Article by Investazor.com
The number one problem of the last two weeks didn’t get a solution yet so the partial government shutdown stays in place as talks between the White House and House Republicans have entered in deadlock during the weekend. The 17th of October’s deadline is close and the government doesn’t have an agreement. As a matter of fact, the American Government seems to be comfortable with taking decision in the last moment so everybody is expecting the 17th of October in order to see a solution added to this tense situation.
The representatives of IMF and the World Bank, which have been holding a meeting until today, warranted about the necessity of reaching an agreement, as a possible negative scenario would “seriously damage” the global economy.
Today, the discussions started again even if the weekend gave the impression that an agreement is still far from their negotiations. President Barack Obama is discussing with congressional leaders of both parties and are trying to find the middle way of approaching the automatic spending cuts. Republicans are reminding about the sequester, which is due to take effect at the beginning of 2014 and are strongly arguing against it while the Democrats highlight its positive results, as the federal expenses have been decreasing.
The last meeting started to reflect more optimism, as it should in the last moment, and officials are positive about closing an agreement before Thursday. Finding the most appropriate way of keeping borrowing money and avoiding a global shutdown, which will have a cascading effect, requires a couple of days more.
As the effects of the 3rd of August 2011’s last government shutdown threat are still visible, speaking about the Budget Control Act implemented by President Barak Obama which is still activating by the so called sequestration, we see now again the American Government in standstill. To question is the decision that is about to be taken and how officials will present the positive side of the situation in order to give the impression that everything is running smoothly.
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