Tomorrow is the big day. Tyler Durden says it is the last day that the US government has to settle the debt ceiling. I am not sure why, maybe I missed that article, so if anyone knows, do tell. But Tyler knows best. Tomorrow is the big day!
I do think it is appropriate that the EU settled the day before the US' big day. They got ahead of the debt curve, and Nash would be proud (or understanding at least). The EU may have made a grave mistake, but this is a race to the bottom.
China is likely to be happy about all of this, as raising debt continues the fiat ponzi a little longer. How much longer, well, not too much. Likely what will happen is that the excess liquidity will be used to throw precious metals in the fire, but, of course, in the end, they will come out unscathed. There will be a lull in price for the rest of summer due to this technique. The dollar will stay in its current range of DXY 76, because every country is now printing ferociously. The fiat ponzi is in full force, but in equilibrium.
The rush will come next Fall, when all the problems have been solved. It will be seen as the great recovery, as fiat becomes worthless but corporate equity goes to the moon. After all, all anybody watches are stocks; no one knows what the DXY is, or the comparable equivalents. EUR/USD will stay in a range like to falling rocks, and since the people are falling with it with their heads focused on the money instead of the world around them, they will not figure they are falling. This is the alchemists trick.
So for a few dollars more, the end game will be put into play, and the corporations will inherit the economic landscape. China will become the US (or vice versa) and the world will become flat, once and for all.