Kabuki Theater Present 4 Things You Didnt Know About the Deal

While America uncranes their neck from watching the shutdown, we thought it instructive to share what most didnt know, or don't know, about the shutdown.

1) According to The Washington Post: "The government estimates that roughly 800,000 federal workers will get sent home if the government shuts down.  That leaves about 1.3 million "essential" federal workers, 1.4 million active-duty military members, 500,000 Postal Service workers, and other employees in independently-funded agencies who will continue working."

That means that of the 4 million federal employees, about 20% were actually off.  However, five days in the Pentagon decided 400K civilian workers were actually "essential" workers and called them back making the entire fiasco about 10% of the federal workforce.  

It was a shutdown that was never really a shutdown.  As I've said before, the wars must continue.  Parks and memorials not so much.  I would shy from planning any spring visits to DC.

2) The S&P 500 closed at a brand new high on the news of a DUN deal making sure once again that the 1% know, Washington is still on their side.  While this may not impress too many people in Hudson, it means a lot to Goldman Sachs who shared the bad new that the average annual compensation PER EMPLOYEE at the firm had dropped by 13% last quarter.  This should help.

3) Senator Johnson and Congressman Duffy voted against the deal, and Senator Baldwin and Congressman Kind voted for the bill.  While this surprises no one it should as last go around Duffy, Kohl and Johnson all voted for the December 31 ceiling deal while only Kind voted against.

4) The new limit is not a limit at all but an all in open ended invite for spending.  This time the ceiling was simply dismissed and instead all spending sprees are open until February 1, 2014.  And as Tyler Durden put it:

"This limitless borrowing authority will expire on February 7, 2014. But it sets the precedent that dismissing the debt ceiling is a perfectly viable course of action.

Congress has effectively removed their handcuffs… so you can almost assuredly bet down the road that this provision will be extended, and ultimately become permanent.

No one in the Land of the Free seems to care. But foreigners do. The lead commentary out of China’s state media the other day was very clear in its position:

“It is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”