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The government shutdown continues into its fourth day as both sides of the aisle have not yet come up with an agreement to fund the government. The shutdown has caused certain key government economic reports to not be released. The number one economic data point that was not released today was the monthly government Jobs Report, which includes Non-farm Payrolls and the Unemployment Rate.
The U.S. Treasury Department put out a statement on the current huge issue of the debt ceiling yesterday. The Treasury said that in the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth – with many private-sector analysts believing that it would lead to events of the magnitude of last 2008 or worse, and the result then was a recession more severe than any seen since the Great Depression.
The debt limit, currently at $16.7T, is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past.