Can someone explain the government shutting down in the USA thing please?

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  • Can someone explain the government shutting down in the USA thing please?
  • Premier Icon matt_outandabout
    Subscriber

    Debt has to be paid, rather than new money printed as has been happening. Why earn more money, when you can print as much as you want?

    jonah tonto
    Member

    from what i can gather, nothing has happened, will happen etc etc so in other words, about as crazy as the the bat shit i sat in last week…so not crazy at all. just a bit wet and slimey

    glupton1976
    Member

    MOAB – that’s pretty bloody scary.

    gonefishin
    Member

    As I understand it, the mentalist Tea Party movement don’t like the idea of “socialised healthcare” (despite it being passed into law three years ago) and are doing everything they can to stop it. Nose, Face, Spite. you get the idea.

    Premier Icon matt_outandabout
    Subscriber

    And at some point (today) they choose not to borrow more and say ‘live within your means, we don’t want to borrow more’. So a game of accounting and political brinkmanship is happening.

    Premier Icon somafunk
    Subscriber

    The country is (unofficially) bankrupted not to mention morally bankrupted and is fubard.

    Premier Icon molgrips
    Subscriber

    Imagine a bloke falls off his bike in the middle of nowhere and is in a critical condition. He’s unemployed and doesn’t have much money and has no health insurance. The air ambulance costs a fortune, and each day in intensive care the bills keep racking up. It’s going to take him many many years and cripple him financially to pay it all back.

    We can’t go on racking up debts – shall we just pull the plug on him?

    No.

    bland
    Member

    It’s just too dangerous for them to borrow more! Borrow more and they edge too close to not being the reserve currency, oil no longer being traded in dollars, you name it!

    The ROW doesn’t want dollars anymore, big big problems afoot and why a its possibly worth having a reserve in gold for when tipping point is hit.

    Sounds quite end of world that but could be interesting times ahead

    CaptJon
    Member

    The West Wing did this brilliantly.

    Premier Icon jambalaya
    Subscriber

    Its all poltics. This is not the first time this has happened. Whilst Obama (Democrat) is president he doesn’t control the “parliament” as he can be out voted by the Republicans who won more seats. The US keeps running into its debt limit as its spending more than it earns, if the Republicans / parliament don’t agree an increase to the limit the US government cannot pay the bills – hence the potential shut down. In return for it’s agreement the Republicans try and stall / overturn Obama’s key policies.

    glupton1976
    Member

    Or more accurately the whole circumstances leading up to it. Sounds bat shit mental.

    khani
    Member

    If the national debt of the USA was laid in a single line of $1 bills, it would stretch from Earth, past Uranus.

    ernie_lynch
    Member

    If the national debt of the USA was laid in a single line of $1 bills, it would stretch from Earth, past Uranus.

    Which explains why it’s probably more sensible to carry $10 bills rather than $1 bills.

    sobriety
    Member

    Ok, so the house killed that, so the GOP (which allegedly means grand old party, but I think my acronym of God’s Own Party is more accurate) has tabled a new amendment where any need for them to provide healthcare for their staff is removed, which is really nice for their staff. Bastards.

    It would be funny if it wasn’t peoples lives they were dicking about with just to pander to their extreme right wing…

    TooTall
    Member

    President trying to do the right things (more affordable healthcare and stopping the US federal addiction to debt). Tea Party element of GOP weeing in shoes to make tedious points and position themselves for future positions of power. GOP throwing spanners in works to see if they can get the president to blink first. Don’t think he will.
    In a nutshell.

    Premier Icon mattbee
    Subscriber

    So many STW parallels….

    Premier Icon takisawa2
    Subscriber

    That first link…jeyzus. 😯

    The other thread just got shut down so I’ll ask here.
    Is there an infographic anywhere that shows the whole worlds national debt ?
    It would be interesting to see which countries owe how much to which other countries and what the interest rates are.

    It looks like USA and Greece are heavily in debt, so are there other countries which are equally heavily in investment ?

    Premier Icon whippersnapper
    Subscriber

    just found this

    But it doesn’t indicate who owes who. There seems to be a lot of debt about though.

    LHS
    Member

    As a percentage of GDP, the US public debt is still lower than the UK, France, Japan, Italy…

    Premier Icon teamhurtmore
    Subscriber

    Very simply, the US has a legal limit on the level of debt outstanding (the debt ceiling) and a legal requirement to pass the budget by 1 October. Lots of fudging and politics around both (ceiling breached despite usual creative accounting) and especially horse trading over Obama’s healthcare program. Brinkmanship taken right and over the brink.

    Last happened for nearly a month under Clinton.

    http://www.tradingeconomics.com/country-list/government-debt-to-gdp

    Bbc has good Q&A section with graphic on US debt v ceiling

    http://www.bbc.co.uk/news/business-24209622

    Oh and closer to home check out what is happening in Italy!!!

    pjt201
    Member

    teamhurtmore – Member
    Very simply, the US has a legal limit on the level of debt outstanding (the debt ceiling) and a legal requirement to pass the budget by 1 October. Lots of fudging and politics around both (ceiling breached despite usual creative accounting) and especially horse trading over Obama’s healthcare program. Brinkmanship taken right and over the brink.

    Last happened for nearly a month under Clinton.

    almost, the US is near it’s debt ceiling, but that can and will be extended when it’s met (early November) what’s going on with the shutdown is more subtle than that. US federal budgets are set once a year have to be agreed by both the house of representatives and the senate to become law and be implemented. Without an agreed budget there’s no mechanism to pay most (not inc armed forces for example) government employees. What’s currently happening is that despite Obamacare being passed as law two years ago the republicans (who have a majority in the house of representatives) are blocking the budget as this includes funding for obamacare for the first time. Until the entire budget is resolved then government employees will be put on unpaid holiday (or until smaller bills for specific services to be paid are passed) which is going to take one hell of a compromise between obama and the republicans.

    Premier Icon teamhurtmore
    Subscriber

    Thanks pjt, mine was the “very simple” version!! 😉 But estimates suggest that the debt ceiling is already breached in my understanding, but that’s for Oct 17!! As you say lots of horse trading around budgets and policy trade offs in the meantime – all rather pafhetic in the true sense of the word. If one needed an example of politics divorcing itself from the world around it…..

    gwaelod
    Member

    This is good

    how the US media would report the shutdown if it was happening in another country.

    http://www.slate.com/blogs/the_world_/2013/09/30/potential_government_shutdown_how_would_the_u_s_media_report_on_it_if_it.html

    ohnohesback
    Member

    Well the war machine, the Fed’s support for the stock markets; and the NSA are still running… I suppose that must be a different kind of money.

    LHS
    Member

    This is staggering

    As is this!

    http://www.debtbombshell.com/%5D

    Premier Icon franksinatra
    Subscriber

    So we owe £900billion but the US owes us $300billion. Calling that debt in would make a fair old dent in our national debt.

    edit: although I expect we probably owe them more than they owe us!

    Premier Icon frogstomp
    Subscriber

    wrote:

    Is there an infographic anywhere that shows the whole worlds national debt ?
    It would be interesting to see which countries owe how much to which other countries and what the interest rates are.

    A bit out of date, but this is similar to what you asked for..

    brooess
    Member

    Isn’t the UK in a shed-load of debt (and adding to it, even under a Tory government). Or are we not supposed to talk about that!

    CaptJon
    Member

    The shutdown isn’t about the debt ceiling (that was the last one). This one is about the US Government not being legally able to spend money because they can’t agree a spending bill. The (Rep controlled) Senate passed one which didn’t include funding Obamacare, so the (Dem controlled) Congress won’t ratify it. Without the bill no spending can happen, hence the shutdown.

    Premier Icon matt_outandabout
    Subscriber

    Yes, but the figures are a whole lot more entertaining when you are a country the size of the US.. 🙂
    I think the percentage of debt to GDP has been similar, but US continues to rise.

    hora
    Member

    US military is the worlds biggest oil consumer

    Just a snippet: The Egyptian military gets 1 $ bn US a year.

    How can the US afford this?

    There are alot of rich US families…organisations servicing this evangalism no?

    joshvegas
    Member

    jonah tonto – Member
    from what i can gather, nothing has happened, will happen etc etc so in other words, about as crazy as the the bat shit i sat in last week…so not crazy at all. just a bit wet and slimey

    POSTED 21 HOURS AGO # REPORT-POST

    You have mice not bats.

    oliverd1981
    Member

    Good Grief – they’ve not only closed the national parks, but their websites too. Must have taken more effort to take the pages down than just to leave them? A line has been crossed.

    Premier Icon JoeG
    Subscriber

    oliverd1981 – Member

    Good Grief – they’ve not only closed the national parks, but their websites too. Must have taken more effort to take the pages down than just to leave them? A line has been crossed.

    Yes, some Federal agencies are going out of their way to cause inconvenience to people, probably hoping that the public will get mad at Congress. But most people see things like you said above, that they’re spending additional money on the closures.

    Perfect (and high profile) example is the WWII memorial in Washington. The logical thing to do would be to put up a few signs saying that there would be no ongoing maintenance during the shutdown, so no grass mowed, no trash cans emptied, etc. Instead, they have erected barricades, then reinforced them when WWII vets entered anyways! Idiocy!!!

    WWII Memorial Story

    Premier Icon molgrips
    Subscriber

    Can’t blame the employees for wanting to make a point though, can you? They are being done out of a week or more’s pay after all

Viewing 40 posts - 1 through 40 (of 44 total)

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