Terry McGee imagines the press briefing from US President Barack Obama, after meeting with PM Kevin Rudd

Prime Minister Kevin Rudd and I have met to-day and let me just say that this has bee a meeting of like minds who each care deeply for their own country but who also realize that we can't cut ourselves off from others, nor do we want to, especially from our friends.

This is a very difficult time for all of us and even while the number of our own deaths in the Iraq and Afghanistan Wars continue to grow we know that Australia has also had a number of deaths in Afghanistan in the last week. While neither Kevin Rudd nor myself got our armies into these messy wars we are both committed to working together because we have to - we're in a dangerous position and it is a position we must extricate ourselves from - as Kevin tells me they say in Australia "digitus extractus" which can in this context be translated as ‘pull your finger out before things get worse'. I have taken this little gem of wisdom to heart.

In this same spirit of direct speaking we would also like to clear up a debate that keeps bubbling on in both our countries in relation to the Global Financial Crisis and whether tax cuts are ‘the answer' to our problems.

It has been argued by some that the only stimulus measure should be tax cuts and both Kevin and myself have included large cash bonuses and tax cuts in our stimuli. But, to be truthful, the best thing for you individually, for your family to do with that money is to save all of it or as much as you can - pay off your credit cards, reduce your loans, put it in savings. That's the most logical, best thing you can do for yourself but, the point is, that will not help the economy one bit, in fact, it will actually hurt the economy.

Think about it. Our biggest problem right now is that the world economy is shrinking and when you pay off debt that's money that disappears. It's the best thing for you, personally, for your family, but it will hurt the economy because it will shrink the economy and contribute to a downward spiral. The greater problem right now is people without jobs who can't pay taxes. That's who the stimulus needs to help.

Many populist commentators and politicians keep urging tax cuts as the only answer to this, or any, crisis and many people naturally find that an attractive, simple idea. It's an idea that has been repeated ad nauseam for the last thirty years and it's wrong. We had to include cash bonuses and tax cuts in our fiscal stimulus plans because opinion polls and politicians, urged on by right wing media, demanded it as a price for passing the stimuli. As democratic leaders who have to work with parliaments we have to compromise with what others think even when it is wrong and we accept that but it is important that we recognize the mistakes that are inherent in the messy business of democracy. We are all faced today with great challenges and the easiest path might be to go with whatever the majority want. It's worth remembering that a Canadian politician way back in the 1860's said "the majority can be equally wrong as right". He went on to champion the building of the Canadian Pacific Railway.

This is a time to build the future. We are already in a new climate where no-one can take for granted what the weather will bring. The American people watched with great sadness as the terrible bushfires only a few weeks ago raged across so many communities in Victoria killing so many. Our hearts went out to you. A large part of our talks to-day have focused on why and we know that with climate change south-east Australia is going to get hotter and drier and more dangerous.

So we have agreed to commit both our governments to real CO2 cuts, not just Emission Trading Schemes that pretend to do something but only churn money. We can't afford to grow our Carbon emissions while ‘outsourcing' our cuts to poorer countries. More cyclones in America, more bushfires in Australia, we can't afford to waste time. Digitus extractus. It's time to act. Both our governments will go to Copenhagen committed to massive real emission cuts and I have personally commissioned Kevin to take on what might be his most important role as the only western leader who can speak to the Chinese in their own language to convince the Chinese to stop building new coal power stations. Even though this goes against large, powerful political interests at home the Prime Minister has accepted this task because I have assured him my government is committed to immediate real action. We will stand by each other and not allow big business to delay and dodge and cut the best deal. This is a war but for the first time we will be fighting to protect the planet not, as we have for hundreds of years, destroying the environment. Some say we cannot afford to save our environment but that is wrong - no matter how big the majority that says it. Our economy is part of and is dependant on the environment not the other way round. And it always will be.

Saving the planet will also be about saving ourselves for we are faced with bleak extremes - rising temperatures and rising unemployment, collapsing oceans and collapsing economies. The need for all of us to work together has never been greater and we will make mistakes, as Kevin and I have. We need to identify the mistakes as we have tried to do to-day and get back to the job. Kevin and I will try to live up to the trust you have given us but it will take time, it will be a long journey. Digitus extractus.

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