By lowering interest rates, the government's interest payments have become smaller and the future value of money has decreased. The Bank of Japan holds more than half of the JGBs issued by the Japanese government. And now, as both the rate and value of the yen against the US dollar begins to fall, prices have started to rise. The price of iPhones in Japan is going up 20 percent this month.
Where there is good politics, people gather. That is to say, people vote with their feet, as my friends in America know from inter-state migration. Japan’s fiscal mismanagement and massive national debt violate the principles of democratic fiscal responsibility. As a result, Japan is losing its lure and appeal to future generations and the birth rate continues to plummet.
