Well they haven’t, not all of them, just some of them, but they never had access to the plot from the start. But that little group of loonies is enough to put this whole planet of ours in a potential pickle.
Let me give you the Cliff Notes version:
Basically “non-essential” employees of the government get to stay home. Which in terms everyone can understand means that Yogi Bear is free to steal picnic hampers to his heart’s content, since Ranger Smith and all his Park Ranger friends are sitting at home in their Y-Fronts, feet up on the living room table working through a 6 pack of Miller Lite.
So apart from Ranger Smith, pretty much everything continues as before and the effect on the global economy is not that bad.
The one thing that is of interest is that in theory, the US is headed for default. If they can’t come to an agreement, money to make interest payments on their debt won’t be in the cash register and then the ball game changes in a big way. I mean in a really big way.
This is something that worries me with the brinksmanship that is going on. Plenty of people that should comprehend don’t or chose not to. The argument goes that “Well it’s no biggy, everyone knows the US will just print more money, they’ll come to an agreement and if any debts need paying they’ll just be paid a little late. It's not thaaaaat serious.”
You the reader are smaaaarter than the average bear and when you read what is below you'll comprehend the severity of this conundrum.
If we get to the point where the US is late on an interest payment on its debt (let me stress I don’t think we will) then we are in unchartered waters. The risk is this: US treasuries are held all over the world as collateral for loans. In any default situation the collateral of the underlying is adjusted. What happens when the collateral value of US treasuries is adjusted downwards? Margin calls the likes of which we have never seen. The market will go haywire as treasuries have to be dumped to raise collateral (interest rates spike) or then equities that have been bought with margin that has treasuries as collateral are dumped (stocks plummet). It’s just a very scary scenario and a thing that everyone should fear like the plague.
If we did go test those waters, then things could very quickly spiral out of control. What we saw with Lehman Brothers would be minor in comparison.