Posted on 02/22/2022 2:04:14 PM PST by Browns Ultra Fan
Closer to 96% of their debt is held by their national bank.
I don’t understand how Japan can have such a low inflation rate with all the yens their Fed (BOJ) is printing and the government is spending.
The usual explanation is that the japanese people and corporations buy most of the government bonds, (they’re savers) and thus spend less on consumer goods and thus the low inflation.
But if nobody buys good (or significantly less goods), that means fewer goods are required, which means fewer jobs are required which means a high unemployment rate. But they don’t have that either - it’s lower than ours.
So that explanation doesn’t seem to make sense.
Another possible explanation is that japan is a huge exporters, so the jobs are created by the export sector. But that doesn’t work either - surprisingly, Japan has very little if any trade surplus.
But what if what Japan imports is mostly energy and raw material and what it exports are finished manufactured goods. Would that then explain why there are plenty of jobs and low unemployment, even though japanese themselves are not buying very much of what they produce? They export a big chunk of what they make?
Just thinking out loud - maybe somebody has a better answer.
“China, Japan, and South Korea have proved to my satisfaction is diversity is weakness, not strength.”
The US is an even better example - it’s a real life test case. We were much more prosperous and coexisting more peacefully before “diversity” became our “biggest strength”.
Then there is Singapore which is diverse (four official languages) but economically strong. The odd thing is that the largest ethnic group (ethnic Chinese) is arguably the most Capitalist on the planet and chooses the language of the smallest ethnic group as the most official of the official languages— the one everyone is required to learn. Why do you suppose that is?
Keep in mind also that the B of J is now the market, they can buy anything and everything. I keep thinking this happen with The Fed, but it would take an act of Congress to do it and change their mandate. Although during the 2008 crisis I suspect they did buy stuff they were not supposed to.
They are being left alone for now. Look at how cute those “almost Chinese” are. lol
I think they are part of the engine of Communist China. They provide high quality parts to them for the slaves to put together. That is just a guess, but it also helps if it is a society of one race. When the US has its dollar stripped as the “worlds currency”, things will change very quickly.
Then there is Singapore which is diverse (four official languages) but economically strong. The odd thing is that the largest ethnic group (ethnic Chinese) is arguably the most Capitalist on the planet and chooses the language of the smallest ethnic group as the most official of the official languages— the one everyone is required to learn. Why do you suppose that is?
Yes they can even directly buy government bonds. All that is money printing which should cause inflation. How come they have no inflation? That’s the 64k question?
They have doing it for 22 years and they can’t let rates get high either. They buy stocks, bonds , everything.
You still haven’t answered the 64k question.
Why don’t they have inflation with all that money printng?
No one knows, that has been a mystery all this time.
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