US debt a problem for everyone
Australia will be hurt unless President Obama can negotiate a deal with Congress, says Dr Geoff Robinson.
Regional and rural Victorian communities could face economic uncertainty unless the United States negotiates a deal to solve its mounting debt crisis, Deakin University researcher Dr Geoff Robinson has told the Fairfax Media.
Dr Robinson, who is based in Geelong and specialises in Australian and US politics, said financial stability in the United States was crucial to local prosperity.
“The United States, not forgetting India and China, is still one of our major trading partners and any depression of the US market could be felt here,” he told Fairfax.
Dr Robinson said Victorians could find it harder to borrow money from banks and other lending institutions.
“Financial markets are all interconnected these days. We saw that with the global financial crisis," he said.
“Banks are global players – they don’t just rely on Australians putting money into their accounts to sustain themselves.”
Politicians in the US need to strike a deal by August 2nd to allow the country to raise its ceiling on debt above the $14.3 trillion already owed or risk default.