And read this:
In his call Wednesday for Republicans to ditch the negotiated bipartisan short-term spending bill, Trump also demanded that lawmakers increase the debt ceiling — something that hadn't been on the table at all. https://www.nbcnews.com/politics/donald-trump/trump-calls-abolishing-debt-ceiling-rcna184820
So yes, the government will shutdown and it probably won't reopen until Trump is inaugurated.
What effect will this have on spending and the debt? None, it will probably make things worse because shutting things down and reopening them has a cost. Also, most government spending is on autopilot (Social Security etc). Government employees will get a paid vacation of a month or more. It will however highlight how useless much of government is.
So I say shutdown it down. Starting a 12:01am on Saturday, December 21.
Could this be the event that starts the recession and causes the Fed to cut rates in an emergency meeting?
Update: There won't be a shutdown. Biden signed the bill which will keep the government funded until March 14, 2025. The bill did not include an increase to the debt ceiling which will come back on Jan 1, 2025. However, the Treasury has enough cash on hand to last probably until June, so this isn't a hard deadline.
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