Even with the temporary suspension of the debt ceiling by Congress, the points Tim Iacono raise in his article at Financial Sense still hold true:
” If the GOP caves on the debt ceiling, this will quickly turn into a sequester crisis and if the sequester crisis is somehow averted, there will be a continuing resolution crisis.
Somehow we’re going to have a crisis.
More importantly, however the crisis is resolved, it will be good for the price of gold.
The only way that the U.S. is likely to avoid another credit rating downgrade is if lawmakers in Washington provide a credible deficit reduction plan while, at the same time, maintaining short-term measures to support growth.
That’s not going to happen.”
Read the entire article and see if you don’t agree.