Recent events that took place in the United States make other nations to reflect on their domestic problems. Based on the analysis of the situation in the world’s strongest economy, Australian authorities decided to raise their debt ceiling. In order not to face such problems, the country’s government minimized risks. What’s more, the debt limit has been almost reached, thus additionally weighing on the decision of Australian policymakers. It is amounted to $290 billion and is said to be hardly enough till this December. The debt ceiling has been raised to $483 billion. Treasurer Joe Hockey announced the surprise increase in the debt ceiling to $500 billion since the current debt limit would be exceeded on December 12. “We need to move quickly to deal with this, particularly in the wake of what's been happening in the United States in recent time," Mr. Hockey said right after the meeting of Australian Government in Canberra. Amid the U.S. problems with public debt, Australia is seen as a responsible borrower with an excellent credit history. Australia’s public debt totals only 29.3% of GDP, while the U.S. national debt is 72.5% of GDP. Leading international credit rating agencies Moody's, Fitch and S&P maintain the country’s highest AAA credit rating.
FX.co ★ U.S. example of debt ceiling hike is catchy
Forex Humor:::