# Will the Australian economy be impacted by the US fiscal stalemate



## Editor (Oct 30, 2012)

Time is running out for political parties in the US to agree a new fiscal budget with some experts predicting a possible return to recession for the US if no deal can be struck.

Would a return to recession for the US economy impact the Australian economy or is it more reliant upon Asia?


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## Boboa (Mar 24, 2009)

Thinking we are fully protected and insulated by our relationship with China is naive, in best cases. While China is our biggest commodities trading partner, US is our second largest. Moreover our relationship with the US is deeper as our markets and corporations are in deep symbiotic relationship. 
Most of our largest taxpayers (Cohlear, NAB, Lend Lease and most other non-mining blue-chips) have massive investments or interest in the US market. 
It is sufficient to loom at our markets behavior when bad news come from the US, they just tank down.


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## Editor (Oct 30, 2012)

Hi Boboa

I think you are right, there seems to be no escape from the influence of the US even though the likes of China, India and some countries in South America have certainly grown in strength since the worldwide economy began to falter. Whether directly or indirectly it seems that the US will still be pulling the world's financial strings for some time to come.


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