When the biggest super power in the world announces that their government has shut down, it becomes in evitable that this news becomes the most curious account in recent news. Decrypting what is happening could be a little tricky but regardless here is a skim down to what is happening.
The US government has begun a partial shutdown after two houses of congress failed to agree with the budget. 800,000 federal employees were issued an unpaid leave which makes this the biggest partial shutdown in US history and first after 17 years. This has led to devaluation of the dollar to a certain extent. Goldman Sachs estimated a three week shut down could thrust down 0.9% from the US GDP in this quarter.
Further on CNN has given a clearer picture explaining us what is closed and what is open in the following link:
The departments which are closed include:
- Federal communication commission
- Federal Election commission
- Federal trade commission
- National Capital planning commission
- Department of Education
- Department of interior
- Department of justice
These are just a few departments of a long list. The issue was raised regarding the ‘Obama care’ health project which was officially first named Patient Protection and the Affordable Care act which was aimed at providing affordable and quality health insurance. Many opponents of Obamacare, most recently the union leaders that once supported it, are concerned that Obamacare’s employer mandate incentivizes smaller companies to shift their workers to part-time status because employers are not required to provide health coverage to part-time workers.
Barack Obama tweeted:
The official Senate Republican account on twitter posted their opinion, stating:
Citizens of United States and many more (including me) feel that the Obama care issue has been chosen as a playground for the both houses to argue and screw around with each other.
This low act of incorporating their political agendas with the nation’s health care has resulted in one of the major news in the history of United States after 9/11 events occurred.
Regardless I think that the Us government is made out of some very strong influencers who will make sure they stabilize the situation soon, until then I would advise everyone to but the dollar as it is hitting lower rates and will again stabilize. Karma is a female dog indeed.