Jl, "P.S. I wonder what Jim Chanos would say :)"he'd probably...

Jl, "P.S. I wonder what Jim Chanos would say :)"

he'd probably ask what 'cronyistic control-freak nepotists' means.

Naaaaah....just kidding !!!!

When Washington does finally get around to getting on with governing, representing their electorates and patch a temporary debt deal together I believe there will be huge market turmoil.

Gold will move south of the oversold level and settle lower (so would silver), the DOW will recoil 400 points to ~12,600 and the XAO will zip up 150 points very quickly.

Naturally the USD would retrace and our buck will drop.

So we'd be back to where we were 2 months ago. Yipeeee !!!

The US debt situation could/will get a stoking again in all probability September/October as US growth figures start looking sickly and growth is forecast downward.

Once the market sees that the US economy is stagnating gold maybe in for a gold rush. This would be a genuine advance and there's a high chance of ~$1,800.

Sometime therein General Berbnanke will march in with QE3 pushing the US markets all over and up.

Gold will still be the pin up currency.