As U.S. faces potential downgrade, markets flash alarm over debt-ceiling impasse

142535 Florybel Cervantes Espinosa

U.S. GOV.

15/10/13

http://www.washingtonpost.com/business/economy/as-us-faces-potential-downgrade-markets-flash-alarm-over-debt-ceiling-impasse/2013/10/15/0321fed6-35be-11e3-80c6-7e6dd8d22d8f_story.html?hpid=z1

After of 15 days of United States government shutdown, nowadays this is an important issue in overall economy. Stock and bond markets — as well as the system of daily borrowing that helps banks operate and companies make payroll — are flashing increasing concern about whether Congress will find agreement to raise the federal debt ceiling, suggesting that investors may not give lawmakers much more time to haggle before markets swoon. Over the years the United States has been a major player in the international economic system, therefore this problem concerns and worries many countries.

 The second major credit-rating warned that it could downgrade the nation´s credit rating by the end of the year if the shutdown in United States continues without solution. I’m totally agree because I consider that these problem concern a many sectors in the United States and also in the economies of others countries.The last two shutdowns governments (1995 and 1996) cost the country U.S. $ 1,400 million, according to the Congressional Research Service. In 2013 the shutdown cost approximately 2,100 million dollars, according to the research center PewResearch.   The Congress has to deal with the debt ceiling, if lawmakers don't vote to increase the natións borrowing limit by mid-October, the government won´t have required money to pay all its bills which can bring a collapse in the economy and consequences in a long term.

Further Fisher explains that “Political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” therefore many important companies are taking steps to protect themselves and their investors from a possible U.S. government default, these could be happen if Congress fails to raise the debt ceiling soon.

We don´t know exactly how much time government have before running out of funds to make all payments. However analysts estimate the government will probably have another week before missing payments. For Democrats, the failure of the federal government's commitments would lead to a global meltdown.

I’m totally disagreeing with the position of Republicans because these are stopping a sector of the economy of one of the most important countries, without worrying about those affected.For example there are half a million people are out of work waiting to recover their work and pay them their wages. The question is that if it worked how they will pay.  
 I think that the U.S. Government should bring a solution of that problem that it is affecting a many sectors in the society. Therefore republicans and democrat should reach an agreement that benefits both parties.

As a conclusion can be reached to note that after 1996, there had not passed another shutdown government in the United States, this problem must be resolved because many people are not going to work and as result they are not receiving a salary.