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It Looks Like We're Headed To A US Government Shutdown
Topic Started: 29 Sep 2013, 07:54 AM (8,861 Views)
MMM
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stinkbug
1 Oct 2013, 09:18 PM
This issue is nothing more than political posturing. It's exactly as if our government couldn't agree on the budget, and thus wouldn't pass the legislation.

The debt ceiling issue in a couple of weeks, however, is another matter all together.
Yes the debt ceiling is a much bigger issue stinky, but I think we all know what will happen, they will just raise it again and keep printing their 1 trillion plus ayear until the japs and chinese get sick of recieving a worthless and declining piece of iou( aka junk governmentt bond) which cannot be repaid for their hard earned goods. the barons will also get sick of giving their oil for worthless pieces of paper with 100 printed on it and nothing to back it up because they dont produce anything anymore except for paper froma tree with a number printed on it, this is all they are really recieving for their goods. The US is becoming a third world country, an economic wasteland.

They now consume evrything and produce nothing, like that fat lazy mate that comes around , eats all your food and drinks all your beer but never brings anything ,just promises to bring something next time but never does cause he is not working and has no money.

Should they really call it a ceiling, a ceiling has a limit and only goes so far,, look above your head, its about 9 feet high ,you can stand on a chair and reach it and not go behond it. they need to call it something else, I'll let you guys decide on that one.
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peter fraser
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MMM
1 Oct 2013, 11:28 PM
Yes the debt ceiling is a much bigger issue stinky, but I think we all know what will happen, they will just raise it again and keep printing their 1 trillion plus ayear until the japs and chinese get sick of recieving a worthless and declining piece of iou( aka junk governmentt bond) which cannot be repaid for their hard earned goods. the barons will also get sick of giving their oil for worthless pieces of paper with 100 printed on it and nothing to back it up because they dont produce anything anymore except for paper froma tree with a number printed on it, this is all they are really recieving for their goods. The US is becoming a third world country, an economic wasteland.

They now consume evrything and produce nothing, like that fat lazy mate that comes around , eats all your food and drinks all your beer but never brings anything ,just promises to bring something next time but never does cause he is not working and has no money.

Should they really call it a ceiling, a ceiling has a limit and only goes so far,, look above your head, its about 9 feet high ,you can stand on a chair and reach it and not go behond it. they need to call it something else, I'll let you guys decide on that one.
If the tea party get kicked hard enough in this shut down they won't argue over the ceiling.

What will happen to the price of gold then?
Any expressed market opinion is my own and is not to be taken as financial advice
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MMM
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peter fraser
2 Oct 2013, 12:05 AM
MMM
1 Oct 2013, 11:28 PM
Yes the debt ceiling is a much bigger issue stinky, but I think we all know what will happen, they will just raise it again and keep printing their 1 trillion plus ayear until the japs and chinese get sick of recieving a worthless and declining piece of iou( aka junk governmentt bond) which cannot be repaid for their hard earned goods. the barons will also get sick of giving their oil for worthless pieces of paper with 100 printed on it and nothing to back it up because they dont produce anything anymore except for paper froma tree with a number printed on it, this is all they are really recieving for their goods. The US is becoming a third world country, an economic wasteland.

They now consume evrything and produce nothing, like that fat lazy mate that comes around , eats all your food and drinks all your beer but never brings anything ,just promises to bring something next time but never does cause he is not working and has no money.

Should they really call it a ceiling, a ceiling has a limit and only goes so far,, look above your head, its about 9 feet high ,you can stand on a chair and reach it and not go behond it. they need to call it something else, I'll let you guys decide on that one.
If the tea party get kicked hard enough in this shut down they won't argue over the ceiling.

What will happen to the price of gold then?
I guess if the ceiling has no limit, then either does gold Peter. The government will keep trying to manipulate it down everytime it scares the hell out of them, and it will be time to get on some more gold stocks llike it was late june, around the same time I told you silver was an absolute bargain on the 26th june this year, the exact low for the year . they are slwoing running out of hedges as china and india are now buying most of it,they all think its a gift and so will those that jump on gold stocks evrytime it collapses. Gold stocks Peter , after big drops is the way to play gold. they are a bargain Peter and increase much more than gold itself.
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Perthite
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I'm surprised it is not higher now.
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peter fraser
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Perthite
2 Oct 2013, 12:29 AM
I'm surprised it is not higher now.
You're right, it's up $5 to $1296

http://www.kitco.com/charts/livegold.html
Any expressed market opinion is my own and is not to be taken as financial advice
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MMM
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peter fraser
2 Oct 2013, 12:33 AM
Perthite
2 Oct 2013, 12:29 AM
I'm surprised it is not higher now.
You're right, it's up $5 to $1296

http://www.kitco.com/charts/livegold.html
The chinas will pick it up by 2 -3 pm tommorow ,its past my bed time , enjoy.
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Admin
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Quote:
 
The Republic of Crazy

Stephen Koukoulas

The economic extremists in the US Congress are hijacking the smooth functioning of government and their actions are threatening to upset what had been a solid pace of economic expansion after the turmoil and near depression with the financial and banking crisis of 2008 to 2011.

With the federal government in the US closing down and the debate over the debt ceiling likely to hot up over the next few weeks, the Republican Party will be the main culprits if there is any downside to the economy while ever this policy vandalism continues.

Politics becomes very sad when one side would prefer to trash the economy and financial markets for the sake of political gain. It is the worst kind of behaviour as it has significant effects on people’s wellbeing. Thousands of government employees don’t get paid, they don’t spend their money in the shops and elsewhere and as a result, firms’ profits are eroded.

Quoted in Bloomberg, consulting firm IHS Inc. estimates that the initial effect of the shutdown is at least $US300 million ($321.9 million) a day, but that figure will increase at an accelerating rate if confidence and spending is further depressed. According to IHS, a week-long shutdown would clip 0.2 percentage points (annualised) from fourth quarter GDP growth. Anything longer than that will obviously have a far greater negative effect on the economy.

It is no wonder the US stock market has fallen in the wake of the government shutdown, notwithstanding the 0.4 per cent lift in share prices overnight. Over the previous 10 days, stocks had fallen 3.5 per cent as the budget shenanigans loomed large.

Presumably, one of the main objectives of the Republicans is to make the Obama administration look as bad as possible as economic confidence fades and markets weaken. The mid-term elections are a little over a year away.

Until the last few years and certainly since Obama has been president, the budget and debt ceiling legislation issues were generally basic operational matters of government, with limited political posturing. There have been several instances in the past where Congress has delayed the passage of the budget with little lasting negative effect. Markets are no doubt hoping for the same in the current instance.

Nonetheless, the largely procedural issues of the budget and debt ceiling are being politicised to the point where slabs of the economy are closing down, confidence is no doubt going to be damaged and there are a range of unintended consequences that could unfold if the US government defaults on its debt.

When the economic extremists threatened to block the legislation to raise the debt ceiling, Standard & Poor’s credit rating agency downgraded the US on the heightened risk that bond holders would not be repaid.

There is a real risk that this occurs in the weeks ahead, if the extremists continue to hijack policy.

The current $US16.7 trillion debt ceiling needs to be raised in the middle of this month as the budget deficit and maturing debt needs to be financed. According the Congressional Budget Office, unless the debt ceiling is raised and Treasury is allowed to borrow, the US government will run out of money between 22 and 31 October.

Until the budget and debt ceiling legislation are passed, markets are likely to remain fickle and of course, the Federal Reserve will not be doing anything on tapering the quantitative easing for fear of adding to market and economic risks.

The economic extremists might yet succeed if they fail to step up and allow the government to function. Economic activity from the government may fall even more rapidly than it is already projected to, the government debt may not increase, they may dismember the Affordable Care Act – ‘Obamacare’ – from functioning. It seems these are their objectives with the current round of posturing.

The consequences of such action would undoubtedly be a return to recession, a sharp rise in unemployment and dislocation for financial markets.

This seems a very high price to pay to meet some misplaced fanatical ideology.

Read more: http://www.businessspectator.com.au/article/2013/10/2/us-economy/republic-crazy
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b_b
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Quote:
 

Shutdown- this time it’s very different
The negatives:

Profit growth already low and slowing
Car sales rolled over in September
New home sales already rolled over
Housing starts flattened
Personal income anemic, and distribution issues further softening demand
800,000 federal workers not getting paid
0 rate policy/QE is a deflationary bias
Pro active austerity already initiated
Federal deficit looking too low for financial conditions
Markets/analysts have ignored/ridiculed the paradox of thrift so are ‘long and wrong’
Japan’s currency depreciation works against US and euro domestic demand

Not only no chance of fiscal relaxation if things go bad, but more likely further fiscal tightening.

So it’s thereby worse than flying without a net.

The positives:

Just rhetoric-
Americans are resilient and all that…
http://moslereconomics.com/2013/10/02/shutdown-this-time-its-very-different/
Edited by b_b, 3 Oct 2013, 01:24 PM.
(S – I) + (T - G) + (M - X) = 0
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newjez
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Well my sharesave scheme has matured. I was going to keep the shares, as they have been growing and pay a damned fine dividend. But seeing how things are panning out, I think I'll take the cash. This is looking very nasty. I can't tell who will say uncle first.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Dr Watson
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newjez
3 Oct 2013, 04:22 PM
Well my sharesave scheme has matured. I was going to keep the shares, as they have been growing and pay a damned fine dividend. But seeing how things are panning out, I think I'll take the cash. This is looking very nasty. I can't tell who will say uncle first.
The politicians will get together and work something out in fairly short order I reckon.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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