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Joined 2 years ago
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Cake day: December 1st, 2023

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  • The Japanese public are definitely not willing to lend to the government at such low interest rates. The majority holder of Japanese bonds is the Bank of Japan, who needs to purchase large amounts of bonds to conduct its monetary policy. This has lead to some accusations of the two having an incestuous relationship, when central banks are supposed to be independent.

    Before the Bank of Japan started hiking interest rates, most Japanese people were stuck in a liquidity trap, where they had to pay to store money in the bank. This was due to a combination of low/negative interest rates, and lots of banking fees due to the oligopolistic banking sector. 7-eleven (the convenience store) bank is unironically the fastest growing bank there, in no small part because they were the only bank with a wide ATM network which didn’t charge fees during business hours.

    It is certainly… interesting that the Japanese government, with access to such cheap credit, decides to invest it abroad for higher returns, rather than invest it domestically and pursuing structural reforms to improve its own growth, and in doing so perpetuating the spread between government assets and liabilities.

    FYI there are a lot of investors who do this exact trade, i.e. borrow cheap money from Japan, and invest it abroad.








  • Japanese conservative monarchists are wild.

    Look up the Google Maps reviews of the imperial palace. For some context, the majority of the imperial palace is completely off limits to the general public (in stark contrast to most developed countries), and the royal family does a new years greeting.

    The reviews are monarchists unironically saying things like that they travelled for days, lined up for hours, caught a glimpse of one of the royal family, were temporarily transported to heaven, and will dedicate their lives hoping for the forever prosperity of the royal family.