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US Shutdown Imminent

The US Senate has rejected a budget bill passed by the Republican-led House of Representatives, with just hours to go to avert a US government shutdown.

The Democratic-led Senate voted 54-46 against the bill, which would fund the government only if President Obama's healthcare law were delayed a year.

If no agreement is reached by midnight (04:00 GMT), the government will close all non-essential federal services.

The shutdown would be the first in the US in 17 years.

More than 700,000 federal government workers could be sent home on unpaid leave, with no guarantee of back pay once the deadlock is over.

One of the key points of contention in the political stalemate has been President Barack Obama's healthcare law, popularly known as Obamacare.

Republicans in the House of Representatives - and their allies in the Senate - have demanded the law be repealed or stripped of funding as a condition for continuing to fund the government.

Major portions of the law, which passed in 2010 and has been validated by the US Supreme Court, are due to take effect on Tuesday.

After the Senate vote on Monday afternoon, the chamber's Democratic majority leader blamed Republicans for the imminent halt to all non-essential government operations.

"It will be a Republican government shutdown, pure and simple," Senate Majority Leader Harry Reid of Nevada told reporters.

'Potential default'

In addition to the threat of a shutdown, a second fiscal deadline is approaching in the coming weeks. About 17 October, the US government will reach the limit at which it can borrow money to pay its bills, the so-called debt ceiling.

House Republicans have demanded a series of policy concessions - notably on the president's health law and financial and environmental regulations - in exchange for raising the debt ceiling.

The US needs to agree a new spending bill before the financial year ends at midnight on Monday. But political divisions have resulted in a stalemate.

There are worries over the economic impact of a failure to do so, which may see non-essential federal services shut and staff placed on unpaid leave.

Stock indexes in Japan, Hong Kong, Australia and South Korea all declined.

Japan's Nikkei 225 index fell 2%, Hong Kong's Hang Seng was down 1.5%, Australia's ASX dropped 1.7%, while South Korea's Kospi shed 0.7%

"It is the fear of the unknown," said David Kuo of financial website the Motley Fool. "No one knows what is really going to happen and markets don't like uncertainty."

"There is likely to be some reduction in US government spending, but we don't know what areas are going to be affected.

"Until that is resolved, we are likely to see volatility in the markets," he added.


The US hopes we will find compromise as soon as possible; we are aware of the adverse effects this will have upon global markets.
Reply 1
Luxembourg politely requests that the USA stop the shutdown as quickly as possible, due to the alarming effects on government employees and world trade.


Posted from TSR Mobile
Indonesia would like a solution to be found promptly due to the effects upon the world economy.

OOC: When a government disagrees about an issue this doesn't seem like a sensible way to go about it.
Reply 3
Malaysia echoes the stance of Indonesia - citing that the dispute over this bill must be dealt with through negotiations, and that should this action go ahead, it would jeopardize the global economy until the government resumes.
Reply 4
China finds this situation most amusing.

Original post by Moist Penguin
OOC: When a government disagrees about an issue this doesn't seem like a sensible way to go about it.


Well, the stubborn headed fools didn't pass the budget, so basically the government isn't allowed to spend any money.
Reply 5
The Netherlands urges the USA to deal with this as soon as possible, the effects on the employees left without pay, the general population who need the services, and the global economy, which is already in turmoil are too great to ignore for much longer.
Original post by Qwertish

Well, the stubborn headed fools didn't pass the budget, so basically the government isn't allowed to spend any money.

OOC: Yes it is stupid, they should consider doing what Australia did, just fire the whole parliament then start again with elections
Reply 7
Original post by Moist Penguin
OOC: Yes it is stupid, they should consider doing what Australia did, just fire the whole parliament then start again with elections


OOC: The way we do it is better, where the Government can just spend whatever it wants (i.e., the budget isn't subject to Parliamentary approval) and if Parliament is unhappy they can VoNC the Chancellor.
Reply 8
South Korea hopes the two sides can find a solution to this problem before too long.
The Republic of India and the Swiss Confederation echo the above sentiments.
Malta urges this situation is dealt with as soon as possible.

OOC: stupid ****ing Republicans!!! All this over Birth Control!!! :angry:
Reply 11
Original post by Afcwimbledon2
Malta urges this situation is dealt with as soon as possible.

OOC: stupid ****ing Republicans!!! All this over Birth Control!!! :angry:


OOC: *Obamacare, not birth control
Reply 12
Original post by Afcwimbledon2
Malta urges this situation is dealt with as soon as possible.

OOC: stupid ****ing Republicans!!! All this over Birth Control!!! :angry:


OOC: It's nothing to do with birth control, it's Obamacare and the ridiculous debt ceiling the democrats acquired since 2008.
Original post by Qwertish
OOC: *Obamacare, not birth control



Original post by Kiss
OOC: It's nothing to do with birth control, it's Obamacare and the ridiculous debt ceiling the democrats acquired since 2008.


OOC: Pretty sure I heard that its over birth control in Obamacare :wink: But yehhh
Reply 14
Original post by Afcwimbledon2
OOC: Pretty sure I heard that its over birth control in Obamacare :wink: But yehhh


OOC: Nooo, it's over that fact that Obamacare requires everyone to have health insurance (makes it illegal if you don't) and that it provides subsidies for those who can't afford it.
Original post by Qwertish
OOC: Nooo, it's over that fact that Obamacare requires everyone to have health insurance (makes it illegal if you don't) and that it provides subsidies for those who can't afford it.


OOC: Ok. I thought it was until I heard a female democrat say it was primarily due to the fact it allows for Birth Control (which sounds like something the Tea Party would do)
Reply 16
Original post by Afcwimbledon2
OOC: Ok. I thought it was until I heard a female democrat say it was primarily due to the fact it allows for Birth Control (which sounds like something the Tea Party would do)


Yeah well half the time they don't even know what they're on about haha. It sounds like she was just trying to force an interview over to issues she wanted to discuss :tongue:

Silly American politics.
Original post by Qwertish
Yeah well half the time they don't even know what they're on about haha. It sounds like she was just trying to force an interview over to issues she wanted to discuss :tongue:

Silly American politics.


OOC: Just silly Americans :wink:

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