A number of economies around the world have run into troubles. Especially, a number of European economies are struggling hard to stay afloat and ride out of the financial crisis’ that are plaguing them. One other economy that is at a high risk of running out of cash soon is that of Japan. According to estimates, if the stand-off in its parliament continues, Japan will run out of cash by October.
The fate of the Japanese economy pretty much rests on the deficit financing bill right now. The bill is meant to finance the deficit by allowing the government to sell bonds. The income earned through the selling of these bonds is meant to finance nearly half of the next budget.
But for now, there is a kind of a stand-off in the parliament over this bill. The opposition parties are trying hard to block the bill and stop the ruling Democratic Party from passing it.
If the bill keeps hanging in the limbo, this would mean that in October, Japanese government will no longer be able to pay salaries, pensions as well as other unemployment benefits. Naturally, given the very significant position of Japan and Japanese companies in the tech world, this economic strife at Japan can lead to more global consequences.
According to the Japanese Finance Minister, “Without this bill, the budget will collapse. It doesn’t matter which party is in power. I really hope that we can get a multi-partisan agreement on the deficit bill.”
This is very horrifying news not only for Japanese but also for the whole world, because Japan is very very important country for whole economic structure of the world. Lets pray Japan finds a way out as they always do and fight back. Our best wishes for them. (Added By Editor)
Source: Reuters
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