The recent shut down of US has sent shockwaves across the world. Its happened for the first time in 17 years. Even UK n Germany have issued travel warning to people going to US. There can be huge impact on international trade and can possibly lead to another global recession.
A disagreement between the two parties had caused this. With the new financial year for US beginning on 1st Oct, they donot have any voted expenditure. If this continues its gonna have bad repurcurssions for the US as well as global economy.
The shut down is already hurtng the global economy. More than 700,000 people from the US govt are without a salary. Under Bill Clinton, for 21 days the loss was over $1 bn!
So we can very well imagine the impact
The US Congress has passed a bill to reopen the government and raise the federal debt limit, with hours to spare before US risked default. It seems a positive move else it impact the global economy. If it continues it would affect export business of many countries and impact oil prices as well
It is an impasse between the President and congress. A previous decision by the Congress allows the Govt to borrow to a limit of 16.4 trlln. President wants the limit to be enhanced further to meet the expenses and plans of the PRES.