No government shutdown but austerity anyway


Austerity of sorts. Big deficits but smaller that last year. Goldman has more

A federal shutdown appears much less likely this year than it had a month ago, when funding looked very likely to lapse Oct. 1, for two reasons.

First, the attack on Israel and other emerging geopolitical situations (e.g., recent US air strikes in Syria) lower the probability that Congress will allow a shutdown to occur that affects the military. While essential defense functions would continue even in a shutdown, the timing would be inopportune.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.