economic recovery.

Analysts at IHS Global Insight have calculated that it will knock $300m a day off US economic output (total US nominal GDP, or output, was around $16 trillion last year).

If a deal isn’t reached, then America would run out of borrowing room, meaning the world’s biggest economy would default on its debts. Both problems need solving – and a shutdown is now eating into valuable time to fix the debt ceiling.

Analysts anticipate a break in the stalemate in the next couple of weeks, but if that doesn’t happen and America begins to default of its debt, the consequences could be catastrophic.

top_banner PRINT THIS

Comments are closed.

  • PLACE YOUR LISTINGS
  • RED LIGHT CAMERAS

  • MTA UPDATES

  • rek1
  • rek2
  • OUR WRITERS

    SokSok
    Jan OvlandJan Ovland
    Ann TyllerAnn Tyller
    SisiBroadSisiBroad
    Dan BartDan Bart
    Serge KSerge K
  • RSS Top News

    • This RSS feed URL is deprecated November 19, 2017
      This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
    • Satellite Calls Yield No Clues on Missing Argentine Submarine - U.S. News & World Report November 19, 2017
      U.S. News & World ReportSatellite Calls Yield No Clues on Missing Argentine SubmarineU.S. News & World ReportAn Argentine Coast Guard ship is seen at at the naval base where the missing at sea ARA San Juan submarine sailed from, in Mar del Plata, Argentina November 18, 2017. REUTERS/Marcos Brindicci Reuters. By Walter Bianchi. MAR DEL […]
    • Jeffrey Tambor Departs 'Transparent' Amid Sexual Harassment Allegations - Variety November 19, 2017
      VarietyJeffrey Tambor Departs 'Transparent' Amid Sexual Harassment AllegationsVarietyJeffrey Tambor, who played Maura Pfefferman on Amazon's “Transparent,” has exited the series amid sexual harassment allegations against the actor. “Playing Maura Pfefferman on 'Transparent' has been one of the greatest privileges and creative ...Jeffrey Tambor Announces He's Leaving Transparent Amid Sexual Harassment AllegationsPEOPLE.comJeffrey Tambor Exits 'Transparent' After Sexual […]
    • Border agent dies after being injured in Texas - ABC News November 19, 2017
      Fox NewsBorder agent dies after being injured in TexasABC NewsAuthorities are searching Texas' Big Bend area for potential suspects and witnesses after a U.S. Customs and Border Protection agent was fatally injured responding to activity there. Border Patrol spokesmen said they could not provide any details ...Border Patrol agent dies after suffering severe injuries on […]
    • Richard Sherman calls out Bills after Peterman's INTs - NFL.com November 19, 2017
      NFL.comRichard Sherman calls out Bills after Peterman's INTsNFL.comThe Bills were widely questioned for their decision to bench quarterback Tyrod Taylor this week. One can imagine the Buffalo braintrust is having second thoughts right about now. Rookie Nate Peterman threw five interceptions in the first half of Sunday ...Tyrod Taylor back at quarterback for BillsNBCSports.comBills' Nathan […]
  • RSS NYC Latest News


  •