The Government Is Closed! Now What? -

At midnight October 1, the federal government turned off the lights and locked the doors.
So, what is this partial federal government shutdown all about, and what's next?
This week on the Money Metals' Midweek Memo, Mike Maharrey explains the reasons behind the shutdown, the likely result (more government spending), and why it amounts to little more than political theater.
Along the way, he highlights the inflationary impact of government policy and why you need to protect yourself from the inevitable consequences of this monetary malfeasance. He also gives a quick history lesson on the intended size and scope of the federal government. 
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Mike opens the show with a declaration.
<blockquote>
"Well, the government is closed."
</blockquote>
Of course, a lot of people are concerned about this turn of events. Mike points out that if the federal government were limited to its constitutional functions, nobody would even notice. 
<blockquote>
"Go grab a copy of the Federalist Papers and read Federalist #45. James Madison describes what the American political system was supposed to look like. Keep in mind, this was Madison trying to sell the public on the new Constitution. He insisted that under the proposed Constitution, the powers delegated to the federal government are 'few and defined.' Those remaining to the state government would be 'numerous and indefinite.'  
"Does this sound remotely like the system today? That’s a rhetorical question. Of course it doesn’t. In fact, the entire system is flipped on its head."
</blockquote>
Mike points out that what we're seeing today is the manifestation of the founding generation's greatest fear — political consolidation. 
<blockquote>
"One of the biggest fears in the founding era was a consolidated government with all of the power centered in Washington, D.C. The people who opposed to the Constitution argued it would lead to consolidation. Supporters of the Constitution swore it wouldn’t. Nobody argued that consolidation was a good idea.
"Thomas Jefferson summed it up. 
“'What has destroyed liberty and the rights of man in every government which has ever existed under the sun? the generalising & concentrating all cares and powers into one body.'”
</blockquote>
And here we are.
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Before digging into the current government shutdown, Mike notes that silver has approached $48 an ounce, just a couple of bucks below its all-time high. But there appears to still be plenty of upside. Mike suggests one of the best ways to buy silver right now is to get "junk silver." Premiums are extremely low.
Pivoting to the government shutdown, Mike reminisces about the government closure when Barack Obama was in the White House. 
<blockquote>
"Based on what happened back then, calling this a 'shutdown' is a bit of an overstatement. All the worst things the government does will continue. The war machine will keep warring. The surveillance state will keep spying. The IRS will keep extorting. Government shutdowns are political theater. They are meant to inflict maximum pain and inconvenience on ordinary people. The goal is to make you angry at the other team so you will vote accordingly."
</blockquote>
Mike provides some examples from that 2011 shutdown and then cautions listeners to avoid getting sucked into the political theater. 
<blockquote>
"Take this for what it is. And watch what Congress actually does to get this 'stalemate' resolved. I’ll give you a hint about what’s going to happen when the final act of the play ends. More spending. More borrowing. More debt."
</blockquote>
Mike then explains the stated reason behind the shutdown. The Democrats want to include an extension of Obamacare tax credits in a continuing resolution to keep the government funded until Congress can hammer out a fiscal 2026 budget. Republicans say that's a no-go.
<blockquote>
"But this isn’t really about the spending. It's about politics. It's about soundbites. It’s about power.  The spending is coming down the pike regardless. I can say this with complete confidence because spending always increases."
</blockquote>
Mike provides an overview of the current federal spending levels. 
<blockquote>
"The ugly truth is the government isn't committed to cutting spending in any meaningful way, and it always finds new reasons to spend even more, whether for 'crises' at home or wars overseas. That means more money printing – which is more inflation. That’s the only way the federal government can sustain this level of borrowing and spending."
</blockquote>
Mike then explains the Federal Reserve's role in supporting federal spending and its inflationary effect. 
<blockquote>
"The relentless devaluation of your dollar is exactly why you want to have real money – gold and silver. The government can’t print its value away."
</blockquote>
Mike notes that inflation doesn't just show up in rising consumer prices, even though that's how virtually everybody <a href="https://www.moneymetals.com/news/2024/01/12/common-definition-of-inflation-you-hear-today-is-wrong-government-propaganda-002925" rel="noreferrer">defines inflation</a> these days. It also shows up in asset price inflation. 
In fact, when priced in gold, the Dow Jones has lost value over the last century, despite rising meteorically in dollar terms.
<blockquote>
"Don’t be fooled. Inflation is pernicious and ever-present."
</blockquote>
Mike says this is why you need to hold real money — gold and silver. He advises listeners to call 800-800-1865 and talk to a Money Metals precious metals specialist today!
<h2>Articles Mentioned in the Show</h2>
<a href="https://avalon.law.yale.edu/18th_century/fed45.asp" rel="noopener noreferrer" target="_blank">Federalist #45</a>
<a href="https://www.moneymetals.com/news/2024/03/25/what-is-the-gold-silver-ratio-why-should-we-pay-attention-to-it-003075" rel="noreferrer">What Is the Gold-Silver Ratio and Why Should We Pay Attention to It?</a>
<a href="https://www.moneymetals.com/news/2025/09/08/90-us-coins-the-best-way-to-buy-silver-right-now-004323" rel="noreferrer">90% US Coins: The Best Way to Buy Silver Right Now</a>
<a href="https://www.moneymetals.com/news/2025/09/30/inflation-the-dow-is-down-36-percent-in-gold-terms-since-1929-004372" rel="noreferrer">Inflation: The Dow Is Down 36 Percent in Gold Terms Since 1929</a>

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