Triumphant dumb bubble showers itself with roses

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Again from Dumbfax:

“The falling terms of trade has had a large impact, but the Australian government has stood between the iron ore price and the economy like a firewall,” said Deutsche Bank economist Adam Boyton.

“Ultimately, that’s money that will need to be paid back if you still assume its a goal of public policy to have lower debt and maintain a AAA credit rating during the next recession,” he said.

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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.