00:00Miles, give us some insight into really what the impasse is between Democrats and Republicans and how we got to this point.
00:08Yeah, so this really came down to a showdown between Democrats and Republicans.
00:15It's a political standoff with the Senate failing to pass a temporary extension of funding.
00:21What we know is that Democrats blocked a Republican plan, saying it didn't include health care provisions.
00:27And these were critical provisions that they said they wanted to extend subsidies as it related to the Affordable Care Act.
00:36Now, Republicans, including President Donald Trump, refused to make those concessions and the government shut down at midnight Washington time.
00:44What we know is that this has a big effect globally, money and markets front and center with the shutdown,
00:50meaning that some of this economic data, key economic data, whether it be, you know, the jobs numbers or inflation reports or GDP,
00:59all will take some time to come out.
01:01And that's because the folks who prepare those economic reports have been furloughed among the 750,000 government workers who will be without a job because of this.
01:13Now, what we know is that those statistics, of course, don't just drive decisions in Washington, but they have a major effect globally.
01:19And investors globally are relying on those signals as they make key decisions.
01:25They use those signals to gauge the direction of U.S. interest rates, of course, as well.
01:31And without them, the Federal Reserve has less guidance, which, of course, means that markets are going to be partially flying blind as all of this continues.
01:39But, you know, U.S. government operations will continue around the world.
01:43They'll be disrupted in some instances, but they will largely continue.
01:48Counselor services, visa services will continue, as well as counterterrorism assistance and assistance programs across Africa and the Middle East as well.
01:57So this could drag on for quite some time.
02:00The last one lasted for five weeks.
02:02We'll see how long this one lasts.
02:04Yeah, Miles, can you give us some precedent, historical precedent, if you can?
02:10It's been seven years since we saw the last shutdown.
02:13What could we potentially see with this one?
02:17Yeah, let's take you back to 2018 and 2019, the last time that we had a government shutdown in the United States.
02:24It lasted five weeks.
02:24Both sides were dug in there as well.
02:27But this will have to end with concessions to Democrats having to give up something and the Republicans having to give up something as well.
02:35But the Democrats are certainly dug in as it relates to those Obamacare and health care subsidies.
02:41They want to see no cuts to Medicare and Medicaid.
02:44And so if that doesn't happen, you could see this drag on for some time.
02:49You know, very early on, Democrats came to the table and said that they wanted to meet with President Donald Trump.
02:55He initially said he was not interested in meeting with them, then began the days of talks, and then it led to where we are today.
03:03The government actually shutting down at the strike of midnight Washington time.
03:07It'll take those concessions in order to get this fixed.
03:10And, you know, we knew that this shutdown was going to happen because Mike Johnson, the House Speaker, decided to send his body home,
03:18which meant that once the Senate passed or worked on that stopgap measure, no matter which way it went, pass or fail,
03:28there was never going to be a way for the House to vote on it.
03:31This will take some days.
03:33And, unfortunately, because of that, that means that the government is shut down,
03:37and 750,000 people who work for the federal government have no jobs, will have no paycheck come time to be paid.
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