Dr Doom opens up another front for the economic pessimists and warns about Iran

January 30, 2012

Gotta tell The Boss we are under threat – when it comes to the economy, the budget deficit and all that – from a new quarter.

The Boss and his advisers remain relatively chirpy but are a bit bothered about what might happen in Europe.

As he said in his State of the Nation speech the other day, the Government is still on track to get back into surplus in 2014/15 but it would push out the date if the global economy went into meltdown.

The upcoming Budget Policy Statement in February will forecast a surplus in the range of $300 to $500 million, he said.

But referring to the possibility that the Europe debt crisis could push the world back into recession, he said: “If the absolute worst happened and there was a major shock to the global economy, the Government would look at whether retaining that surplus target would actually harm the economy by forcing a sharp reduction in demand…”

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