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US Government Shutdown

The US government has made the first steps towards shutting down, as Congress couldn't agree on a spending bill.

This is the first shutdown in the last 17 years and will implicate the unpaid leave of over 700,000 federal employees. Goldman Sachs estimates a three-week shutdown would trim the US GDP by 0.9 %. (Source: BBC article).

According to BBC, approx. 400,000 of the affected staff work at the Department of Defense, 18,500 in the Department of Transportation, 40,200 in the Department of Commerce, 12,700 in the Department of Energy.

While many have been predicting a dollar crash as a result of a currency crisis, a financial crisis as a result of the debt bubbles, instead we're witnessing and unraveling US budget crisis.

This shutdown should be regarded as a first step. Many more will follow. If the US GDP will shrink, the situation will obviously worsen.

The US budget crisis may as well be the first brick to fall in a domino-like chain reaction that could lead to a US default.

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