The US Government Is About To Shut Down Following Continuing Resolution Fiasco

Tyler Durden's picture

Last night a GOP controlled Congress passed the Continuing Resolution bill which would provide funding for the government past the end of the Sept 30 fiscal year end. To pass it, Boehner invoked clauses which antagonized Democrats even more. Which is why now that the bill is in the Senate, it appears to have hit a dead end. As Goldman explains, today the bill will likely die, which means that with a one week recess coming up from the government next week, government is about to be well and truly shut down.

From Goldman's Alec Phillips:

Senate likely to vote down House-passed continuing resolution.  The House passed legislation late last night to keep the government running through Nov. 18, in the absence of longer-term appropriations measures that are unlikely to be enacted ahead of the start of the new fiscal year on October 1.  This vote gained some attention after the initial vote in the House failed due to a combination of Democratic and conservative Republican opposition.  The discord will continue today, as the Senate looks very likely to vote down the House’s version of the bill, which includes a smaller amount of funding for FEMA to provide disaster aid (and the cost of this funding is offset with cuts to renewable energy programs). The Senate will most likely take up its own bill instead, which provide about double the disaster aid (the difference between the chambers is about $3.5bn) and does not offset the cost.  While a government shutdown seems like a bigger risk than it did a few days ago, this still looks unlikely.  

Alas, unlikely in DC means certain. And with the republicans pulling all stops to make the president look powerless, we are confident the US will enter the next fiscal year in full shutdown status.

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Frog-And-Toad's picture

Don't you have a heart?!? 

Think about all of the poor government contracts this will put in jeopardy!   Those jobs are our only way to recovery, and you're saying good?!? 

For shame good sir

 

<sarc>

SWRichmond's picture

Yes, and what of all the newly-minted $100,000+ jobs?  What will these poor bastards do? 

TruthInSunshine's picture

Shut the entire thing down.

For every $1.42 the federal government spends, typically on rubbish at prices 280% above what any sane private company could procure the same thing for, they expend $1 of revenue they've received (i.e. forcibly extracted) and 42 cents of borrowed monies (i.e. we'll just sell some more bonds so we can keep dishing money out to FOGRF [Friends of Government Officials/Regulators/Federal Reserve Officials]).

It's insanity and graft of a epic proportion knowing no historical precedent.

Shut the sickness down.

crazyjsmith's picture

Yeah, exactly.  Kind of like saying the cancer is going into remission.  That is usually good news, unless you are Big Pharma.   

SilverRhino's picture

It's not a real shutdown until SS, pension and welfare payments are suspended.   THEN we'll see some real action.

It also seems like these idiots in Washington DC have forgotten rule one regarding empire: Pay your fucking TROOPS.

Flakmeister's picture

Yep.... just a minor detail... Not to mention the guys that run the air traffic...

daxtonbrown's picture

I live in Vegas and know just how corrupt Harry Reid and the solar scam are. Shut it down.

Frog-And-Toad's picture

But those solar jobs are going to be around for years to come... This guy told me so:

 http://www.youtube.com/watch?v=-tfsxCeC9m0

Mr Lennon Hendrix's picture

Shut it down!  This is not our government!  This government is run hand over fist by the Banking Houses of Walled Street.  It is they who send your children to war.  It is they who have destroyed your wealth.  It is they who took your freedom.

They have done this by instituting an unconstitutional incme tax.  They have done it by taking away real monie from the pockets of each of us.  They have done it by shorting our rights and freedom.  And this is how they have done it:

To have a short position, someone either needs to own the security, or needs to be able to locate it; the latter is when we call it a 'naked short'.  There is not enough gold bullion to locate to justify their short positions.  This mean that their shorts are unqualified.  So if the CFTC ever decided to be a properly run government organization (they won't be) then they would regulate the shorts, sanction JPM et al, and nix the shorts.

Yet, just like in life, reality always descends eventually.  There will be a time when traders understand what is happening, and there will be a panic move to get physical.  I don't think this will happen until gold is in the range of $3300-$5k.  Once it does there is no top on gold.  It could go to $10k, it could go to $40k, it may very well take the dollar under and its price be invaluable.

To put this in context, look at oil.  Who bought the SPR release, and why?  JPM did, so they could locate their shorts.  The oil market is better regulated than gold, and so they needed to prove their shorts.  Thus Obama did another favor for the Banking Houses and greenlighted the release; JPM bought the oil and stashed it offshore, and JPM bought their short positions.

Of course, there is a direct way to go after these measures, and that is by buying physical silver.  Silver trades with oil 1:1 on the long term.  Oil trades inversely 1:1 with the dollar on the long term.  Take a position on silver, and you take the most promising short position against the dollar possible.  Shorting the dollar is the final battle, because it is the dollar that holds the world from reclaiming its prosperity.  The dollar backs the Banking Houses; it is their only weapon in the financial war that has destroyed the America our fore fathers built.  The dollar, and the corporations that back it, is exactly why this great country was founded. 

It funds the war machine, and it is the war machine that is Wall Streets prize possession.  Without it, Wall Street has no power over the oil producing States.  The dollar is soaked in the blood of young Americans who have been stricken by poverty and had little options available.  The catch 22 of the dollar has pitted America against itself.

Victory will be had by real monie, because the dollar has no backing and is an amalgamation of creative thinking.  Alchemy took hold of money after the philosopher's stone failed.  The dollar has no intrinsic value; it has no general worth and is merely an IOU.  The dollar is backed by lies.

Silver is real monie.  This real monie has had the same short positions unjustly levied against it.  Since silver is cheap, it is rather easy for us to target.  It is the belly of the beast.

I will be visiting the coin store today, and I will be buying with both hands.  I believe that our best hope to take the Banking Houses down is to take possession of silver.  This because silver is a very industrial commodity and if we squeeze the physical market the price will rise.  Then, when the price rises due to supply constraints, JPM's shorts will crush their balance sheet- this has already been happening over the course of the last year and a half, since we started our movement.  So please, join me, take down the Banking Houses, take back your monie and wealth, and take back your freedom!

BUY SILVER!

Jonas Parker's picture

There goes Granny's Social Security check again... no, wait! That money's in a trust fund!  Whew!

[/sarc]

Frog-And-Toad's picture

Aha, because they spend it and the money is not in a trust fund! That is why it is funny right?

 

Sick fucking bastards... Have fun on vacation... We'll be waiting for you when you get back

Bruce Almty's picture

Think of all those $16 muffins that will go unsold. Shut it down.

DaveyJones's picture

unfortunately, more like you wish

I Got Worms's picture

Fan-fucking-tastic.

Takes a bit of the edge off of the repeated kicks to the jimmy silver and gold are currently suffering.

covert's picture

the only problem is that it will not stay shut down or die.

http://covert3.wordpress.com

 

camaro68ss's picture

shut this bitch down!

Each day the goverment is shut day, is an extra day of liberty!

bigdumbnugly's picture

if the gov't does shut down will all those ahole pols be forced to walk among us in the community?

i see an upside here - past the obvious.

crazyjsmith's picture

Does this mean my Buddy's Fart Farm in California won't get it's $1 Billion dollar Gov't "Loan"?

He'll be bummed. 

 

economessed's picture

This is the best leadership money can buy!

Oh regional Indian's picture

More lockdown Shennanigans. Have to keep people dis-tracted from seeing their lives crumbling around them, as thier virtual lives get better and better.

Seems to me like Virtual Reality is Civilization 2.0. Transhumans.

ORI

An Upper and  Downer or three

jdelano's picture

My prime motivation for holding pms is so that when the whole country looks like Detroit I'll be able to afford a warcraft subscription and check out of this craphole entirely.

Oh regional Indian's picture

Haaaah! Nice goal jdelano, lean forward now...

Antipodeus's picture

Civilization 4 Rise of Mankind is way better, Man!  But I've never been happy with the way they model the rivers.  ;=))

 

firstdivision's picture

If Goldman is saying the bill will die, I'm thinking it may be opposite day (which is everyday at GS)

TJ00's picture

If the US government shuts down does that mean there is no one to pay the coupons and principle on their bonds so causing a default or is it all automatic?

guasilas's picture

Well, let's hope first funding the treasury cuts is that to the senate and house of representatives, and then to the white house. That should provide plenty of entertainement.

falak pema's picture

lol, maybe the world should elect Mah Abbas as leader, to generate a sense of urgency. All these other shills are on soma pills; on both sides of the pond! Anybody there...???

guasilas's picture

Well, let's hope first funding the treasury cuts is that to the senate and house of representatives, and then to the white house. That should provide plenty of entertainement.

PicassoInActions's picture

ALready priced in....

ZeroPoint's picture

It's not over until they empty the jails.

Caveman93's picture

Closed for business bitchez!

GeneMarchbanks's picture

Yeah, the Euro is fucked...

DormRoom's picture

so is gold & silver.  All hail the comeback of the USD.

CrockettAlmanac.com's picture

Get out of your dorm room and attend a math class. Silver is up 54% this year against the dollar and gold is up 29%.

docmac324's picture

Come on now, the market is up.  Can't be THAT bad....

Racer's picture

Ah more very bad news for the market to soar on.

As long as they can squeeze the AAPL shorts nothing else matters

shazbotz's picture

VIVA LA REVOLUCION!

espirit's picture

Buy the rumor, sell the news. Potential shutdown is "bullish" for the markets.

What a sicko world we live in.

FunkyMonkeyBoy's picture

You can't shutdown the most evil entity on the planet!

In God we Trust.

lolmao500's picture

Just to be sure... and because they just deserve it.

johnQpublic's picture

kinetic weapon from orbit would be just as effective without the longterm issues

 

just sayin'

why create a new problem solving the old one

we've seen how that works when they bailed the ...oh never mind

Ancona's picture

Yawn.

Wake me up when Greece implodes. I'm going back to sleep.

swamp's picture

Pleeez shut the damn thing down. For good.

BigJim's picture

Hmmm. Will the USD and USTs still be seen as a 'safe haven' if this happens? No... if this happens, I think it would truly precipitate collapse.

So it won't be allowed to happen.

Cassandra Syndrome's picture

Government Shutdown is such a soothing and relaxing sequence of words.... deep blue ocean.....dolphins.........government shutdown.....state of nirvana......

Hurdy Gurdy Man's picture

government shutdown = no blue oceans, no dolphins, no nirvana, but a bunch of people enacting their Hobbsian praetorian society nightmares sold by gunmakers and costco

Killtruck's picture

If the government shuts down, do the SNAP cards still work?