Shutdown over!! What is next??

Shutdown over!! What is next??

                                             

October 16^th, 2013 will surely be the most important date of the year. Indeed, on October 16 in the late evening, Republicans and Democrats have put an end to their conflict.


Congress has passed a measure to avert a threatened US default and reopen the federal government, a move intended to end a prolonged fiscal crisis that gripped the US and threatened the world economy.
The deal, however, offers only a temporary fix and does not resolve the fundamental issues of spending and deficits that divide Republicans and Democrats. It funds the government until January 15 and raises the debt ceiling until February 7, so Americans face the possibility of another government shutdown early next year.



S&P said the shutdown cost the U.S. economy 0.6 percent of its GDP, at least $24 billion, and probably more than that.

Fitch forecasts economic growth to pick up from 1.6% in 2013 to 2.6% in 2014 and to average 3% over 2015-17, before reverting to its assumed long-run trend growth rate of 2.25%

The image of the world's leading power is thereby tainted after Fitch Rating has placed United States' 'AAA' on rating watch negative. But despite their resignation Republicans are keeping an eye on Obamacare and the risk of crisis could not be excluded.

Finally, the prolonged negotiations over raising the debt ceiling risks is undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency.