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default avoided for now – but the damage is done.

Bond yields are falling. This could cause a massive sell off of the dollar.

The reputation of the USD round the world has been severely damaged by the behaviour of the government. My honest feeling is that they need to give the world comfort and that means not waiting to the last minute to make decisions. Even when the decisions were made, the rally was small and GOLD and USDJPY respectively moved away from the dollar.

I am sticking with buying GOLD and non-fiat currencies. All it takes is the asian market to pull its investment into the dollar and the dollar will have the same sort of crash that it would have had if they had not raised the debt ceiling.

To be honest, I really think they have a hard job to fix this. Unless they win the lottery 5 times over. This is not the end of the crisis, but just putting it on hold.

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