Government Shutdown And Default: Its All About Obamacare (Default Not Likely)

Confounded Interest ^ | 09/28/2013 | Anthony B. Sanders

[whitedog57]

Before I went on The Willis Report on Fox Business to discuss the latest FHA bailout, reporter Rich Edson discussed the pending government shutdown. That is, The House passed a continuing resolution without Obamacare funding, the Senate put Obamacare back in the continuing resolution, and now the ball in the House’s court with only days to go …. to government shutdown!

House Republican leaders are proposing to attach a one-year delay of Obamacare provisions and a repeal of the medical-device tax to a short-term spending bill and send it to the Senate, said Representatives Michael McCaul and Kevin Brady of Texas.

The move probably would provoke a partial government shutdown. You know, anything that will punish the Republicans for challenging the dreadful Obamacare, the scared cow of the Democrats.

While people are wringing their hands and gnashing their teeth, government shutdown is actually a most excellent idea!

A U.S. government shutdown means President Barack Obama will have fewer people to cook meals, do the laundry, clean the floors or change the light bulbs, according to a White House contingency plan.About three-fourths of president’s 1,701- person staff would be sent home.

Of the total, 438 people work directly for the president. Under a shutdown, 129 could continue working, according to the contingency plan.

Biden, who has a staff of 24, would have had to make do with 12.

Obama’s national security staff of 66 would be cut to 42. Similar staff cuts would be imposed at the White House Office of Management and Budget, the Council on Environmental Quality, the Council of Economic Advisers and the Office of National Drug Control Policy, which are all part of the president’s executive office.

And yes, welfare checks will still be sent out along with food stamps. And yes, the Obamacare insurance exchanges will still open on Tuesday. But maybe that might try to slim down Obamacare’s horrifically complicated organizational chart. But I doubt it.

obamacare_chart_LGa

And The Fed will keep continuing to buy Treasuries and agency MBS.

frb090913

And the labor force participation rate will continue to fall along with M2 Money Velocity.

lfpm2v

So, little will change other than President Obama and Vice President Biden may have to curtail their luxury trips abroad with huge staffs … and bills.

But this is an excellent way to trim to bloated budgets and staffing in Washington DC.

But what about a default? Don’t bet on it. 5 year credit default swaps (CDS) for the US are still very low, about the same as Switzerland.

sovcds092813

But US 5 year CDS prices have risen in the last two weeks from 24 to 32.

uscds092813

And gold prices are not reflecting any risk of government default either.

gold092813

So, the market is pricing in a trivial probability of default for the US. But with $17 trillion in Federal Debt and $70 trillion in off-balance sheet liabilities, …

But fear not. If you are a taxpayer, you share of unfunded liabilities is $1.1 million EACH. And if you don’t pay Federal taxes like 43% of Americans, you also get an Obamacare subsidy for healthcare.

usdebtclcoks092813

BILL___TED_2

[whitedog57]

Most excellent!

[Lancey Howard]

Shut it down!

[wmfights]

If military personnel still get paid, if social security checks still go out, if medicare and medicaid is still covered, where's the great crisis? As long as the ritical services are taken care of the pressure will be on the Rats not the Pubs. It's the Rats that are the party of govt.

It's looking more like the fear mongering we got with the sequester. We were told everything would grind to a halt, but it hasn't.

[upchuck]

Most excellent!

Not without the charts. Without the charts, it is worthless.

Here, let me help you out:

Before I went on The Willis Report on Fox Business to discuss the latest FHA bailout, reporter Rich Edson discussed the pending government shutdown. That is, The House passed a continuing resolution without Obamacare funding, the Senate put Obamacare back in the continuing resolution, and now the ball in the House’s court with only days to go …. to government shutdown!

House Republican leaders are proposing to attach a one-year delay of Obamacare provisions and a repeal of the medical-device tax to a short-term spending bill and send it to the Senate, said Representatives Michael McCaul
and Kevin Brady of Texas.

The move probably would provoke a partial government shutdown. You know, anything that will punish the Republicans for challenging the dreadful Obamacare, the scared cow of the Democrats.

While people are wringing their hands and gnashing their teeth, government shutdown is actually a most excellent idea!

A U.S. government shutdown means President Barack Obama will have fewer people to cook meals, do the laundry, clean the floors or change the light bulbs, according to a White House contingency plan.About three-fourths of president’s 1,701- person staff would be sent home.

Of the total, 438 people work directly for the president. Under a shutdown, 129 could continue working, according to the contingency plan.

Biden, who has a staff of 24, would have had to make do with 12.

Obama’s national security staff of 66 would be cut to 42. Similar staff cuts would be imposed at the White House Office of Management and Budget, the Council on Environmental Quality, the Council of Economic Advisers and the Office of National Drug Control Policy, which are all part of the president’s executive office.

And yes, welfare checks will still be sent out along with food stamps. And yes, the Obamacare insurance exchanges will still open on Tuesday. But maybe that might try to slim down Obamacare’s horrifically complicated organizational chart. But I doubt it.

And The Fed will keep continuing to buy Treasuries and agency MBS.

And the labor force participation rate will continue to fall along with M2 Money Velocity.

So, little will change other than President Obama and Vice President Biden may have to curtail their luxury trips abroad with huge staffs … and bills.

But this is an excellent way to trim to bloated budgets and staffing in Washington DC.

But what about a default? Don’t bet on it. 5 year credit default swaps (CDS) for the US are still very low, about the same as Switzerland.

But US 5 year CDS prices have risen in the last two weeks from 24 to 32.

And gold prices are not reflecting any risk of government default either.

So, the market is pricing in a trivial probability of default for the US. But with $17 trillion in Federal Debt and $70 trillion in off-balance sheet liabilities, …

But fear not. If you are a taxpayer, you share of unfunded liabilities is $1.1 million EACH. And if you don’t pay Federal taxes like 43% of Americans, you also get an Obamacare subsidy for healthcare.

[Baynative]

I would agree 100% with shutting it down IF there were some republicans with the courage to follow through with a pointed message to America that it is now up to Obama to work with the funds and that he and he alone can decide whether to cut direct services or things like the EPA, the Department of the Interior and the Dept. of Energy that people never see and never use and basically just eat up money taking away our rights.