NO.239 The Ministry of Finance's “bone reform” has expanded the poor in Japan. ・・・Eventually, corporate bankruptcy continues, and the Japanese economy enters the Great Depression.


The expansion of the poor causes the Great Depression. It is the Japanese Ministry of Finance that made the cause in Japan.

During the Obuchi Cabinet era, Finance Minister Miyazawa's 100 trillion yen Keynes policy would have had an explosive economic effect if properly implemented.

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I will mention it repeatedly. About the right Keynes policy of Japan. The Government of Japan issues government bonds and sells them to the Bank of Japan. JGB purchasers are limited to the Bank of Japan.
The Bank of Japan will issue a new Bank of Japan note to purchase JGBs. The government uses the funds raised to implement the Keynes policy.

If the Keynesian policy was properly implemented by this procedure, it would have been a special demand for the Japanese economy of about 100 trillion yen. There must have been an explosive economic growth effect.
Everyone in Japanese society should have been aware of the effects of economic growth. However, such a reality never occurred.
What actually happened was that Japan's personal wealth increased by 100 trillion yen, and Japan's national debt increased by 100 trillion yen.
"The amount of the issued government bonds, 100 trillion yen, was added to the balance of someone's bank account as it was." This should have been done.
If the Keynes policy was actually being implemented, everyone could realize the effect of the government's special demand of 100 trillion yen.

Ministry of the Treasury, “Bone reform.”

After the Obuchi Cabinet, the Koizumi Cabinet, with the slogan "Painful Reform," changed the government's policy to fiscal consolidation.

The purpose of the Treasury's “Bone Reform” is to collect government taxes and try to redeem government bonds. If the government's fiscal debt under the Miyazawa Keynes policy is repaid with taxes, the Japanese economy will fall into a severe recession.
When a person is levied tax, he must reduce consumption by the size of the levy. The economy falls into recession by the magnitude of the contraction in consumption due to tax collection. Here, when the government spends as much as the size of the tax collected by the government, its scale economy will grow. Both of these recessions and economic growth are offset.
If the collected taxes are used to redeem government bonds, the recession will not be offset by economic growth. If the Miyazawa Keynes policy achieved high economic growth, the economic growth could offset the recession caused by tax collection.

The redemption of government bonds due to "bone reform" will cause a serious recession in the Japanese economy.
Many companies are performing poorly, and many are reducing labor costs. As a result, the poor have spread to Japanese society.

The expansion of the poor will cause further recession. And it will lead to many corporate bankruptcies.
And if a large number of unemployed people emerge, the Japanese economy will enter the Great Depression.

Until now, the government has issued new government bonds and has continued to summon government bonds whose maturity has expired. This has kept the Japanese poor from expanding. And it has continued to deter the Great Depression of the Japanese economy.
Nevertheless, Japan's poor have continued to expand due to the Ministry of Finance's "bone reform." As a symbol, the treatment of non-regular employees has become a social problem.

The Great Depression factor in the BOJ's quantitative easing policy.

The Bank of Japan's quantitative easing policy has been a factor in the Great Depression not only for the Japanese economy but also for the world economy.
The cause of the Great Depression is the widening gap between rich and poor.
Reference article.



The BOJ's quantitative easing policy is a quantitative easing policy using two methods. I have heard that. One is ultra-low interest rates. The other is the purchase of stocks and government bonds by the Bank of Japan.
In the latter case, the BOJ issues new BOJ notes and purchases shares and government bonds that have already been issued. If the BOJ holds purchased stocks and government bonds without managing them in the financial markets, it will not be a factor in the Great Depression. If stocks and government bonds purchased by the Bank of Japan were managed in the financial markets, this would cause a great depression.

If investors manage government bonds and stocks in financial markets using financial technology, the inequality in goods will widen on a global scale, and this will be the cause of the global economic depression.
Reference Article


If the BOJ purchases stocks and government bonds and keeps them without operating them in the financial markets, it will limit the widening gap between rich and poor.
Reference article.



The BOJ's ultra-low interest rate policy will help widen the gap between rich and poor on a global scale. Investors will procure huge amounts of Japanese banknotes and manage yen-denominated assets in world finance. As a result, the gap between rich and poor is widening on a global scale.

The poor continue to grow on a global scale. The poor do not buy enough. On a global scale, a severe recession has occurred, many corporate performances have deteriorated, corporate bankruptcies have continued, and large numbers of unemployed people have emerged.
Unemployed people cannot purchase goods. The emergence of a large number of unemployed people will worsen the performance of even more companies and will create a large number of unemployed people.
The economic cycle is cut off, and the emergence of a large number of unemployed people and a vicious cycle of recession begin. This vicious cycle causes the world economy to collapse. I understand this is the Great Depression.

Japanese personal assets, which are said to exceed 1,000 trillion yen, should be managed in financial markets by investors.
Under the Miyazawa Keynes policy, Japan's national debt increased by 100 trillion yen and the balance of someone's savings account increased 100 trillion yen without economic growth.
Its Japanese personal assets are managed by investors in the financial markets.

As a result, the gap between rich and poor continues to grow on a global scale. Eventually, the world economy will enter the Great Depression.

I don't think the Great Depression in a very low interest rate environment would be accompanied by a deflationary spiral. However, if interest rates are raised, a deflationary spiral will occur. The current American economy will be that phase. The United States has raised interest rates slightly after very low interest rates since the Lehman Shock.

Reference article.



This article has been rewritten for readers of Hatena Blog.



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