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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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.
Before colonial rule or international law, bilateral commitments must be fulfilled.This is international common sense.
Was colonial rule legal or illegal at that time?History shows that.This is because there was no law or concept to ban colonies.Although not well known, Japan was the first country in the world to submit a bill to abolish racism in 1919.The attempt failed just before it was passed, and the United Nations Declaration on the Elimination of All Forms of Racism in 1965 had to wait.
There is a saying that the origin of international law is Hugo Grotius' Law of War and Peace, but he is a playwright and poet.It would be impossible to establish international law without international organizations.In a country governed by law, how does international law work now that police power can be controlled?What is the International Court of Justice?It is only after the two countries with disputes appear in court.If the other country does not appear in court, it will not work at all.
There is no police in the United Nations to crack down on the world, and the International Court of Justice will be held with the consent of both countries.
What the United Nations can do now is limited, saying it violates international law.Sanctions cannot be imposed without unanimous agreement among permanent members.The only thing that can be done is economic sanctions.How, then, can the two countries keep their promises?It is written in a treaty between the two countries, and if the treaty is deemed invalid, one country can unilaterally impose sanctions.
The South Korean government is clamoring for Japan's violation of international law and international law, but let's take a look at the Japan-South Korea Basic Treaty.The Japan-South Korea dispute resolution exchange document states, "The dispute between Japan and South Korea will be resolved through mediation in accordance with the procedures agreed upon by the two governments."What is mediation?It will now be the International Court of Justice.Even if the Japanese government invites them to the International Court of Justice, the Korean government will not respond.It remains the same as before and now that bilateral treaties should be observed before international law.
In principle, the commitments between the two countries are fulfilled by the two countries.It is clearly stated that the dispute resolution between Japan and South Korea should be resolved through mediation.
Former Prime Minister Aso plans to visit South Korea and meet with President Yoon - A person who has been monitoring Japan - Korea issues from within the Cabinet
Mr. Aso visits South Korea
Mr. Aso has been observing Japan-Korea relations for a long time from within the Cabinet
The handover on the Korean side is in disarray
What will Mr. Aso offer to the South Korean regime
Former Prime Minister Aso is visiting South Korea, but the Japanese government has said that it is part of parliamentary diplomacy and not as Prime Minister Kishida's special envoy. What did Mr. Aso come to Korea for?
Mr. Aso was the prime minister who concluded the Japan-Korea currency swap during the 2008 Korean currency crisis, which occurred during the Lehman shock in the United States. After rebuilding the economy, the Lee Myung-bak administration said that Japan's aid was unnecessary. Mr. Aso subsequently served as deputy prime minister from the second Abe administration to the Suga administration. During that time, he was involved in various Japan-Korea issues, including Lee Myung-bak's landing on Takeshima, the comfort women agreement, the suspension of the Japan-Korea currency swap, the radar irradiation incident, the forced labor judgment, the comfort women judgment, and the white country issue, in his capacity as vice prime minister. Become the person you were. Like former Prime Minister Abe, he will probably be the only person who has looked at a series of issues as a cabinet member.
Meanwhile, in South Korea, the government changed from Lee Myung-bak to Park Geun-hye, and after impeachment, came the Moon Jae-in government, which removed all people who were said to be pro-Japanese from diplomatic relations. After that, he launched a series of anti-Japanese movements, leading to the current Yun Seok-Yue administration. In other words, on the South Korean side, there is no continuity in Japan-Korea relations, the handover is probably fragmentary, and it is highly likely that they do not understand anything other than symbolic concerns.
It would not be surprising if Japan-Korea relations contain a variety of other problems in addition to those that have been made public. If the problems that have come to light are just the tip of the iceberg, Mr. Aso is probably the person who knows the various problems and background behind them. In other words, it is highly likely that the meaning and content of the comprehensive solution that South Korea calls and the comprehensive solution that Japan thinks of are different.
Japan was attacked by a coalition of Chinese and Korean forces.Japanese troops were sent to defeat China.
Genkou refers to the invasion of Japan by the Chinese Yuan and the Goryeo army.There are also theories that Khabirai Khan intended to invade Japan, and that King Goryeo incited Khabirai to attack Japan.The two expeditions ended in failure when a Chinese ship sank due to a storm called kamikaze.
After that, Japan entered the Warring States Period and entered a turbulent period.Oda Nobunaga, a genius, was not only good at fighting but also sensitive to the international situation.Literature at that time revealed that urgent Japan's unification was carried out because it predicted that there would definitely be another invasion from the continent.He then told Toyotomi Hideyoshi about it.The enemy will surely come from the continent.
The purpose of Hideyoshi's dispatch to Korea was Ming, China.South Korea is said to have been attacked by Japan, but North Korea is not the purpose.As a result, the Ming army's counterattack on the Liaodong Peninsula led to a stalemate in the war situation, skepticism about the merits of Japan's rule of vast land with different cultural customs, and the death of Toyotomi Hideyoshi.
If Japan had captured Ming at this time, the Japanese era would have been born in the era of different ethnic countries such as Sui, Tang, Yuan and Qing.Relations with Japan, the Korean Peninsula, and China have become clear in this era.It will come to light again in the next Sino-Japanese War.The Korean Peninsula exists between Japan and China and has not been an autonomous country in history.
Historically, Korea has been part of China.Although it exists as a liberal country, its dependence on China remains the same.
Know the difference between the Rising Sun Flag and Hakenkreuz - What is the Korean historical perspective that equates them?
In the history of the world, I have never heard of a country changing its flag because it won or lost a war. Britain and France have been at war many times, but did Britain, which won the Anglo-French War, demand that the French flag be changed? On the contrary, there is no idea that such a thing would become a point of contention in post-war processing. South Korea persistently demands that Japan abolish the Rising Sun flag, just as Germany abolished the Hakenkreuz flag.
A national flag symbolizes the country. The disappearance of a national flag means the disappearance of that nation. The Rising Sun Flag is the internationally registered flag of Japan's Maritime Self-Defense Force. Calling for the abolition of that flag is the same as calling for the abolition of the Maritime Self-Defense Force. Is South Korea claiming that it wants to go to war with Japan? If this is not the meaning, then the perception of what a ``flag'' is is too different internationally.
South Korea always equates the Rising Sun flag with the Hakenkreuz, and claims that since the Hakenkreuz, the symbol of Nazi Germany, has been abolished, the Rising Sun flag should also be abolished. Hakenkreuz is the party flag of the Nazi Party (National Socialist German Workers' Party), and there is a history of it being used as the national flag. There is no Nazi party now, so there is no Hakenkreuz. That's simply the story.
Unless Japan disappears, the Japanese flag will not disappear, and unless the Japan Maritime Self-Defense Force disappears, the Rising Sun flag will not disappear. In the first place, the Rising Sun Flag is a flag that has been passed down culturally, so it will not disappear even if it has nothing to do with the Self-Defense Forces. No country will abolish its flag at the request of another country.
There is only one country in the world calling for the abolition of the Rising Sun Flag. That country is not at war with Japan.
