Cut Spending? Could the Japanese Government Finally Be Waking Up?
The Telegraph has an article out today entitled, "At Last, Japan May Be About to Abandon its Disastrous Keynesian Consensus."
Here is a snippet:
....“The government running out of money is not a story made up. It's a real threat," said Japan’s finance minister Jun Azumi on Friday. Opposition parties in Japan are blocking a deficit financing bill which would allow the government to continue to drive its debt levels above 200pc of GDP. If the opposition holds firm, the government has threatened the unthinkable – it will spend less. Tax rises are also on the table, although the doubling of sales tax to 10pc will not come fully into force until 2015.
This is a turnaround for Japan. The nation’s government has already contorted itself in all the ways now common in the West while attempting to postpone this day..... "
I've been screaming since I can remember that the laws of basic math say that if you have 5, you cannot keep spending 7 and that Japan's debt problems must first be fixed by a cut in spending. Coud it be that people are finally waking up?
....Well, we are talking about the government so don't hold your breath....