Needless to say Bank of Japan is the central bank in Japan responsible for monetary stability and smooth operation of financial system. Its stock price has been dropping for the past years, especially, since the former Abe administration started the massive quantitative easing in 2012. It has reached the lowest price ever in Jan. 5th when BOJ published its own financial report. The stock price has fallen from 755000 JPY in 1988 to 25200 JPY. Its total assets rose to 702 trillion yen, that is, 6.8 trillion USD. It was 23% rise in the last year mainly due to purchasing national bond and ETF, which was to financially embellish the former administration.
This drop of BOJ stock price means the market judges its finance is jeopardized with debt monetization for the government. In addition to the astronomical amount of the debt of the government, this financial crisis of BOJ may bring forth decline of currency value for JPY in the near future. It will cause the uncontrollable inflation in our country. BOJ could not take the countermeasure of selling the national bond in the market. It could cause further drop of the national bond price.
Debt monetization has been deemed as a forbidden policy after WWII when our country experienced the hyperinflation. But it has been neglected by the government, mass media and even the people.
This simple and most probable prospect for the finance of BOJ and of our country won't be discussed fully by the politicians, either of the ruling parties or of the anti ruling parties. Of course, the former is more responsible for this issue since they have implemented the policy of astronomical quantitative easing.
The solution could be either starting war or letting the economy and finance go into hyperinflation. Of course, the latter is much more probable, I should say. I don't know when it starts but it will hit our country possibly related with this corona crisis.
It is a tragedy that most of the people has not realized of this crisis in our country.
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