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FIGGY

Is The Usa Really About To Shut Down?

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I dont think it will, but just the whiff of it makes me feel like a school kid

Ugly public posturing raged between Republicans and Democrats Friday, after a budget impasse left the US government within hours of effectively running out of money and being forced to shut down

Through-the-night talks failed to unblock a deadlock on a bill funding the government through October 1, despite President Barack Obama's demand for a deal as time fast ticked away to a midnight (0400 GMT Saturday) deadline.

Should those last-ditch efforts fail, around 800,000 federal employees would be temporarily laid off, paychecks for frontline combat soldiers would be delayed and even Blackberry smart phones of government officials would go dark.

http://uk.news.yahoo.com/18/20110408/tpl-fury-in-washington-as-shutdown-looms-10170b4.html

EDIT lol at the title typo

Edited by FIGGY

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I dont think it will, but just the whiff of it makes me feel like a school kid

http://uk.news.yahoo.com/18/20110408/tpl-fury-in-washington-as-shutdown-looms-10170b4.html

EDIT lol at the title typo

I'm amazed how little coverage there has been of this? Figgy, your original topic title didn't look out of place though :lol:

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The federal government had to shut down non-essential services many, many times in the 70s & 80s. The last time it happened was under Clinton. So it's hardly unprecedented, just hasn't really happened during the 90s & 00s.

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True, but back then it was only a US issue. I would like to think (although I cant see it) that along with Portugal this could act as warning sign about gov debt????

hahhhaaa :D:D sorry just read the above and realised I may have been smoking crack

Edited by FIGGY

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http://www.bbc.co.uk/news/world-us-canada-13015909

"In the event of a shutdown, the US military would continue to operate but troops would not be paid until the deadlock was broken."

This could get messy, citizens who you aren't going to pay but you have given them guns and ammo. I can see a disgruntled tank crew parking on the Whitehouse lawn.

Seems to me America could go all Mad Max in a few weeks.

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This could get messy, citizens who you aren't going to pay but you have given them guns and ammo. I can see a disgruntled tank crew parking on the Whitehouse lawn.

Seems to me America could go all Mad Max in a few weeks.

Highly unlikely. Though having so many public workers not being paid isn't going to do the economy any good. Or house prices..

We'll see how long it goes on for. I suspect after a brief (a week or so) shut-down the Democrats will give in. Then there will be Republican cuts. Which is good news for us HPCers!

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Its a good thing, it reminds US citizens the money to pay for gov comes from taxes. You drive around the US you will see signs like 'Your tax dollars at work'. US citizens know the government is paid for by taxes, where as in the UK the population believe government is payed for by pixie dust

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Its a good thing, it reminds US citizens the money to pay for gov comes from taxes. You drive around the US you will see signs like 'Your tax dollars at work'. US citizens know the government is paid for by taxes, where as in the UK the population believe government is payed for by pixie dust

;)

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Its a good thing, it reminds US citizens the money to pay for gov comes from taxes. You drive around the US you will see signs like 'Your tax dollars at work'. US citizens know the government is paid for by taxes, where as in the UK the population believe government is payed for by pixie dust

Aye.

If i had a pound every time i heard someone saying "the government should pay for that"...

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I maybe wrong here? my calculator only has 12 digits, but the cuts they have been arguing over only represents 10 days of the deficit in total? wow those are some crazy numbers?

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I maybe wrong here? my calculator only has 12 digits, but the cuts they have been arguing over only represents 10 days of the deficit in total? wow those are some crazy numbers?

Yep, the cuts they are haggling over are to all intents and purposes zilch.

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Yep, the cuts they are haggling over are to all intents and purposes zilch.

Is it more than likely those cuts may affect GDP rather than looking at the cuts as hurting services etc? I can't see why when the overall numbers are so large either side would bother haggling over such a small number?

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Is it more than likely those cuts may affect GDP rather than looking at the cuts as hurting services etc? I can't see why when the overall numbers are so large either side would bother haggling over such a small number?

Because they're politicians and can't see the woods for the trees?

It's like the "debate" in this country between the parties over the scale and timing of the cuts (or "cuts"... read further..). We're talking peanuts in the scheme of things. For instance Gordon Brown in the 2010 election campaign banging on about the Tories' £6bn of cuts in 2010/11... which is of course just under 1% of annual government expenditure!!! And yet that was his main plank of attack on the idiot lantern. And many idiots caught on and their numbers are swelling with the predictable mantra of "nasty same-old-Tories cutting for idealogical reasons"... even though all Osborne is planning is reducing the deficit down by removing the "structural" part of it (so not entirely getting rid of it at all!) over a 5-year period. Government spending is set to increase. There will still be a deficit in 2015. The debt mountain continues to grow. But the fecking idiots out there.... :huh:

Edited by Mr Deflation

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Because they're politicians and can't see the woods for the trees?

It's like the "debate" in this country between the parties over the scale and timing of the cuts (or "cuts"... read further..). We're talking peanuts in the scheme of things. For instance Gordon Brown in the 2010 election campaign banging on about the Tories' £6bn of cuts in 2010/11... which is of course just under 1% of annual government expenditure!!! And yet that was his main plank of attack on the idiot lantern. And many idiots caught on and their numbers are swelling with the predictable mantra of "nasty same-old-Tories cutting for idealogical reasons"... even though all Osborne is planning is reducing the deficit down by removing the "structural" part of it (so not entirely getting rid of it at all!) over a 5-year period. Government spending is set to increase. There will still be a deficit in 2015. The debt mountain continues to grow. But the fecking idiots out there.... :huh:

I've seen no hope especially the US ever paying any of it back in real terms, as you say the numbers just grow, the only hope with cuts is to reduce the speed of the growth, although the world could create a hyper inflationary situation that would diminish all those big numbers quite quickly........................................errrrr?

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It's done. They "passed the bill". Bloomberg News

As was mentioned a post or 2 up, it's not quite a done deal.

From the Bloomberg article:- 'the only remaining issue was Republicans’ insistence on canceling funding for the women’s health provider Planned Parenthood, which offers abortions among its services.' The Tea Partyers won't want that spending and may dig their heels in over the weekend.

As a Zerohedge article suggested a few days ago (sorry, no link) don't be surprised to see non essential Government operations shut over the weekend, but be back working by Monday morning. ie. Not really much of a shutdown at all.

Given how thte US dollar has been massacred today in forex trading and the relatively trivial sums of money being fought over, both parties will want to get this sorted after a brief show of muscular posturing.

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I've seen no hope especially the US ever paying any of it back in real terms, as you say the numbers just grow, the only hope with cuts is to reduce the speed of the growth, although the world could create a hyper inflationary situation that would diminish all those big numbers quite quickly........................................errrrr?

Clearly the Fed and BoE are in the game of allowing a couple of years of fairly high inflation (5-10%) to erode debts, both public and private. It also (I'm thinking of the UK here) helps "ease" the house price crash in the masses' minds as nominally house prices are going to fall 2-5% each year for a few years, but in real terms it's nearer to 10%.

http://www.housepricecrash.co.uk/indices-nationwide-national-inflation.php

We're at mid-2003 prices now, in real terms. The process of HPI of minus 2-5% and general inflation of plus 5% will continue for a while longer, with interest rates slowly put up. I think the theory is that things will be "back to square one" (mid-90s interest rates, house prices in real terms, economic and fiscal outlooks, etc) for 2015 and that crucial general election!

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Clearly the Fed and BoE are in the game of allowing a couple of years of fairly high inflation (5-10%) to erode debts, both public and private. It also (I'm thinking of the UK here) helps "ease" the house price crash in the masses' minds as nominally house prices are going to fall 2-5% each year for a few years, but in real terms it's nearer to 10%.

http://www.housepricecrash.co.uk/indices-nationwide-national-inflation.php

We're at mid-2003 prices now, in real terms. The process of HPI of minus 2-5% and general inflation of plus 5% will continue for a while longer, with interest rates slowly put up. I think the theory is that things will be "back to square one" (mid-90s interest rates, house prices in real terms, economic and fiscal outlooks, etc) for 2015 and that crucial general election!

The scale of countries who need to inflate to lesson the debts is vast, surely this would have to be carried out by them all and in collusion to do so for it to work as a whole? The UK and US can't inflate out of the problem if others do not at the same rate?

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The scale of countries who need to inflate to lesson the debts is vast, surely this would have to be carried out by them all and in collusion to do so for it to work as a whole? The UK and US can't inflate out of the problem if others do not at the same rate?

Inflation is running away in most countries, including China - inflating both the global reserve currency and the currency of the City does have quite a global impact... ;)

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Inflation is running away in most countries, including China - inflating both the global reserve currency and the currency of the City does have quite a global impact... ;)

Yep, looks a little like the game to me, must take some organising that ;)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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