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

    • Debbie Wasserman Schultz Aide Arrested Trying to Flee the Country - NBCNews.com July 26, 2017
      NBCNews.comDebbie Wasserman Schultz Aide Arrested Trying to Flee the CountryNBCNews.comAn aide for Rep. Debbie Wasserman Schultz, D-Fla., was arrested Monday night attempting to flee the country and charged with bank fraud, officials said. Imran Awan, 37, was arrested by FBI agents and U.S. Capitol Police at Dulles International Airport ...Wasserman Schultz fires IT staffer following fraud […]
    • Senate Health Care Vote: Where the Debate Left Off and What Happens Next - New York Times July 26, 2017
      New York TimesSenate Health Care Vote: Where the Debate Left Off and What Happens NextNew York Times... • The Senate is scheduled to vote on Wednesday afternoon on a proposal to repeal major parts of the Affordable Care Act without providing a replacement. • President Trump lashed out Wednesday morning at Senator Lisa Murkowski of […]
    • Trump launches new attacks on Sessions - Washington Post July 26, 2017
      Washington PostTrump launches new attacks on SessionsWashington PostPresident Trump renewed his attacks on Attorney General Jeff Sessions Wednesday, questioning on Twitter why the top U.S. law enforcement official had not replaced the acting FBI director — a move that Trump himself has the authority to do. In two ...Republican Senators Steamed Over Trump Attacks Back […]
    • Listen to Russian pranksters trick Rick Perry into a conversation about pig manure - Washington Post July 26, 2017
      Washington PostListen to Russian pranksters trick Rick Perry into a conversation about pig manureWashington PostIt was a winding, wonkish and occasionally obscure conversation about foreign coal exploration, natural-gas pipelines and pig manure as a power source. But only one of the men on the line — Energy Secretary Rick Perry — held sway over his […]
    • Trump Says Transgender People Will Not Be Allowed in the Military - New York Times July 26, 2017
      New York TimesTrump Says Transgender People Will Not Be Allowed in the MilitaryNew York TimesPresident Trump arriving with the first lady, Melania Trump, in Vienna, Ohio, for his rally on Tuesday. Credit Doug Mills/The New York Times. WASHINGTON — President Trump announced on Wednesday that the United States will no longer “accept or allow” ...Hill Democrats […]
  • RSS NYC Latest News


  •