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.
「国の財務書類」令和3年度 財務省 (licenced under 財務省)
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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[related article]
Japanese cameras sweeping the The reason why Japanese cameras are taking over the world market is because of their sensors and lenses.These are the two properties of digital cameras.Light must not be refracted or diffusely reflected inside the lens, and the surfaces must be uniform.This affects the amount of light taken into the camera.
A lens with a high F value is dark and cheap, and if the F value falls, it takes in light and becomes expensive.The sensor is the one that receives the light taken in to convert it into digital data.The smartphone lens is close to the sensor and doesn't seem to have much effect, but it still changes.A single-lens reflex camera used for TV reporting and News paper,Magazine and so on or a lens with a high F value is useless.
That's why the No Japan movement in Korea is filmed with a Japanese camera.
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.
Rui Matsukawa announces her candidacy for the House of Councilors election | Japan should increase the number of orthodox right - wing female members.
Supporting right-wing female legislators in the House of Councilors election
Women's political participation tends to the left
Japanese politics with few female politicians
Creating a constant will solve the problem
It's not a constant, it's a matter of awareness of participation
We need right-wing female MPs
It was decided that July 10th would be the day for voting in the House of Councilors, and Liberal Democratic Party lawmaker Rui Matsukawa announced her candidacy on Twitter. This is the last day of the Diet session, and she said she will aim to pass a law establishing the Family Agency. She specializes in foreign affairs and is also knowledgeable about national defense, having served as Parliamentary Vice-Minister of Defense. I am not of the opinion that we should increase the number of female councilors, but rather that we should increase the number of orthodox right-wing female councilors like her and Councilor Takaichi.
Recently, when it comes to national defense in particular, there tends to be criticism that men are out of control when it comes to the military, but a female lawmaker's statement that Japan's national defense should be strengthened is a sign that women's public opinion is It also serves as a strong backing.
Good morning! It's finally the last day of the Diet session. We aim to enact the Children and Families Agency Establishment Act. The House of Councilors election is finally here. Thank you very much to everyone for the past 6 years. I would like to continue working with you. I will do my best. pic.twitter.com/Dm9xLsklWi? Rui Matsukawa =Liberal Democratic Party= (@Matsukawa_Rui) June 15, 2022
Up until now, female members of parliament have tended to be left-wing. To be honest, I'm tired of hearing things like ``opposing the amendment of Article 9'', ``getting along with neighboring countries'', and ``helping the weak'', and these statements will never make Japan stronger. In other words, there were many members with strong socialist and communist thinking. Regarding their historical views, they also said the same thing as China and the Korean Peninsula, calling for Japan to apologize to its neighboring countries.
She cried out that women's voices should be heard and spoke in the Diet as a representative of women, but her comments were left-wing, had strong socialist tendencies, and had a self-deprecating view of history. So, What has become of Japan today as a result of her listening to that voice?.
Some people say that there are few women members of the Japanese Diet, but what about the number of candidates? If there are fewer women candidates, it is natural that there will be fewer women elected. It has been pointed out that the percentage of women elected to the House of Representatives in 2021 is 9.7%. Not running for office in the first place means that you have no desire to become a member of the Diet, but calling for more women to become members of Congress is putting the cart before the horse.
Female members of the opposition parties often argue that the number of female members should be set at one-third, etc., but right-wing female members of the Liberal Democratic Party oppose this. Have opposition members ever wondered what would happen to the National Assembly if one-third of the members were incompetent? Of course, there are some excellent female politicians. This is also due to the fact that he himself ran for office and was elected.
In the first place, are there any gender differences in Japanese politics? I feel like this is based on the fact that in the past, women have not taken an interest in politics and have not participated in it.
This is because both men and women have equal rights to run for office and vote, and if we compare the population, there are more women than men. In other words, if all female voters vote for a female candidate, that female candidate will definitely win.
What is needed is a right-wing female lawmaker who can think about Japan's future, including national defense. Up until now, there was an illusion that Japan, protected by the US military, did not need to think about national defense, and on this premise, myths of friendship and equality with neighboring countries had flourished. Left-wing female parliamentarians were born from this soil. What they have done is no more than simply slandering the government and the ruling party.
The environment surrounding Japan is not always beautiful. We need to increase the number of right-wing female members of Congress who face these issues head-on and seriously consider how to deal with them.
Korea is opposed to Sado Kanayama's application for registration as a World Heritage site.Japan have evidence that it was not forced labor.
The Cabinet's decision in April 2021 and the inclusion of warship islands as UNESCO World Heritage sites are posted on the grounds that the recruitment at that time was not a forced labor.Forced Labour Convention in 1930.
When registering as a warship island, South Korea strongly opposes it, and Japan has even proposed a draft of the plan, saying that it will support it if it writes forcedlabor.Japan refused, and at the Japan-South Korea Foreign Ministers' Meeting, South Korea finally agreed to write forcedtowork.The Korean side was particular about the description because it knew that forced labor would be described as forced labor in the Forced Labor Convention at that time.Recruitment is not included in forced labor.It is stated in Article 2-2.The recruitment of the General Mobilization Order falls under paragraph (b).
South Korea opposes Japan's move to apply for the registration of Sado Kanayama as a World Heritage Site, saying it will not allow forced labor to be designated as a World Heritage Site.This is just the same view as it was on Gunkanjima.
C029 - Forced Labour Convention, 1930 (No. 29)
ARTICLE 1
1. Each Member of the International Labour Organisation which ratifies this Convention undertakes to suppress the use of forced or compulsory labour in all its forms within the shortest possible period.
ARTICLE 2
1. For the purposes of this Convention the term forced or compulsory labour shall mean all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.
2. Nevertheless, for the purposes of this Convention, the term forced or compulsory labour shall not include--
(a) any work or service exacted in virtue of compulsory military service laws for work of a purely military character;
(b) any work or service which forms part of the normal civic obligations of the citizens of a fully self-governing country;
(c) any work or service exacted from any person as a consequence of a conviction in a court of law, provided that the said work or service is carried out under the supervision and control of a public authority and that the said person is not hired to or placed at the disposal of private individuals, companies or associations;
(d) any work or service exacted in cases of emergency, that is to say, in the event of war or of a calamity or threatened calamity, such as fire, flood, famine, earthquake, violent epidemic or epizootic diseases, invasion by animal, insect or vegetable pests, and in general any circumstance that would endanger the existence or the well-being of the whole or part of the population;
(e) minor communal services of a kind which, being performed by the members of the community in the direct interest of the said community, can therefore be considered as normal civic obligations incumbent upon the members of the community, provided that the members of the community or their direct representatives shall have the right to be consulted in regard to the need for such services.
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.