No End In Sight
The US financial year ends at midnight on September 30.
Under US law, a new bill to approve funding for the next
financial year must be approved by the House of
Representatives, the Senate and the president before the
financial year ends. This has not happened this year. In
such a situation, the government does not have the legal
authority to spend money and it is called a shutdown. The
government stops providing for all but essential services
such as police, fire fighting, social security and Medicare
WHAT IS THE US SHUTDOWN?
IT IS IMPORTANT TO KNOW “OBAMACARE” AS IT IS THE CHIEF REASON WHY
REPUBLICANS DIDN’T CONSENT TO THE BUDGET. ITS OFFICIALLYCALLED THE PATIENT
PROTECTION AND AFFORDABLE HEALTHCARE ACT, 2010.
IT AIMS TO IMPROVE QUALITY AND AFFORDABILTY OF INSURANCE, BUT OPPOSITIONIS
DOING ITS BEST TO STOP IT AS IT SEES IT AS AFRICAN-AMERICANPEOPLE FRIENDLY AND
KEY FEATURES OF “OBAMACARE”
Gauranteed insurance issue to every one disregarding the
past conditions(except alcohol or chronic disease.)
Minimum standards for health issued. Penalty on
Subsidy raised. Opening health insurance exchanges in
every state to compare and chose policy.
SOME PRELIMINARY INFORMATION.
february 28 , as
financil year ends.
• 2 types of Spending- while Mandatory is
not affected by anything , Discretionary
requires renewal every year and needs to be
pased by the Gov.
• If budget is not cleared in the US congress before Oct. 1 , GOV.’s
ability to spend is restricted.
• In order to continue previous policies the gov. can pass a
continuing resolution to continue spending at current levels.
• CONTINUING Resolution- It allows the government to continue to
spend at current levels until the bill is cleared.
• “clean” CR=CR without policy changes.
IT'S A POLITICAL CRISIS -: THE REPUBLICAN PARTY
CONTROLS THE LOWER HOUSE OR HOUSE OF
REPRESENTATIVES, WHILE THE DEMOCRATS CONTROL THE
SENATE. THE REPUBLICAN-CONTROLLED HOUSE HAS
PASSED A SPENDING BILL THAT MAINTAINS SPENDING
LEVELS BUT DOES NOT PROVIDE FUNDING TO IMPLEMENT
THE AFFORDABLE CARE ACT, OR OBAMACARE. THE
DEMOCRATIC SENATE INSISTS THAT THE BILL BE FULLY
Republicans want "Obamacare" delayed, Democrats don't.
WHAT LED TO THE SHUTDOWN?
ObamaCare is the unofficial name for The Patient
Protection and Affordable Care Act which was signed into
law on March 23, 2010. The Act includes a number of
reform measures such as setting up a Health Insurance
Marketplace where Americans can purchase Federally
regulated and subsidized health insurance.
• HOW CAN THE SHUTDOWN BE BROKEN?
Congress could pass a new "clean" funding plan, which doesn't
include a delay to the affordable healthcare act. Or the senate and
the white house accept such a delay in the bill. Or any other
• WHAT IF CONGRESS FAILS TO RESOLVE IT IN TIME?
It could be disastrous. The government might be forced to
immediately slash spending by 32 per cent, the bipartisan policy
center estimates. The government could miss interest payments on
treasurys, triggering a first-ever default by the U.S. Government. US
treasurys are held by banks, governments and individuals
worldwide. A prolonged default could lead to a global financial crisis.
HOW WILL IT AFFECT US
• Essential services will continue. The military and other agencies
involving safety and security would continue to function.
• The President's $400,000 salary will be paid. Congress wont
have a pay cut.
• About one-third of the government will shut down. About 800,000
of federal employees will be sent home without pay.
• National parks will close. The environmental protection agency,
NASA and other agencies will close most operations.
EFFECT ON INDIA.
• ONE GOOD FACT IS THAT IF SHUTDOWN CONTINUES IT WILL BE HARD FOR US
FED. TO STOP THE $85 BILLION PER MONTH QUANTITATIVE EASING.
• BAD NEWS IS IF SHUTDOWN CONTINUES, INDIA’S EXPORT WILL GET AFFECTED
AS US IS A MAJOR CLIENT FOR INDIA’S EXPORTS.20% OF ENGINEERING
EXPORTS FROM INDIA GO TO USA.
• IMMIGRENT VISA ISSUE PROCEDURE WIL ALSO BE AFFECTED,