🚨 U.S. WILL CRASH THE GLOBAL MARKET THIS WEEK!!
Markets are not prepared for what’s coming.
Trump just announced another government shutdown starting January 31.
This shutdown is different - it will crash the financial system.
If you hold any assets now, you MUST read this:
The risk isn’t obvious at first glance.
It builds quietly, then hits all at once.
Here’s where things start to break:
1⃣ The Data Blackout (VIX)
The Fed is fully data-dependent.
A shutdown turns the data off:
→ BLS
→ BEA
→ CPI
→ Jobs reports
No data = no transparency.
When models and algorithms lose their inputs, uncertainty spikes.
And when uncertainty spikes, volatility gets repriced higher.
The VIX isn’t pricing in a sudden loss of macro data.
2⃣ The Collateral Hit (Repo Markets)
U.S. Treasuries are the backbone of global collateral. But:
→ Fitch already downgraded the U.S.
→ Moody’s has warned political dysfunction is credit-negative
A downgrade during a shutdown would force higher repo haircuts immediately.
Higher margins = less liquidity.
That’s how funding stress starts.
3⃣ The Liquidity Freeze (RRP Drain)
When uncertainty rises, dealers pull back and hoard cash. We’ve seen this before:
→ Repo stress
→ Balance sheet tightening
→ Slower lending
But now it’s worse.
The Reverse Repo facility is basically drained - there’s no liquidity cushion left.
If dealers hesitate to lend against Treasuries because of political risk, short-term funding markets can lock up fast.
4⃣ The Growth Drag (GDP)
Each week of shutdown cuts about 0.2% from GDP.
In a strong economy, that’s manageable.
In 2026, growth is already slowing.
That could be the difference between a soft patch and a recession.
The real risk isn’t the shutdown alone.
It’s the combo:
→ Data disappears
→ Collateral gets questioned
→ Liquidity is already thin
All happening at once.
That’s how small political events turn into market problems.
Ignore it if you want, but don’t say you weren’t warned.
