[govigov]

website - www.nasa.gov is shutdown.

[selfdrive]

2 days to go. Any updates?
Time to bring out the popcorn? Wait, let me first check if I can afford it

[amitoj]

Originally Posted by selfdrive

2 days to go. Any updates?

As expected (at least by me and maybe the Wall Street)

Senate Leaders Reach Bipartisan Deal

It is yet to pass the vote though, however, from the article:

The Senate deal gives GOP lawmakers almost none of the policy gains they had sought, but enough House Republicans are expected to join with Democrats in order to pass the measure.

[prasadee]

Shutdown, default is all drama. It is 24 hour news channels making news out of nothing and politicos playing games. It has no real market impact or value. If the drama/standoff is not a surprise, the drama is already factored into the stock market pricing.

The US govt will always have continuous income coming from taxes it collects from everyone on a daily basis. That will be enough to pay interest on the debt. The govt may face a choice between cleaning the river in some national park, and paying interest on the debt with this revenue. I do not think Obama is stupid enough to default on such debt. Because of the shutdown if the federal tax deduction from my paycheck stops - I would be really worried.

There is truth to the govt being super big, and there is room for cost cutting. Nobody wants to do that difficult work, instead they resort to drama.

My time is better spent reading a test drive report/review of new car from some auto show

[drmohitg]

With the deal done is this going to effect the Dollar now in anyway? Can we expect another jump in the dollar value?

[petrolveins]

On a long term basis, the USD is going to depreciate substantially at least against the Asian currencies. The incessant money printing is going to ensure that, simple economics of demand and supply. Generally, the genesis of the next crisis is sown while taking actions in resolving the current crisis. For the brave, going long on Asian currencies or investing in the sound consumer companies in emerging companies is probably going to give far better returns (the alpha returns). While in the short term the sentiment dictates the asset pricing, in the long term the fundamentals prevail. So, USD in the short term is going to appreciate in my opinion.

[Sidhu bangalore]

Like Always here is the update.
http://news.yahoo.com/congress-votes...--finance.html

[C300]

The biggest Ponzi scheme of our times survives to fight another day.
If you have to borrow to service your debt then you have already run out of money.

[supremeBaleno]

@C300, good way of putting the whole thing aka "biggest Ponzi scheme".

Regarding borrowing money and being in debt, is that not how the US has been running for a long time ? Still they lead the world, bully around with every other nation and get their will done. I wonder how.

And that infinite printing of dollars without any (atleast visible now) consequences seems logic-defying to me. Imagine what would happen if we in India kept printing Rupees left and right ?

[bblost]

Originally Posted by supremeBaleno

Imagine what would happen if we in India kept printing Rupees left and right ?

That depends on which other country accepts those Rupees.

The US dollar gets accepted everywhere. The Indian rupee has no value even in India.

[Samurai]

Originally Posted by bblost

The Indian rupee has no value even in India.

Iran does accept Rupee. India pays 55% of the oil bill in rupee, and now forcing them take 100% in rupee.

http://www.business-standard.com/art...1600696_1.html

Since Iran has lots of rupees, they want to import stuff from India in order to spend that money.

[supremeBaleno]

Originally Posted by bblost

The US dollar gets accepted everywhere. The Indian rupee has no value even in India.

True and we all know that. I was wondering how come the USD that they keep printing by the gazillions gets accepted everywhere inspite of everyone knowing the sordid background details.

[CaliAtenza]

Originally Posted by supremeBaleno

@C300, good way of putting the whole thing aka "biggest Ponzi scheme".

Regarding borrowing money and being in debt, is that not how the US has been running for a long time ? Still they lead the world, bully around with every other nation and get their will done. I wonder how.

And that infinite printing of dollars without any (atleast visible now) consequences seems logic-defying to me. Imagine what would happen if we in India kept printing Rupees left and right ?

America has been in debt pretty much since her founding in 1776. The point is that you need to have money to pay down the debt (keeping the debt solvent); thats what the whole thing is about now. Oh come on, America doesnt bully "every nation"; dont get sucked into the media hype. Okay, to be fair, we do "bully" a lot of nations, but not everyone. Who would you rather lead the world? China?, Russia? Fact is, the world is better off with America at the front...regardless of whatever transgressions, accurate or inaccurate, that has gone on.

[Gansan]

Originally Posted by supremeBaleno

True and we all know that. I was wondering how come the USD that they keep printing by the gazillions gets accepted everywhere inspite of everyone knowing the sordid background details.

Because the world oil trade is pegged to dollars! Change that and the entire balloon will deflate in no time!

Saddam dared to do it; so suddenly WMDs were supposedly found in Iraq, and an invasion was launched!

Lately Iran threatened to open an oil bourse, where oil will be traded in any currency but dollars!So we can expect to find WMDs there as well!

[srishiva]

I dont think its simplistic enough to say that they are good because $$ is the international currency or they bully everyone.
We all know the size of the economy (not just the govt spend) and the income generated.