DEBT IS NOTHING BUT A DEBT【ENGLISH BLOG】mmc ltd.

～Some people say that Japan carrying debt is not a problem. However, debt is nothing but a debt. It must be paid back.

I came back to Singapore from Japan. I was also in Europe in between. As a result, I have met a lot of people.

Innovative Technology ～Metaverse～

Years later, many issues around us will be completed online. Innovative technology Metaverse is hot recently.

Meta (Facebook) is investing 1 trillion yen a year in this Metaverse. The amount will double from the second year. An amount of national budget-like money is planed to be invested.

It is sure that the companies involved will be well off.

Let’s say this metaverse makes a huge success.

It will be difficult for other companies to enter the market. Meta (Facebook) will have a monopoly on it. Microsoft and many other companies are interested in entering the market. They do not want to monopolize the newly created economic sphere.

No company in Japan that can compete with this level of investment. Japan is always a little late to the game. Let’s see and make action toward this virtual space business.

If inflation were to occur in Japan

Market has seen the Japanese yen fall to a single low for the past few weeks.

Firstly, announcement of the BOJ’s bond buying operation was a trigger. BOJ will buy all JGBs sold below a certain price.
Secondary, current account deficit was also a major factor. ”Deficit” here is said to be 1.1 trillion yen in January 2022.

If oil prices rise, import prices rise up.
If the Yen weakens, import prices rise up too.

We can’t imagine an inflation were to occur in Japan.

Ever since, this country got too accustomed to deflation.

DEBT is nothing but a DEBT

If inflation were to occur….
BOJ will raise interest rates.

Japan’s outstanding debt is 250% of Japan’s GDP.
Its debt is the largest in the world.
Concretely, it is also the largest in the worst case scenario.

The interest rate on that debt will go up.

Simply put, they can’t pay it back. Some say Japan debt won’t be a problem.
They say the reason is because most of it is in YEN currency. However, debt is nothing but a debt. It must be paid back. We can expect a very difficult situation.

When institutional investors around the world think of trading in Asia…

For many years, Japan’s large debt has been a problem.
Though, nothing like a crash has happened.
Is there a guarantee that nothing will happen?

Fortunately or unfortunately, Japan’s financial market is No. 1 in Asia.

Even if you include Hong Kong and China, Japan’s market is the largest among all Asia.
When institutional investors around the world think of trading in Asia, they first think of Japan and Tokyo.