U.S. Government Shutdown: A Familiar Crisis Returns

U.S. Shutdown!

The United States government has once again entered a shutdown, marking the first lapse in federal funding in nearly seven years.

As of 12:01 a.m. Eastern Time on Wednesday 1st October 2025, Congress failed to pass a spending bill, triggering the closure of non-essential government services and furloughing hundreds of thousands of federal workers.

This latest impasse stems from a partisan standoff over healthcare subsidies and broader budget priorities.

Senate Democrats demanded the extension of Affordable Care Act tax credits, while Republicans insisted on passing a ‘clean’ funding bill without concessions. With neither side willing to compromise, the shutdown became inevitable.

The last government shutdown occurred from 22nd December 2018 to 25th January 2019, during President Trump’s first term.

That 35-day closure—the longest in U.S. history—was driven by a dispute over funding for a U.S.-Mexico border wall. It cost the economy an estimated $3 billion in lost GDP and left federal workers unpaid for weeks.

Shutdowns in the U.S. are not uncommon, but their frequency and duration have increased in recent decades. They typically occur when Congress fails to agree on annual appropriations bills before the start of the fiscal year on 1st October 2025.

While essential services like defence and air traffic control continue, most civilian agencies grind to a halt, delaying everything from passport processing to scientific research.

This latest shutdown is expected to have wide-reaching effects, including disruptions to veterans’ services, nutrition programmes, and disaster relief funding.

Both parties are under pressure to resolve the deadlock swiftly, but with political tensions running high, a quick resolution remains uncertain.

As the shutdown unfolds, the American public is left to navigate the consequences of a deeply divided government—one that seems increasingly unable to fulfil its most basic function: keeping the lights on.

Are We in an AI ‘Super Cycle’? Some investors say Yes—and it could last two decades?

AI

The term ‘AI super cycle’ is gaining traction among top investors, and for good reason.

According to recent commentary from leading venture capitalists, we may be entering a prolonged period of exponential growth in artificial intelligence—one that could reshape industries, economies, and even the nature of work itself.

Unlike previous tech booms, this cycle isn’t driven by a single breakthrough. Instead, it’s the convergence of multiple forces: unprecedented computing power, vast datasets, and increasingly sophisticated models.

From generative AI tools that write code and craft marketing copy, to autonomous systems revolutionising logistics and healthcare, the pace of innovation is staggering.

What makes this cycle ‘super’ isn’t just the technology—it’s the scale of adoption. AI is no longer confined to Silicon Valley labs or niche enterprise solutions.

It’s being embedded into everyday workflows, consumer apps, and national infrastructure. Governments are racing to regulate it, while companies scramble to integrate it before competitors do.

Some analysts believe this cycle could last 20 years, echoing the longevity of the internet era. But unlike the dot-com bubble, AI’s utility is already tangible.

Productivity gains, cost reductions, and creative augmentation are being realised across sectors—from finance and pharmaceuticals to education and entertainment.

Still, the super cycle isn’t without risk. Ethical concerns, data privacy, and algorithmic bias remain unresolved. And as AI systems become more autonomous, questions of accountability and control grow sharper.

Some also suggest the market is ‘frothy’ (including the Fed) and is due a correction or at the very least a pullback.

Yet for now, the momentum is undeniable. Investors are pouring billions into AI startups, chipmakers are scaling up production, and global markets are recalibrating around this new frontier.

If this truly is a super cycle, it’s not just a moment—it’s a movement.

And we’re only at the beginning of the curve