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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Abe's state funeral reminded him of the greatness of the deceased - the breakaway from the post - war regime has truly begun.
People who have remained at the center of conversation
This is the end of the anti-Abe faction
Escape from the post-war regime
Former Prime Minister Abe's state funeral was held on the 27th. Looking back on this issue now, I was convinced today that this was also former Prime Minister Abe. At the same time, I felt sad, wondering if I was really saying goodbye to former Prime Minister Abe.
After Mr. Abe was shot, there was an uproar over whether or not to hold a state funeral, but the tone of the crazy people who opposed a state funeral was exactly the same as the one that was being waged during Mr. Abe's time as prime minister. Ta. Ironically, it may be thanks to the ridiculous anti-Abe people that even after Mr. Abe's murder, we still had the opportunity to support former Prime Minister Abe until today. However, what were their achievements?
Personally, if I think about former Prime Minister Abe's most important accomplishment, it is that he brought all of the Japanese people to the entrance or exit of the task of breaking away from the post-war regime.
He was probably the first Japanese prime minister to firmly declare that the Japan-Korea issue is over. What was the meaning of the joint visits to Pearl Harbor and Hiroshima with Mr. Obama? What prompted the reorganization and proposed the Quad framework for the purpose of the U.S. Seventh Fleet's existence is already a shift to a new Asia-Pacific regime. What does UN reform mean? The United Nations is the postwar regime itself. He even took on the challenge of making that change.
What the Japanese people have regained is their pride as Japanese people rather than the economy. That's thanks to Shinzo Abe.
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.
Study abroad boom in Japan at the end of the Qing Dynasty - The Korean peninsula missed the chance to modernize, and China failed to inherit the revolutionary spirit and plunged into civil war.
Japan study abroad boom in China
Studying in Japan begins with 13 students
Korea became an independent nation in the Sino-Japanese War
The Korean Peninsula missed the chance to modernize
Even after the Qing Dynasty fell, the revolutionary spirit was not inherited
Wang Zhaoming government established after the Sino-Japanese War
In China, a boom in studying abroad in Japan arose after the Sino-Japanese War. The purpose of studying abroad was to learn about Japan's modernization and policy of enriching the country and strengthening its military. Emperor Guangxu, Kang Youwei, and other Chinese intellectuals carried out the Restoration movement of ``transformation and self-strength,'' but it was thwarted by the pressure of conservative forces. Subsequently, educational reforms at the time were modeled on Japan, including the abolition of the imperial examination system (1905), the establishment of the modern school system (1904), the promulgation of the "Educational Philosophy" (1906), and the trial of compulsory education (1907). This is what we sought.
In 1896, for the first time, 13 young people were sent by the Qing Dynasty government to study in Japan, where they studied Japanese, chemistry, physics, mathematics, and other subjects for three years at the Tokyo National Higher Normal School's cram school. It is said that approximately 20,000 international students had come to Japan by the time of the Xinhai Revolution in 1911.
Political figures include Zhou Enlai, Li Dabei, Chen Duxiu, Wei Bei, Dong Yiwu, Chiang Kai-shek, Man Zhongshi, and Wang Zhaomei. Sun Yat-sen came to Japan as an exile in 1895. Cultural figures included Lu Xun, Guo Muruo, Tian Han, and He Xianggong.
While Joseon Dynasty was aiming for Chinese-style modernization, the Sino-Japanese War broke out in the wake of the Gongbo Peasants' War, and with Japan's victory, the Korean Peninsula became an independent nation. Kim Ok-gyun, who called for Japanese-style modernization, was assassinated about four months before the Sino-Japanese War began.
The movement of modernization on the Korean Peninsula was actually faster than in China. However, it did not become a big sensation and was crushed by the Joseon Dynasty, which had an old political system. Ironically, this was also due to pro-China policies. On the other hand, immediately after losing the Sino-Japanese War, China changed its policy toward Japanese-style modernization. Koten Miyazaki describes Kim Ok-gyun, who was exiled to Japan and was assassinated in Shanghai, as a person who should have become the Sun Yat-sen of the Korean Peninsula. Miyazaki, along with Takeshi Inukai and others, supported Sun Yat-sen's Xinhai Revolution. The Korean Peninsula has failed to modernize on its own.
As a result, in 1911, Sun Yat-sen succeeded in the Xinhai Revolution and founded the Republic of China, but as a condition of Emperor Xuantong's abdication, he made an exchange deal in which Yuan Shikai, a Beiyang warlord, became president, and the Qing dynasty ended. became increasingly authoritarian. A second revolution will begin to overthrow this. Even after the Northern Expedition was completed and Chiang Kai-shek became the president of the Nationalist Party, the division of China in the West continued. The spirit of Sun Yat-sen's revolution was to learn from Japan's Restoration and to stand together with the West and maintain our independence.
As the partition of China progressed, the Sino-Japanese War broke out, and the spirit of revolution was inherited by Wang Zhaoming's Nanjing Provisional Government. He was a close aide to Sun Yat-sen, had the experience of studying abroad in Japan, and participated in the Greater East Asia Conference. Over a long period of time, China failed in its revolution. On the contrary, the civil war between the People's Republic of China continued, and the People's Republic of China with a completely different ideology was born, not to mention Sun Yat-sen's revolution. The Japanese Restoration that Sun Yat-sen aimed for was not only about modernization, but also about achieving a rich nation and strong military in Asia, and protecting its independence from becoming a Western colony.
Japan is the only country with people of color that has succeeded in modernizing itself. It was only natural for Asian countries to learn from Japan in order to modernize.
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.
Will increased defense spending enable Japan to create innovations never seen before? - Amendment to Article 9 of the Constitution, revival of the military industry, and technological development.
Aims after constitutional amendment
Japan becomes a military power
The history of weapon development is a history of technological innovation
A world of innovation that cannot be imagined in everyday life
Japan should revise Article 9 of its constitution and revive its military industry. As I recall, Congressman Takaichi was the first member of the Diet to speak clearly about this issue. Amendments to Article 9 of the Constitution will expand Japan's military power and increase its defense capabilities, which will greatly reduce the risk of war. My personal opinion from the beginning has been that simply reducing the risk is a failure, and that technological innovation will be born by developing various military technologies in the name of military budgets.
If that happens, there will be countries and people who ridicule Japan's efforts to become a military power and try to get in the way, but it would be better to say clearly, ``Japan will become a military power.'' No engineer is aiming for second or third place in the technological development competition. When it comes to Japanese technology, it is normal to aim for the top in the world. Too many people think that if they developed a weapon, they would be murderers.
What exactly are the bronze tools used for thousands of years BC? It is a weapon and a vessel. What is iron? This is also used as a weapon, agricultural tool, and various decorations. These processing techniques were developed to defeat the enemy in war. Countries that acquired these processing techniques gained supremacy over their regions and acquired cultures such as bronzeware and iron-related crafts.
What exactly is an aircraft? Don't stop thinking just because the Wright Brothers achieved their dream of flying. The development of airplanes progressed with the investment of national funds for use in the war, making them faster, safer, lighter, and larger, and they were put into practical use during World War I. What exactly are passenger planes commonly used today? Grumman and Boeing are in the military industry.
Hitler was passionate about automobile development and invested a large amount of state funds. At that time, automobiles were the pinnacle of industrial technology, and were connected to the drive and performance of military vehicles and tanks. Winning in automobile races increased national prestige. Why are BMW, Mercedes-Benz, Audi, and Volks still so strong?During this era, Germany won the technological competition.
What are nuclear weapons? A bomb that uses the enormous energy released during nuclear fission. So what is a nuclear power plant? The electricity for the PC I am currently using is also generated by nuclear power.
Is the country that developed the coronavirus vaccine a medical technology powerhouse? Completely different. These are countries that conduct military research into bacterial and viral weapons.
The technology to defeat the enemy in war is a technological innovation for survival that assumes the extraordinary, and has no taboos. Human history has proven that this is a field where innovations and paradigm shifts that cannot occur in everyday life can occur in the sense of achieving a goal using various methods. In other words, Japan should seriously aim to become a military power. This is because, at the same time, unimaginable technological innovations that can be used for peaceful purposes will be born.
