Japan PM Dissolves Parliament Fiscal Cliff Averted

A bill was passed before the lower house of parliament was dissolved which allows the government to issue debt to finance any shortfall.

Japan dissolved parliament’s lower house on Friday for a Dec. 16 election that is likely to return the long-dominant Liberal Democratic Party (LDP) to power with a conservative former prime minister at the helm.

That prospect has prompted concerns that former Prime Minister Shinzo Abe, who polls suggest is looks likely to be the next premier, will further fray ties with China, already chilled by a territorial row over a group of islands.

Few expect the election, three years after a historic victory swept the Democratic Party of Japan (DPJ) to power for the first time, will fix a policy stalemate that has plagued the economy as it struggles with an ageing population and the rapid rise of China.

via CNBC

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