USA Federal shutdown. What's happening?

[alhoon]

http://news.yahoo.com/s/ap/us_government_shutdown

According to what I got from the article:
Republicans and Democrats can't agree on the budget so soon the "government's spending authority" will expire. That means the federal goverment won't be able to pay money. It won't have the authority to spend money.



Can someone explain to me why is this happening and why it happens once a while?

Why there is some thing as "government's spending authority" that expires so that goverment can't pay money? Is that a measure to stop... what exactly? Why would anyone want the goverment's authority to spend money to be something that expires and has to be renewed? Sounds too partisan to me.

[MathiasOfAthens]

Republicans: We want to cut 60 Billion dollars.
Democrats: Were only willing to cut 30 Billion.
Republicans: Fine how about 1 trillion?
Tea Party: CUT CUT CUT.

http://www.businessweek.com/ap/finan.../D9ME92UG0.htm

The Environmental Protection Agency would cease issuing permits and stop reviewing environmental impact statements which will slow approval of projects.

-- Military personnel would not get paid beyond Friday, but would continue to earn money that would be paid to them once the government resumes.

-- National parks would be closed.

-- Most government websites would not be updated, unless they were deemed essential

[Menelik_I]

Can someone explain to me why is this happening and why it happens once a while?

This time It is because the Democrats failed to pass a budget in the last congressional sessions when they had white house, congress and senate.

now they can't agree what to cut because there is no more money ... and china don't want to lend more.

Why there is some thing as "government's spending authority" that expires so that goverment can't pay money? Is that a measure to stop... what exactly? Why would anyone want the goverment's authority to spend money to be something that expires and has to be renewed? Sounds too partisan to me.

Not putting the spending on autopilot enables the voters to have control over the spending and policies.

@Mathias :

China : Spend spend spend spend ... but we won't lend you a penny

[alhoon]

Not putting the spending on autopilot enables the voters to have control over the spending and policies.

Yes, but the voters already do that with changing goverment every election. How are the USA people feel about the prospect of goverment shutting down payments for 20 days just because Republicans and democrats play cat and mouse?

[Menelik_I]

Yes, but the voters already do that with changing goverment every election. How are the USA people feel about the prospect of goverment shutting down payments for 20 days just because Republicans and democrats play cat and mouse?

If the spending is put in auto-pilot then it doesn't matter which bastard you put in, the policy=spending, won't change.

20 days is not the end of the world, vote the bastards out next time

[MathiasOfAthens]

@Mathias :

China : Spend spend spend spend ... but we won't lend you a penny

They also have one of the fastest growing economies and a fully functioning HSR system built last year.


What about the Tourists who happen to be flying over this week or next and will only find closed Museums?

[Menelik_I]

They also have one of the fastest growing economies and a fully functioning HSR system built last year.

You mean china ? Well of course, I just don't think the Chinese are willing to lend more money to the US.

Now the borrowing is near $2 TRILLIONS.

ETA:

I don't think the museums can pay for the $215,581,249,409.94 interest on the US debt.

[Farnan]

What about the Tourists who happen to be flying over this week or next and will only find closed Museums?

Who gives a flying about them compared to people who will have real problems because of this.

[motiv-8]

Who gives a flying about them compared to people who will have real problems because of this.

Seriously. This issue has a HUGE trickle down effect on people who rely both directly and indirectly rely on federal programs and offices to run. It kills small businesses who operate around, for example, national parks and monuments and rely on the tourists and sight-seers who come.

[Mythos]

What about the Tourists who happen to be flying over this week or next and will only find closed Museums?

You could always put up signs saying "welcome to Greece!". Most of them will understand.

[Captain Jin]

Yay and I'm expected to come to work whether I get paid or not! Woooooo

[Farnan]

Me too Captain. And so are the soldiers in Iraq, Afghanistan, Libya and the Philippines...

Why there is some thing as "government's spending authority" that expires so that goverment can't pay money? Is that a measure to stop... what exactly? Why would anyone want the goverment's authority to spend money to be something that expires and has to be renewed? Sounds too partisan to me.

Anyone who favors democracy. If the government can spend what it wants than Congress (or any legislative body) has little power.

Menelik: 20 days is the end of the world for some young privates, seamen and airmen who are still expected to pay their bills without being paid.

[MathiasOfAthens]

Not when the Republicans keep attacking them.

I also dont see any reason why they wouldnt keep lending to us. Its the tea party that wants us to quit borrowing. "Stop borrowing from China, your just going to grow their economy".


lmao farnan. People work in the Museums. Less Tourism = less commerce near Museums in major cities like DC and Boston.

[Menelik_I]

I also dont see any reason why they wouldnt keep lending to us. Its the tea party that wants us to quit borrowing.

Really ?

US economy is $14 Trillions, borrowing $2 trillions per years ... are the Chinese going to still have the money ?

"Stop borrowing from China, your just going to grow their economy".

This argument can't be really ... can you source this one, it is just plain moronic.

[justicar5]

Really ?

US economy is $14 Trillions, borrowing $2 trillions per years ... are the Chinese going to still have the money ?

.

They aren't borrowing 2 trillion a year, they OWE 2 trillion, but a large part of that was the bailouts. And theres alot of smoke and mirrors with intergovermental debt in there as well one department owing another money basically (the favourite iirc is to borrow money from the SS fund). They do however owe various people a truckload of cash (more like a supertanker load)

This problem kinda makes me glad for our system, in which you can't not pass a budget, you can change the law later, or try to block it in the first place, but once something is law it WILL be funded to the extent the budget says (In fact the Lords blocking a budget is what lead to our Constitutional crisis in 1908-1912, since then no one has tried..lets say it very, very nearly got messy).

http://en.wikipedia.org/wiki/File:In...006_-_2007.png

as can be seen in that graph (it's interest payments but gives an idea of how the debt is constructed) roughly half of US goverment debt (assuming the same interest rate) is intragovermental debt, bad ofc, but the entire debt is not to China (even if it was ALL 'public debt' it wouldn't all be to China, buying goverment bonds is a safe bet in a recession, so alot of organisations and goverments do it)

[Thorn777]

The US needs federal "emergency managers". Well not federal. KPMG guys wearing Ray-Bans that work on the federal level.

[Captain Jin]

McCain said he was going to try and introduce a bill that would continue to pay the DoD even if a budget wasn't agreed upon. He said it was grossly irresponsible for congress not to pay the military when we are engaged in two wars (and countless smaller actions from West Africa, North Africa, East Africa and SE Asia). True enough. In 95 when the gov. shut down the military still got paid.

[Farnan]

McCain said he was going to try and introduce a bill that would continue to pay the DoD even if a budget wasn't agreed upon. He said it was grossly irresponsible for congress not to pay the military when we are engaged in two wars (and countless smaller actions from West Africa, North Africa, East Africa and SE Asia). True enough. In 95 when the gov. shut down the military still got paid.

I pray that bill gets passed. I have soldiers with very small bank accounts and very big bills. Yes they should plan better, but that doesn't mean they should get ed because they aren't being paid for weeks.

[Oldgamer]

I pray that bill gets passed. I have soldiers with very small bank accounts and very big bills. Yes they should plan better, but that doesn't mean they should get ed because they aren't being paid for weeks.

I agree with you, Farnan. And note that it might not be weeks, it could be months.

The DEMs seem to be more interested in funding Planned Parenthood than paying men and women in harm's way, all over the world. And in case someone takes umbrage at that, I would gladly leave PP on the public dole ... temporarily ... if our troops would get paid for their sacrifices.

[Count of Montesano]

Ok, have we confirmed that all federal employees are not getting paid? Because I was in the military during the federal shut-down in the mid-90s and my pay wasn't affected.

Nobody's going to cut off food and ammunition to the frontline troops, or let the federal inmates loose, or leave border and customs checkpoints un-manned. Heck, even mail is going to be delivered as usual. The big secret of a government shut-down is that only non-essential services are affected.