Government Shutdown Resolved — BUT Another Crisis Hits in December & January

The government shutdown has now been resolved. The Senate voted on the government funding bill. They needed 60 votes to pass it. The vote was 60 to 40, enough to get it through the Senate. 52 Republicans voted in favor, and 8 Democrats voted in favor. So the bill is now advancing to the House of Representatives,

and Speaker of the House Johnson has called back the House of Representatives to vote on the bill. The bill is expected to be voted on sometime this week, most likely tomorrow on Wednesday. And it is expected to pass because they just need a simple majority in the House of Representatives to get it through. Now once the House of Representatives passes the government funding bill, then it's going to advance to President Trump.

And President Trump has backed this bill. Therefore, once he receives it, he's going to sign it. And ultimately, the government shutdown has now been resolved. All right, now with that being said, what is in this government funding bill? Did the Republicans get what they wanted? Did the Democrats get what they wanted? So we're going to dive into this. Okay, here's what happened. There are 100 seats in the Senate. The Republicans control 53 of them. To pass a bill in the Senate, they need to get 60 votes. Therefore, even though the

Republicans have the majority in the Senate, they still have to work with the Democrats to get the necessary 60 votes. And the Republicans and Democrats were clashing over the expiring Obamacare subsidies. They're going to expire on December 31st of this year. But to be fair, I mean, they were fighting over many things, but this was the biggest disagreement.

This was their focus. Now, here's the agreement. The Senate Republicans promised the Democrats that they'll hold a vote on the Obamacare subsidies whether to extend them or not. The deal was that they're going to take a vote on this by the second week of December. But I want to bring this to your attention.

Just think about it. Yeah, the agreement is that they're going to vote on this, but is it going to pass? Well, they're saying that the votes on extending the Obamacare subsidies that they're going to do, it is expected to fail in the Senate. And that's why the Democratic Party, especially the leaders of the Democrats in the House and the Senate, are very upset with the eight Democratic senators that voted with the Republicans

to reopen the government. Now I want to tell you this, and this is the crazy part where you're probably going to just want to shake your head in disgust. So you have to realize that this bill is just a temporary government funding bill that's gonna keep the government funded until the end of January. So January 30th of next year. So that's about two and a half months away, right?

Now, I want you to think about that. They're gonna vote on the extension of the Obamacare subsidies sometime in December, right? And that is expected to fail. So what do you think is going to happen? The Democrats are going to be pissed. And then what do you think is going to happen when January 30th rolls around? The Republicans and Democrats are going to be butting heads again and then there's the real possibility of another government shutdown

just two and a half months from now. And then we've got to go through all this drama again. Now can we please have an honest conversation here? So the government shutdown affected 42 million Americans on SNAP benefits right? But this is the part of me being honest the biggest priority or the biggest concern for the politicians, it wasn't the SNAP benefits, it was the flight delays and cancellations. Like I'm sorry, but that is the truth.

And with Thanksgiving travel right around the corner, and then you have December holiday season, the politicians didn't want to deal with that backlash. That was the biggest, that was their biggest fear. And that was the primary motivator to reopen the governments. Now, I just want you to think about that because if they go through another government shutdown starting on January 30th, then it's not going to be during peak travel season.

And then, well, if they don't have the motivator, then it could end up being worse than this one. And that's what's running through my head right now. And I just want you to know that this was the longest government shutdown for the United States of America. This surpassed the previous record of 35 days, which was actually during President Trump's first term at the end of 2018.

Okay, right now it's still not resolved until President Trump signs it. So we're going on day 43. And I just want to mention this to clarify. So I did make the bet that this fiasco would end by 60 days, which is looking pretty solid right now to be honest. So yes, I did mention the 40 days, but I backed out of that immediately when I saw the 60

day opportunity. So I'm very happy I did. And anyone on my Patreon can vouch for me. So I'm very happy I did. And anyone on my Patreon can vouch for me, so I'm good, but thank you for your concern. Now let's move on to this. When are SNAP recipients going to be made whole again for the recipients that got short-changed in November? The answer is that it's all going to depend on your state because it is administered at the state level. Like I wish I

could be more specific, but that's the official answer. So here's another question. When are federal employees going to receive their back pay? 1.4 million federal employees missed their full paycheck in late October, and many received a partial paycheck for the previous pay period. By law, the federal government must issue back pay as soon as possible after the shutdown ends.

So the rule is that they're not supposed to wait around and then add that back pay to your next paycheck. No, that's not how it works. By law, they're supposed to pay it out as soon as possible. Now regarding the Federal Reserve, I mean, you've heard this before. They said that they're going to make their decisions about interest rates based on the data. The jobs reports and the inflation report,

like that data. Okay, so the jobs report didn't come out in October because of the government shutdown. And then the Federal Reserve, they made the decision on October 29th without that data. You know, so much for them being data dependents. So the jobs report didn't come out in November either. It's supposed to be out the first Friday of each month. Now when the government reopens, they're saying that the government can produce the jobs report

within a few days. And the inflation report, I mean that was supposed to be released this week, but it is expected to be delayed. However, the Federal Reserve is going to have their meeting on December 10th, so there's expected to be delayed. However, the Federal Reserve is gonna have their meeting on December 10th, so there's gonna be some time. Now, if you remember this, like this is something I said about

just under two months ago. I gave you the stats about how a government shutdown affects the stock markets. Government shutdowns have minimal impact on the stock market, and this time was no exception.

So there was no exception. So there

was no market scare. And as you witnessed, the news of the reopening of the government actually boosted stocks. So the stock for the, I mean for the stock market, you saw for yourself, it was a nothing burger. And I'm just saying this because if there's another threat of a government shutdown at the end of January, then well at least if you go according of January, then you can expect the same thing. Minimal impact. So don't let another possible shutdown scare rattle you out as an investor.

So I'm not saying that the stock market can't go down in the short run. I'm just saying that if the stock market does go down around that time frame, then it's probably for other reasons besides the government shutdown scare. When it comes to GDP, a recent report by Ernst & Young is saying that this shutdown will reduce Q4's GDP by 0.8% and that's equivalent to approximately $55 billion in lost output. Honestly, I'll tell you this, in this wacky world we live in, bad news is good news in

the investing world. If GDP is lower, then that gives more reason for the Federal Reserve to blast a money printer on and cut interest rates even more aggressively. And of course, the stock market loves that. The market loves cheap cheap easy money. So it's a crazy world. I mean as you know, it's just different times now. But it is what it is. Like I'm just being honest.

Well that is the situation. It's expected to pass in the house very shortly. Advance to President Trump. He's going to sign it and then I'm going to win my bet. Please subscribe. Thank President Trump. He's going to sign it and then I'm going to win my bet. Please subscribe. Thank you for the support and I wish you a very nice day. Take care.