\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

Competing Regional Visions<\/h2>\n\n\n\n

Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n

For a president focused on headline-making deals and geopolitical leverage, Saudi Arabia offers scale the UAE cannot match.<\/p>\n\n\n\n

Competing Regional Visions<\/h2>\n\n\n\n

Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

\n

\u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

one former official said.<\/p>\n\n\n\n

In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

\n

\u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

Diversification, Not an Exit<\/h2>\n\n\n\n

Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

\n

\u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

\n

\u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

Conflicting Signals From Washington<\/h2>\n\n\n\n

President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

\n

\u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

he said.<\/p>\n\n\n\n

The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

\n

\u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Ms. Goodwin said. <\/p>\n\n\n\n

\n

\u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

\n

\u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

\n

\u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

\n

\u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

\n

\u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

Mr. McIntyre said. <\/p>\n\n\n\n

\n

\u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

House Delay and Presidential Deference<\/h2>\n\n\n\n

House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

Individual Holds, National Impact<\/h2>\n\n\n\n

The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

Agencies Ordered to Wind Down<\/h2>\n\n\n\n

In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

Governance by Crisis<\/h2>\n\n\n\n

The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

\n
  • Saudi Arabia\u2019s defence partnerships with Pakistan (the Muslim world\u2019s only nuclear power) and Turkey (NATO\u2019s second-largest army) extend its reach far beyond the Gulf<\/li>\n<\/ul>\n\n\n\n

    For a president focused on headline-making deals and geopolitical leverage, Saudi Arabia offers scale the UAE cannot match.<\/p>\n\n\n\n

    Competing Regional Visions<\/h2>\n\n\n\n

    Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

    Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

    Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

    At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

    Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

    Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

    Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

    \n

    \u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    one former official said.<\/p>\n\n\n\n

    In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

    These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

    A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

    Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

    For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

    At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

    This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

    From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

    The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

    Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

    \n

    \u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

    Diversification, Not an Exit<\/h2>\n\n\n\n

    Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

    The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

    A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

    Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

    Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

    Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

    U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

    After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

    \n

    \u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

    \n

    \u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

    Conflicting Signals From Washington<\/h2>\n\n\n\n

    President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

    Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

    \n

    \u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    he said.<\/p>\n\n\n\n

    The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

    \n

    \u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Ms. Goodwin said. <\/p>\n\n\n\n

    \n

    \u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

    Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

    While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

    \n

    \u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

    \n

    \u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

    Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

    As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

    Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

    The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

    The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

    Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

    Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

    Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

    \n

    \u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

    China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

    Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

    Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

    Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

    A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

    For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

    \n

    \u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Mr. McIntyre said. <\/p>\n\n\n\n

    \n

    \u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

    The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

    The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

    This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

    A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

    However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

    A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

    This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

    House Delay and Presidential Deference<\/h2>\n\n\n\n

    House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

    Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

    Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

    The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

    DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

    This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

    Individual Holds, National Impact<\/h2>\n\n\n\n

    The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

    His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

    Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

    Agencies Ordered to Wind Down<\/h2>\n\n\n\n

    In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

    While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

    Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

    A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

    Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

    This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

    Governance by Crisis<\/h2>\n\n\n\n

    The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

    As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

    \n
  • Riyadh has pledged around $1 trillion in U.S. investments, compared to the UAE\u2019s $1.4 trillion AI-focused commitment<\/li>\n\n\n\n
  • Saudi Arabia\u2019s defence partnerships with Pakistan (the Muslim world\u2019s only nuclear power) and Turkey (NATO\u2019s second-largest army) extend its reach far beyond the Gulf<\/li>\n<\/ul>\n\n\n\n

    For a president focused on headline-making deals and geopolitical leverage, Saudi Arabia offers scale the UAE cannot match.<\/p>\n\n\n\n

    Competing Regional Visions<\/h2>\n\n\n\n

    Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

    Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

    Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

    At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

    Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

    Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

    Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

    \n

    \u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    one former official said.<\/p>\n\n\n\n

    In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

    These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

    A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

    Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

    For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

    At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

    This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

    From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

    The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

    Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

    \n

    \u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

    Diversification, Not an Exit<\/h2>\n\n\n\n

    Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

    The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

    A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

    Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

    Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

    Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

    U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

    After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

    \n

    \u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

    \n

    \u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

    Conflicting Signals From Washington<\/h2>\n\n\n\n

    President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

    Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

    \n

    \u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    he said.<\/p>\n\n\n\n

    The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

    \n

    \u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Ms. Goodwin said. <\/p>\n\n\n\n

    \n

    \u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

    Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

    While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

    \n

    \u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

    \n

    \u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

    Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

    As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

    Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

    The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

    The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

    Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

    Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

    Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

    \n

    \u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

    China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

    Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

    Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

    Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

    A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

    For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

    \n

    \u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Mr. McIntyre said. <\/p>\n\n\n\n

    \n

    \u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

    The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

    The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

    This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

    A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

    However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

    A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

    This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

    House Delay and Presidential Deference<\/h2>\n\n\n\n

    House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

    Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

    Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

    The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

    DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

    This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

    Individual Holds, National Impact<\/h2>\n\n\n\n

    The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

    His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

    Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

    Agencies Ordered to Wind Down<\/h2>\n\n\n\n

    In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

    While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

    Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

    A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

    Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

    This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

    Governance by Crisis<\/h2>\n\n\n\n

    The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

    As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

    \n
  • Its GDP is roughly double that of the UAE<\/li>\n\n\n\n
  • Riyadh has pledged around $1 trillion in U.S. investments, compared to the UAE\u2019s $1.4 trillion AI-focused commitment<\/li>\n\n\n\n
  • Saudi Arabia\u2019s defence partnerships with Pakistan (the Muslim world\u2019s only nuclear power) and Turkey (NATO\u2019s second-largest army) extend its reach far beyond the Gulf<\/li>\n<\/ul>\n\n\n\n

    For a president focused on headline-making deals and geopolitical leverage, Saudi Arabia offers scale the UAE cannot match.<\/p>\n\n\n\n

    Competing Regional Visions<\/h2>\n\n\n\n

    Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

    Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

    Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

    At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

    Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

    Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

    Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

    \n

    \u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    one former official said.<\/p>\n\n\n\n

    In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

    These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

    A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

    Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

    For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

    At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

    This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

    From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

    The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

    Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

    \n

    \u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

    Diversification, Not an Exit<\/h2>\n\n\n\n

    Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

    The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

    A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

    Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

    Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

    Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

    U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

    After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

    \n

    \u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

    \n

    \u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

    Conflicting Signals From Washington<\/h2>\n\n\n\n

    President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

    Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

    \n

    \u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    he said.<\/p>\n\n\n\n

    The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

    \n

    \u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Ms. Goodwin said. <\/p>\n\n\n\n

    \n

    \u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

    Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

    While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

    \n

    \u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

    \n

    \u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

    Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

    As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

    Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

    The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

    The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

    Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

    Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

    Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

    \n

    \u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

    China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

    Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

    Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

    Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

    A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

    For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

    \n

    \u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Mr. McIntyre said. <\/p>\n\n\n\n

    \n

    \u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

    The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

    The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

    This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

    A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

    However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

    A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

    This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

    House Delay and Presidential Deference<\/h2>\n\n\n\n

    House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

    Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

    Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

    The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

    DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

    This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

    Individual Holds, National Impact<\/h2>\n\n\n\n

    The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

    His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

    Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

    Agencies Ordered to Wind Down<\/h2>\n\n\n\n

    In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

    While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

    Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

    A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

    Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

    This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

    Governance by Crisis<\/h2>\n\n\n\n

    The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

    As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

    \n
  • Saudi Arabia is the Arab world\u2019s only G20 economy<\/li>\n\n\n\n
  • Its GDP is roughly double that of the UAE<\/li>\n\n\n\n
  • Riyadh has pledged around $1 trillion in U.S. investments, compared to the UAE\u2019s $1.4 trillion AI-focused commitment<\/li>\n\n\n\n
  • Saudi Arabia\u2019s defence partnerships with Pakistan (the Muslim world\u2019s only nuclear power) and Turkey (NATO\u2019s second-largest army) extend its reach far beyond the Gulf<\/li>\n<\/ul>\n\n\n\n

    For a president focused on headline-making deals and geopolitical leverage, Saudi Arabia offers scale the UAE cannot match.<\/p>\n\n\n\n

    Competing Regional Visions<\/h2>\n\n\n\n

    Experts say this is not merely a family dispute\u2014it reflects a deeper strategic divergence.<\/p>\n\n\n\n

    Saudi Arabia seeks leadership of the Arab and Islamic world, positioning itself as a religious, economic, and diplomatic hub. The UAE, with a smaller population and economy, has pursued a different path: aggressive opposition to political Islam, close alignment with Israel, and a global network of strategic outposts.<\/p>\n\n\n\n

    Abu Dhabi plays a central role in projects favored by Washington hawks, including the India\u2013Middle East\u2013Europe Economic Corridor, and has expanded its influence through ports, gold trading, and support for secessionist movements across Africa.<\/p>\n\n\n\n

    At Davos, Trump\u2019s son Eric met the leader of Somaliland, a breakaway region backed by the UAE and recognized by Israel\u2014underscoring Abu Dhabi\u2019s global ambitions.<\/p>\n\n\n\n

    Washington\u2019s Unease With Abu Dhabi<\/h2>\n\n\n\n

    Despite its lobbying power, the UAE has unsettled U.S. security officials.<\/p>\n\n\n\n

    Former intelligence officers often bristle at the \u201cLittle Sparta\u201d nickname given to the UAE by former Defense Secretary James Mattis. <\/p>\n\n\n\n

    \n

    \u201cThe UAE is a hotbed of intrigue,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    one former official said.<\/p>\n\n\n\n

    In November, Middle East Eye reported U.S. intelligence concerns that Chinese military personnel were operating from a UAE base. Washington remains wary of Beijing\u2019s footprint at Khalifa Port, where China\u2019s state-owned Cosco runs a terminal and U.S. intelligence believes PLA-linked activity may be occurring.<\/p>\n\n\n\n

    These concerns appear to have consequences. When Trump returned to office, his first foreign trip included lavish state visits to Saudi Arabia and Qatar, while his stop in the UAE was noticeably shorter. Several U.S. officials cited tensions over Abu Dhabi\u2019s tech and China ties as a key factor.<\/p>\n\n\n\n

    A President Sitting on the Fence\u2014for Now<\/h2>\n\n\n\n

    Trump\u2019s silence <\/a>does not signal indifference. Rather, it reflects a careful recalibration shaped by past mistakes, financial entanglements, and competing strategic interests.<\/p>\n\n\n\n

    For now, Washington appears determined to avoid choosing between two powerful Gulf \u201cbrothers.\u201d But as Saudi\u2013UAE competition intensifies from Yemen to Africa to Washington itself, Trump may eventually be forced off the fence\u2014whether he wants to be or not.<\/p>\n","post_title":"Is Trump playing favorites between the UAE and Saudi Arabia?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-trump-playing-favorites-between-the-uae-and-saudi-arabia","to_ping":"","pinged":"","post_modified":"2026-02-02 16:19:09","post_modified_gmt":"2026-02-02 16:19:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10292,"post_author":"7","post_date":"2026-02-01 18:56:07","post_date_gmt":"2026-02-01 18:56:07","post_content":"\n

    At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.<\/p>\n\n\n\n

    This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.<\/p>\n\n\n\n

    From Shock Tariffs to Structural Doubts<\/h2>\n\n\n\n

    The roots of the \u201cSell America\u201d trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration\u2019s economic agenda.<\/p>\n\n\n\n

    Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe<\/a>, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments\u2019 global investment meeting earlier this month.<\/p>\n\n\n\n

    \n

    \u201cOur European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Lauren Goodwin, an economist at the firm.<\/p>\n\n\n\n

    Diversification, Not an Exit<\/h2>\n\n\n\n

    Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.<\/p>\n\n\n\n

    The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.<\/p>\n\n\n\n

    A Sliding Dollar and Surging Safe Havens<\/h2>\n\n\n\n

    Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.<\/p>\n\n\n\n

    Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent\u2014a steep decline for a currency long regarded as the world\u2019s anchor.<\/p>\n\n\n\n

    Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.<\/p>\n\n\n\n

    U.S. Stocks Lose Their Dual Advantage<\/h2>\n\n\n\n

    After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.<\/p>\n\n\n\n

    \n

    \u201cIt\u2019s been almost a paradigm shift in the dollar,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Adam Turnquist, chief technical strategist at LPL Financial. <\/p>\n\n\n\n

    \n

    \u201cU.S. equities were working as the dollar moved higher. That\u2019s unraveled.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.<\/p>\n\n\n\n

    Conflicting Signals From Washington<\/h2>\n\n\n\n

    President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.<\/p>\n\n\n\n

    Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact. <\/p>\n\n\n\n

    \n

    \u201cIf we have sound policies, the money will flow in,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    he said.<\/p>\n\n\n\n

    The conflicting messages have done little to calm investors already frustrated by erratic policymaking.<\/p>\n\n\n\n

    \n

    \u201cI\u2019m not trying to be political. It\u2019s just incredibly frustrating,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Ms. Goodwin said. <\/p>\n\n\n\n

    \n

    \u201cKey aspects of this administration\u2019s economic agenda conflict with each other.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Rising Yields and the Cost of Uncertainty<\/h2>\n\n\n\n

    Despite rhetoric about easing affordability pressures, analysts <\/a>argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October\u2014effectively the equivalent of a Federal Reserve rate hike.<\/p>\n\n\n\n

    While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.<\/p>\n\n\n\n

    \n

    \u201cYou might like a weaker dollar, but you don\u2019t like higher interest rates,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Steve Englander, a currency strategist at Standard Chartered. <\/p>\n\n\n\n

    \n

    \u201cAnd if it shows up as weaker demand for U.S. equities, that\u2019s also not a good thing.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    The Weight of U.S. Dominance Becomes a Risk<\/h2>\n\n\n\n

    Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.<\/p>\n\n\n\n

    As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street\u2019s fortunes\u2014an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.<\/p>\n\n\n\n

    Currency Effects Favor Europe and Beyond<\/h2>\n\n\n\n

    The dollar\u2019s weakness has further tilted the balance. Over the past year, Europe\u2019s Stoxx 600 index has gained nearly 30 percent in dollar terms\u2014about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.<\/p>\n\n\n\n

    The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.<\/p>\n\n\n\n

    Central Banks Reassess U.S. Assets<\/h2>\n\n\n\n

    Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.<\/p>\n\n\n\n

    Those actions triggered a broader reassessment of the safety of sovereign reserves. <\/p>\n\n\n\n

    \n

    \u201cThe safety of U.S. assets started to get reassessed,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    said Ryan McIntyre, president of Sprott Inc.<\/p>\n\n\n\n

    China\u2019s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.<\/p>\n\n\n\n

    Gold, Not Another Currency, Takes the Lead<\/h2>\n\n\n\n

    Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.<\/p>\n\n\n\n

    Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.<\/p>\n\n\n\n

    A Reassessment of Risk, Not a Panic<\/h2>\n\n\n\n

    For many investors, the shift reflects something <\/a>deeper than short-term market positioning.<\/p>\n\n\n\n

    \n

    \u201cThe world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,\u201d <\/strong><\/p>\n<\/blockquote>\n\n\n\n

    Mr. McIntyre said. <\/p>\n\n\n\n

    \n

    \u201cThis is not about risk-seeking. It\u2019s about diversification and the reassessment of risk.\u201d<\/strong><\/p>\n<\/blockquote>\n\n\n\n

    In that sense, the \u201cSell America\u201d trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.<\/p>\n","post_title":"How \u2018Sell America\u2019 became Wall Street\u2019s latest trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-sell-america-became-wall-streets-latest-trade","to_ping":"","pinged":"","post_modified":"2026-02-01 18:56:08","post_modified_gmt":"2026-02-01 18:56:08","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10292","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10285,"post_author":"7","post_date":"2026-01-31 14:10:10","post_date_gmt":"2026-01-31 14:10:10","post_content":"\n

    The U.S. federal government partially shut down early Saturday, again illustrating how procedural delays and partisan politics can trump even wide bipartisan support. The shutdown came despite the Senate\u2019s passage of a spending bill just hours earlier by a lopsided 71-29 margin.<\/p>\n\n\n\n

    The legislation combined five spending bills with a two-week continuing resolution to provide more time for an agreement on how to fund the Department of Homeland Security <\/a>(DHS). However, since the House of Representatives is not scheduled to meet until Monday, the bill could not be completed on time, resulting in a government shutdown.<\/p>\n\n\n\n

    This is yet another example of a problem in Washington: Congress\u2019s failure to coordinate its activities even when there is bipartisan support.<\/p>\n\n\n\n

    A \u201cShort\u201d Shutdown \u2014 With Real Consequences<\/h2>\n\n\n\n

    However, lawmakers and administration officials have tried to play down the shutdown as likely being of a short duration, especially in comparison to last year\u2019s record-breaking 43-day shutdown. But history shows that even a short shutdown can have real-world costs.<\/p>\n\n\n\n

    A Congressional Budget Office analysis <\/a>found that the 2018-2019 shutdown cost the U.S. GDP an estimated $11 billion, with $3 billion of that amount lost forever. Government workers missed paychecks, contractors were not paid, and critical services came to a halt or slowed. Even a short shutdown can cause problems with airport security, federal grants, housing assistance programs, and regulatory oversight.<\/p>\n\n\n\n

    This time around, appropriations lapsed for agencies responsible for national security, healthcare, transportation, education, housing, labor standards, and foreign diplomacy\u2014essentially the core of the federal government.<\/p>\n\n\n\n

    House Delay and Presidential Deference<\/h2>\n\n\n\n

    House Speaker Mike Johnson announced that he would be in favor of the Senate-approved deal, thanks to the support of President Donald Trump for the package. This move by Johnson, as reported during a House GOP conference call, shows how the legislative leadership is still dependent on the approval of the president rather than the need for action.<\/p>\n\n\n\n

    Johnson hopes that the House will pass the bill on Monday, and then it will go to Trump for signing. Until then, the agencies are in a shutdown situation, even though the lawmakers have already reached an agreement on the funding in principle.<\/p>\n\n\n\n

    Homeland Security at the Center of the Standoff<\/h2>\n\n\n\n

    The most disputed part of the funding package is related to the Department of Homeland Security. The Senate deal removed DHS from the broader appropriations bill and instead put it in a temporary stopgap spending bill, effectively kicking funding decisions down the road.<\/p>\n\n\n\n

    DHS has been a source of tension for Democrats, particularly with regards to aggressive immigration enforcement actions, including recent raids in Minnesota that have sparked criticism from civil liberties organizations and local leaders. Meanwhile, Republicans have used DHS spending as a bargaining chip to push through hard-line immigration policies.<\/p>\n\n\n\n

    This dual-track approach to funding one of the government\u2019s largest and most complex agencies is a symptom of Congress\u2019s inability to square immigration enforcement with other governance priorities.<\/p>\n\n\n\n

    Individual Holds, National Impact<\/h2>\n\n\n\n

    The shutdown was further complicated by holds in the Senate, particularly from Republican Sen. Lindsey Graham of South Carolina. Graham insisted that his hold on the package could not be lifted unless there was a guaranteed vote on his bill to criminalize so-called \u201csanctuary city\u201d policies.<\/p>\n\n\n\n

    His bill would make it a crime to prosecute state and local officials accused of undermining federal immigration enforcement efforts\u2014a move widely panned by legal analysts as unconstitutional and likely to spark years of litigation.<\/p>\n\n\n\n

    Graham also insisted that his hold be lifted in connection with the \u201cArctic Frost\u201d investigation led by former special counsel Jack Smith, in which he sought new notification procedures if members of Congress are notified that their phone records have been seized in a criminal investigation.<\/p>\n\n\n\n

    Agencies Ordered to Wind Down<\/h2>\n\n\n\n

    In a memo sent Friday, Office of Management and Budget Director Russell Vought instructed federal agencies to begin \u201corderly shutdown activities,\u201d telling employees to report <\/a>to work only to prepare for closures.<\/p>\n\n\n\n

    While the administration expressed hope the lapse would be brief, such instructions carry immediate effects: furlough notices, suspended services, and uncertainty for hundreds of thousands of federal workers and contractors.<\/p>\n\n\n\n

    Roughly 800,000 federal employees were furloughed or worked without pay during the last prolonged shutdown\u2014a precedent that continues to loom over each funding lapse.<\/p>\n\n\n\n

    A Structural Problem, Not an Isolated Incident<\/h2>\n\n\n\n

    Trump urged lawmakers on Thursday to support the deal, backing funding for most of the government through the end of the fiscal year on September 30. Yet his intervention did little to prevent another shutdown, reinforcing the reality that presidential support alone cannot overcome congressional dysfunction.<\/p>\n\n\n\n

    This shutdown is not an anomaly but part of a broader pattern. Since 1980, the U.S. government has shut down more than 20 times, with the frequency increasing sharply over the past decade as budget negotiations have become vehicles for ideological battles rather than routine governance.<\/p>\n\n\n\n

    Governance by Crisis<\/h2>\n\n\n\n

    The latest shutdown exposes a system <\/a>increasingly reliant on brinkmanship, short-term fixes, and political hostage-taking. While lawmakers frame the lapse as temporary, the cumulative effect of repeated shutdowns is corrosive: weakened public trust, economic inefficiency, and an erosion of the federal government\u2019s ability to function predictably.<\/p>\n\n\n\n

    As Congress once again scrambles to reopen the government, the larger question remains unanswered: how long can a global superpower afford to govern itself through manufactured crises rather than stable, timely decision-making?<\/p>\n","post_title":"Partial government shutdown hits as Senate funding deal falls short","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"partial-government-shutdown-hits-as-senate-funding-deal-falls-short","to_ping":"","pinged":"","post_modified":"2026-01-31 14:10:11","post_modified_gmt":"2026-01-31 14:10:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/dctransparency.com\/?p=10285","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":true,"total_page":16},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};

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