Why The U.S. Dollar Will End In Collapse
October 2nd, 2013
David Levenstein: The U.S. government has begun a partial shutdown for the first time in 17 years, after the two houses of Congress failed to agree a budget. The Republican-led House of Representatives insisted on delaying Mr Obama’s healthcare reform – dubbed Obamacare – as a condition for passing a bill. More than 800,000 federal employees face unpaid leave with no guarantee of back pay once the deadlock is over. The Senate is to meet again at 09:30 (13:30 GMT) on Tuesday, Democratic Senate Majority Leader Harry Reid said.
The news prompted a sell-off in gold on the opening of the US session on Comex. Possibly, traders see this as a short-term opportunity to knock the price down as the possibility of a total shut-down and a US default is practically impossible. However, this latest clown show will undoubtedly cast a shadow of doubt on the value of the US dollar.
Several Federal agencies have been instructed to reduce services after US lawmakers could not break a political stalemate. But spending for essential functions related to national security and public safety will continue, including pay for U.S. military troops. The fiasco has sparked new questions about the ability of a deeply divided Congress to perform its most basic functions.