Fiscal Cliff? Try Fiscal Hand Grenade in Fiscal Mouth... (EWJ)

July 6, 2012 1:40 PM EDT
There has been plenty of talk of a so-called fiscal cliff in the U.S., but for those who think the U.S. has it bad, have a look east towards the Land of the Rising Sun. According to reports out of Reuters Friday, Japan’s government is going to run out of money by the end of October. Much like the fiscal cliff in the U.S., Japan’s fiscal kamikaze is the result of political wrangling over the budget.

Japan’s deficit financing bill, which is needed to fund government operations, is stuck in parliament, and "without this bill, the budget will collapse," said Finance Minister Jun Azumi. If that happens, the world's third-largest economy would be left to the mercy of credit-ratings agencies and could suffer a downgrade.

iShares MSCI Japan Index ETF (NYSE: EWJ) is lower by 0.85 Friday afternoon.

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