Anti-Russia Kishida: weak Yen, debt soars, but military spending in new high
Kanako Mita, Sawako Utsumi, and Lee Jay Walker
Modern Tokyo Times
The administration of Prime Minister Fumio Kishida is ushering in a period of economic and geopolitical ineptitude. Thus, the weakening yen, an endless mountain of debt, price increases, and other important issues are part and parcel of the early period of the Kishida administration.
Kishida, the most fervent anti-Russia leader of Japan in recent history, is endlessly following the coattails of President Joe Biden of America and other world leaders, including Boris Johnson (tainted leader) of the United Kingdom. However, nations from India to Saudi Arabia – from Brazil to Mexico – and from Sudan to South Africa – have no interest in the anti-Russian Federation mantra of G-7 and European Union nations.
Reuters reports, “The yen dropped to a 20-year low and breached the 130-to-the-dollar level after the Bank of Japan vowed to buy unlimited amounts of 10-year bonds daily to defend its yield target. The yen was last at 130.11 per dollar.”
CNBC said, “The Japanese currency fell more than 5% against the greenback in March, despite the yen being seen traditionally as a safe-haven currency. Still, the yen took a hard hit as geopolitical turmoil, such as the Russia-Ukraine war, roiled global markets.”
Wages have been static for two decades in Japan. Hence, three squandered decades of stagnation to little economic growth, despite countless government stimulus packages to boost the economy. Most of the squandered three decades have happened under the Liberal Democratic Party of Japan (LDP) – which dominates power.
Modern Tokyo Times recently reported, “Kishida, only in power for just over six months, is a disaster in the making for a country blighted by debt. Thus no shock that the yen hit a 20-year low to the dollar under his administration so soon. Likewise, Japan logged its second-largest current account deficit (since statistics began in 1985) in January under Kishida. Therefore, with Japan being blighted by approximately 1.4 quadrillion yen in debt (roughly $13.1 trillion US dollars and 260 percent of GDP) – and the second-largest current account deficit since records began in 1985 – it is presumed that Kishida would be more prudent.”
Under Kishida – the most anti-Russia leader in recent history – the economy is beset by more problems. However, despite this, Kishida announced the highest military budget in history. Therefore, despite Japan needing a leader to focus on the economy, he is actually weakening the situation at home by jumping on the anti-Russia sanctions bandwagon (unlike nearly all of Africa, Asia, and South America that is ignoring the diktats of Washington, London, the EU, and Japan).
Kyodo News reports, “Interest payments in the upcoming year are expected to total more than 8.2 trillion yen, well above the 5.4 trillion yen in defense spending under the budget.”
One thing is for sure, Kishida will continue his anti-Russia mantra until Ukraine fades from the news – like so many other past conflicts (the majority of conflicts rarely hit the headlines) – more LDP politicians will visit Yasukuni Shrine – debt will increase – and Japan will announce that ties between Japan and America are at the highest ever (announced regularly these days).
However, the reality is that even South Korea is disinterested in the woes of the Yen. After all, leading South Korean companies have reinvigorated themselves. This sums up the malaise of Japan under the LDP.
The Head of Korea and Japan economic research (Standard Chartered Bank), Park Chong-soon, uttered, “South Korea now has a different path from Japan. Korean products are not alternatives to Japanese products anymore, as the country’s corporations have established their own monopolistic lineups… I have not heard of any companies suffering from the weak yen. So far, they are enduring very well.”
Japan is in step with the EU, G-7, NATO, US, and the collective anti-China and anti-Russia tune. However, after three squandered decades, the political elites in the LDP seem to ignore the bigger picture. Therefore, the recent legacy of the ruling LDP is creating the highest indebted nation in the world concerning the ratio of debt.
The LDP – which resides in the past and on the coattails of America – is now turning to the nationalist agenda to fill the non-performing economic void. Hence, more debt is being generated by Kishida – along with more anti-China and anti-Russia statements to appease America.
Pity the long-suffering workers of Japan. Decade after decade and little changes. Therefore, workers face perennial static wages, reduced working rights, endless concerns over long-term pensions, a declining population, and a government stimulus merry-go-round that relies on the taxes and savings of ordinary people.
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