Interesting to see the developments from the financial markets now spreading all over the place. Australian Government is now reconsidering its military buildup and reducing the military budgets to cut costs. There now seems to be a $15 billion "black hole" in the budget for the next year. Around $10 billion would go missing from the projected $21 billion budget surplus.
Since the Australian Dollar fell dramatically in the recent months, the cost of overseas purchases almost doubled. This is heavily felt in the military purchases, amounting to hundred of billions. Next year the decision should be made about purchase of F-35 fighters and that might now be questionable. The same concerns come from the US, where cost cutting could undermine the research and development on the same aircraft model.
If Australia and other governments, and they will, start cutting overseas purchases that will be felt in the provider countries. The same way work done for overseas customers might get cut down hence increasing the unemployment domestically. That turns the avalanche as more funds from the budget goes for social security payments. People will not go on spending money and, in turn, funding other businesses and job creation etc.
We are now seeing this huge correction in real world. The data that pops up lately only shows what many have guessed about the recent period. Slowdown in the economy.
Since the Australian Dollar fell dramatically in the recent months, the cost of overseas purchases almost doubled. This is heavily felt in the military purchases, amounting to hundred of billions. Next year the decision should be made about purchase of F-35 fighters and that might now be questionable. The same concerns come from the US, where cost cutting could undermine the research and development on the same aircraft model.
If Australia and other governments, and they will, start cutting overseas purchases that will be felt in the provider countries. The same way work done for overseas customers might get cut down hence increasing the unemployment domestically. That turns the avalanche as more funds from the budget goes for social security payments. People will not go on spending money and, in turn, funding other businesses and job creation etc.
We are now seeing this huge correction in real world. The data that pops up lately only shows what many have guessed about the recent period. Slowdown in the economy.
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