National debt is not the people's debt - The country is not a company - Breakdown of government bond holdings that still do not penetrate public opinion.
2024-01-09
Category:Japan
「国債等関係諸資料」令和5年6月末国債保有内訳 Photo by 財務省 (licenced by 財務省 )
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National debt is not a national debt.
The image at the beginning shows the breakdown of Japanese government bond holdings. I sometimes see people say that national debt is the nation's debt or that it is the same as corporate debt, but national debt is the government's debt, not the people's debt. Even if a country is compared to a company, companies do not borrow money from their employees. Debt comes from outside the company, and in this case, it involves purchasing Japanese government bonds from overseas. If most of the debt is overseas, it is natural that the company will default if it cannot be repaid. Purchases of Japanese government bonds from overseas account for ７.３%.
The Japanese government has assets equivalent to its liabilities.
If you really want to say that it is the same as a company, would you say that purchases in Japan are borrowed and borrowed within the company or within the group company? Yoichi Takahashi considers the Bank of Japan to be the same as a subsidiary of the government, and explains that it is the same in terms of consolidation, regardless of whether interest is charged. The Bank of Japan holds ５３.２% of Japanese government bonds. He is well known for introducing BS to show that the country holds government assets equivalent to the government's debts (excluding the holdings of the Bank of Japan). The total amount of government assets ranks first in the world, exceeding both the United States and China. Below is the balance sheet (BS) of Japan.
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Japanese government bonds are debt denominated in yen.
Furthermore, Japanese government bonds are mainly traded in yen, which means that there is no change in value based on foreign currencies. In the case of foreign currency transactions, if the value of your home currency plummets, the face value of your debt will rise accordingly. Suppose your country's currency drops to half its value. Alternatively, if the foreign currency used when trading government bonds doubles, the debt will also double, but since the transaction is in Japanese yen, there will be no effect at all. In an extreme case, former Prime Minister Aso said that repayment would be possible by increasing the number of yen bids. In this case, there will be inflation and the value of the yen will fall, but the theory is that the debt can be repaid because it is the face value of the yen. This was actually said by Taro Aso, a former Prime Minister and former Minister of Finance.
Japan, the world's largest creditor country
Secondly, the Japanese government is also the world's No. １ creditor country. In other words, they have foreign bonds and foreign assets. The fact that we are currently talking about national debt as a problem is actually making a fuss about only the debt part, and in fact, Japan has the most foreign assets in the world. This assumes that the government bonds are denominated in yen as mentioned earlier, and if more yen is printed, the value of the yen will fall and the yen will become weaker. If you do this, overseas assets purchased in dollars or euros will increase in value when converted to yen, so the difference will be a large income. Even with the current depreciation of the yen, a large profit margin was generated due to the increase in the valuation of overseas assets.
Print more yen up to 2% inflation rate
Representative Sanae Takaichi has advocated the ``Japanese Economic Resilience Plan,'' which calls for a temporary freeze on primary balance (PB) regulations and calls for industrial investment through the issuance of government bonds. She says that even if inflation were caused by printing more yen, it would not have a big impact if the inflation rate was less than ２%. Currently, the yen is depreciating due to the difference in interest rates due to the Fed's interest rate hikes, but the original goal is to induce a depreciation of the yen through the issuance of government bonds and increase the number of bonds, strengthen international competitiveness, and increase wages and tax revenues through rising prices. If the manufacturing industry returns to Japan due to the weak yen, GDP and tax revenue will increase, and government debt can be reduced. For now, this is just the effect of a weaker yen due to interest rate differences, but we are already seeing significant results.
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Public opinion without examining Abenomics - there is no point in criticizing it based on contradictory premises.
There are some surveys and opinions in public opinion that Abenomics has ruined Japan, but is that true? First of all, what is Abenomics? Were you asking people who answered the same question as in the poll, or were you asking people you didn't know? I wonder if asking someone I don't know will give me the results I expected. First, let's review the three arrows of Abenomics.
Three arrows of Abenomics
Bold monetary policyFlexible fiscal policyGrowth strategy to stimulate private investment
Monetary policy is still ongoing, but former Prime Minister Abe has said that the consumption tax increase was decided in advance and was carried out at a time when it could not be postponed, so he was unable to fire a second arrow. In other words, Abenomics is actually the first arrow in a variety of environments. In other words, I would understand if there was an evaluation of the fact that it did not advance to the second stage, but I have doubts about evaluating Abenomics itself.
Next, I will list some of the achievements of Abenomics.
Main achievements of Abenomics
The total national and local tax revenue will reach a record high of 107 trillion yen in fiscal 2019, up from 78.7 trillion yen in fiscal 2012. The stock price, which was around 8,000 yen, rose to over 24,000 yen under the Abe administration. Public pension investment profits increased by 57.6 trillion yen in seven and a half years. The effective job opening ratio was 83 job openings for every 100 people in 2012, and 164 job openings for every 100 people in 2019. Business operators improved their treatment due to the labor shortage. The minimum hourly wage rose from 749 yen in 2012 to 901 yen in 2019. The rate of children from single-parent households going on to university increased significantly from 23.9% to 41.9%.
Sanaenomics (Japanese Economic Resilience Plan) will be published. Representative Sanae Takaichi announced a policy to carry on Abenomics during the last presidential election.
Sanaenomics three arrows
Financial easingFlexible fiscal stimulus in times of emergencyBold crisis management investment/growth investment
What they have in common is that monetary easing policy will continue, and if the Takauchi Cabinet is elected, the government will implement aggressive fiscal policy.
The fact that the Japanese government's balance sheet was introduced for the first time in 1995 means that the Japanese government did not have the concept of strategic investment, which companies take for granted. How can you invest without a balance sheet or cash flow statement? It was only a matter of being able to compare the income and expenditure for a single year, or the previous year. The term "primary balance" has come to be used like crazy. At that time, Japan believed that deregulation would revive the economy, and the government repeatedly took the approach of relaxing regulations through legal revisions.
As a result, the Japanese government was unable to rebuild the national economy or make strategic investments for economic growth after the collapse of the bubble, which was an unprecedented economic crisis. More than 30 years have passed since we stubbornly closed the doors. Then, companies moved their manufacturing sectors to emerging countries, and GDP and tax revenues mainly went to neighboring countries such as China, creating a dual wage structure of dispatched labor in order to prevent an increase in the number of unemployed people in Japan. . The economic disparity that arose from this process is said to be one of the causes of the current declining birthrate.
So, has Abenomics ruined Japan? Would that also mean denying Sanaenomics? Or will we continue to turn down investments from the government as we have been doing, paying close attention to the primary balance under the guidance of the Ministry of Finance and listening to the beautiful words of fiscal consolidation? The point of contention should be to gather opinions on whether or not bold fiscal spending by the government is necessary. In any case, regardless of whether the policy is better or not, there are parts where it seems like the point at issue is not policy at all, but just an extension of a personal attack, which is unfortunate.
30 years lost as a result of passive fiscal policy
In other words, those who claim that government debt is bad have the completely opposite idea. What ruined Japan after the bursting of the bubble was rather the primary balance discipline, the inability to focus on single-year income and expenditures and to make long-term investments. Japan tightened its finances in the most critical economic situation. If it is the same as a company, when the company is in crisis, the company's safe is closed like a shell, and for the past ３０ years, the company has been operating in a state of poverty and not being able to make long-term investments. This is the so-called curse of PB by the Ministry of Finance.
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Britain and Italy begin joint development of next - generation fighter jet - Will Japan's next - generation fighter jet be a game changer? It has been announced that the UK and Italy will jointly develop Japan's next-generation fighter aircraft. It had already been announced that Japan would develop a successor to the F-2, but now Japan has agreed to jointly participate with the UK and Italy. Prime Minister Sunak said the joint venture would create thousands of jobs in the UK and strengthen security ties.
It has advanced stealth characteristics, and AI functions support humans when the pilot is under extreme stress or unable to respond to a situation. If necessary, it can be operated without pilot instructions and can fire supersonic missiles.
Since the 1990s, the Ministry of Defense's Technical Research Headquarters (currently the Defense Equipment Agency) has developed the advanced technology demonstration aircraft X-2 to explore the possibility of developing a future stealth fighter F-3 (tentative name) using Japanese technology.
The X-2 aircraft underwent a total of 32 flight tests until October 31, 2017, verifying its stealth and maneuverability. This demonstrated that Japan has the ability to produce the F-3 domestically.
Among the 6th generation fighter jets currently being developed by various countries, the F-3 will have the highest performance. This is a fighter jet that truly represents the evolution of Made in Japan technology.
It is clear that the F-3 fighter will play an important role in NATO's strategy in the future, and it will be a game changer in China policy due to its clear performance differences. The future of Japan joining NATO has become a reality.
Vaccine class action lawsuit initiated by bereaved families - Causal relationship between vaccines and tragedy to be explored on a global scale.
Families of people who died in Japan due to the coronavirus vaccine have started a class action lawsuit. It seems like it has finally begun. As the coronavirus spread throughout the world as a pandemic, vaccines spread as if to follow it. Used by almost all countries.
The dangers of the vaccine, which had a significantly shortened testing period, have been known from the beginning. In Japan, a research team at Kyoto University discovered the phenomenon of vaccine fragments remaining in the blood and presented the findings at an academic conference. It can be said that the harmful effects of residual vaccine fragments on all immune-related reactions are unknown. However, its harmful effects have not been scientifically verified.
The vaccine itself has not been tested or scientifically proven. It is a matter of course that the harmful effects have not been scientifically proven. Even if the plaintiff files a lawsuit, it is likely that the conclusion will be that the causal relationship cannot be determined. However, once this vaccine undergoes formal testing, the causal relationship may become clearer. It will take more than 10 years.
This problem is similar to war in some respects. It is a collective truth that we turn a blind eye to the sacrifices of a few people in order to protect the majority of society. The world is enveloped in this collective truth, and it is also true that tragedies that appear to be caused by vaccines are occurring in every country. The WHO is also silent on this matter. Interpretations and solutions to this worldwide choice of life will probably be completely different depending on the country.
A summary of impressions of the numerous candidates competing in the 2024 Japanese LDP presidential election
As the LDP presidential election draws near, candidates are coming forward one after another. Ishiba Shigeru, Kobayashi Takayuki, Hayashi Yoshimasa, Takaichi Sanae, Kono Taro, Koizumi Shinjiro, Aoyama Shigeharu, Mogi Toshimitsu, and Kamikawa Yoko (in no particular order) are some of them. Among them, Ishiba, Kono, and Koizumi are the ones who are frequently mentioned in the media, so perhaps they are the ones who are getting the media votes. Ishiba has little conservative thinking, such as accepting a female emperor or promoting separate surnames for married couples, and has a strong liberal tendency, so much so that some have mocked him and asked him if he should transfer to the Constitutional Democratic Party.
The issue of imperial succession has already been narrowed down to two proposals by a panel of experts: "a proposal for female members of the imperial family to remain in the imperial family after marriage" and "a proposal for adopting a male member of the former imperial family as a son in the male line." A report has been sent to the Diet. Since Prince Hisahito was born, there has been no consideration of a female or female-line emperor, and they are moving towards the idea of ??adopting a male in the male line. In response to this, the Speakers of the House of Representatives and the House of Councillors, as well as the leaders of each party, have gathered to hold discussions since May 17th, but even LDP members have ridiculed Ishiba's comments as being table-top-turning.
As for the separate surnames for married couples, one of the issues that was initially pointed out was that it would be difficult to change back to the maiden name in administrative agencies, financial institutions, and other procedures upon divorce, but the law has been revised to allow the use of maiden names without making any major changes to the family registry system, so I wonder if the discussion is a bit outdated, or if the comments are just for the media.
As for Takayuki Kobayashi, he is a conservative who supported Sanae Takaichi last time, but his way of thinking is almost the same as the late Abe and Takaichi, and as a result, I get the impression that he has less impact. In that case, Takaichi will likely be chosen, but as a young candidate, she may be a good candidate to reduce Koizumi's party member votes.
As for Kono Taro, he scrapped the Aegis Ashore deployment plan when he was defense minister, and in the last presidential election, he expressed opposition to the possession of enemy base attack capabilities, and as a result, he presented himself as a pro-China politician without even thinking about it, and I remember him suffering from severe burns all over his body, but he seems to be running, and it seems like his expiration date has already passed, and voters are getting tired of him.
I can't think of any notable achievements for Koizumi Shinjiro, and perhaps his popularity is due to his father's use of words that are conscious of the message he uses, but in any case, he seems unable to break away from his base of anti-nuclear power and clean energy. He is recommended by Suga, but I can't help but wonder if there are energy interests in Kanagawa Prefecture.
Mr. Motegi seems to have a clear mind, which is a good point, but he has mentioned local voting rights for foreigners several times, and I get the impression that he has a strong left-leaning tendency. Looking at Europe, many countries do not allow non-EU nationals to vote in local elections, and there are also cases where only certain non-EU nationals are allowed. Only Northern Europe grants voting rights to non-EU nationals. If we think about it this way, what kind of foreigners are in Japan? As for the proposal to grant voting rights to Chinese and Koreans from anti-Japanese countries, I have serious doubts about the logic that Europe is the model for.
As for Mr. Aoyama Shigeharu, I agree with his historical awareness, etc., and I would like to support him as a patriot, but the fact that he is a member of the House of Councillors is a problem. There is no precedent for a member of the House of Councillors to become prime minister and party president, and there is an inevitable contradiction in whether a member of the House of Councillors has the right to dissolve the Diet. There is no dissolution of the House of Councillors, and dissolving the House of Representatives means resignation, which means that all members are dismissed and lose their seats, but the Prime Minister remains a member of the Diet. He says he will "ask the people for their trust," but he will not be asked to run for the House of Representatives, so I hope he will switch sides and run for the House of Representatives.
I can't think of anything about Yoshimasa Hayashi or Yoko Kamikawa. I've heard that Hayashi is a pro-China member of parliament, and I have the impression that Kamikawa is a foreign minister who won't budge no matter what China does or says to him. It could be said that Kishida's side is putting up a female candidate as a rival to cut Takaichi's votes.
Takaichi has inherited the policies of the late Abe, and has further developed them. She will not talk about old-fashioned things like denuclearization, but will instead propose pioneering policies such as investment in fusion reactors and industrialization. It is also necessary to increase the inflation target to 2%. Currently, the yen is weaker due to the interest rate differential, but this is not due to the bill increase, it is simply the value of the yen falling. As a result, the inflation rate will be achieved and export competitiveness will increase, but unless the total amount of bills increases, it will be difficult for the face value of wages to increase. The Federal Reserve has already announced at the beginning of the year that it will lower interest rates at the end of the year, and if Trump becomes president, it is unclear whether the current situation will continue. If the interest rate differential decreases and the yen tends to appreciate, I would like to see the original inflation rate of 2% achieved by the bill increase. Regarding security, Takaichi clearly advocates investment in the military industry, and has a vision of imagining and nurturing new industries. She has the most concrete and strategic ideas.
State funerals are an exclusive matter of the Cabinet - clearly stated in the Cabinet Office Establishment Act, similar discussions have been made in the past and a conclusion has been reached.
Public opinion grills the perpetrator's motive
Don't politicians have freedom of religion?
State funerals are an exclusive matter of the Cabinet
Certified by Cabinet Office Establishment Act
It is the opposition members who are not based on the law
Public opinion in Japan is still agitated over the issue of state funerals. In the first place, I am appalled by the way the Japanese media is using the claims of the person who murdered former Prime Minister Abe as they are, changing it to a picture of the Liberal Democratic Party and the Unification Church. They are even using the murderer's crazy and erroneous motives to provoke the people.
Shouldn't politicians be religious? Freedom of thought and belief is a legitimate human right granted to all citizens. If there is a problem that violates the Political Funds Control Act, then that would be fine, but in that case, religious groups and companies are completely irrelevant. Former Prime Minister Abe merely offered his greetings. I tried looking for a law that says greetings are a crime, but I couldn't find anything. I would like the definition of the word "involvement" to be clear. But that's it.
The Kishida Cabinet decided to hold a state funeral, but I wonder if there is a problem. Opposition parties and the media are shouting that there is a problem with the decision-making process. Many say that at least the Diet should be involved in decision-making. For a long time after the war, there was no legal regulation regarding state funerals, and according to Yoichi Takahashi, similar points were raised and discussed at the time of former Prime Minister Yoshida's state funeral. In other words, it was not clear at the time who should make decisions, how they should be decided, and what process should be used, which was already discussed in the past.
In 1999, the Cabinet Office Establishment Act was enacted, and in the legislation that clearly stipulated matters decided by the Cabinet Office, Article 4, 3-32 states, `` Affairs related to national ceremonies and ceremonies and events conducted by the Cabinet.'' Regarding ”. In other words, the National Assembly, or the legislative branch, has enacted a law that states that state funerals, which are national ceremonies, are the exclusive domain of the Cabinet.
There is no problem with the process by which the Cabinet made decisions based on the Cabinet Office Establishment Act. If the Diet should be involved now, it means that all members of the Diet have already been involved, the legislative branch has enacted legislation, and the Kishida Cabinet has decided to hold a state funeral accordingly. Don't members of Congress have an obligation to obey the law?
This makes me question whether Japan really is a country ruled by law. Incendiary voices that sound like they are from a special country are corrupting a democratic society.
Trump was impressed by former Prime Minister Abe's presentation skills during his visit to Trump Tower - Strong friendship between Japan and the US leaders.
Former Prime Minister Abe visited Trump Tower
South Korea with different objectives as usual
Specific explanation of Japan's contribution
Abe's presentation that impressed Trump
A strong friendship that only businessmen can understand
The impression is that the relationship between former Prime Minister Abe and former President Trump was that of businessmen. It is often thought that businessmen are in a relationship where they take advantage of others based on utilitarianism, but that is not the case in this case. Before Trump won the presidential election and took office as president, former Prime Minister Abe visited Trump Tower.
South Korean Foreign Minister Kang Kyung-wha tried to do the same thing in the next presidential election, but it appeared that South Korea was desperately trying to outdo Japan. Former Prime Minister Abe's objectives are completely different. Abe is said to have personally given the presentation at Trump Tower.
Mr. Trump did not have much knowledge about Japan, viewed the deficit on the U.S. side in Japan-U.S. trade as a problem, and questioned the cost sharing of the Seventh Fleet under the Japan-U.S. Security Treaty. Mr. Abe appealed to Mr. Trump about Japan's position on that question. He explained how much Japan contributes to the American economy, and how Japan contributes to the stability of the Asian region, both in terms of location and cost burden for the Seventh Fleet.
Mr. Trump was a businessman, and Mr. Abe considered himself a salesman for Japan. Mr. Trump must have watched countless business meetings and internal presentations, but he was taken aback by Mr. Abe's proposal, calling it "great." This included the QUAD concept. When Trump later visited Japan, Abe locked him in a separate room and gave the presentation himself again.
There are many politicians and national leaders who have nothing to do with business, but Mr. Trump and Mr. Abe appear to have been formed through mutual understanding between businessmen. Business is about carefully calculating the other party's position, the other party's economy, and the development of both parties, making plans, sharing them, and implementing them. It is only natural that we should respect both parties who have sincerely faced this issue and put it into practice.
