Wednesday, October 2, 2013

Government Shutdown Day 2: A Little More of a Serious Mood

Yesterday, Money Daily closed its post with the thought that bad things happen when people are complacent.

Today, some of those bad things may have already begun and the complacency of yesterday has turned to concern, today.

Over the previous weekend and into Monday and Tuesday, conventional thinking (the kind that usually amounts to being dead, 100% incorrect) was that the shutdown would last a day or two. Today, there's a growing consensus that the US government shutdown will linger at least until the end of this week, probably through next week and quite possibly meld right into the debt ceiling deadline of October 17, as Treasury Secretary Jack Lew has pegged that date at which time the US will have to start picking and choosing which bills to pay, emergency measures exhausted.

It's estimated that the US economy is losing $100 million per day for each day the government shutdown - partial as it may be - continues. There's another school of thought that believes the number is higher and the cumulative effect will bring the total to much more damage than $100 million a day, as the prolonged furloughs of non-essential government employees drags on and uncertainty over the economy in general grows deeper, mistrust of the government extends and decision begin to be made with the thought of a govern-less world a possibility.

Businesses will become more and more reluctant to spend, individuals will be frightened (which is probably the intention of this entire charade, anyhow), systems will begin to break down and the fabric of society will unravel even further than it has over the last five years of crisis management.

It appears that the politicians are steadfast in their beliefs and unbudging, so this could get a bit more serious every day.

Hang on to cash, gold, silver, gasoline, extra stores of food, water and shelter.

Good luck. (There may be a bank holiday coming your way.)

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