Government closure .. Washington is in trouble and the economy is on the brink of the abyss

The political crisis in the United States deepens with the entry of government closure its second week, amid a sharp division between the White House and Congress, and an open conflict between the Republican and Democratic parties, at a time when Americans have a growing concern about the impact of the crisis on their daily lives and their national economy.

While the accusations continue to exchange about the party responsible for the “federal paralysis”, any indicators are absent from a close settlement that restores state institutions and revives confidence in the American political system.

According to a report issued by the Bloomberg Agency, the US financial markets have begun the possibility of continuing to close for a period ranging between 10 and 29 days, at a rate of more than 60 percent, while the possibilities of ending within a week are less than 20 percent, which reflects wide pessimism among investors about the proximity of the solution.

The US Treasury futures options show a large “risk allowance” linked to the dates that were dedicated to issuing important economic data, such as the monthly job report and the consumer price index, both of which were postponed due to the disruption of federal departments.

Joe Yarq, head of the global market department at Cedra Markets, told Sky News Arabia that the current closure seems to be a candidate to be “long and complicated”, adding that “every political step taken by President Donald Trump comes with direct and negative effects on financial markets.”

Yarq explained that “the markets are currently moving driven by the weakness of the dollar and the decline in bond returns, which gives Trump space to maneuver in negotiations with the Democrats,” but he warned that the continuation of the crisis will lead to the erosion of confidence in the American economy and threatens to decline the credit rating of the state.

In a related context, the New York Times indicated that the political stalemate in Washington reflects a real crisis of confidence in the American political system, explaining that the two parties appear completely convinced that each of them owns the upper hand, which made the closure seem inevitable from the beginning, and made any quick solution “excluded”.

The report added that “Congress failed to pass any government financing project,” and that the majority leader of the Senate John Theon ended a session last Tuesday before dinner after the failure of two consecutive voting, in a scene that reflects the absence of any feeling of the wheel or responsibility towards the crisis.

For his part, economist Mohamed Saeed stresses that “the essence of the crisis lies in the failure of Congress to agree on a unified budget for government financing,” explaining that the differences “go beyond the numbers to reach the depth of public policies, from social spending to health care programs and foreign assistance.”

Saeed pointed out that about 800,000 federal employees have been suspended without pay, while 700,000 others continue to perform their duties in the vital sectors without salaries.

He added that the continuation of the closure will affect the basic services such as airports and health care for the elderly and the poor, while major institutions such as national health institutes and diseases of diseases actually stopped their activities, threatening a wide administrative void.

Saeed concludes, “The temporary solution through a short -term financing agreement may be the most vulnerable scenario, but it will not radically end the crisis, because the differences between the two parties are deeper than just numbers in the budget.”