For anyone who thinks that Australia's problems are different from the US, the debt story is identical. The only thing that differs is the source of revenue. Australia's economy is totally commodity-driven: coal, iron, and agriculture. So when prices drop, the Government has to act in a panic . The US' much broader-based economy cushions such blows. This year's Midwest drought will cause some food prices to go up 5% or so, according to Bloomberg agricultural reporter Alan Bjerga. That will hurt US exports a little. No one is suggesting government budget cuts as a result.
Of course, maybe they should.
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