US Shutdown 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 payments.

WHAT IS THE US SHUTDOWN?

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

FUNDED.

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

compromise formula.

• 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 CITIZENS?

• 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.

THANK YOU!GOOD LUCK MR. PRESIDENT