Prolonged shutdown could leave millions without food stamps and hit small businesses

Discussion in 'Latest US & World News' started by Destroyer of illusions, Jan 8, 2019.

  1. Destroyer of illusions

    Destroyer of illusions Well-Known Member

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    [​IMG]

    https://www.nbcnews.com/news/us-new...illions-without-food-stamps-hit-small-n955136

    Personally, I think that this is not the main problem for the United States. Compared to other economic problems, this is a trifle.
    December last year for the American stock market was the worst since 1931, the height of the Great Depression. The S & P500 index for the last month of 2018 fell by 11%, the stock index of high-tech companies Nasdaq - by 12%. Analysts warn: the current collapse could be the first sign of a new global crisis, which is already very close.
    The leaders of the fall in the United States have become companies that embody the glory and power of the American economy. Facebook depreciated almost five times in five months, General Motors shares fell by one third in six months, General Electric's shares have steadily decreased since the beginning of the year and as a result by the end of December lost two thirds of the cost.

    A similar picture is observed on the stock exchanges of other countries: the Japanese Nikkei-225 and the German DAX showed a significant decrease over the year, and the French CAC40 can compete on the scale of the collapse with the Nasdaq, having blown off from October by 20%.

    Analysts talk about the worst Christmas markets since the Great Depression.

    The Financial Times recalls that in December 1931, the S & P500 lost "only" 14.5%. The hint is more than transparent: the world is on the verge of a large-scale crisis. And as usual, the world's largest economy promises to become its epicenter.
    Serious problems in the economy of the United States are no news to anyone. Experts argue only about what is considered the main threat. Donald Trump sees the main problem in the Fed policy, which has set its sights on rate hikes. Against the background of the Christmas collapse of the markets, the head of the White House once again stated: "The only problem for the American economy is the Fed."
    There is a logic to this: a rate increase raises the cost of borrowing for both the US Treasury and US corporations. Moreover, in parallel with the rate hike, the Fed is conducting a program to reduce the balance sheet, siphoning money from the economy.
    In 2018 alone, the Fed reduced the balance by $ 110 billion. According to experts of the American Institute of International Finance for the market, the effect of such pumping money is equivalent to a rate increase of 0.4%.
    Meanwhile, a survey of investment fund managers conducted in December by Bank of America showed that for them the Fed policy is only in second place in the list of main risks (54 respondents indicated it).
    The main threat to economic stability is 35% of respondents (61 people) consider trade wars.
    The fact is that Trump’s fight “for fair international trade” ultimately beats the US business the most. Thus, General Motors and Ford automakers were on the verge of bankruptcy and were forced to close factories, including due to import duties on steel and aluminum, introduced by the US president in April.
    As a result, the metal in the United States began to cost more than in any other country in the world, and the cost price of American cars increased by 1.5–5 thousand dollars apiece (depending on the class).

    After China introduced protective duties on US agricultural products, thousands of American farmers who previously supplied the Celestial soy, wheat, corn, cotton, almonds, pork, sorghum, dairy, and other products were on the verge of bankruptcy.
    It is clear that not only the United States suffers from trade wars. The negative consequences of these disputes are beginning to manifest themselves in the Chinese economy. According to estimates by the Academy of Social Sciences of the People's Republic of China, in 2018 Chinese GDP growth will be 6.6% against 6.9% in 2017. And this year it will slow to 6.3%.
    This threatens to lower world prices for commodities, whose main buyer today is Beijing, from energy to agricultural products. As a result, problems may arise in many developing countries supplying raw materials to China.

    In December, there was another potential source of the global crisis: Saudi Arabia’s budget for 2019 was laid out with a deficit of $ 35 billion, or 4.2% of GDP. That, by the way, is twice the budget deficit of Italy, which is considered the main threat to the financial stability of the European Union.
    In this case, the Saudis have put in the calculations the cost of oil at $ 80 per barrel. And to balance the budget, the kingdom needs an average price of black gold at $ 95 per barrel in the new year.

    The danger lies in the fact that Saudi Arabia, along with China - the largest holders of US government debt. Faced with economic and budgetary problems, both countries will simply be forced to sell off US government bonds.
    This will almost inevitably provoke a massive flight of investors from the US government debt. The consequence of which will be a collapse in the market value of treasurers and “holes” in the balance sheets of banks that have been actively buying up American debt securities in recent months.

    After this, it remains only to wait for which of the banks will repeat the fate of Lehman Brothers, whose bankruptcy triggered the acute phase of the global crisis in 2008.

    What do you think about it?
     
  2. Hoosier8

    Hoosier8 Well-Known Member Past Donor

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    The weasel word here is 'could' if the SNAP budget runs out but nothing is stated on the budget available.

    The media is hyping all the fear they can.
     
  3. Destroyer of illusions

    Destroyer of illusions Well-Known Member

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    Do you think that a crisis is impossible in the next year or two? If so, what is your confidence based on?
     
  4. Hoosier8

    Hoosier8 Well-Known Member Past Donor

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    Certainly not based on the media fear mongering.
     
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  5. NMNeil

    NMNeil Well-Known Member

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    An assumption on my behalf.
    Did the majority of food stamp recipients vote democrat, and if so will they now be contacting those they voted for telling them to approve the funding for the wall. And if they don't they will get the thing that all politicians fear the most, they won't get re elected?
    In just a few weeks the 'poor' will be baying for blood.
     
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  6. Wildjoker5

    Wildjoker5 Well-Known Member

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    When you are so dependent on the government that when it shuts down and you cant provide for yourself or family, you know you should have made better life choices. Sucks that welfare queens are scared that another sugar daddy is about to run out on them like the fathers of their kids did.
     
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  7. Wildjoker5

    Wildjoker5 Well-Known Member

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    I think this is the only time ive ever heard of welfare running out of money, usually its social security and medicare that is used to stoke the fear mongering. The media must be getting desperate.
     
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  8. Collateral Damage

    Collateral Damage Well-Known Member

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    I won't waste my breath explaining that those you just pinned up, are not the only ones using food assistance programs.

    While SNAP ad WIC are supplemental assistance programs, and I don't believe anyone will starve without them, maybe it will serve as a hot prod for the Democrats to quit jamming it up.
     
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  9. fmw

    fmw Well-Known Member

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    You got one thing right. It is a trifle. When we have a government shutdown, the government doesn't really shut down. The problem isn't the "shutdown." It is the intransigence of the players. The president and the people want border security but the congress does not. It wants cheap labor and future votes.
     
  10. FivepointFive

    FivepointFive Well-Known Member

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    Holy cow a total whopping of six people have been encountered at the border on the terrorist watchlist in two ucking ******n years

    41 have been encountered at the northern border
     
    Last edited: Jan 8, 2019
  11. Blaster3

    Blaster3 Well-Known Member

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    wouldn't put it past the established left to switch tactics and use those 'pa' recipients as pawns...

    imo & from my experience here in ny, his 'pinning' is spot on for the most part, yes there are other's that don't manipulate the system as a crutch and i do 'feel' for them...

    why isn't it mandated to keep all those programs running, taxes are still being collected and those program employees should be part of the 'necessary' personnel to remain working.

    take the monies away from every politician, seize their assets, until they settle their petty horsesh*t gripes ;)
     
  12. Collateral Damage

    Collateral Damage Well-Known Member

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    Of course there are those who manipulate the system. I'm thinking of those who are doing their best, and are just scraping by, or those who have special needs kids, or are elderly and such. A local grocery store has put a sign up that anyone who would normally receive benefits, just needs to show their card and they will get a discount on eligible groceries. I didn't read the details, but it's pretty decent of them.

    NY is no different than any other densely populated urban sprawl.... or rural, for that matter.

    I wouldn't want the politician's assets, just lock up their pay. Resolve the matter in X number of days, and you will get a percentage of it back after it's resolved. Each day after that, what you get goes down, down, down.
     
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  13. Blaster3

    Blaster3 Well-Known Member

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    seize their assets, close their credit cards and levy their bank accounts... make them suffer the same fate of those dependent upon them (them are the government)...

    EDIT: they behave like children, so they'll only respond to punishments in kind
     
    Last edited: Jan 8, 2019
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  14. iamwhatiseem

    iamwhatiseem Well-Known Member

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    Scare tactics.
    Grow up.
    Every "shutdown" the same thing is said...never happens
     
  15. APACHERAT

    APACHERAT Well-Known Member Past Donor

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    Illegal aliens (undocumented Democrats), Bad hombres like cop killers and MS-13 (MS-13 aren't so bad Democratic party platform), cheap drugs unless it's cocaine, and an open border with no wall or barrier is more important than food stamps or small businesses.

    But it's not really about the "wall" at all with the Democrats, it's all about the Democrats "resistance" to take down the current executive branch of the federal government.
     
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  16. One Mind

    One Mind Well-Known Member Past Donor

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    There is an even greater dependency upon our social safety nets, like never before, simply because our politicians have allowed this nation to be devastated of value added jobs that is one of the things that made us so rich and powerful in the first place. We put the maximization of the profits of our elites above the economic health of this nation, and her non elites. It will continue to drive up welfare costs and debt, and that is one of the many costs of making max profits for the top, the primary concern, and that it restructured our economic model.

    Of course, some on the right cannot understand this, but that is a problem with intelligence and a lack of wisdom. Hell, some of the cons still believe that we are islands, when that is pure delusion, a delusion created by a particular ideological driven manner of looking at the world.

    The change to this current form of capitalism will be to the detriment of america and her people. If the only importance is maxing out profits, by any and all means, even when it hollows out america and devastates her people, then you will either get the largest welfare state in the history of the world, here, or you will collapse and implode america. And that is the cost for having a united states of capitalism that no longer serves the nation and her people, but only a few at the top.
     
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  17. Thedimon

    Thedimon Well-Known Member

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    Maybe Russia will send us all financial assistance!
     
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  18. Collateral Damage

    Collateral Damage Well-Known Member

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    Yes, they behave like children. What would we want with their assets, do with them afterward, and who is going to actually do the seizing? Where are we going to park 500 some odd limos, 15 Lincoln town cars, 5 Maserati, and a yacht?
     
  19. Ddyad

    Ddyad Greeter Staff Member

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    They should stop collecting taxes until the DP/RP passes a budget Trump will sign.
    Let Americans have their full paychecks without any deductions for a few months. It would be very instructive.
     
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  20. Ddyad

    Ddyad Greeter Staff Member

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    Stop paying Congress until is passes a budget that can become law.
    Instant end to the "shutdown".
     

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