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And all of this with efforts guest Tek park the CEO of the online 401K.
So last get a big question what if the government shuts down at midnight.
We'll be talking more about this that for days to come and I think that you know the real issue at hand is really what's going on with the congress and what stalemate are -- under.
They're so right now the senate and shot yesterday yeah they haven't meeting later this afternoon while they agree on something what -- right I mean they're actually playing games out in -- sequester.
That was self imposed rules of them to say hey if we don't.
Pass this annual budget.
In years past what's force yourself to reduce spending what was -- came -- took effect and yet have you seen anybody talk about sequestered whilst we're just stayed there business as usual.
So are you saying business as usual right now I think as far as the congress goes obviously.
They're playing with some very big stakes and the stakes are people's paychecks and the ability for the government function normally so to say the government does shut down.
-- tomorrow morning.
Point two million federal workers wake up to go to work.
Who's going to work was not come to work in the first few days ever -- go to work that is -- given.
The problem is that they may not -- -- cashed a paycheck.
That's the -- they're going to be told police come and we're gonna get this settled soon but just don't cash that check it.
Assuming that they can't.
Get to an agreement within a few days then we start to see a -- in closure of government services so there's some leeway I guess is exclusively -- you see even.
In the continuing resolution the CR that's they passed as -- playing games of not setting -- in the budget.
They go out for military -- continued.
So there's that and then of course the president has priorities that they can continue to fund things that are essential services such as Homeland Security FBI.
I'll leave funded -- well see that's a very tricky sort of subject right I mean is there -- there's really no money there -- even pay them so it's a matter of.
You know what are we doing here so we know absolutely.
Getting furloughed service is not being performed including.
Not being performed as we in turn to a -- down approach would be what we -- still not considered nonessential services so.
Things like that part of interior agriculture labor.
Certain elements of the Social Security Administration checks they promised we'll keep going out.
But those 65 -- people hitting 65 to 101000 -- -- applications will be delayed.
Right these applications get -- -- where every nation's small business lines mortgage applications parks closed and he NASA Carla yeah pretty much.
You don't realize how.
Far reaching the federal government -- -- -- -- daylight until late into the disappeared gap to half of federal workers at 21 million connected to percent of its remains the one million could be furloughed.
For some period.
Time OK and now people aren't gonna become crazy but all that sign whatever we can deal with that the real issue and this my view was that the markets off Clemens he's not about this -- down.
It now look at happen in mid October that's right.
I mean so let's remind everybody that this is about the annual budget that you dislike you have a household budget you -- -- -- -- down and say hey what are we gonna -- this year what are we gonna spend this year.
And then -- approve that and move forward well that's what we're arguing over right now in less -- about two weeks' time we're going to be back to the table again with raising the debt ceiling.
So even if we pass the annual budget what's going to be interesting as the treasury won't have any money to actually and enforce or implement the.
Really is we grill the budget which comes today we in his last minute deal OK fine yanked it -- I don't organizing their agreement but we don't have any money to -- But this -- theory because October 17 -- is on the run out of money.
That's right the debt ceiling that we -- again so that's you know our debt now sixteen point seven trillion.
I'm not actually -- raising that raising that guy I like to put that into perspective what does that mean to every man woman and trying to -- what does in the country well.
Three -- sixteen million people approximately that's about 55000 dollars per person.
That we are saddled with that babies how much 55055.
At the moment they're born they're -- -- 55000 dollars.
Now that's just what's on the surface this is what we know.
-- really wanna go off on -- one here.
You gotta look at all the other unfunded liabilities of the government house.
And that is really nobody talks about this but there's another 65 to seventy trillion dollars of unfunded liabilities which include health.
Pensions other expenditures of -- promise to pay for it later and then if you include the for -- -- serious and for retirees of the federal government.
And if you look at the others of states and municipalities like Detroit you know that's -- the news when we.
Yeah at all up in Europe in about a hundred trillion dollars of unfunded future liabilities and that's about 300000 dollars per person or one point two million trillion.
Sorry one point two million for a family of four.
It's it's a lot of numbers and it's a lot of headaches -- it people but I I think.
Three -- on the numbers must -- I just got lost and myself nine trillion billion what's the difference right what is the point here that people need to know what is the message to Washington.
There's two things first and foremost you as an individual you know you've got to stop outsourcing your future to those 450.
Some -- people in Washington -- hundred in the senate that run our lives.
We have to take control of that and how do you do that you know is a big question you know we need to become more active -- more involved and we need to really demand that they stop.
Screw around with our futures and our country and -- Clinton family sounds as it happens right work like -- money needs to go and and it.
Going out to dinner and for the kids and can't keep spending -- it put it back to that family and that's the what can you.
You we all of us if we all lived as irresponsibly as our government Dana.
It would be complete chaos so what can you do.
You can start saving and saving every penny and nickel dime that you -- in any vehicle that's available to you the tax deferred vehicle it before -- K I era or definitely you know.
So I'm really save save save but the flip side out of the economy needs us to -- -- and -- therein lies the ultimate conundrum isn't it worse than based economy.
And we love to spend we're dependent upon that but the reality is we need to save the same time so how to do it.
I now and you if you circle back two Summers ago we had the debt ceiling debate -- in August of 2000 our engine market and I think without 600.
Absolutely uncertainty -- then this is just the US market -- different about the global markets.
If we have a downfall 600 points in -- on the overwhelming failed to raise the debt ceiling if that should happen.
It did Alex have such a drop like that.
In this economic environment -- New kind -- getting better not really conflicting data you know.
What happens once -- systems back.
People look at the four k's again it's a shoot I thought I was making progress and now I'm down again.
And they need that psychological -- and it's still a meet and thank you don't -- looks good and wound up like 20% -- a broader market and so as we -- the final quarter of the year tomorrow.
Not maybe people say a lot of money off the table let's look -- 20% gain in the -- it had been that.
Exacerbates the sell off attack the park president and CEO of the -- -- that was great thanks for breaking it down started making nervous out there I think we just said.
Don't worry about the shut down -- about the debt ceiling -- so we've got more weeks of volatility I think --
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