The United States is the only country in the world with a “debt ceiling;” which is a ridiculous, self-imposed constraint on spending. This idiotic and outdated rule created near havoc last August. The whole world must have been looking at us and laughing, with the exception of Japan, it appears. Rather than take a lesson from our stupidity, the Japanese want to be like us. Even though they don’t have a statutory debt limit, the Japanese Parliament wants to play like it does. Check this out:
Japan economy may run out of cash by October
JULY 6 (VANCOUVER SUN) - Japan’s government could run out of money by the end of October, halting all state spending including salaries, pensions and unemployment benefits, because of a standoff in parliament that has blocked a bill to finance the deficit.
The deficit financing bill, which would allow the government to sell bonds needed to fund almost half of the budget, has languished in parliament as the ruling Democratic Party tussles with opposition parties that can use their control of the upper house to reject legislation.
What this is, is a self imposed spending constraint. The whole world is going nuts. Makes it hard to stay bullish amid this policy insanity.