Japan net external assets hit record in 2022 as world's biggest creditor

Japan's net balance of external assets hit a record 418.63 trillion yen ($3 trillion) in 2022, up 0.2 percent from a year earlier, inflated by the yen's sharp depreciation, the Finance Ministry said Friday.

Up 0.2 percent while consumer price index is up to more 4%

https://asia.nikkei.com/Economy/Inflation/Japan-s-consumer-inflation-off-41-year-high-but-stays-above-BOJ-goal

While more foreigners are investing in Japan. The country has done a pretty good job navigating through the Covid crisis.

Japan's problems are mostly caused by its private-sector employers, who are hoarding their earnings rather than sharing them with their workers. Time to rescind the corporate tax cut of a few years ago.

@JeffLee Those earnings belong to the owners, and nobody else.

So the much printed money doesn’t drip down at all but only runs fully away.

It's the hollowing out of Japan.

@proxy

Those earnings belong to the owners, and nobody else.

Let's hear it for the poster advocating slavery.

@JeffLee People are free, they can walk anytime. They get a return on an investment of their time. If they don't like the return, they can invest their labor elsewhere.

Read well.

External assets have gone up by 6.5%

Liabilities by 9.6

Yen dropped 15%

The latter move of the curfency exchange rate is the only explanation of growing assets.

In real terms, the balance is reducing in dollars but did not get the balls to write it down.

Yen will carry on dropping to allow the payment of all the social debts growing so badly. Moreover, it shows the wealth accumulation by a few since poverty rate is ballooning (check what is the Gini coefficient).

Japan not going on the right slope

https://www.lemonde.fr/en/opinion/article/2023/02/02/in-japan-while-the-level-of-income-inequality-is-higher-than-the-oecd-average-the-perception-of-it-is-lower_6014191_23.html#:~:text=InJapan%2C'whilethelevel,'

The US economy is still almost 5 of that of Japan

If they don't like the return, they can invest their labor elsewhere.

That might be true if labor market was a market, but it's not, as it's been grossly distorted through corporate interference and lobbying along with political decisions that put the corporate elites' interests over those of the majority of working people. Workers' ability for collective bargaining has been gutted since the 1980s.

One of many examples in Japan is its "internship" program, whereby Vietnamese and others from developing economies come to Japan temporarily and work for wages considerably lower than what the domestic market expects or demands.

@Yrral

inflated by zero health care. The real size of US economy is about half of China

People are free, they can walk anytime. They get a return on an investment of their time. If they don't like the return, they can invest their labor elsewhere.

A nice theory that is not grounded in reality. Being able to walk away anytime doesn't mean one is free; look at what happened in the U.S. following the abolishment of slavery.

And in modern society, most of us are no better off and no matter where we may want to "walk to", we will face exploitation, discrimination and obstacles at every turn.

I have a hunch that a certain country is borrowing money from another country/ies and lending it to some thrid world countries. Business sense at its finest!

Japan largest creditor for 2 main reasons.

First, BOJ buying all the legacy and lousy assets e.g. JGBs and Nikkei 225 ETFs, REITS, etc.

Next, Private Investors NOT buying domestic assets, seeking higher returns out Japan.

However, largest asset class remains residential housing, PURE dumpster fire toxic deflation for underlying land in most markets as depopulation and aging speeds up.

YrralMay 27  05:58 pm JST

The US economy is still almost 5 of that of Japan

It's MORE with today's 140Yen to USD. Capital goes to markets expected to grow, both economic and population.

Capital FLEES markets doing the opposite, that would be Japan. Keep in mind much of this X-Japan investment flow is not even credit based, rather it's Corps seeking to invest their working capital. Uniqlo, great example, they're wisely shrinking their store footprint in Japan.

Jeff said: Time to rescind the corporate tax cut of a few years ago.

Corportions don't pay taxes. Their customers pay them. This is a hidden tax on consumers and consumers should educate themselves on simple concepts like profit and loss. If a corporation makes no profit, they pay no taxes. They simply raise their prices until they do. Who pays? You do! That is the reason goods are so expensive in Nihon. The consumer pays twice.