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Japan household assets hit record-high as cash, stock prices rise

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Good, people are not wasting their hard earned money and instead wisely putting it into savings.

-8 ( +3 / -11 )

It owns 44.1 percent of Japan's 1,224 trillion yen in government debt.

The BOJ owes 1,224 trillion yen... to itself.

Got it.

1 ( +9 / -8 )

Assets held in securities jumped 30.0 percent 

Good show! A big challenge has been to get getting Japanese households to take on moderate risk and invest wisely to reap higher returns for their retirement years rather than just holding cash. That trend is growing, according to these numbers. The earlier govt reforms aimed this direction are having a great effect!

-1 ( +4 / -5 )

With deflation, nothing wrong with holding cash.

-5 ( +1 / -6 )

Bubble bubble bubble. Soon we will see trouble

-1 ( +5 / -6 )

With Japanese households cashed up with assets and stocks in a record way, things sure seem to be ticking along very well in Japan. Good to see Japanese save rather than spending unneccesarily on items like TVs, cars etc that dont need replacing. Hope this becomes a worldwide trend.

0 ( +3 / -3 )

The Japanese government is still paying people NOT to work. My staff are loving it, they get one or two days off a week covered by the government and they are out working second jobs for cash. Absolute worst policy. They have absolutely no desire or reason to improve sales because they are making more money now. No wonder savings are up, but they had better save because their kids will be paying off all this debt someday through higher and higher taxes.

7 ( +8 / -1 )

Good to see Japanese save rather than spending unneccesarily on items like TVs, cars etc that dont need replacing. Hope this becomes a worldwide trend.

Other countries are already leading for that

1 ( +2 / -1 )

Saving money, putting it in some financial investments is good rather than some dum spending, but at the end of the day, it only benefits the banks and financial institutions, and in the opposite, many economical sectors will suffer

-2 ( +1 / -3 )

Burning BushToday  07:43 am JST

It owns 44.1 percent of Japan's 1,224 trillion yen in government debt.

The BOJ owes 1,224 trillion yen... to itself.

Got it.

What's your point?

The US FED owns 78% of the $21 trillion (2,290 trillion yen) in government debt.

The FED owes 2,290 trillion yen... to itself.

-4 ( +1 / -5 )

interesting.

Average Japanese household cash and savings is equivalent to US$ 340,000.

Average US household cash and savings in US$ 41,700. The median is only US$ 5,300. Half of American households have less than $5,300 total, which shows the incredible divide of wealth.

0 ( +5 / -5 )

I would bet a new hundred dollar bill that the vast majority of that wealth is concentrated in the top 2%.

8 ( +9 / -1 )

Peter, where did you get that figure?

Having run several quick searches with different ways of calculating I could not find evidence anywhere of more than ¥20 million per household.

¥13 million or $120,000 seems closer.

3 ( +4 / -1 )

Oh, here are the sites I looked at, in Japanese.

https://www.google.co.jp/search?q=家庭+貯金+平均&client=safari&hl=ja-jp&ei=6qpGYYnGBZejoASjhYzACg&oq=家庭預金平均&gs_lcp=ChNtb2JpbGUtZ3dzLXdpei1zZXJwEAEYATIFCAAQzQIyBQgAEM0CUABYAGCCrAJoAHAAeACAAVWIAVWSAQExmAEAwAEB&sclient=mobile-gws-wiz-serp

0 ( +1 / -1 )

Many countries are much richer than Japanese per capita or per household.

What is important is what is the median average.

Also to notice Japanese wealth is stacked in cash and deposit for 54%, which means it is mostly unused in the economic cycle.

Everyone agrees economic Japanese situation is dire so not sure what the article tries to say, outside the rich got richer.

-1 ( +2 / -3 )

Did you consider using the article above and dividing it by households?

-1 ( +0 / -1 )

The BOJ owes 1,224 trillion yen... to itself.

Completely wrong, even if you only just bothered to read the article.

And even if you had read the article you’d be wrong anyway because the BOJ doesn’t borrow the money, the Ministry of Finance does. And the BOJ and Ministry of Finance have different names… because they are not the same thing.

0 ( +2 / -2 )

the BOJ and Ministry of Finance have different names… because they are not the same thing.

So what? The BOJ is the fiscal agent of Finance Ministry, and the proceeds from the coupon payments, etc., from the bonds it holds flow back to the ministry. What's your point?

Everyone agrees economic Japanese situation is dire.

Huh? Japan has some of the strongest macro numbers around: record-high current account surplus (world's biggest creditor), a safe-haven currency, zero foreign debt, no inflation. And before the pandemic, corporate profits were near record highs, while the Tokyo stock market today is booming.

-2 ( +1 / -3 )

¥13 million or $120,000 seems closer.

That's still vastly superior to most other countries.

Everyone agrees economic Japanese situation is dire so not sure what the article tries to say, outside the rich got richer.

Uhhh, nope. No, definitely not.

As someone that just moved from the US, I can tell you that is NOT true.

Japan's economy is doing great. Especially when you consider how hard COVID hit. We do not need to be changing anything. That's how you end up making things MUCH worse.

-2 ( +0 / -2 )

The BOJ is the fiscal agent of Finance Ministry

Completely wrong. Indeed such a role for the BOJ is explicitly banned in principle under Article V of Japan’s Finance Law.

There is a reason for that particular law, to prevent repetition of past mistakes.

-1 ( +1 / -2 )

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