2,200 New Cases per Day in Singapore

Singapore is now experiencing 2,200 new COVID19 cases/day, up from 5 to 10 cases just few weeks ago, far away from settlement. The various restrictions are much stricter than those in Japan. Since working in outside offices are basically prohibited, business activities are done through internet from home. Group of up to only two persons are allowed to dine-in at food and beverage (F&B) establishments such as restaurants. Although dining out every Saturdays at popular restaurants is me and my wife’s current week-end pleasure , work-from-home being stuck in my room for nearly two years make me feel claustrophobic. Oh my…

Stress of Loneliness

I wish to get out there and come up with ideas and create something new with customers, business partners and friends. I was watching TV the other day to know that the stress of loneliness has an adverse effect on the body equivalent to 15 cigarettes per day. Anyway, it is important to talk with people. I’m sure Japanese COVID19 situation is fine now. Please do enjoy talking with outside people.

Raising Interest Rates Brings Bad Inflation?

Looking at the market situation, we were seriously worried about the impact on Japanese government bonds when US interest rates rose earlier this spring. And now, US interest rates are starting to rise again.　(Currently at 1.479% for 10-year bonds) Inflation in the U.S. is accelerating, and housing prices in particular are rising.

While rising housing prices are great for those people who own them, they must be controlled because they affect the lives of ordinary people who can no longer afford to buy or who have to pay more to rent. Not only the housing prices, the prices of various raw materials for production are also rising, which is beginning to affect production supply. Data shows that China’s economic trends are also being negatively affected by this. The U.S. Fed is trying to hold down this inflation by raising interest rates, and tapering is expected to begin before the end of the year.

However, on the other hand, there is a view that the current inflation is caused by a breakdown in the supply chain of resources and materials by COVID19, which pushes up the prices of resources and materials and causes inflation. If this is the case, then raising interest rates will not be able to curb inflation, and there is a possibility of so-called bad inflation (stagflation), in which rising interest rates will reduce demand and only worsen the economy. Where did the settlement go?

Good News or the Bad News

We are also having goods news ahead on the medication for COVID19. It is said to be available soon in some countries. Once it’s ready, COVID19 will become something similar to flu in a sense. Landscape around us will also completely change. I am sure Prime Minister Fumio Kishida’s newly launched cabinet in Japan will come up with drastic policies which I am looking forward to. Good news or the bad. Which will reach us first? Let’s think it better and expect the COVID19 settlement.

Autumn chilliness is almost there for those people living on the northern hemisphere.
Please take care of yourself and stay safe.

Masahiko KUMADA / MAC

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