NOTE: The forward of this article was written by economist and survivalist, Brandon Smith, who will be watching the latest game being played out by this US government entity so please follow his website to get updates as the situation continues to unfold at Alt-Market.com.
After years of fake drama in D.C. over government spending impasses (when we know both parties actually love the idea of bigger government), it finally happened: Shutdown. Now, this shutdown in itself is not necessarily an issue, especially if it lasts less than a couple weeks. However, if this drags on for a considerable amount of time (months), then there are some serious implications which many people wrongly downplay. For example, US debt issuance and the foreign purchasing or holding of Treasury bonds may suffer a blow at a time when the Treasury market is highly sensitive to crisis. Also, the moment is potentially ripe for a false flag attack, as “government shutdown” can be blamed for Federal inability to “stop the terrorists”, and the call for MORE government might suddenly resonate with the public. Alt-Market will be watching this development carefully to see if it fizzles, or escalates…
The U.S. Senate was short of the votes needed to approve a bill to keep the federal government running as a midnight deadline loomed on Friday night, although high-level negotiations continued.
In a dramatic late-night session, Senate majority leader Mitch McConnell left voting open despite appearing to fall well short of the 60 votes needed to keep alive a stopgap bill that would fund the government through Feb. 16.
As the clock ticked toward midnight, McConnell and Senate Democratic leader Chuck Schumer huddled in negotiations in a room just off the Senate floor.
Without some type of funding bill, the U.S. government technically will run out of money right after midnight, on the first anniversary of President Donald Trump’s inauguration. That would leave scores of federal agencies across the country unable to continue operating, and hundreds of thousands of “non-essential” federal workers would be put on temporary unpaid leave.
The Republican-controlled House of Representatives passed a stopgap funding measure on Thursday. But Republicans then needed the support of at least 10 Democrats to pass the bill in the Senate.