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From the AFR:
The cratering iron ore price – partly blamed on a looming US Federal Reserve rate hike next month – has reignited fears that a fresh downward shift in the terms of trade will again wipe billions of dollars from the budget bottom line.
In the May federal budget the government forecast an average price in 2015-16 of $US48.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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