Chapter 41 Seriously deformed Japanese financial structure

It is said that the Yamato nation is the nation that saves money the most in the world (Figure 3-1) The reality is really like this, and there is no way to change it.But, is everyone really depositing money in the bank just because they like to save money?The interest is almost zero, and an additional handling fee is charged every time you withdraw it. Isn't this obviously a loss-making business?But even so, people still want to put their money in the bank.Although the forest is big and there are all kinds of birds, I am afraid that only Japanese citizens can make such a stupid choice.

Why do you say that?Because in the context of the global economic crisis, banks in other countries in the world give depositors much higher interest rates than Japanese banks. The most typical example is what happened in California, USA.In 2008, despite the serious misappropriation of assets and economic recession around the world, the pension fund interest rate of ordinary employees and teachers in California remained at 11% from January to July. In addition, Australian banks maintain interest rates on ordinary deposits at nearly 4%.Although the exchange rate has fallen sharply, if you analyze it carefully, you will find that the exchange rate of the Australian dollar to the Japanese yen has remained in the range of 55 to 105 in the past 25 years, so someone must buy the Australian dollar when the Australian dollar is cheap. higher income.

There is a difference of more than 10 times between the interest rate of 0.1% and the interest rate of 4%. Even from the perspective of exchange rate fluctuations, the difference is unbelievable. From this point of view, it is meaningless to deposit money in Japanese banks. Australian nationals who are more sensitive to finance will look abroad at an appropriate time according to the market situation and convert their money into profitable financial products.Not only Australian citizens, but European citizens and American citizens also do the same.When the interest rate in your own country goes down, you choose a financial institution with a high interest rate abroad and invest your money in financial products with a high return rate.

Therefore, if Australia implements a zero interest rate policy like Japan, then a large amount of national money will immediately flow overseas, and then Australia's financial institutions will go bankrupt one after another.Therefore, Australia's financial institutions set interest rates at a level that can ensure that capital outflows do not occur. Wherever I go, I always say that more than 10% of the funds in the world are effective.Even so, no Japanese were involved.In Japan, only financial institutions and Postal Savings invest in these funds through investment trusts, but as a Japanese national, they do not do so.

To this, all I can say is "weird". As a result, Japan's financial institutions developed deformed structures that were impossible in any other country.That is to say, Japanese financial institutions put the interests of the people aside, and use the money of the people to buy Japanese government bonds while issuing loans, conducting investment trusts and buying funds.And they don't allow foreign institutions with such operational capabilities to operate, because the real thinking of the Japanese government and financial institutions is somewhat similar to "would rather let foreigners coach baseball teams than allow citizens to benefit from it."They believe that selling treasury bonds is a bad thing.

But it was the national debt that was the problem.Considering Japan's current financial situation, Japan's national debt has become the most dangerous financial commodity. At the end of 2007, Japan's external debt "easily" exceeded 1,000 trillion yen, including the balance of national debt and the balance of local debt.This is equivalent to an arrears of more than twice Japan's average annual GDP. Who can afford such a large amount of money? As for the national debt issued by a country heavily indebted, I believe everyone knows that this is not a "safe commodity".But some Japanese people believe that this kind of national debt is the "safest commodity". Not only financial institutions, but even ordinary individuals are buying it. Why is this?

The money of Japanese citizens flows to the country through financial institutions, and the money of financial institutions is used by the government at will by purchasing national bonds, and the interest on this money is extremely small.This has caused the fatigue of the Japanese people, and the country is heavily indebted and therefore exhausted.Therefore, neither individuals nor countries can be rich.But what I don't understand is, why do you still do this when you know the consequences?But those working-class people are willing to live in such a sick economic life. This is the true state of our country, which is called an economic power, and its citizens.

Of course, this can also be said to be the "decline of collective IQ" of the Japanese, but there must be a reason.