Posted March 20, 2013 by Stephen Peck in Politics

Going Slow To Avoid Government Shutdown

Going Slow To Avoid Government Shutdown
Going Slow To Avoid Government Shutdown

US President Obama and the lawmaking bench of Congress is going for a wait-and-blame policy as the automatic cuts of spending goes on board and starts to seep in through the process of federal government, the cuts that were not intended to go effective.

Though the legislators of Democratic and Republican was called over by the president on weekend, it has been signaled by aides and leaders of Obama that the budget cost reduction will continue to stay active for weeks and months. It has been indicated by both sides that the reconsideration of reductions will start only after they solve out a legislative confrontation. They state that the federal agencies operating beyond 27th March needs to be solved to avoid shutdown of the government.

Quite unlike other budget shows of previous years when congress leaders used to get shuffled between White House and the Capitol, lawmakers are not holding any immediate negotiations this year. Even Obama is also not holding any specific public event this week related to cuts and spending issues. It is seen that the President was more busy announcing personal issues, including the selection of next budget director of White House (Sylvia Mathews Burwell, Wal-Mart Foundation’s president) before he called for a full Cabinet meet that puts up the pressure on Republicans.

In an interview at the White House, Obama states that they will be doing the best to manage the situation by minimizing the impact of spending cuts on American families. He was also quick to add that it wouldn’t be right to deficit reduction immediately. He promises to discuss the matter with partners on the opposite side to come up with an agreement regarding revenues, cuts and changes in the program.

John Boehner, House Speaker and an Ohio Republican, calls the cuts ‘silly’ on news program and says that no one really understands how this problem will get resolved. It is only after proper resolution that we will start working on the budget. It is believed that in spite of differences, the lawmakers of Republican and Democratic are trying to avoid a government shutdown related to operations that are scheduled to expire on 27th March.

In the words of Gene Sperling, economic advisor of president Obama, the President is not ready to give birth to another crisis. It is revealed that there will be vote in the House this week to ensure the government fund for the remaining year, i.e. till 30th September. Kentucky Republican and Senate Minority leader, Mitch McConnell says “Soon we will be able to slog out on the resolution by March through discussion of the Senate and House.

Expert officials feel that there will be more public pressure as Americans start feeling the cut of 2.4 percent. It is believed that if this spending cut stays operative, there will be delays in travel, permit of oil and gas production, agricultural department etc.

Stephen Peck

Stephen Peck covers the global energy, metals and commodities markets daily from the floor of the New York Mercantile Exchange and contributes special reports on personal finance for the network. He studied history and economics at Duke University. Stephen also covers stories behind Wall Street's biggest price moves and the trends affecting market sectors.