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10 reasons US government shut down is not bad

Republicans on the Senate Environment and Public Works Committee say there’s a bright side to the government shutdown, listing the top ten reasons:
10. Approximately 15,000 EPA employees are furloughed, making it less likely fake CIA agents at EPA will be ripping off the taxpayer
9. EPA doesn’t have the manpower to raid Alaska mines with armed guards
8. Fewer bureaucrats at the EPA makes it less likely that they’ll make up science on new regulations
7. Former Secretary of Interior Ken Salazar i
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mag avatar
mag 16 Окт.

Thanks Anna.

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Republican Senate caucus delayed until Tuesday morning

There had been chatter about rapid progress being made, but maybe not so much as to expect some sort of firm proposal tonight. The delaying of the full caucus meeting is likely a positive as leaders move forward in negotiations.
The Republican Senate caucus has now been delayed until Tuesday morning (US eastern time). 11am the scheduled time for the caucus meeting. 11am start – not bad work if you can get it. Peel me another grape.
Looks like we do more hanging on every word out of Washington.
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US issues to be resolved, but at what cost?

Looking at the calmness with which the markets have continued to react thus far, the expected outcome is still overwhelmingly that a deal will be done which opens government and reassures investors that the US is good for its debts. I agree with that, the stakes are just too high for any other outcome; it is the possible legacy of any compromise that concerns me.

Should the Republicans be seen to force changes in existing legislation; amending a law that has been enacted by a democratically ele
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mag avatar
mag 14 Окт.

I agree

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Is payment prioritization is technically possible?

The 14th Amendment of the US Constitution would allow President Obama to unilaterally raise the debt ceiling. However, White House advisor Gene Sperling on Rtrs.
“Invoking 14th amendment would work only if global markets did not see extended legal battle”
I can’t see that happening. They’re still raising the issue of prioritization so it seems like it’s firmly on the table. It sounds like they’re opening the door a bit here. Then again the chance of a legal fight is virtually 100%, so…
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New proposed debt ceiling limit, Nov 22

There is a tentative report/rumor that Boehner told Republicans they would extend the debt ceiling until November 22nd. It doesn’t sound like this will include anything about a continuing resolution to re-open the government. Rather, they’re looking for ‘broader talks’ on the budget.
If I had to lean out, I’d say that this is it. All the good news is priced in now. The risk is that the market turns on the short-term nature of the hike, combined with the lack of progress on the government shut…
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DBRS puts US rating under review with negative implications

The smaller ratings agency, DBRS, is considering downgrading the AAA-rating of the US.
• Action reflects the growing risk of a selective default by the federal government on its debt securities
• If the debt ceiling is not raised or eliminated by October 17, it is unclear how the Treasury would operate
• While a low probability, missing payments on selected government securities cannot be ruled out the longer it takes for an agreement to be reached on the debt ceiling, the greater the risk of…
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mag avatar
mag 13 Окт.

Fitch is french company... the question is has made Moodys and S&P ?

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Gold always a good bet on a dysfunctional government

If you hate the government, you might as well profit from it. Gold is off to a good start this week, gaining $15 to $1325. That’s the highest since last Tuesday.
Gold is above the 100-hour and 200-hour moving averages and technically the short-term picture is upbeat. The real story is fundamentals. It’s sadly (and eerily) quiet in Washington. There is no easy path out from here and that means a good probability this stretches to Friday, at least. If we get that close to the debt ceiling, there …
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Trading the US government is a trade on sentimental timing

The government shutdown was virtually ignored by the markets two days ago as the news of parks and non essential services going offline was not felt to be detrimental to the economy in first instance.
The situation is like a degrading commodity and it’s the sentiment that we need to watch. It’s like a ripe piece of fruit that will slowly go mouldy. We’ve already seen comments on the site from people affected by child support cheques delayed and not turning up. Let’s be clear, although we may be …
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HOANG_MAI_NHI avatar
HOANG_MAI_NHI 4 Окт.

agree

sonjatrader avatar
sonjatrader 4 Окт.

I completly agree with you

mag avatar
mag 4 Окт.

Last night via Twitter the Madam Christine Lagarde wrote:
Global economy faces 2 major transitions: changing dynamics of growth & financial sector. Int'l collaboration needed to manage them...
and my answer was:
@Lagarde Mrs Lagarde: transition more; the morality of politicians.

I forgot that it is political. I was disappointed.

mag avatar
mag 4 Окт.

http://www.dukascopy.com/fxcomm/blog/?nickname=mag

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How Will a US Government Shutdown Affect the Stock Markets?

While a US government shutdown is unlikely to go on for an extended period of time, financial analysts are of course following this turn of events quite closely. In the past, the stock market has successfully weathered government shutdowns. For example, during the government shutdown from Dec 15, 1995 to Jan 6, 1996, the S&P 500 actually rose 5 percent.
Additionally, during the Nov 13th-19th 1995 government shutdown, the same index rose over1.2 percent. However, as the S&P has been currently …
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mag avatar
mag 2 Окт.

I agree

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What Does a Government Shutdown Mean to the American people?

If Congress cannot agree on how to fund certain federal government programs by midnight September 30th, the government will be forced to shut down. How will you be directly affected by the government closure?
Well, it could look quite like what happened in 1995 and 1996 when the federal government was last forced to shut-down. The following areas were affected during the last federal government closure:
Law Enforcement Services - The US government ceased work on some child-support and about 35…
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