As Jim suggested yesterday, the vicious cycle that started in 2008 cannot be reversed by raising the debt ceiling. Debt cannot be both the cause and solution to the problem. Recent price action in the gold and silver suggests that capital understands this point.
China pressed the United States to take "responsible" measures to boost market confidence in the dollar and U.S. government debt on Wednesday, underscoring investor worries that Washington could default on its debt.
The urging from China's currency regulator came as U.S. leaders tried to hammer out an 11th-hour deal to raise a $14.3 trillion debt ceiling for the United States before it runs out of money to cover all its bills on August 2.
Source: reuters.com
