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Flash: Scenarios to Australian debt limit standoff – Westpac

FXstreet.com (Barcelona) – While it may be easy to forget, Sean Callow, FX Strategists at Westpac notes, that “Australia’s major political parties are currently in a standoff as government debt heads for its A$300bn limit by 12 December.”

Scenarios to resolve the standoff

Scenario 1: Coalition accepts $400bn, grumbles about Labor and Greens but looks forward to new Senate composition from 1 July 2014 when the balance of power will lie with small parties and independents who should be generally supportive of Coalition legislation.

Scenario 2: Senate passes $500bn bill with Green votes. Labor seems quite settled in its stance but the Greens …read more