The U.S. federal government is in the midst of a shutdown. Closed federal offices, government employees furloughed, national parks and museums closed, and administrative and regulatory functions on hold. This is a not a minor inconvenience. This is a massive disruption. This will result in billions of lost productivity and further political uncertainty and risk. The situation is not just bad; it is a sign of institutional gridlock affecting the world’s largest economy.

The consequences extend far beyond Washington. Confidence in the economy will decrease, public services will slow, and market volatility will increase. For the time being, all we can do is wait, and lose confidence, until Monday. Risk assets will be watching the shutdown, and how rapidly it is resolved will signal to the world confidence in the government and the economy. The shutdown is a signal, and a dangerous one at that. $BTC ,$XAU ,$XAG