Japan plans to cut state spending, could run out of money in a month

[WestVirginiaRebel]

UK Telegraph:

The impasse in Japan's parliament has raised fears among investors that the world's third largest economy is being driven towards a "fiscal cliff", Reuters reported.

"The government running out of money is not a story made up. It's a real threat," Finance Minister Jun Azumi told a news conference, making a last-ditch appeal for cooperation by opposition parties to pass the bill.

"Failing to pass the bill will give markets the impression that Japan's fiscal management rests on shaky ground," he said.

Unless the bill clears the current parliamentary session that ends next week, the government will start suspending or reducing some state spending to avoid running out of money for as long as possible, the finance ministry said.

Noda's ruling Democratic Party passed the deficit-financing bill through the lower house on Tuesday. But the opposition boycotted the vote, signalling the bill has little chance of clearing the opposition-controlled upper house.

Under the proposed contingency for suspending some spending, the finance ministry said government bond redemptions and interest payments on outstanding debt would not be affected as they will be made in full using reserves set aside for this purpose.

All state spending will be targeted, except for those that will severely effect public livelihood such as police, national security and disaster relief, Reuters reported.

Subsidies to local governments and state-run universities will be cut by half from the originally planned amount until the bill passes parliament, the finance ministry said.

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Welcome to Greece East?

[Valin]

@WestVirginiaRebel

 

 

OK...How do we blame this on the Republicans?

[Pepper]

@Valin

 

The Japanese wouldn't have this problems if Barack had been

President instead of FDR.

 

 

We would have surrendered in 41. And I'd be writing this in German or Kanji.

[Valin]

@Valin

 

The Japanese wouldn't have this problems if Barack had been

President instead of FDR.

 

 

We would have surrendered in 41. And I'd be writing this in German or Kanji.

 

Remembering we are talking 1930.s 40's Barack Obama would not for better or worse have been a problem.

It should also be pointed out the politics of the time were a lot different. Pat Buchanan would have felt right at home with the GOP of that time. In fact IMO he's never gotten over the fact that, that GOP is dead.