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 This idiotic and outdated rule created near havoc last August.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:
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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.
Before I turn on a light when entering a room, I pat my head three times. This plan has never failed. The light goes on every time... so the pat on the head must be an integral part of the process!
ReplyDeleteMakes it hard to stay bullish amid this policy insanity.
ReplyDeleteMany indications that the global economy is slowing down already, and lots of shocks possible that would upset the weak recovery. Difficult to be bullish overall. Questionable that the bottom is in.
Too funny, Google displays an Advert for www.AmericanDebtCrisis.com on Mike Norman Economics. What a wasted dollar, everybody should click through to transfer those debt hysteria dollars to support MMT media. =)
ReplyDeleteMany indications that the global economy is slowing down already, and lots of shocks possible that would upset the weak recovery. Difficult to be bullish overall. Questionable that the bottom is in.
ReplyDeleteLooking better and better for Romney everyday.
This is crazy. We should at least get some licensing fees!!! That alone could pay off our debt to China. Think of the load it would take off our grandkids!
ReplyDeleteMike
ReplyDeleteCan you comment on the Austrians in Finland saying that "finland should not be responsible for the debt of other Eurozone countries" ?
evidently they never got to be a confederate group of countries.
why does it work here in the States and not in Europe ?
I bet you can start with democracy here and there, liberty here and what liberty is there, and the color of skin - really basic stuff that they lack and have no clue.