The government shut down. Why doesn't anyone care?
So the government shut down because lawmakers couldn’t agree on a bill to just continue the old and outdated budget for a few more weeks. How hard is that?
But then, nobody seems to care. Gold closed down in USD for the week, even though at the start of the week the odds of a shutdown must have been lower. The S&P 500 closed on a record high. Even DaveFairtex here devotes just a small paragraph to the shutdown in his daily update on gold and silver.
But I think it does matter. Everyone thinks that the US just cannot default because they can print dollars to mars and back. And that’s technically correct. But that’s contingent on lawmakers’ ability to agree to it. And another shutdown is one more piece of evidence that politics is highly dysfunctional and unpredictable in the US, which means a debt default is not impossible in the future if Democrats and Republicans can’t agree on their pet issue du jour. A default could trigger the great undoing of the house of cards that is the dollar and US debt (or not, people could just forgive the sins and keep piling on more US debt, everything is possible).
So why does a shutdown not seem to matter to anyone?