Wednesday, January 28, 2015

Is Abe Administration on the right track financially?

It took more time than expected to complete installing Windows into my MacBook Air with "Boot Camp". I need to use Microsoft's relational database application, Access, which has no (Mac) OS X version. Last Monday, after finishing installation of Windows, I opened  a package of an iPod touch I bought the other day and set it up. I plan to replace my iPad mini (with Wi-Fi only) with it. It's a little hard to carry an iPad mini when I jog along the coast as a pastime.

Nearly 4 weeks have already passed since a new year began. The 189th session of the Diet of Japan has started, as the Diet was belatedly convened last Monday. Compilation of the government budget for the coming fiscal year starting on April 1 is significantly behind schedule. Why is it significantly behind schedule? It is because the general election for Representatives was held last month as Japan's prime minister, Abe Shinzo, surprisingly dissolved the House of Representatives in the previous month.

Since the economic bubble burst in Japan in the early 1990s, Japan's government debt has piled up. Since Lehman Brothers filed for Chapter 11, Title 11 of the U.S. Code in September of 2008, its increase has accelerated. The outstanding government debt as of June 30, 2014, is already over 1,000 trillion (=1 quadrillion) JPY, more than 20 times as large as last fiscal year's tax revenue.

Abe Administration is on the wrong track financially. It is not that financial institutions accepting Japan government bonds are always there.

No comments:

Post a Comment