Did you know that Zhu Guangyao, vice-finance minister of China, has warned the U.S. that its government shutdown and potential default are threatening the value of China’s U.S. investments? As the shutdown enters its second week, stork markets continue to react as foreign countries voice their concerns that a default for the U.S. could send shock waves throughout the global market. Are you interested in business radio online news? Here are three important radio updates about the government shutdown that you should be aware of.
President Will Not Negotiate
According to live business news online, National Economic Council Director Gene Sperling has said that the president is not opening to negotiating on the debt ceiling because of the detrimental precedent it can set: that threatening default can be used for leverage in talks about the country’s budget. GOP House Speaker John Boehner has insisted that the president must make concessions on the new health care laws in order for Republicans to lend their votes to raise the debt ceiling. The Treasury Department says the deadline for raising the ceiling is Oct. 17.
What Will Happen if Nothing Happens
On the 17th, the U.S. runs out of its ability to borrow money and continue to shift it around to pay down expenses. Daily business news reports that, if a deal can’t be reached, there are three choices. Discretionary spending, which includes defense, will be lowered by a third every month. Mandatory expenses must be cut by 16%, and this includes Social Security. Or, taxes can be raised by 12%; or some combination of all three options.
Who’s Winning the Blame Game
It’s fair to say that no one has 100% of the guilt in this situation. Lawmakers were handed a hot potato in the form of national debt, and have continually thrown it around, hoping for something to cool enough to be palatable for U.S. citizens. The latest polls, though, indicate that overall, Republicans in Congress are receiving the majority of blame for what is going on. Democrats, as well as the President in his executive branch, are meanwhile getting better approval ratings. Business radio networks say this is fairly predictable; political scientists who have studied shutdowns at the state level found similar reactions.
What online business news updates have you caught up with?