Our government has created a supplementary budget up to 21 trillion JPY, that is, about 130 billion USD. The total budget this year rose more than 136 trillion JPY, that is, approximately 860 billion USD. This size of budget is the largest ever. It is for fiscal stimulus, as they say. Increased military spending is most conspicuous. Almost doubled from that a few years ago. The budget for social security or farming is increased slightest. Considering of the on going inflation, this means almost reduction for these expenditures.
They say the revenue has been increased a bit. But it is mostly due to the inflation. It is just nominal but not substantial. Not as much as the expenditure. The government doesn't have any other means than issuing national bond to cover the increase of expenditure, I am afraid. The bond already issued is amounted more than 1000 trillion JPY. About 150 trillion JPY bonds are refinanced every year. The bonds yield rates, mainly of long term ones, are increasing to the extent they have never experienced. Higher interest rates would deteriorate the finance of Bank of Japan, which results in weakening of our currency as well as increase the expenditure of bond interests of the government.
I am afraid the scenario we could picture in the near future could never be so hopeful. More than 70% of the people are applauding the present government. I wonder if they are aware of this financial crisis or if they are too stupid to acknowledge of the present situation.
The most pessimistic scenario we could draw is as follows;
THE GLOBAL FINANCIAL SYSTEM JUST BROKE IN TOKYO


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