The US Government Shutdown Thread

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Congress has missed the deadline for averting the first partial government shutdown in 17 years.

As the clock struck midnight Monday (0400 GMT), House Republicans were demanding that the Senate negotiate their demand for a one-year delay in making millions of people buy health insurance under President Barack Obama's 2010 health care law. Minutes before midnight, the White House ordered a shutdown.

The Democratic Senate on Monday twice rejected Republican demands to delay key portions of what has become to known as "Obamacare" as a condition for keeping the government open.

An estimated 800,000 federal workers faced furloughs. Critical functions like air traffic control and military operations will continue. Social Security benefits will be paid. National parks and most federal offices will close.


Source : Sapa-AP /dm
Date : 01 Oct 2013 06:16
 
Consequences of first US Govt shutdown in 17 years

The US government shut down Tuesday for the first time in 17 years after a gridlocked Congress failed to reach a federal budget deal amid bitter brinkmanship.

Some 800,000 federal workers have been furloughed in a move reminiscent of two previous shutdowns -- for six days in November 1995 and 21 days from December that year into early 1996.

Here is a snapshot of what Washington looks like Tuesday:

WHITE HOUSE and CONGRESS: Facilities remain open, although both were expected to furlough some staff. Some US lawmakers, like Congresswoman Tulsi Gabbard of Hawaii, have pledged to stand in solidarity with constituents and return their salaries to the Treasury or donate them to charity in case of a shutdown.

PENTAGON: Military personnel remain on duty, although with possible delays in paycheck processing. More than half the Defense Department's 800,000 civilian employees were expected to be furloughed, and the Pentagon has warned of "hardships" for many workers.

NATIONAL SECURITY: Services remain operational, including US border patrol and airport screening. Personnel who are deemed to "protect life and property," such as emergency responders, on duty.

MEDICAL RESEARCH: The National Institutes of Health is not allowed to begin new clinical trials or see new patients.

MUSEUMS and PARKS: Smithsonian museums and all 368 sites in the National Park Service system -- including New York's iconic Statue of Liberty --close.

NASA: Operations that support the International Space Station, currently home to six astronauts including two Americans, continue, but most of the US space agency's 18,000 employees are ordered to stay home without pay.

ENVIRONMENTAL PROTECTION AGENCY: The EPA has virtually no one monitoring air and water quality or enforcing oil pollution regulations.

POSTAL SERVICE: Since the US Postal Service has its own independent sources of funding, it remains open.

SOCIAL SECURITY: Entitlement programs continue, albeit with hiccups. Social Security checks will be mailed, but the program's offices are closed. Military veterans will receive benefits, but disability claims face backlogs. Veterans hospitals remain open.

WASHINGTON: Congress holds exclusive jurisdiction over the capital. During the last shutdown, the city was the focus of embarrassment as it halted trash collection. Now, Mayor Vincent Gray has said he would declare all city employees "essential personnel" and use a contingency cash reserve fund to pay wages.

ECONOMY: Senate Majority Leader Harry Reid has said a shutdown would "shatter our economy." That may have been hyperbole, but the impact could be significant. According to Macroeconomic Advisers, the effect of a two-week shutdown on fourth-quarter GDP growth would be 0.3 percentage points.


Source : Sapa-AFP /sdv
Date : 01 Oct 2013 14:41
 
US Limps into day three of government shutdown

The United States limped into day three of a government shutdown on Thursday with President Barack Obama warning markets that the crisis could trigger a catastrophic US debt default.

Obama met with top Republican leaders for an hour on Wednesday, but the talks failed to end the crisis that has sent hundreds of thousands of government workers home and shut museum sites and national parks throughout the country.

Conservative Republicans want to dismantle or amend Obama's health care law as a condition for approving stop-gap funding for the new fiscal year, which began Tuesday. The president is refusing to tinker with the legislation, his signature health care reform bill widely known as "Obamacare."

Both sides accused the other of refusing to negotiate. There is no end in sight to the latest crisis to hit bitterly divided Washington.

Heightening tensions, Obama sent Wall Street a blunt warning that the political crisis that has paralyzed the federal government could yet trigger a US catastrophic debt default.

But when he met with Republican House Speaker John Boehner and Senate minority leader Mitch McConnell, there was no sign of a breakthrough.

Hundreds of thousands of federal workers are staying home, museums and national parks are shut, much scientific research is on hold and the shutdown is now threatening already sluggish economic growth.

"The president reiterated one more time that he will not negotiate," Boehner said, emerging empty-handed into a warm Washington night to address reporters after the West Wing talks.

On that point at least, the two sides agreed.

Obama said in an interview with CNBC that he would not negotiate on budget matters until Republicans had passed a bill to reopen the government and raise the $16.7 trillion-dollar US debt ceiling.

The cap must be raised within two weeks or Washington could default on its government debt and payments for the first time, result that could hurt the credit rating of the world's largest economy.

After the talks, Obama's spokesman Jay Carney issued a statement saying that his boss still hoped "common sense" will prevail.

Senate Democrats have repeatedly blocked Republican House funding bills that seek to dismantle or delay Obama's signature health care reform bill, widely known as "Obamacare."

The impasse left the government without a budget for the new fiscal year that started right after at midnight Monday.

Reid emerged from the talks complaining at Boehner's attitude, and vowed never to allow Republicans to overturn the health care law.

"We are locked in tight on Obamacare," Reid said.

In his CNBC interview, Obama challenged his opponents to directly address the already nervous financial community.

Obama was asked whether Washington was simply gripped by just the latest in a series of political and fiscal crises which reliably get solved at the last minute.

In unusually frank comments on issues that could sway markets, Obama warned that investors should be worried.

"This time's different. I think they should be concerned," he said.

"When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."

Obama said he would not negotiate until lawmakers pass a temporary financing bill and raise the debt ceiling, but that after that he would be "prepared to have a reasonable, civil negotiation around a whole slew of issues."

The president warned it would set a terrible precedent to allow lawmakers of any party to hold a White House to ransom over the government's borrowing limit.

"Absolutely I am exasperated, because this is entirely unnecessary," Obama said.

Hopes of an early exit to the shutdown are fading.

"Most of the time you can see an end game," Republican Senator Johnny Isakson told MSNBC. "Right now, there's no end game in sight."

Some signs of incremental movement did emerge, however.

Democrats pledged to appoint negotiators to thrash out a long-term budget -- provided Republicans agree to an immediate six-week federal spending measure with no anti-Obamacare provisions.

Earlier, Obama had gathered a group of high flying CEOs, apparently hoping they would pressure Boehner to pass a temporary funding bill.

Goldman Sachs boss Lloyd Blankfein warned that America was on dangerous ground by flirting with not raising the debt ceiling.

A previous period of brinkmanship on the issue badly hit the US credit rating.

"There's a precedent for a government shutdown, there's no precedent for a default," he said after meeting Obama.

The fallout has already caused Obama to shorten his long-planned Asia trip, scrapping stops in Malaysia and the Philippines that were due to begin this weekend, so he could attend to the crisis at home.


Source : Sapa-AFP /ss
Date : 03 Oct 2013 08:39
 
Tourists kicked out of landmark US parks

For many people it is the trip of a lifetime. But thousands have been left angry at being locked out of landmark US national parks due to the government shutdown.

Hundreds who were lucky enough to already be staying in places like Yosemite and the Grand Canyon faced a deadline Thursday to leave, 48 hours after the shutdown went into force due to a budget standoff in Washington DC.

"We grew up seeing pictures of it in books," said Clare Cogan from Cork, Ireland, on honeymoon with her husband Mohally but locked out of Yosemite National Park, shuttered since Tuesday.

"You know, the cars underneath those huge sequoia trees. That was America," she told the Los Angeles Times, which called the spectacular Californian park "an emblem of partisan divide."

The National Park Service closed its gates on its 401 sites as soon as the shutdown went into effect after midnight Monday, leaving visitors --including many from overseas -- frustrated at park entrances across the country.

Tourists who were already staying in hotels, cabins and campgrounds inside national parks like world-famous Yosemite were allowed to stay --but only for 48 hours, after which they were told to leave.

"Guests ... who are already checked-in can continue with their vacation plans, but they are required to leave by October 3 at 3:00 pm," said Lisa Cesaro of the company that operates over 1,000 rooms in the park, DNC Parks & Resorts at Yosemite.

The park, which was already partially closed in August due to a massive wildfire, is known around the globe -- especially for Yosemite Valley, where tourists flock to see landmarks including the spectacular El Capitan and Half Dome rock formations.

"We came all the way from England to climb and get to the top of El Capitan, but now we won't get the chance," Tim Larrad, a 52-year-old retired police officer from Worcester told the Contra Costa Times newspaper at his campsite.

"It's very disappointing. This climb was lifetime stuff. The trip took a lot of time to plan and prepare for," he said.

The Yosemite spokeswoman said that since Tuesday most activities, including horseback riding and bike rentals, had been suspended.

"We are continuing to provide retail, dining and limited transportation services for overnight guests in the park through Thursday," she said.

"If the shutdown continues, we will try to reschedule those who have upcoming reservations or cancel their booking and provide a refund," she added.

Some 715,000 visitors flock daily to National Park Service sites across the country, on average in October, according to CNN.

Other world-famous tourist attractions shuttered until further notice include the Statue of Liberty, Mount Rushmore, Yellowstone National Park, and the Alcatraz prison island in San Francisco Bay.

Joshua Tree National Park, two hours' drive east of Los Angeles, is famous for its bizarre cactus-like trees and weird rock formations, which draw climbers from around the world, especially at this time of year between the high heat of summer and the cooler winter.

It, too, is closed, with park rangers giving newly arrived visitors the bad news: they will have to wait until politicians in Washington sort out their differences on spending, before they can enter.

In the Grand Canyon, visited by 18,000 people a day on average at this time of year, spokeswoman Kirby-Lynn Shedlowski said the gates were closed from 6:00 am Tuesday.

"All recreational opportunities in the park, including hiking, biking, mule rides, visitor centers, they're all closed," she told AFP.

People who were in accommodations in the park on Monday night had been "given 48 hours to make additional arrangements, and then they have to leave the park," she added.

"We're just trying to maintain an orderly shutdown and closure of the park," she said, adding: "Having to turn anyone away is hard."


Source : Sapa-AFP /ss
Date : 03 Oct 2013 07:36
 
From Chinese bloggers to European central bankers, the world is watching the US government shutdown with a mixture of bewilderment and growing nervousness that any debt default could hit struggling economies.

The effects of the dramatic spending freeze have rippled around the globe, paralysing a leading earthquake alert system, forcing American scientists to pull out of international conferences and leading an embarrassed President Barack Obama to postpone visits to two Asian countries.

In emerging superpower China, a one-party state where legislative deadlock holds little fear for the Communist rulers, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".

"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary, referring to the US economy.

Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.

"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, a Chinese version of Twitter, a reference to Beijing's massive purchases of US Treasury debt.

While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time of heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.

Apart from reaching a budget deal to end the shutdown, Congress must agree within two weeks to raise the $16.7 trillion US debt ceiling -- or risk a default on government debt.

"If the US actually defaults on its debt, that might send a signal to markets that the United States is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at the University of Sydney's United States Studies Centre.

There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.

The US shutdown "is highly unfortunate for the rest of the world, as even countries like the Philippines are taken on a wild economic ride because of the political game of chicken in Washington," Philippine Finance Secretary Cesar Purisima said in a statement.

He appealed to the United States to resolve the stalemate over raising the debt ceiling -- a particular concern to Asian countries including China and Japan, which are major holders of US Treasuries.

"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Purisima warned.

The Indian Express newspaper called it a "depressingly familiar chicken dance in Washington". In Japan -- where TV channels have shown images of closed monuments such as the Statue of Liberty -- the Nikkei business daily lamented a "pointless political conflict".

"This political mishandling must not destroy the buds of growth that we see for the US and global economies," it said.

In Europe, where recession-hit economies are struggling to get back on their feet after years of turmoil, finance chiefs expressed concern about the threat to the fragile recovery.

The US shutdown "is a risk if it is protracted... it would be a risk not only for the US, but also the world economy," said European Central Bank chief Mario Draghi.

While US visa and passport operations are unaffected, the crisis in Washington has forced hundreds of thousands of federal workers to stay at home, closed museums and national parks and put much scientific research on hold.

One US researcher who travelled 30 hours to Perth in Australia for a science conference found himself barred from presenting his work on Parkinson's disease.

"It's actually a federal offence if I do go ahead and give the talk or even continue attending the conference," Michael Lazarou told the Australian Broadcasting Corporation.

"I had prepared for such a long time to come here and give this talk --all that effort and it goes to waste now."


Source : Sapa-AFP /ss
Date : 03 Oct 2013 09:23
 
This is not going to end well. Even if they do lift the debt ceiling it will only be a postponement of the prevailing problem i.e. kicking the bucket down the road once again.
 
This is not going to end well. Even if they do lift the debt ceiling it will only be a postponement of the prevailing problem i.e. kicking the bucket down the road once again.

And the longer it goes on, the worse the worldwide economic fallout.
 
This is not going to end well. Even if they do lift the debt ceiling it will only be a postponement of the prevailing problem i.e. kicking the bucket down the road once again.

Yeah, well the American Taliban don't like actually doing something of substance.

One of the, if not the most, unproductive Congresses in US history.
 
The last time their was a shut down the administration actually came their senses and passed a number of congressional bills to get their financial house in order. But then again that was a more moderate administration...
 
The last time their was a shut down the administration actually came their senses and passed a number of congressional bills to get their financial house in order. But then again that was a more moderate administration...

More moderate administration? Obama's administration is actually very centrist.
 
Why the laughter Alan?

I presume you would be firmly behind the Republicans if you lived in the States.
 
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