Shutdown - Dec 11 - Implications

[imoldernu]

The implications that attach to the threat of a government shutdown go far beyond the temporary crisis that would follow, (stop of funding), and indeed may be even more affective in areas that could be more important if a shutdown is averted.

The issues that are involved go to the passage (or not) of funding for many items that will directly affect specific parts of our individual financial and retirement plans.

In particular, up for grabs is legislation concerning pension reform (fiduciary responsibility) and derivative deregulation.

Since the shutdown (or not) will come and go, most of the public will not be aware of the longer term changes that will come into play when the funding is eventually approved.

This Politico article gives a brief overview of the major issues that are being discussed in the House and Senate.

House-Senate negotiators near spending deal - David Rogers - POLITICO

ER is not a platform for political discussion, but understanding the specifics of proposed and approved legislation can help in making our personal decisions for the future.

When our government approves $1.1 trillion dollars in spending, it is well to know where those dollars are going, even though we will not be a part of the decision.

 

[REWahoo]

ER is not a platform for political discussion, but ...

...you can bet your bottom dollar that won't stop some members starting another hog-calling contest.

 

[Senator]

The government will not be shut down.

The USA has the ability to print unlimited amounts of money. Regardless if it's good or bad, the world continues to loan us money. And when the world is slow on the purse strings, we loan ourselves money. It's the perfect money tree.

Even the Chinese have to loan us money. We buy so much from them, they have to do something with all of the US dollars. They can spend it, or save it. Consistently they have chosen to save. If they spent it, it would eventually come back to us in some form of exported goods.

Other countries do not have that luxury. They can borrow, but most cannot print money. All of the EU countries lost that right when they formed a common currency.

I was at one time worried about all of the borrowing and spending. No worries, other governments print it faster than we can. Most, if not all, will never get paid back. And the US (and others) will continue to refinance and bring the payments down or stretch them further into the future.

 

[timo2]

Nevermind the politics. Just the threat of a shutdown is keeping DW from retiring. I would be affected (as in not working) by a shutdown, so DW won't retire because she thinks there will be at least one shutdown the next two years. Her BS bucket is past full, and she needs to leave her place of employment. I almost had her talked into leaving at the end of this year, but the shutdown talk has spooked her.

 

[ls99]

I doubt there is any human being capable of deciphering or understanding where every dollar of the 1+ trillion goes.

 

[audreyh1]

We've been through this before. It's becoming routine. Remember 2013?

 

[M Paquette]

Meh...

M... E... H....

meh...

Been here, done that, seen folks get a few unpaid days off (and later receive back pay). Some forms and reports will be late, some deadlines will be extended, self-funded departments like Customs & Immigration will keep on keeping on.

So it goes, so it goes.

 

[2B]

When the government shutsdown, it really doesn't. Everything pretty much goes on as normal unless weird things are done to make it look like there's a problem. I personally liked barricading the road turnouts to hinder tourists from viewing Mt Rushmore.

The only losers are the government contractors of which I was one for a brief period. When they are out of a job, their back pay is never discussed. Government employees that are "furloughed" get paid vacations out of the deal.

 

[ls99]

In shut down can revisit the old joke, only essesntial government employees need to to show up. Yet everyone shows up, no one wants to to be thought of as non-essential.

 

[timo2]

We've been through this before. It's becoming routine. Remember 2013?

I remember the last 8. Here is a list compiled before the 2013 one. A visual history of the past 17 government shutdowns - The Washington Post

 

[RetireBy90]

When the government shutsdown, it really doesn't. Everything pretty much goes on as normal unless weird things are done to make it look like there's a problem. I personally liked barricading the road turnouts to hinder tourists from viewing Mt Rushmore.

The only losers are the government contractors of which I was one for a brief period. When they are out of a job, their back pay is never discussed. Government employees that are "furloughed" get paid vacations out of the deal.

+1 on the 2nd point. I was a contractor for must have been the 94 shutdown, and had to lay off 2 of my 5 staff without pay. We had some funding that was done before the shutdown so we were spending $$ that had already been allocated to our contract. All the govt staff got back pay but the contractors that I had to lay off didn't get any back pay or cover from the company.

 

[ExFlyBoy5]

The last shutdown necessitated that many of the GS employees I w*rked with take "time off". Funny thing happened while they weren't at w*rk...things still got done and it didn't really take too much additional w*rk to get it done. Those of us still around wondered how much money the guberment could have saved if those "non-essential" folks stayed home for good.

 

[HFWR]

Shutdowns have not accomplished much, and seem to be unpopular, so I think they'll find a way to avoid one.

But what do I know?

 

[imoldernu]

gosh... I feel better already..

I was concerned about where the budget monies would go when the shutdown was resolved, but as long as the only problems would be a few days off with pay, then who cares?

Cairo should be happy...

... the agreement backs away from cutting Cairo’s $1.3 billion in military aid

 

[Amethyst]

Since I am effectively a self-employed contractor for hourly wages now, a shutdown would mean I don't get pay - or back pay, either. Meh. I have more than enough to do at home, and will survive.

Amethyst

When the government shutsdown...The only losers are the government contractors of which I was one for a brief period. When they are out of a job, their back pay is never discussed. Government employees that are "furloughed" get paid vacations out of the deal.

 

[Walt34]

Shutdowns have not accomplished much, and seem to be unpopular, so I think they'll find a way to avoid one.

One hopes.

The only one I worked through as a contractor all I noticed was that I got paid the same (I was "essential" - security) to do less work.

Lots of drama for little effect.

 

[imoldernu]

I think I may make my first try at derivatives...

Congress Deal to Avoid Shutdown Includes Victory for Big Banks - Bloomberg



Senator was right!

Check out the ruling on underfunded pensions.

A few days to go...

 

[Senator]

Senator was right!

Thank you!

Never underestimate the power that exists to get people re-elected. In all things politically controversial, it is one side getting re-elected against the other side.

Both sides give away the farm to get re-elected. That's OK, it has been that way for hundreds (or more) of years. The Government's ability to balance a budget is a fools game.

The government that balances the budget first, loses. Their goods get more expensive, taxes are higher and spending less. It's a great sound bite, but not practical.

 

[2B]

The government that balances the budget first, loses. Their goods get more expensive, taxes are higher and spending less. It's a great sound bite, but not practical.

Yet some countries and states do and are quite prosperous. I will go no further lest it be considered "political."

I still think no one really cares if the government "shutsdown" the way the shutdown is typically crafted except the reporters and a few in the "political class."

 

[imoldernu]

Update from the Washington Post:

What’s in the spending bill? We skim it so you don’t have to - The Washington Post

a more or less "plain talk" analysis, covering dozens of changes in budget allocation.

just one here:

For the first time, the benefits of current retirees could be severely cut, part of an effort to save some of the nation’s most distressed pension plans. The change would alter 40 years of federal law and could affect millions of workers, many of them part of a shrinking corps of middle-income employees in businesses such as trucking, construction and supermarkets. Read more on this here.

 

[sengsational]

They need to let me decide what gets shutdown and what stays open. The national parks are the tiniest drop in the bucket, but very visible. I'd go the other way...I'd find the least visible and see if anybody even notices.

 

[Senator]

I'd find the least visible and see if anybody even notices.

Then no one would care, it would defeat the purpose of the shutdown. It's always the most visible. Even if the thing they close doesn't cost anything, like the roadside pull-offs at Mount Rushmore during the last shutdown.

Image if they shut down the tea tasting commission and no one cared?

 

[RetireAge50]

What shut down? What government? I stopped watching the news a few years ago. Very liberating.

 

[sengsational]

What shut down? What government? I stopped watching the news a few years ago. Very liberating.

Me too. I get my news here and lite news on facebook (but only if I don't scroll past it fast enough).

 

[easysurfer]

Remember the old days when "Newsflash" really meant "Newsflash"?