I see that the politicians on Capitol Hill have just about managed to act with some commonsense at the eleventh hour, and have passed a bill in Congress that allows the debt ceiling to be raised. The Senate is due to vote today.
Neither "left wing" democrats, nor the swivel eyed of the Tea Party are happy with the compromise.
Representative Emanuel Cleaver (Democrat), said:
"This deal is a sugar-coated Satan sandwich. If you lift the bun, you will not like what you see."
The bill raises the debt ceiling by $2.4 trillion, which theoretically will allow the government to meet its debt obligations until 2013.
However, $1 trillion will be cut immediately from government spending, with a further $1.4 trillion to be agreed by the end of the year.
The markets, having briefly rallied, fell as they digested the news that US manufacturing has grown at its slowest pace in two years.
Whilst all this self indulgent nonsense has been going on, those with an eye for playing the markets will have done very well out of the rise in value of gold then, if they anticipated the vote in favour of a deal, the fall back in value of gold.
Let us trust that those politicians who played games over this issue were not some of those who played the gold markets!
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