Unfortunately, the Federal Government is Open – Ep: 320

The Government is Back in Business

The government is officially re-opened!  Apparently, the government shut down, maybe it was on Friday.  Earlier today Congress voted to re-open it! The good news that the government is back in business sent the stock market to record highs.  The Dow, the NASDAQ, the S&P all rallied on the good news.

When the Government Shuts Down, it gets Bigger

Of course, the good news was the government shutdown.  Except, it’s not really shut down.  If they actually shut the government down, that would be great news. The bad news is that it’s not shut down.  It’s open for business.  If they really shut down government, people would like it.  At least a lot of people. The problem is, in the past, when the government shuts down, normally government gets bigger during the shutdown.

The Problem is not Government Shutdown; It is Government Regulations

Let’s say they close a National park. They have more government workers making sure nobody uses the National park because it’s closed than they had when the park was open. So the whole thing is a farce. I remember reading an article one year, during the government shutdown, that there were businesses that needed permits, but the permit office was closed, so they couldn’t get the permits they needed.  The media covered the situation as, “See how bad it is when government is shut down, when people can’t get their permits.” Well, if government is shut down, you shouldn’t need the permit.  If government shut down, you can do what you want.  You don’t need a government permit. The problem was not the government shutdown, it was the government regulations.

All Federal Taxes Don’t Count during the Shutdown

Let’s say during government shutdown, “No one has to pay any taxes.”  All Federal taxed don’t count during the shutdown.  How many people would be anxious for the government to be open? So, a real government shutdown, where all taxes and regulations are suspended during the time of the shutdown would be great.

Government Business is Destructive Because Government Means Power

Government is no longer shut down; it is open for business and that means it is destructive business because government is power.  I thought it was typical or funny – the minute the news came out that they had the votes to open the government, the dollar rallied and gold sold off.  They weren’t big moves. The way the lemmings react to this news is that they thought that the dollar was falling because of the government shutdown.  The dollar going down had nothing to do with the government shutdown.

Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.



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