For the last two days, the debt crisis curtains have closed on the Europe set and reopened on the next act for the US. The market is in mild caution as the US congress ponder over solutions to alleviate the debt repayment. The figure i garnered from the last check was $800bn in tax raises. The Dollar-Sing exchange has spiked further to 1.20, and Gold is trading above $1600. Jim Rogers must be very happy.

Essentially, the subject in question is the raising of the debt ceiling, the limit that the US can borrow as a nation. The congress has no problems with this action, but is mixed over the method of generating government revenue. The Republicans propose pure spending cuts, while the Democrats propose spending cuts and increased taxes. Either way, the US economy is set to contract if the proposals go through, since the fiscal policies in …