Will the US government avoid another shutdown?

Recently, a two-year suspension of the government's debt limit in the United States passed. In addition, the government has not yet passed a stopgap funding bill to avert a shutdown. Democrats who wanted to deal with this problem quickly faced opposition from Senators from the Republican Party. Without their support, these two key issues will not be resolved. The United States is now risking not only the suspension of the government, but also a potential bankruptcy!

Of course, nothing like that has happened in the past. Since 1960, the US debt limit has been raised or suspended 78 times! The last time this was two years ago, but the suspension period ended in August. Tax collection alone is not enough to finance huge public sector spending. In addition to the debt limit itself, a funding bill is also needed, which is also blocked by the Republicans. If this problem is not resolved, then public administration employees will not get their wages, unemployed and war veterans will not receive benefits, free health service will not work. In general, consumption may stagnate, and there is a risk that the government may have problems settling its debt after the October 15 - November 4 period. The last government suspension lasted 35 days and began on December 21, 2018, during the reign of Donald Trump. The cost of the government shutdown has been estimated at $ 11 billion!

Yesterday, however, information was released that an agreement has been reached to extend government spending until December 3rd. However, this agreement does not address the issue of the budgetary debt limit. Theoretically, the money may end in mid-October. It is also important that theoretically, the time to pass the  finance bill expires today at midnight, i.e. at the end of the third quarter.

US stocks gave up most of the early gains on the last trading day of Q3, with the US500 falling nearly 1%. Source: xStation5