PostJapan — the most indebted nation in the history of civilisation — has hit upon a bold new fiscal strategy: spend dramati…

Japan — the most indebted nation in the history of civilisation — has hit upon a bold new fiscal strategy: spend dramatically more while collecting dramatically less and act surprised when the bond market objects. Tokyo is weighing a defence spending target of 3.5% of GDP to match its NATO peers — roughly ¥24 trillion, more than double the current level — even as Prime Minister Takaichi's cabinet simultaneously approves slashing the consumption tax on food from 8% to 1%, a ¥5 trillion giveaway the government swears it will fund without new debt, which is the fiscal equivalent of promising to fill the bathtub while the drain is open and the taps are running.