Chapter 52 Changed to a citizen without collective IQ because of the picks

Unfortunately, looking at the current political level in Japan, I know that my tax reform proposal will not be understood.Just a "gasoline tax" can paralyze the entire Congress, anyway, Japan is such a country that will not fundamentally solve the problem. However, until now, the Japanese government has no intention of reforming the tax system.In a country where the mere introduction of excise taxes or higher tax rates would have disintegrated the cabinet, no one has the courage to stand up for reform, or even the tendency to reform.The final result is not so much that the Japanese have formed a mental state of isolation from the world, but that this mental state has been strengthened in the past 10 years.This is the reason for the low collective IQ.

Although with the advancement of globalization, Japan's financial market is gradually opening up.The government began to revise the foreign exchange law on the grounds of the financial explosion in the late 1990s, so the saying that "the Japanese want to spend their money in the world" began to appear.However, there are very few people who can really do this. Only a few wealthy people and those who have a deep understanding of the nature of globalization and capital can do it. From September 2007 to the present, although about 40 trillion yen of personal assets have been converted into foreign currency investment, it must be known that this is only 40 trillion yen of the 1,500 trillion yen of personal financial assets. Less than 3% of total assets.In addition, all financial assets are still placed as deposits in financial institutions that cannot even guarantee payment.

Generally speaking, financial investment should follow the "1/3 principle", that is, invest 1/3 with euros, 1/3 with US dollars, and then invest 1/3 with yen, but the reality is that these financial assets are only invested in Domestically, it cannot be used at all.Japan has the most liberal foreign exchange laws in the world, but the Japanese don't know how to take advantage of it, and that's all I can say now.In fact, in the face of the financial crisis, I should find a way to diversify the risks, and the biggest risk is to store all the money in Japan. The most serious thing is that since Japanese national debt is backed by this financial asset, if these assets disappear, Japan's national finances are in danger of collapse.But as long as you think about it a little bit, you will think of investing domestic idle financial assets abroad, and then using the profits to repay the loan. This method can avoid the collapse of the country's finances.

I also proposed the establishment of a national sovereign wealth fund (SWF), which is also out of consideration for Japan's national finances. National sovereign wealth funds are designed to allow citizens' financial assets (such as pensions) to be invested abroad more effectively.Countries such as the Gulf oil-producing countries, Russia, and China are using their own money to invest extensively around the world.In the face of the global financial crisis, some people tremble and dare not move forward, and some even oppose such a proposal.However, if you look at it from a monetary point of view, assets around the world are currently on fire, and if you don't invest overseas at this time, Japan's fiscal deficit problem may never be resolved.The yen market will not be in a state of rising for a long time, and it will not work without the ability to see opportunities.

In addition, personal financial assets should also be slowly invested overseas. Assuming that the annual return on investment is 10%, then if 1,000 trillion yen out of 1,500 trillion yen is invested, there will be a profit of 100 trillion yen in one year.With this income alone, about 800 trillion yen of public debt (government debt, financial investment debt, local government debt) can be paid off within 10 years.The Government of Singapore Investment Corporation (GIC) has maintained an annual rate of return of 11% for more than 20 years, and the government-owned investment company Temasek has also maintained an annual rate of return of 18%, but the Japanese government has not realized this at all. .

Although it is inappropriate to link personal financial assets with government debt, if there is no such idea, then Japan's fiscal deficit will only pile up.Moreover, Japan is a country with a very serious problem of declining birthrate and aging population. It is almost impossible to pay off so many debts without overseas investment.Therefore, the strategy of industrial investment in developing countries must be established as a basic national policy.However, the government only focuses on achieving a basic fiscal balance by raising the consumption tax. The basic equilibrium refers to the balance of national fiscal year revenue and expenditure. If so, those borrowings will never be exhausted.This is the so-called "stinginess".

It takes only a little thought to think of a way to repay the loan. Unfortunately, the whole country, including citizens, officials, and even the government, are unwilling to think about this issue. Obviously, Japan will also be in a state of stagnation for a long time in the future. "But let it sink like this?" If no Japanese can think, then Japan will have no future.