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Though Fitch said the country had fiscal financing flexibility helped by the strength of the pound, it warned of debt and deficit problems ahead.
Even if Mr Abe chooses not to carry out his threats—such "fiscal financing" is highly unorthodox he may still seek to appoint a more like-minded central-bank head when the term of the governor, Masaaki Shirakawa, expires in April.Mr Abe does not unveil his full cabinet until December 26th, though key figures are already known.
Despite the UK's strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a 'AAA' rating.
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The fiscal finances of most emerging economies are in good shape.
America's deteriorating fiscal finances rule out further big net tax cuts (see article).
I'm more than happy with us getting back to sustainable fiscal finances over the long term.
But improving infrastructure and education not only takes time, it also requires money, and India's fiscal finances are far from healthy.On the surface, the government has made great strides to cut its budget deficit.
Clearly Greece's and Portugal's problems are in the sphere of sovereign debt but Europe's debt problems going forward importantly involve the orderly workout of massive private debts (Ireland, Spain and the UK are not alone on this score).Those obligations were built up in the boom years and have discouraging implications for fiscal finances.
With Rio's and Brazil's fiscal finances in deep deficit, and with public servants not being paid and social services in near dysfunction, it makes a significant difference whether the loss is $1.6 billion or 10 times greater at $16.7 billion.
That arguably would be an even more severe existential threat to the euro than bending the fiscal and financing rules for Greece.
By one projection (made before the meltdown and Obama's fiscal response), financing the federal government would mean, by 2026, persuading foreigners to pour all their incremental savings into U.S. Treasury paper.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com