🚨 BREAKING: THE GOVERNMENT WILL SHUT DOWN IN 6 DAYS
The last time they shut down, gold and silver jumped to new all-time highs. But if you’re holding other assets like stocks, you need to be extremely careful… Because we’re heading into a total data blackout. Here are the 4 specific threats: – The Data: No CPI or jobs reports leaves the Fed and risk models unable to see what’s going on. Volatility (VIX) must reprice higher to account for the uncertainty. – Collateral Shock: With previous credit warnings, a shutdown could trigger a downgrade. This would spike repo margins and destroy liquidity. – Liquidity Freeze: The RRP buffer is dry. There's no safety net left. If dealers start hoarding cash, the funding markets seize up. – Recession Trigger: The economy loses ~0.2% GDP per week of shutdown, potentially tipping a stalling economy into a technical recession. In the last major funding stress (March 2020), the spread between SOFR and IORB blew out. Watch the SOFR-IORB spread. If it starts gapping, it means the private market is starving for cash even while the Fed sits on a mountain of it. We saw this in 2020. This sounds scary, but don’t worry I’ll keep you updated on everything. When I decide to make a new move, I’ll say it here publicly for everyone to see, so pay close attention. Alot of people will wish they followed me sooner.