GOLDBUGS AMEX Goldbugs Index (GOLD)

[peel+green]

The USA is in bad shape debt-wise (so is southern Europe) but it's not complete perdition just yet. The trick is not raising the debt ceiling, but cutting back on spending. Big-time. It means everyone tightens belts, even the poorer sections of the community. As the USA is a consumer society it will drag other countries into the gutter because the USA will import less, so the contagion can still spread a bit more yet.

I would not rely on the Chinese to lend the USA even more. I think they've done their bit in relative terms.

No one is coming out of this very well except the ones who hold gold/gold-related stocks.