“U.S. government shutdown” refers to a situation in which the U.S. government stops providing non-essential services to the taxpayers; for example, national parks and museums close their doors. The reason for this is a lack of available funding. A government shutdown is nothing new to the U.S. economy. There have been many instances when the U.S. government temporarily stopped providing non-essential services, but then shortly after, they were resumed. Past government shutdowns, in general, weren’t severe–the shutdowns didn’t last long. The longest U.S. government shutdown was during President Bill Clinton’s period, and it lasted 21 days.
U.S. Government Shutdown was last modified: October 3rd, 2013 by Mahendra
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.