Election casualty numero uno: AAA

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From the AFR:

The prospect of the second hung parliament within three years escalated speculation the government’s AAA-credit rating will come under pressure in coming weeks.

Economists said that deficits are more than likely to widen in the wake of Saturday’s outcome if it results in the derailing of curbs to high-end superannuation concessions and $14 billion in cuts from the 2014 budget that haven’t been enacted.

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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.