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From The West Australian:
The State Budget is facing a “sea of red ink” that could push out deficits well beyond the next election as the price for key commodities slump to their lowest levels in almost a decade.
Every $US1 fall in iron ore prices strips about $70 million in revenue from the State Budget which, in May, was predicted to deliver a $2.7 billion deficit.
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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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