Trade Ideas Around A US Govt Shutdown
Setups for bonds, yield curve, dollar, equities & volatility.
Trump Is Fine With A US Govt Shutdown
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Fiscal dominance is an exponential function. It eventually kills the bond market which kills the monetary system. Ending fiscal dominance triggers debt deflation which kills the monetary system. - Frank De Baere
Shutdowns cost money - they don't save the govt money!! Also, tax receipts and GDP take a hit. And even if Govt employees get all their missed backpay, Govt contractors do not. With that I have some ideas on what trades support this potential macro event risk…
Normally I would relegate this MACRO COLLECTIVE TRADE analysis for only PRO ANNUAL or LADUCTRADING.COM clients, but I decided to make it available to monthly/annual Substack Subscribers as we are running a POP-UP sale this weekend.
