Unprecedented shutdown threatens US credit rating

There is the longest shutdown in US history now, RISS expert Ilya Kravchenko pointed out. Shutdown is a temporary stop of the US government work. Congress and the President (the legislative and executive branches) cannot make a final decision on the financing of certain programs. "Usually such shutdowns last about a week, but now the stop has been going on for 24 days," the analyst added.

He stressed that the government has not yet agreed on the financing of the State Department, which is one of the most important institutions in the US work. "People come and work for nothing. The Ministry of Internal Security has also remained without any funding. Obviously, this affects the country's security and stability," he said.

RISS expert underscored that Fitch Ratings agency has already threatened to cut down US credit rating. He noted that the populist slogans, which the American President used a lot, can't help anymore. The electorate can see what is happening. Even the US Postal Service was forced to partially stop its work.

The stumbling block in D.Trump's dispute with Congress is the Mexican border wall. Democrats are not ready to allocate 5.6 billion dollars from the budget because the idea of the border wall contradicts their political agenda. At the same time, Congress is ready to make concessions and allocate 1 billion dollars to strengthen security at the border (as the drug trafficking problems and migrant crisis have not yet been resolved). RISS expert recalled that the Mexican border wall has already been built, but Trump remains inflexible and insists that it needs to be higher.

As for the possible introduction of a state of emergency in the US, the analyst assesses this scenario as negative for D.Trump himself. This can play a dirty trick on him. After all, the Congress is engaged in financing the entire executive branch. It can resist the President, otherwise the Congress' rating will collapse.

"The more unstable the situation in the United States, the more unstable their role as a global hegemon. This will be used by other countries, especially those that are trying to resist Washington. And, of course, it will affect how the White House will be perceived by existing partners," the expert concluded.

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