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[TSP_Strategy] Dec Govt Shutdown Still Possible

 

Clueless? Then you have been paying attention!


By Mike Causey | @mcauseyWFED

November 6, 2015 1:00 am

When it comes to government shutdowns, federal workers fall into three categories:

  • Those who live in a constant state of fear over coming shutdowns, furloughs or layoffs.
  • Those who don't give a rat's rear about the endless political and media speculation. Their motto is: If it happens it happens.
  • Then there are the grizzled veterans who know that while shutdowns can and do happen, mostly they fizzle when posturing politicians run out of steam, reach a compromise or lose interest.

For much of the summer, the buzz was that Uncle Sam would be shutting his doors in October. (There was a 16-day shutdown in 2013. Workers got paid, but for many paychecks were delayed). Then House Speaker John Boehner (R-Ohio) announced his surprise retirement, a 2-year budget deal was reached and the debt ceiling limit threat went away. Monday's column , Christmas Shopping: Is it shutdown safe?, was about political Washington's love of drama. The need to always have a crisis, problem or threat looming. The desire to live on the edge, to always have some grim  outcome ahead.

But again this week — despite the 2-year budget deal — shutdown talk is back. A California-based IRS worker commented:

"This can be your stupid question of the day.
"I thought the budget was passed and signed by Obama, which includes an increase in the debt ceiling.
"So why are you still talking about a Christmas time shutdown?
"Thought that was a done deal." Confused in California

So did I. But …

News outlets that follow Congress very, very closely say we aren't out of the shutdown woods yet. They continue to report about the possibility of a shutdown: On Oct. 30, Government Executive said that although the budget deal was passed, "the shutdown threat still looms."

On Wednesday, Defense News said, "Shutdown Fears Resurface In Congress" because Democrats were worried about Republicans attaching legislative policy riders.

Also this week, Sen. Charles Schumer (D-N.Y) told the Huffington Post, "There may be a shutdown. The hard right, it depends on their interaction with (House Speaker Paul Ryan) they may demand a shutdown."

I spoke, on a not-for-attribution basis, with a long-time, pro-federal worker lobbyist. She said the 2-year budget deal is good, but likened it to going to the store with a shopping list but no money.

"Every year, we have this problem. We have a budget line but no appropriations … they haven't decided what's going where. The Senate did a slightly better job than the House. But what we have is not a Continuing Resolution, it's the skeleton for a 2-year CR."

Still confused? If so, you are not alone. It's a big club.

So what now? The lobbyist said, "In August, I said the odds of a shutdown were slim-to-none. Then in September there was all this talk and action and I thought 'Gosh, I was wrong." Then Boehner's action seemed to briefly end shutdown talk. So what about the possibility of a December shutdown: I'd said slim, but I wouldn't say none this time."

So there you have it. When you get it, please let me know ASAP.


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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

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