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Why shutting down goverment affect any gov program? The federal reserve will continue buying goverment bonds?

The federal reserve will continue buying 80 billions a month of bonds & related or more every month, so is there a real risk of a collapse if government is shut down?

There would be Washington jobs gone and politician and lawyers jobs gone, that's good on a recession, jobs should go to productive sections of the economy, The FED is supporting the economy by buying trillions a year.

2 Answers

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  • 8 years ago

    The public sector government bonds are only a section of the economy.

    More important was the tax laws that forced companies to actually put money to work in the private sector economy.

  • Nope
    Lv 5
    8 years ago

    Collapse is out of the question. Slow down, though, is quite a reality.

    I still get up tomorrow morning and go to work, though. Nothing changes for me.

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