Stagflation seems to go on in our country. While the wages won't rise, the prices are going up from next month. While the corporate prices are up by 9%, the import prices have reached up to 40% recently. Considering all of these indices, we seem to get into the era of stagflation never experienced for the past decades.
Our central bank, BOJ, could hardly deal with this situation where it should rise the interest rate to calm down inflation. Because it has possessed extraordinary large amount of national bond and of stock as ETF. With the prices of national bond and of stocks declining, BOJ could do little against such economical emergency. If they get out of the quantitative easing by such as increasing the interest rate, it will strangle themselves through falling in prices of national bond or of stock. Their net worth equity capital is amounted only less than 10 trillion JPY, while they own more than 500 trillion JPY of national bond and more than 50 trillion JPY of ETF.
The tremendous astronomical quantitative easing by the Abe administration for 8 years will have resulted in this disaster very shortly. Have we Japanese dreamed of any euphoria in this bubble economy? How could we get it through? Maybe, someone tells me not to be too pessimistic for the future. I would ask him how we could manage this possibility of serious collapse.
Especially, for retirees dependent on the public pension, the situation is tragic, I am afraid. This will burden on the next generation as well. Those having worked as irregular employees without any social security would start retiring soon. If they won't receive any good pension of social security aid, what tragedy would there be in the society?
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