Core Viewpoint - The recurring government shutdowns in the U.S. have become a normalized event, with the latest occurring on October 1, 2025, impacting over 800,000 federal employees and delaying crucial economic data, yet the financial markets remain largely unaffected [2][3][4]. Group 1: Impact on Economic Data - The shutdown has led to the postponement of key economic reports such as non-farm payroll and CPI data, creating challenges for analysts who must rely on private data sources to estimate employment rates [3][4]. - The Congressional Budget Office estimates that a one-month shutdown could reduce GDP by 0.3 percentage points, with unemployment potentially rising to between 4.8% and 5% [3]. Group 2: Market Reactions - Despite the shutdown, bond yields have shown minimal volatility, and the stock market continues to perform well, indicating a detachment from political events [3][4]. - Market participants appear to have developed a "selective blindness" towards political uncertainties, leading to a temporary reduction in market volatility [5]. Group 3: Long-term Implications - The ongoing political dysfunction and inability to pass budgets are eroding government credibility, which could have long-term consequences for economic stability and investor trust [4][6]. - The U.S. public debt has surpassed $35 trillion, over 130% of GDP, raising concerns about fiscal sustainability and the potential for a future financial crisis if political solutions remain ineffective [5][6]. Group 4: Global Trust and Currency Stability - The international standing of the U.S. dollar relies heavily on global trust in American institutions; frequent fiscal chaos may prompt other nations to diversify their reserves away from the dollar [6][8]. - Central banks worldwide have been increasing their holdings of gold and non-dollar assets, indicating a growing concern over the reliability of U.S. fiscal policy [6][8].