Window-dressing by and for the government

I am surprised to know the long term interest rate has dropped to -0.045% in Japan. It is related with excessive buying operation of the national bond by BOJ. The amount of the national bond BOJ has gone over 400 trillion yen. They are reaching the limit of such operation in the market.

In this situation, BOJ could do little with rise of interest rate now. The lowered rate strikes the finance of small local banks. Some of them have gone into the red. When some of them go bankrupted, the finance system in our country would be in a great mess.

The so called Abenomix, the financial policy of the present government, has proved to be in total failure by 2015. Tampering the documents and/or the governmental fundamental statistics, the government has tried to do window-dressing to cover the failure. It has turned to be apparent right now.

Considering the size of the governmental debt, I could prospect only hard landing of the economy in the near future. That is, hyperinflation and much heavier taxation in addition to lessened social security would follow. The government has not explained that to the people yet. Our PM rather tells lies to them pretending that the economical policy is running well at present. But unravelling the process of the window-dressing regarding the economical growth/real wages increase in our country have been done right now.

Any companies undergone window-dressing won't last too long.

The issue is not if the collapse would be realized or not, but when it would be brought to reality.

No comments:

Post a Comment