NOTE: THIS IS A DEVELOPING STORY

Update: November 16, 2023

Congress Passes Temporary Budget to Get Through the Holidays

Congress has successfully averted a government shutdown by passing a temporary funding bill, shifting the budgetary confrontation to the new year. The Senate passed the bill with an 87-11 vote, following a bipartisan House approval, extending government funding into next year. This creates two deadlines for full-year appropriations: January 19 for some agencies and February 2 for others, increasing the risk of a partial shutdown.

Senate Majority Leader Chuck Schumer announced that a government shutdown will be avoided this year. The bill maintains current funding levels for about two months, but it excludes the White House's request for nearly $106 billion in wartime aid for Israel and Ukraine. House Speaker Mike Johnson, who devised the plan, has expressed his opposition to further stopgap funding and aims to negotiate spending with the Senate.

Johnson, identifying as an "arch-conservative," seeks deeper spending cuts and aims to avoid last-minute, large-scale funding decisions typical before December holidays. However, he faces resistance from hardline conservatives seeking significant cuts and policy changes, which has led to internal conflict and the failure to present a united front on funding legislation in the House.

The bill's passage capped a period of intense disagreement among lawmakers, with the House GOP notably lacking unity on funding issues. Looking forward, Congress plans to address the Biden administration's requests for Ukraine and Israel funding after the Thanksgiving holiday. Senate Republicans, led by Mitch McConnell, are pushing for policy changes, particularly concerning the U.S.-Mexico border crisis, and are considering linking Ukraine funding with border policy changes.

National Security Council spokesperson John Kirby highlighted the dwindling funds for Ukraine, indicating potential impacts on Ukraine's defense capabilities. Senator Michael Bennet voted against the funding package due to the exclusion of Ukraine aid. Schumer emphasized the need for bipartisanship and compromise in upcoming negotiations, particularly urging House Speaker Johnson to collaborate with Democrats.

Update: November 14, 2023

Shutdown Likely Averted as House Passes Stopgap Bill

In a recent development, the U.S. House of Representatives passed a stopgap bill aimed at preventing a government shutdown, setting the stage for a significant funding discussion in the new year. This bill, having garnered bipartisan support with a vote of 336 to 95, now awaits approval by the Senate. President Joe Biden has expressed readiness to sign it once passed by the Senate. This move comes at a critical time as government funding is set to expire soon.

The bill, if enacted, would extend funding until January 19 for key areas such as military construction, veterans' affairs, and transportation, while the rest of the government would receive funding until February 2. This approach, proposed by newly elected House Speaker Mike Johnson, aims to create more time for Congress to negotiate and pass comprehensive spending bills for the full year, despite the challenges posed by deep partisan divisions.

One notable aspect of Johnson's strategy is the intention to avoid the traditional rush to pass a massive spending bill in December, a common occurrence when facing end-of-year deadlines. President Biden's readiness to sign the bill, as confirmed by a White House official, underscores the administration's support for the current funding levels and its desire to avoid policy complications.

Original Article from November 10, 2023:

As the November 17, 2023, deadline for passing a government spending bill rapidly approaches, the possibility of a government shutdown looms large -- a repeat of what happened just a month ago. The events leading up to this point have been marked by political maneuvering and disputes that underscore the fragility of financial markets, the trust in the U.S. dollar, and the security of your hard-earned assets. In times like these, being your own bank by investing in precious metals like gold and silver can provide a lifeline of financial stability.

The Ongoing Dispute

The two parties find themselves in an ongoing disagreement over a topline 2024 spending figure. While Democratic President Joe Biden and then-Speaker Kevin McCarthy had set a $1.59 trillion discretionary spending budget earlier in the year, a faction of hardline Republicans has pushed for an additional $120 billion in cuts. This disagreement has created a climate of uncertainty, leaving financial markets on edge.

Adding to the complexity is the United States' nearly $1.7 trillion deficit in its most recent fiscal year, the largest since a budget gap fueled by the COVID-19 pandemic. This deficit has raised concerns about the government's ability to manage its finances effectively.

Democrats and Republicans in both chambers continue negotiations to find a path forward. The goal is to avert a government shutdown, a scenario that would have far-reaching consequences, both nationally and globally.

Gold and Silver: Your Financial Lifeline

In times of economic uncertainty and political turmoil, precious metals have proven to be reliable stores of value. Gold and silver have historically held their worth, even when other assets falter. These metals are not subject to the same vulnerabilities as currencies tied to government actions.

By diversifying your portfolio with gold and silver, you become your own bank, with assets you can access and rely on, regardless of the political climate. Owning physical precious metals allows you to protect your wealth from the unpredictable tides of government actions and market fluctuations.

The impending government shutdown deadline, only a week away, serves as a stark reminder that financial security is not guaranteed, and trust in traditional assets can be fragile. Being your own bank through gold and silver ownership offers a tangible way to fortify your financial future. As negotiations continue, take proactive steps to protect your assets and ensure your peace of mind.


For a confidential consultation with one of our Metals Portfolio Experts, please submit the following form.