Well the date to watch my friends is the 2nd of August where the US governtment could officially run out of money to pay its bills, the shockwaves of such an event could send the world economy into a frenzy leading to panic in the markets, sending equity indices plummeting together with panic selling of the dollar and quite possibly sending the world back into recession.
Check out the alarming rate at which US Debt is increasing at : DEBT CLOCK
Although i believe that a deal would probably be reached to raise the debt ceiling on Aug 2nd, as allowing the US economy to default would be a major catastrophe. Currently the US dollar safe haven status is being threatened as rating agencies are knocking on the doors to strip the US of its AAA rating, forcing the dollar to fresh lows against several currencies but i believe everyone is keen to avoid such a situation
Well with default and a ratings downgrade on the cards i'm hoping the U.S can avoid both and turn things around. Which would probably lead to a major rally in the dollar, which i personally am banking on :)
Cheers all and happy investing :)
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