A debt ceiling compromise was reached but the U.S. government failed to make any substantial change in policy when it agreed to raise the debt ceiling enough to last until 2013. The agreement lowers previously defined spending however it still adds seven trillion dollars to the U.S. national debt over the next ten years. U.S. debt has now reached 100% of GDP with no end in sight to fiscal irresponsibility.
Rating agency Moody's kept the U.S. AAA credit rating but put the United States on a negative outlook making it likely for a future downgrade. Standard & Poor's as well as Fitch rating agencies are also likely to downgrade the U.S. Some other rating agencies of the world have already downgraded the U.S. including recently a Chinese rating agency.
With no Quantitative Easing 3 announced so far, the stock market is falling after the debt ceiling deal; the Dow Jones dropping over 500 points Thursday.
The U.S. is not the only country openly manipulating its currency; Japan is pushing the Yen lower to help their export driven economy
Also, China is boosting GDP with enormous construction projects to build housing and other structures for which there is very sparse demand and thus creating a real estate bubble.
Gold has rallied, it being a safe haven from the current U.S. dollar devaluation and insolvency. Mid-day gold reached a high of $1,681 Thursday. Gold is slated to hit two thousand dollars an ounce according to some estimates by this year's end.
Oil plunges reaching $85.1 for WTI Crude.