Unprecedented financial easing has led Japan to zero interest rates.
Japan, where having cash is treated almost like a crime, has become more of a communist state than a capitalist one.
Policies penalize those who earn money while protecting those who don't.
Companies that generate profits are punished while those that don't are shielded.
Despite this, the government fervently encourages investment among its citizens, almost creating an atmosphere where not investing is seen as being unpatriotic.
However, even professional investors find it difficult to make profits under zero interest rates, let alone amateurs.
The actions of this country's government make no sense.
To begin with, zero interest rates were initiated by the government itself.
As a result, ordinary citizens have become completely detached from the rose-colored notion that money generates interest.
The government seems to refuse to accept risk-free interest rates.
It's reminiscent of the Soviet Union, a communist state.
They only seem to permit investment as a source of unearned income that involves high risk and personal responsibility.
However, they should consider this carefully.
Due to zero interest rates, the pension system is in dire straits. Ordinary people are oblivious to the fact that they can no longer build retirement funds due to the allure of reduced loan interest burdens. Companies, too, have halted their retirement benefits and corporate pension systems that they managed for their employees because they fear being held accountable for the management risks involved under zero interest rates.
Instead, they introduced defined contribution pension plans, where employees are responsible for managing their own retirement funds. In essence, they have relinquished their responsibility for managing retirement benefits and corporate pension systems that were once their obligation under zero interest rates, leaving individuals to bear the risks themselves.
Defined contribution pension plans are a fantastic system, especially for employees, as they provide a prepayment of retirement funds.
However, under zero interest rates, it becomes a mere disappointment. It appears as if they are fervently pushing amateur salarymen to invest by offering them an advance on their retirement funds.
If things continue like this, retirement for Japanese salarymen will become a serious concern.
Nevertheless, the government continues to proclaim financial easing amidst the pouring rain of Japan's economy, indiscriminately showering incompetent businesses with an excessive amount of money.
The Bank of Japan's governor brainwashes politicians and citizens, claiming that as long as zero interest rates continue, the Japanese economy will revive and wages will increase.
In reality, their actions only served to deprive ordinary people of risk-free unearned income under zero interest rates.
Moreover, they turn a blind eye to the fact that the yen has depreciated due to zero interest rates, causing distress among the citizens.
They simply impose endless sacrifices on the people.
This is what the Bank of Japan governor has done.
He failed to deliver results and ran away.
It's a terrible situation, but we can only consider it a slight relief that he couldn't stay any longer.
In the end, the only one who profited from zero interest rates and left with hefty rewards was the Bank of Japan governor who absconded.
Thinking about this, I was reminded of Aesop's famous fable, "The Ant and the Grasshopper."
It praises the diligent and hardworking lifestyle of the ant. However, in this country, that story is outdated.
Merely working diligently like an ant will not lead to prosperity anymore. Even the Japanese government encourages entrepreneurship, investment, and side jobs.
The ant has become a negative role model.
On the other hand, the grasshopper, who earns a living elegantly with inherent talent and creativity, used to be considered an outrageous lifestyle akin to a one-hit-wonder swindler.
Nowadays, being like the grasshopper has become the ideal way of life.
However, it clearly doesn't make sense.
The government implements policies like zero interest rates, which resemble those of a communist country contradicting capitalism, while promoting a grasshopper-like lifestyle.
It's absurd to recommend such a lifestyle when ordinary citizens cannot possibly achieve such feats. I would like to say, "You're the only one who managed it, Mr. Bank of Japan Governor."
This country, where being diligent and hardworking is no longer effective, is in a troubling state.
Something is seriously wrong.
