MTECHTIPS

MTECHTIPS:-Japanese fiscal cliff issue and what it means for Bullion

While reports arrive that Japan's Cabinet has approved of a $5.3 billion stimulus measure—arguably a drop in the ocean—the same reports also mention of a fiscal cliff issue that is typically Japanese and not American.Japan is also expected to run out of money and a resulting shutdown of its economy if political bickering there prevents the Japanese government from enacting a bill that would raise the current debt ceiling.About 40% of the current year fiscal spending rests on the hope of Japanese government getting the bill to be passed into a law even as opposition parties demand the government to reciprocate with a snap election if they were to cooperate. One of the Houses in the Japanese two-tier Parliament is 'owned' by the opposition. The government invariably requires their support Last year too, Japanese PM Naoto Kan had to step down with opposition pegging the passing of bond bill to his removal from ministerial chair.The current PM, however is refusing to bow before the pressure induced by opposition.