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With One Day Left, Reid "Not Nearly Optimistic" Shutdown Can Be Avoided: A Run Down Through The Implications

Tyler Durden's picture


The picture for the ongoing operation of US government is looking bleaker by the day. According to The Hill, "Senate Majority Leader Harry Reid (D-Nev.) said that he'd grown pessimistic since last night's meeting at the White House about the chances to avoid a government shutdown. During a speech on the Senate floor, Reid said that in the hours since a meeting last night at the White House with President Obama and House Speaker John Boehner (R-Ohio), he'd grown less optimistic that a deal could be reached to avoid a shutdown. "I am not nearly as optimistic -- and that's an understatement -- as I was 11 hours ago," Reid said." And while the adverse effects of a government shutdown are appreciated by all, the good thing is that such a move will likely freeze the financial picture of the government at a snapshot of Friday's terms. This will be in advance of a week of heavy bond issuance, amount to over $70 billion. If one were to add $20-30 billion in refund issuance, the debt ceiling (and we mean the real deal - based on debt subject to the limit) which now has an $84 billion buffer until breach as of yesterday, could be busted as soon as next week. What better way to prevent that than to shut down the government completely.

And for those wondering what would be affected in a shutdown, here is a convenient summary from Stone McCarthy:

Obviously, the longer a government shutdown lasts, the more disruptive it will be. Many government services would continue despite a government shutdown, including those related to law enforcement, defense and national security. Most benefits, including Social Security would be paid, although those claiming benefits for the first time or requiring other assistance from the Social Security Administration would probably be out of luck.

Many other services that citizens may take for granted would also stop. For example, it wouldn't be possible to get a passport or visa. According to an Administration official who briefed the press this morning, the IRS would suspend processing of tax returns that are not filed electronically. At this point in the tax refund season, that suspension would affect a lot of returns. As the tax season progresses, the number ff returns that are filed electronically tends to decline. Borrowers seeking mortgages insured by the FHA would have to wait for the shutdown to end. The Small Business Administration would also stop processing loan applications

Some economic releases would be disrupted under a prolonged government shutdown.

The release of economic data that is compiled by government agencies would likely be delayed. As a consequence of the 1995-1996 government shutdown, the December 1995 employment data wasn't released until January 19, and December 1995 retail sales data wasn't reported until January 30. (The blizzard of early '96 may have also played a role.) In some cases, it took a month or two for a normal release schedule to resume, even after the government shutdown ended. Economic data compiled by the Federal Reserve wouldn't be affected since the Fed isn't funded through the Congressional appropriations process. Also, data releases compiled by non-government entities wouldn't be impacted. An example would be existing home sales, which is reported by the National Association of Realtors.

Treasury auctions would not be affected.

According to a memo written by former Reagan budget director David Stockman in 1981, activities exempt from a shutdown include those "essential to the preservation of the essential elements of the money and banking system of the United States, including borrowing and tax collection activities of the Treasury." That memo was in effect, according to the Congressional Research Service in 1996, and we assume it would provide guidance for any shutdown that might occur in the current environment.

Significant numbers of federal workers could be furloughed.

In the five-day government shutdown of November 1995, 800,000 workers were furloughed. That number of workers amounted to just under 40% of the federal workforce of 2.04 million employees (excluding Postal workers, who would not be affected.) That shutdown wasn't a "full" government shutdown because three of 13 appropriations bills had been passed.

In the longer government shutdown of December 1995-January 1996, only 280,000 workers were placed on furlough; that's because another four appropriations bills had been passed since the November 1995 shutdown.

The White House official that briefed the press this morning said that about 800,000 workers would be affected by any shutdown that occurs after Friday. That seems to be smaller share of the federal workforce than was affected in 1995-1996 shutdowns, which were partial. Perhaps a larger number of federal workers are now deemed as essential, which wouldn't be surprising, given stepped up security efforts and our involvement in two wars. (Recall in 1995-1996, there was no Department of Homeland Security.)

Those workers who are furloughed during a shutdown don't get paid (Congress and the President still get paid) during the shutdown. In the past, they have received retroactive pay once they return to work, although our understanding is that Congress must act to make that happen. In other words, the retroactive pay is not automatic.

In other words: the POMO/equity MOMO party will most certainly continue even as most non-stock market speculators find their lives just modestly inconvenienced.


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Thu, 04/07/2011 - 10:36 | 1145068 baby_BLYTHE
baby_BLYTHE's picture

I am going to defend Gonzalo Lira and other Hyper-Inflationists (They are right!).
note: I posted this before. People need to wake up!

I went to a bar near Arizona State University with my friends over Spring Break.

Get ready for this... you cannot make this sh*t up (picture I took with my Andriod)

Get ready, folks!

We are going into an inflationary Depression! Tyler was right. The dollar is in BIG TROUBLE!

Thankfully I own Gold and Silver, I advise you all take precaution. This shit is f***ing real! It is unbelivable.

Hard times are coming. For everyone!


Thu, 04/07/2011 - 10:38 | 1145084 Haywood Jablowme
Haywood Jablowme's picture

Hey Reid, shut the mother fucker down bitch!

Put your worthless fiat paper where your mouth is....on Billary's man-gina.

Bankstas, Elitists, and Congress, your fuckin' time is comin'...



Thu, 04/07/2011 - 10:44 | 1145112 krispkritter
krispkritter's picture


"Billary's Man-gina"...ROFL...Now where's the brain bleach...?


Thu, 04/07/2011 - 12:24 | 1145640 andybev01
andybev01's picture

please pass the mental floss.

Thu, 04/07/2011 - 10:47 | 1145135 baby_BLYTHE
baby_BLYTHE's picture

Too bad a Government shutdown doesn't involve Wallstreet.

No doubt the market would scream higher as a shutdown and all other forms of Armageddon are "priced in".

What a sad pathetic joke!

Thu, 04/07/2011 - 11:09 | 1145305 krispkritter
krispkritter's picture

Too bad the worthless Congress and Prez are still paid even though it's their inaction that puts 800k other people's paychecks at risk. Congress-critters should receive $1 per year to serve and the Prez can pay for his own tee times...

Thu, 04/07/2011 - 11:52 | 1145512 rufusbird
rufusbird's picture

I know on thing that would get these elected officials to pass a budget on time. Make a law that makes any congressman who is in office during a year when a budet is not passed on time, inelligible to run for office on the following election term. The country could use a clean slate of elected officials.

Thu, 04/07/2011 - 11:14 | 1145321 Jay Gould Esq.
Jay Gould Esq.'s picture

Frankly, this makes for sensational headline, but we all know that Uncle will never be locked out of his own house. There will be no shutdown. Bawlin' John Boehner simply cannot handle the stress from the aggressive likes of Katy Couric and Mika Brzezinski. 

Winners: AFSCME, Barry, Harry, Nancy, and Bawlin' John ( the perma-tan is preserved ).

Losers: Taxpayers the nation-over.

Thu, 04/07/2011 - 10:55 | 1145195 flustercuck
flustercuck's picture

blocked @ work! how about a summary...

Thu, 04/07/2011 - 11:00 | 1145241 baby_BLYTHE
baby_BLYTHE's picture

tiny pic is blocked?

They decided that the dollar bills weren't worth holding onto and went ahead to make an art project out of them. A ceiling design with defaced Federal Reserve notes dangling for all to see.

Thu, 04/07/2011 - 11:11 | 1145319 flustercuck
flustercuck's picture

thats awesome... will have to check it out when i get home. maybe in a year or two we'll all be redecorating our homes with benjamins...


full disclosure: long wheelbarrows


Thu, 04/07/2011 - 16:28 | 1146773 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Its a way for drunk people to post messages instead of writing directly on the wall with a sharpie.  I've seen it before in hawaii...probably happens anywhere drunks congregate on vacation.

  I figure the bar owners avoid having to peel stickers and sharpie off the establishment and the graphiti is still worth a dollar.

However, a good one I saw in Hawiaii was: "Your money is shit - dan from Australia"

Thu, 04/07/2011 - 11:17 | 1145337 j0nx
j0nx's picture

Describe how we can go into a hyper inflationairy environment without a corresponding rise in income? Incomes are flat and/or declining and most of that reason is due to globalization. Why pay an American $20hr to do the same thing that a Chinaman will do for $.50 an hour? Hence there can be no hyper-inflation without wage increases to match it. What we have here is something far more sinister. Hyper-biflation maybe. All the corresponding negative effects from the rise of commodity prices  without a rise in income to pay for them. Let's also not forget about the drops in property values and other assets that you own in an environment like that. People will be begging for the good old days of hyper-inflation after this starts to run its course. I don't think that we will ever see a corresponding rise in incomes from this even as people have lost total faith in the currency and in their government; which typically is the end game for a hyper-inflationairy environment scenario.

Thu, 04/07/2011 - 11:41 | 1145464 dogismyth
dogismyth's picture

lol...another denninger follower.  Here take a read.

Thu, 04/07/2011 - 12:47 | 1145730 j0nx
j0nx's picture

Uh did you even read That Willie article? Let me post a paragraph for you which is exactly what I wrote and exactly how I feel this entire thing shakes out as well:

"My point made consistently is that wages will not keep pace with rising costs, even made a national priority to halt the secondary inflation effects on wages. In that sense, my analysis has joined the Deflationists, but only with one foot in their shallow pond of constructs, hardly qualifying as a School of Thought. Since wages do not keep pace with costs, the unemployment will rise and has risen, a point made consistently here. Therefore my work cannot be carelessly labeled as over the top inflationist. Sadly, most Deflationists do not understand how to read my analysis, because they operate with a blind eye to the many sided crisis, too focused on his narrow perspective that cannot adapt to the current complex situation. The Deflationists cannot integrate into their shallow thinking the combination of inflation on the monetary side and deflation on the asset (and wage) side, surely a difficult and extraordinary situation loaded with complexity. They lost my respect long ago, the entire clan. Most of their followers in paid subscription services suffered crippling personal financial losses. A few analyst newsletter writers from their camp have learned nothing and continue their tired saw with shallow analysis and a string of wrong-footed forecasts. So be it!"

I am certainly not a deflationist but I sure as hell am not a hyper-inflationist either. There can be no HI without wage increases. PERIOD. I have always been a believer in the fact that we get the worst of it which is massive inflation in things you need and massive deflation in things you own or want but don't need.

Thu, 04/07/2011 - 13:41 | 1145957 NidStyles
NidStyles's picture

You do understand that it's not the Individual wages that must go up, but the aggregate of wages. Unemployment, food stamps, handouts as the Social Welfare system kicks in. All of that would have similar effects.

Thu, 04/07/2011 - 14:24 | 1146166 Bearish News
Bearish News's picture

Wages will rise. Just not keep up with inflation. Brits just raised minimum wage 15p to 6.08. Inflation? Hell of a lot more than that.

Thu, 04/07/2011 - 12:00 | 1145548 Shitters_Full
Shitters_Full's picture

Dude, please...'Chinaman' is not the preferred nomenclature.

Thu, 04/07/2011 - 12:51 | 1145740 j0nx
j0nx's picture

STFU dufus. Chinaman Chinaman Chinaman. If you want political correctness then go to the yahoo forums.

Thu, 04/07/2011 - 13:42 | 1145962 JS1234
JS1234's picture

He was posting a line from a movie.

Thu, 04/07/2011 - 16:31 | 1146782 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

f*ckin' amatuers...

Thu, 04/07/2011 - 20:08 | 1147674 j0nx
j0nx's picture

So was I. GD amateurs. And btw, I hated that F'ng movie.

Fri, 04/08/2011 - 11:57 | 1150139 Shitters_Full
Shitters_Full's picture

Well that's just, like, your opinion, man.

Thu, 04/07/2011 - 12:27 | 1145645 JustPrintMoreDuh
JustPrintMoreDuh's picture

No problem comrade!

Just raise the minimum wage and kick the printing presses into quintuple SUPER-DUPER hyper overdrive.


Thu, 04/07/2011 - 14:35 | 1146233 Nels
Nels's picture

Inflation without wage increases?  Easy.  A large chunk of the population gets their money from the government.  Just keep increasing the amount of transfer payments and the number of folks getting such payments, and fund that with the Fed printing press.

It doesn't matter if it's wage earners who get the cash, as long as there are enough folks getting the cash to get into bidding wars.

Thu, 04/07/2011 - 11:25 | 1145385 jus_lite_reading
jus_lite_reading's picture

You can say that again! The shit is real. Perpare now. Guns food water silver gold potassium iodide

Thu, 04/07/2011 - 11:45 | 1145492 Urban Redneck
Urban Redneck's picture

College bar with $1 bills...  Go to the west end of London, the Guards' pub if my memory serves.  They have a much better selection- there should still be one of the bank notes below up on the ceiling, when it was added, the penalty for exporting them was death. 

Thu, 04/07/2011 - 12:30 | 1145659 earnyermoney
earnyermoney's picture

OT. How's Herb in the land of the Sun Devils?

Thu, 04/07/2011 - 12:39 | 1145689 covert
covert's picture

it should not be mislabeled. it's not a shutdown but a trim down. people always try to order more govt than they can afford.


Thu, 04/07/2011 - 12:43 | 1145709 High Plains Drifter
High Plains Drifter's picture

if the welfare and unemployment checks stop coming, the cities will burn.....

Thu, 04/07/2011 - 15:05 | 1146411 jmc8888
jmc8888's picture

ROFL that's just the bar scene in scottsdale/tempe

Not saying you're wrong overall, just scottsdale/tempe bars are a different beast.

Thu, 04/07/2011 - 21:03 | 1147857 StychoKiller
StychoKiller's picture

Get back to us when the ceiling is papered with Benjis...

Thu, 04/07/2011 - 10:37 | 1145069 NOTW777
NOTW777's picture

not "bleaker"

its hopeful to shut down evil

libs are exposed - they have no interest in even trying to cut

Thu, 04/07/2011 - 10:37 | 1145071 Careless Whisper
Careless Whisper's picture

Federal Reserve Bank is a private entity, not part of the gov. Nothing to see here, move along.

Thu, 04/07/2011 - 10:42 | 1145099 romanko
romanko's picture

My theory is the regime wants a govt shutdown to facilitate a QE3 - the impact will be broader but less damaging to Wall Street than an orchestrated stock market crash - after a week or so, they'll say "look, the gov't can't continue to send out cheques without QE" and everyone will clamour for more printing, because the reality is that the gov't deficits cannot be funded without QE

Thu, 04/07/2011 - 10:48 | 1145132 SheepDog-One
SheepDog-One's picture

I'll be applauding! And at some point soon this charade of 'we need to print daily to pay american sheeple free checks so they can eat and stay calm' will end!

And dont be so sure another crash can be so easily arrested and re-levitated, theyre freakin HORRIFIED to see even a suggestion of red at any time! Why?-

Let me ask you what happens if theres a big market plunge and all the 401K holders get the idea they all want to dump at once? This isnt all as bulletproof and sure thing as the satanistas want you to believe!

Thu, 04/07/2011 - 10:39 | 1145076 Cdad
Cdad's picture

Let me guess...the convenient excuse to sell the market into oblivion...while still telling the sheeple to buy the dips because historical valuations look cheap, and a fabulous April is on the way for retailers...who currently suck...but never mind about that because UnicornDew is freakin' everywhere?

Do I have it right?


Thu, 04/07/2011 - 10:42 | 1145097 SheepDog-One
SheepDog-One's picture

Drownin in freakin unicorn dew!

Thu, 04/07/2011 - 10:39 | 1145082 bigdumbnugly
bigdumbnugly's picture

when they do shut down government, hopefully curly, larry, and moe will step into the void to restore some semblance of sanity to it.

Thu, 04/07/2011 - 10:38 | 1145088 SheepDog-One
SheepDog-One's picture

STOP threatening me with a shutdown, gooberment! DO IT! Im beggin ya!

Thu, 04/07/2011 - 10:55 | 1145205 Ruffcut
Ruffcut's picture

Yeah, Make my day! Bitchez

Thu, 04/07/2011 - 12:12 | 1145582 Dr. Porkchop
Dr. Porkchop's picture

It's like Boehner putting a gun to Obama's head, or vice versa, and threatening to pull the trigger if he doesn't get his demands.... they don't seem to understand that in either case, the crowd is shouting "Do it!"

Thu, 04/07/2011 - 21:05 | 1147865 StychoKiller
StychoKiller's picture

Yea!  Whatever you do, PLEASE don't throw me in dat briar patch!

Thu, 04/07/2011 - 10:46 | 1145093 JS1234
JS1234's picture

The Dems won't cut spending, the Repubs won't raise taxes.  They'll have their fingers around each others throats the entire time the whole country comes crumbling down around them and then they'll point fingers at each other.  Since I'm OK with the entire thing crumbling down, I say yea stalemate.

Thu, 04/07/2011 - 11:17 | 1145351 NOTW777
NOTW777's picture

why would anyone agree to raise taxes and feed corruption and fraud

Thu, 04/07/2011 - 11:51 | 1145507 Urban Redneck
Urban Redneck's picture

neither whore wants to lower their offering price

Thu, 04/07/2011 - 21:07 | 1147875 StychoKiller
StychoKiller's picture

Very few adults in Congress/Senate; alas, NONE of them are in positions of power!

Thu, 04/07/2011 - 10:40 | 1145095 The Axe
The Axe's picture


Thu, 04/07/2011 - 10:54 | 1145204 umop episdn
umop episdn's picture

"144 km (90 miles) ENE (68°) from Fukushima, Honshu, Japan"


"7.4 (Preliminary magnitude — update expected within 15 minutes)"

Thu, 04/07/2011 - 10:41 | 1145102 terryg999
terryg999's picture

I think the libs fear a shutdown a tad bit more.  Most people won't notice that the precious goverment isn't there - and that scares the libs just a little bit more then the repugs.


Note the media playing up the horror of a shutdown

Thu, 04/07/2011 - 10:41 | 1145105 Robslob
Robslob's picture

Kabuki Theater and the Grand Finale is extend and pretend...otherwise known as a "rerun"...

Thu, 04/07/2011 - 10:43 | 1145107 NOTW777
NOTW777's picture

japan hit again

Thu, 04/07/2011 - 10:43 | 1145108 SheepDog-One
SheepDog-One's picture

SHUT down the gooberment and dont any of you clowns ever come back! We'll crack open a phone book, pick a bunch of names at random for 1 year terms and do FAR BETTER than you cheap sell-out crooks presently there!

Thu, 04/07/2011 - 10:42 | 1145109 IEVI
IEVI's picture

what the hell is this really about..can someone smarter than me please it just a distraction for the masses...are TPTB trying to defelect blame for the mess we are in on congress..are they hoping for public uprising to test out their police powers..i don't get it

Thu, 04/07/2011 - 10:45 | 1145139 Dreadker
Dreadker's picture

From what I gather, its a chance to prevent the USA from defaulting on its debt... better that all the federal workers suffer that ;-)

Thu, 04/07/2011 - 10:50 | 1145156 SheepDog-One
SheepDog-One's picture

Could very well be theyre ready to kick the american people ass right now. Everyone elses ass has been pretty much kicked either with a war, or deep cuts in wealth or govt benefits. It WILL soon be our turn!

Thu, 04/07/2011 - 10:42 | 1145111 Negro Primero
Negro Primero's picture
"How I Learned to Love a U.S. Government Shutdown" Caroline Baum

Thu, 04/07/2011 - 10:44 | 1145113 umop episdn
umop episdn's picture

Breaking News: A group of anonymous 'investors' have offered to purchase the QSA goobermint. The terms offered include a slight reduction in Trashuries redeemed, as one member of this shadowy group says some of the paper got lost in his sofa cushions. Other changes will be minor such as Mandarin becoming the official language and the widening of the red stripes on the flag. It is likely that these terms will be accepted by Owebama, because we owe, baby, we owe. Brought to you by a tale told by an idiot, full of sound and fury but signifying nothing.

Thu, 04/07/2011 - 10:45 | 1145115 Dreadker
Dreadker's picture

All I know is that my wife is active duty, and the general consent of the military members, already p*ssed off about being sent to wars about oil, is that they're seriously considering not showing up if the government shuts down... I don't know how the tea party feels that causing military and federal workers to default on their mortgages is going to fix things... I feel if the shutdown occurs its only going to speed up the inevitable demise of this ponzi scheme... 


It's amazing how many people believe that a government shutdown will improve things... all its going to do is screw over working americans, and give the monetary system time to collect some more interest on the delayed tax refunds, wages, costs not incurred from the shutdown...

Thu, 04/07/2011 - 10:59 | 1145219 VisualCSharp
VisualCSharp's picture

Where do you think the money is coming from to "pay" all these leeches?

Why don't you get that kneejerk reaction under control and think for a bit.

Thu, 04/07/2011 - 10:59 | 1145224 GoatETF
GoatETF's picture

It's amazing how many people believe that a government shutdown will improve things...

Some don't believe a shutdown will improve things however it may make Americans rethink where our time and money should be allocated. Much like the current housing 'de-frothing' has caused Americans to realize that maybe life isn't so bad without McMansions, granite countertops and two HELOC financed SUVs/crossovers in the driveway.

Thu, 04/07/2011 - 11:03 | 1145267 Jay Gould Esq.
Jay Gould Esq.'s picture

"...they're seriously considering not showing up if the government shuts down..."

I suggest Article 94 of the UCMJ be reviewed.

Thu, 04/07/2011 - 12:13 | 1145587 Dreadker
Dreadker's picture

Most of them don't care anymore...  UCMJ is a set of guidelines now... If you know someone important you can do what you want... I know a soldier who shot his dog, threatened to kill his CO and got arrested for fighting a cop after a DUI stop... his punishment was being promoted lol

Thu, 04/07/2011 - 11:04 | 1145273 MachoMan
MachoMan's picture

screw over working americans.......  who work for the government...  welcome to the party, finally.

Thu, 04/07/2011 - 11:12 | 1145324 gabeh73
gabeh73's picture

Stopping pay on the military may wake up a few folks about the reality of the situation...we can't afford all these wars...we really can't.

Thu, 04/07/2011 - 11:19 | 1145360 NOTW777
NOTW777's picture

no one in the tea party is advocating not paying the military - turn off the MSM

Thu, 04/07/2011 - 21:20 | 1147919 StychoKiller
StychoKiller's picture

A lot of us are advocating returning ALL troops to American soil, however.  Disclosure:  Not a member of the Tea Party (and I didn't have to sleep at a Holiday Inn Express™ to figure out that the Republicons and Decepticrats are different sides of the same coin!)

Thu, 04/07/2011 - 10:44 | 1145121 youngman
youngman's picture

7.2 quake in japan

Thu, 04/07/2011 - 10:44 | 1145124 Stuck on Zero
Stuck on Zero's picture

The real fear of a Government shutdown is that everyone will like it.  The earth won't end, nothing will come unglued.  Al Qaeda won't attack.  People will not be hassled.  Crimes in the name of the Feds won't be perpetrated.  The Constitution will be observed.  This is what scares Washington DC.

Thu, 04/07/2011 - 10:53 | 1145182 SheepDog-One
SheepDog-One's picture

Thats right. For all their fearmongering at us that if they leave, the beatings will stop, and therefore we'll miss them greatly...their real fear is the people will cheer!

The welfare crowd will go without, but who cares about uprisings from them, 500 pound people in Hover'rounds dont have any cardio!

Thu, 04/07/2011 - 12:11 | 1145373 Jay Gould Esq.
Jay Gould Esq.'s picture


Thu, 04/07/2011 - 21:24 | 1147927 StychoKiller
StychoKiller's picture

What if ya throw a Govt ripoff party and NO ONE shows up??

Thu, 04/07/2011 - 10:45 | 1145128 Robslob
Robslob's picture

glad I HAVEN'T paid my taxes yet...

Thu, 04/07/2011 - 10:48 | 1145146 Dreadker
Dreadker's picture

Problem is... collections still occur... returns get delayed... wonderful scheme eh? lol

Thu, 04/07/2011 - 10:49 | 1145163 SheepDog-One
SheepDog-One's picture

Me too Rob! Fuck them Im standin with Celente and the rest who say the line is drawn, Im not payin!

Thu, 04/07/2011 - 10:51 | 1145164 KnightsofNee
KnightsofNee's picture

All the worlds' a stage and all the men and women, merely players.

Thu, 04/07/2011 - 10:51 | 1145179 GoatETF
GoatETF's picture


Obviously, the longer a government shutdown lasts, the more disruptive it will be.

Disruptive to the government, the rest of America will move along nicely thank you.


Unfortunately this is just a show for the masses, keep feeding the Matrix the show and live in fear because for the love of Pete we cannot live without our current bureaucratic efficiencies in place.


Thu, 04/07/2011 - 10:54 | 1145190 SheepDog-One
SheepDog-One's picture

Gooberment shut down disruptive to whom...the 400 pound Hover 'round Walmart crowd maxin out their SNAP cards? Oh well!

Thu, 04/07/2011 - 10:59 | 1145235 GoatETF
GoatETF's picture


Thu, 04/07/2011 - 10:53 | 1145193 Robslob
Robslob's picture

Damn...I should have taken the green pill!

Thu, 04/07/2011 - 10:55 | 1145198 beastie
beastie's picture

Belgium hasn't had a functioning govt. in a while. They don't seem any worse off for it. Shut it down. All of it. Stupid fucks do more harm than good.

Thu, 04/07/2011 - 11:01 | 1145236 Ruffcut
Ruffcut's picture

Maybe it is a pink slip issued from their bankster bosses.

Thu, 04/07/2011 - 10:55 | 1145206 DrunkenMonkey
DrunkenMonkey's picture

It seems that 'government shutdown' - like everything else americon is another misdirection tactic / misnomer, since very little would actually shutdown.


Thu, 04/07/2011 - 10:56 | 1145215 Sudden Debt
Sudden Debt's picture

Wasn't the a American guy in the beginning of the 20th century who predicted that Japan would disappear in the sea after a large set of earthshakes?

Edgar Cayce or something.

Goodbuy Japan!! Those first Casio wristwatches where cool back then!

Thu, 04/07/2011 - 11:00 | 1145230 The Count
The Count's picture

You must mean Edgar Cayce. He also saw (he was a great seer) the inundation of a large part of the eastern seaboard, the destruction of california and a bunch of other shit. 

Thu, 04/07/2011 - 11:01 | 1145245 GoatETF
GoatETF's picture

In the case of CA, maybe he was referring to their credit rating destruction.

Thu, 04/07/2011 - 11:10 | 1145310 magpie
magpie's picture

Once my NFLX puts are worth anything again, i shall finance an excavation under the Sphinx's right paw...

Thu, 04/07/2011 - 11:42 | 1145481 LFMayor
LFMayor's picture

LOL... that's the very first place I'd dig if I had the money, too.  I wonder if Dr. Hawass knows more than he lets on?

Thu, 04/07/2011 - 11:03 | 1145253 Ying-Yang
Ying-Yang's picture

Tyler... just for the hell of it. Let us know your thoughts if the shutdown grows to be a black swan event?

Most pundits say this is nothing, won't last long, everything will be okie dokie on Monday... but what if?

How can things breakdown on Treasury funding should this "non-event" actually grow legs?

I don't think it will last long but what if?

Thu, 04/07/2011 - 11:03 | 1145259 digalert
digalert's picture

"he'd grown pessimistic"

One look at Reid and you'd be pessimistic too. The senile seventy year old left lib progressive globalist Obama/Pelosi lapdog needs to crawl under a rock with a prostitute in his hell home Searchlight, NV.

Thu, 04/07/2011 - 11:04 | 1145277 cxl9
cxl9's picture

Are citizens excused from paying taxes accrued during the "shutdown"? After all, if we're not receiving all of those valuable government services, we shouldn't have to pay for them. When my electricity goes out, the meter stops spinning..

Thu, 04/07/2011 - 11:15 | 1145343 gabeh73
gabeh73's picture

if your government pay check stops then go find a job somewhere that you can make an HONEST living.

We the people want the governemnt to shut down. We don't want to pay for your "services" any more.

Thu, 04/07/2011 - 11:26 | 1145388 Calculated_Risk
Calculated_Risk's picture

-1 comprehension.

Thu, 04/07/2011 - 14:35 | 1146237 andybev01
andybev01's picture

...not unless those 'services' come with a 'happy ending'.

Thu, 04/07/2011 - 11:11 | 1145318 A Nanny Moose
A Nanny Moose's picture

This is me in complete apathy.

Thu, 04/07/2011 - 11:15 | 1145332 eureka
eureka's picture

Shut down Pentagon & Langley - Save a $Trillion/year.

Thu, 04/07/2011 - 11:15 | 1145340 New American Re...
New American Revolution's picture

FUCK'EM.   Shut it down and raise the stakes.   Screw the $33 billion dollar cut, make it $3.3 Trillion.   Like I said, FUCK'EM.

Thu, 04/07/2011 - 11:16 | 1145347 buff90
buff90's picture

How will we go on without the government???  All those critical services.

Stay long gold and silver - this game's nearing an end.

Thu, 04/07/2011 - 11:34 | 1145354 Papi_Al-Mahdi
Papi_Al-Mahdi's picture


Thu, 04/07/2011 - 11:23 | 1145372 Drag Racer
Drag Racer's picture

ya, but what about saab...

production would be shut down until the end of the week as it tries to resolve financial problems that have impeded its ability to pay suppliers.

Thu, 04/07/2011 - 11:25 | 1145398 Seasmoke
Seasmoke's picture

wow that didnt take long......i have always liked Saab, but its time to admit that is long over for the Saab brand/company

Thu, 04/07/2011 - 11:22 | 1145377 Thunder Dome
Thunder Dome's picture

Shut r down

Thu, 04/07/2011 - 11:31 | 1145429 AlaricBalth
AlaricBalth's picture

The last government shutdown occured on November 14-19, 1995 and resumed from December 16, 1995 through January 6, 1996. This previous shutdown was due to disagreements over Medicare, education funding the Earned Income Tax Credit and issues concerning the environment and public health funding. All federal employees were paid and no essential services were interrupted. The National Debt at that time was $4.992 trillion. The National Debt is now approx. $14.3 trillion with nearly $7.0 trillion in deficits projected over the next 5 years.

Does one seriously think that this time will be any different? Congress is arguing over a difference of $27 billion in spending cuts, which is 1.8% of the 2011 projected deficit. 1.8%!!!! It is amazing that no one has had the reasonable sense to look at the revenue side of the ledger rather than just the spending side.

The media is covering this issue as if it were a major event and the American people are buying into it. We have severe structural problems within this system and Congress, as well as the President, are trying to convince us that they are dilligently and successfully addressing the issue. All they are doing is washing the windows of a crumbling building.

Where is the outrage? Where is the indignation?

Thu, 04/07/2011 - 14:15 | 1146099 flattrader
flattrader's picture

You are missing the "culture war" component as to what is being cut.

Plenty to fight about, though the numbers may seem "small".

Thu, 04/07/2011 - 14:51 | 1146341 AlaricBalth
AlaricBalth's picture

Good point, well taken!

So it is "Clash of the Political Doctrines".

I agree, yet both sides of the aisle have been historically irresponsible when it comes to budgetary matters. Each fatuous member of congress must be held accountable at election time for being a part of the most fiscally reckless government in American history.

Thu, 04/07/2011 - 11:36 | 1145444 I am Jobe
I am Jobe's picture

Shut the GOVT dowsn and fire them all . Its over, folks. Send COngress to Libya or Japan and the bankers to Gaza Strip. If nothing else hang em and their families. Shows how inept USA is. Can't solve any issues and USA is in wars which has no way to come home with a victory.

Thu, 04/07/2011 - 11:35 | 1145446 Seasmoke
Seasmoke's picture

is the Government even open right now.......just go away...... all of it, local, county, state and federal......

Thu, 04/07/2011 - 11:43 | 1145474 dogismyth
dogismyth's picture

well i voted for Obama because he said he was going to pay my utilities and my food.  Hmm, Hmmm, Hmmm I love that man.  He's so wonderful.

Thu, 04/07/2011 - 11:42 | 1145480 chindit13
chindit13's picture

I am not going to watch the media coverage of the debt ceiling impasse.  It's a matter of national security that I avoid it.  You see, if I watch, see the finger pointing, the threats, the brinksmanship, then the 11th hour compromise after which all sides pat themselves on the back and wax lyrically about "how much they can get done when men and women of good faith put the interests of the people above partisan politics", then see them go out campaigning and championing their hand in grating from the massive budget as niggardly as a French chef shaves from his prize black truffle, I might go postal.  I will find some voodoo priestess to cast a spell maneuvering the comet Elenin into the path of the Capitol or the White House, or else I'll forward GPS coordinates to some bearded guy's cave in Waziristan.  Oh yea, make it a package deal and toss in Treasury, the Marriner S. Eccles Building, and K Street, too.

Thu, 04/07/2011 - 12:09 | 1145575 High Plains Drifter
High Plains Drifter's picture

there was some talk about them not being able to pay the mercenaries. this quickly went away last night ,with some stop gap measures to be passed etc. they realized what was at stake. if the useful idiots don't get paid, they won't fight and die for nothing without the bones being thrown at them. and then the military industrial complex would grind to a halt. last night, a never ending parade of false patriotism on display as idiot after idiot proclaimed the need to help our mercenaries and pay them etc and all of this bullshit.....makes me sick to my stomach what is going on in this country. they should all be taken out and s***......not one son of a bitch is worth saving. not one.........

Thu, 04/07/2011 - 12:15 | 1145595 Dr. Porkchop
Dr. Porkchop's picture

Is that the only way to end all the wars, military and corporate welfare, fraud and corruption? To shut it all down? Do it!!

Where's the twitter campaign to get people in the streets DEMANDING the shut down? I know, I know, there's too many benefitting from the ongoing suckling of teats. I should know, I'm a pig.

Thu, 04/07/2011 - 14:42 | 1146274 andybev01
andybev01's picture

A disturbingly apt anaology.

Thu, 04/07/2011 - 12:19 | 1145614 topcallingtroll
topcallingtroll's picture

Shut it down.

Fucking bureaucrats welfare losers and food stamp recipients ( and hopefully a few bankers) can damn well run a food cart or do my yardwork.

At least they could be productive.

Thu, 04/07/2011 - 13:19 | 1145888 SilverBaron
SilverBaron's picture

They will probably still pay welfare and food stamps, but cut off the pensioners and current workers.  Pay the people who do nothing and fuck the people who showed up to work every day.  The squeaky wheel gets the grease.  The welfare recipients would be the first to take to the streets, so we must keep them placated.

Thu, 04/07/2011 - 12:19 | 1145616 johnnymustardseed
johnnymustardseed's picture

Seriously we are DOOMED!  Democracy and capitalism are failures. I chuckle to think about how they used start wars to prevent the spread of communism. Our systems have imploded. If you have money in the bank spend on stuff that you can use later, cause it will soon be worth nothing.

Thu, 04/07/2011 - 13:38 | 1145950 Truthiness
Truthiness's picture

OK, we're doomed! I've bought some seeds, a gun and a hand-cranked radio. Now what do you propose we do?

Thu, 04/07/2011 - 14:44 | 1146291 andybev01
andybev01's picture

Grow some dope and target practice while listening to country music?

Thu, 04/07/2011 - 12:37 | 1145685 IrrationalMan
IrrationalMan's picture

Now with the government regulators out of the way there will be nothing to stop free market Capitalism from sending stocks soaring. 

Thu, 04/07/2011 - 12:52 | 1145747 High Plains Drifter
High Plains Drifter's picture

military industrial complex mercenaries are on CNN now, whining about not getting paid....oh poor babies..........its all about your silly little government checks is it?  oh she says, those mercenaries fighting and dying are doing it for you and me.....oh sure they are pal. sure they in reality its all about getting paid........imagine that. we have a whole army of idiots that will do whatever they are told , as long as they get boxing promoter don king said one time.........only in amerika.......

Thu, 04/07/2011 - 12:54 | 1145772 TIMMAYYY
TIMMAYYY's picture

Sorry for spam...


ZH's....does anyone out there know anything about foundation X

Buying our UK government...largest gold reserves in world, vatican approved...


Just came to my attention..

Thu, 04/07/2011 - 13:00 | 1145787 krispkritter
krispkritter's picture

F*ck me...acct just said 7.5k additional in SE taxes. Who knew you could get so screwed by working for yourself? Oh, wait...

Thu, 04/07/2011 - 13:23 | 1145899 jrpuffnstuff
jrpuffnstuff's picture

I certainly hope the gubment shuts down and stays shut down.  These politicians, sorry that word's too kind, f'n  sychophants all should go without pay, but wait... I bet they don't get furloughed do they.  The lot of them are worthless.

Thu, 04/07/2011 - 13:33 | 1145945 Truthiness
Truthiness's picture

I'm torn about ZH - love the exposure to lots of great writing/analysis about our fiscal crisis, but I'm wondering if all the talk of apocolyptic doom is overblown. I feel like I've become a pariah around my friends for being so negatively slanted in my worldview stemming from overdosing on ZH. 

The world has made it through a lot of tough stuff - is there no room for a more moderated view of the future? 

I want to believe it's not going to be as black and white as everyone is predicting. Am I foolishly optimistic or is there room for a middle of the road viewpoint? 

Are all the American companies going to disintegrate? Is society going to simply come unglued? Isn't it also possible that as things devolve economically, people rally together within their families and communities and create something more sustainable? 



Thu, 04/07/2011 - 14:25 | 1146157 flattrader
flattrader's picture

This is an interesting place to hang out and watch the ticker.  Occasionally, you learn something new.

Don't let the pervasive doom and gloom affect your psyche.  While many find it movitivational, eventually it will paralyze you.

People can/do and are rallying together.

Here's a decent model--

Do a YouTube search to see videos on how he does it.

He won a MacArthur Genius Award a few years back

Thu, 04/07/2011 - 14:32 | 1146217 Antarctico
Antarctico's picture

...I'm wondering if all the talk of apocolyptic doom is overblown.

Almost certainly. The most rational, middle of the road view you can have is to make the observation that, yes there is a world of scary shit going down all seemingly at once, that a whole basket of data strongly suggests the fundamentals of the global economy are being driven into the curb by a cabal of sociopathic billionaires and government asshats, and that whole world is in serious need of a time out and adult supervision, but then to temper that observation with the cold, hard fact that nobody really knows how all this will ultimately play out.  A lot of what passes for informed prognostication on ZH is best put in the category of info-tainment, and what goes on in the comments section is a bubbling stew of social support, group think polishing, people thinking out load, and some people just being loud without thinking.  Most everyone here, sock puppets and trolls excepted, thinks bad times are likely ahead, but everyone has their own opinion, as everyone should, as to just how much shit will hit the fan.

I am going to put my pointed hat on and suggest that the range of possible outcomes lies somewhere between the blah years of the Carter presidency and The Road, with my bet being on something resembling the social, political, and economic fucked upness of 1969-74 combined with a dollop of soup line era depression, along with a good stinking shovelful of modern techno-police state 1984 inspired tyranny as the system tries to avoid coming unglued.

I think, in the end, after some very rough times, life will go back to being good, but it will not be quite the world we live in now, and that might not be such a bad thing.

Thu, 04/07/2011 - 21:36 | 1147966 StychoKiller
StychoKiller's picture

Prepare for the worst, hope for the best, love your wife & children more!

Thu, 04/07/2011 - 13:44 | 1145983 jc125d
jc125d's picture

It's not a shutdown. It's a vacation. They get paid when the shutdown shuts down. I say for every day the government is shut down, we divide that number by 365 and owe that percent less in federal taxes. No play no pay.

Thu, 04/07/2011 - 13:46 | 1145984 viator
Thu, 04/07/2011 - 21:36 | 1147971 StychoKiller
StychoKiller's picture

Well, that's mighty white of him!

Thu, 04/07/2011 - 19:36 | 1147576 Heroic Couplet
Heroic Couplet's picture

The Bush tax cuts have been in place, unaltered, for ten years. Where are the US jobs? Obama should stand in front of Republicans and ask them. long, loug, and often.

Social Security: The Republicans want to cut it? Woo. $12,000 per year is what the average American collects.

Medicare: when as a neurosurgeon invited a Republican leader, Paul Ryan, Boehner, McConnell, anyone of them, into an operating room? Never. Neurosurgeons and cardiac surgeons don't need Republicans in any capacity. Neither does the average American worker. Obama should say no until the Republicans get the idea to repeal their own tax cuts. Republicans should content themselves with showing up, kissing lobbyists butt, collecting salary, pensions, benefits, and stay on the golf course.

Thu, 04/07/2011 - 21:39 | 1147982 StychoKiller
StychoKiller's picture

Junked you for drinkin' too much Decepticratic KoolAid!

Government is constantly trying to find a way to have unlimited creation of currency (Euros, FRNs [Federal Reserve Notes]) and credit without inflation, unlimited spending and deficits without economic ruin, unlimited national debt
without repayment, and unlimited growth of power and plunder (regulation and taxation) without revolt.

They can no more halve things and get the sensual good, by itself, than we can get an inside that shall have no outside, or a light without a shadow.

Government is and always has been a cancer growth on the Freedom of mankind, and cancer never limits its growth except by destroying its victim(s).

Only a Keynesian idjut believes that Govt "Creates" jobs!

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