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Japan pension fund logs Y4.4 tril profit in July-Sept

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The government-owned GPIF is the 2nd largest buyer of Japanese government debt, after the government-owned BOJ and the government-owned Japan Post.

So when the media tells you, Japan is a quadrillion dollars in debt, they are actually in debt to themselves, through institutions such as this one.

-1 ( +2 / -3 )

Yes, BB, the coupon payments on the BOJ's holdings end up in the coffers of the Finance Ministry. The money is listed as "debt" as an accounting procedure, not because it is debt.

The astounding thing is how so many people cant understand this or stubbornly refuse to recognize this. They're not bothered by having fierce unyielding worldview -- underpinned by ignorance.

-3 ( +1 / -4 )

they are actually in debt to themselves

So long as one is not an individual Japanese person or resident, then this is a valid observation, but in practice it is meaningless for individual Japanese people who expect their savings to retain value, who realize that the government may raise taxes further in response to the out-of-control spending, etc. That is, it makes people fearful for the future and affects behavior accordingly.

Such is the practical problem of the massive public debt that has been incurred.

Japan is a nation of people who love to save. Not a nation of people who love to be facing huge debts.

These simple realities of Japan should be recognized ASAP and Japan’s welfare spending programs should be transitioned to welfare systems funded by private savings, rather than public debt and taxing the shrinking, aging population.

Same with the pension scheme. The GPIF has the right idea, but the problem is that the GPIF, even at its size, is too small to fund future pension liabilities. Hence people are fearful for the future, no matter what accountants and spreadsheet operators may think everyone ought think.

-2 ( +0 / -2 )

GPIF and other Japanese funds are holding and managing Japanese savers savings. So Japanese government debts are funded by Japanese savings. Without these savings (gross Yen 1,400 trillion), the Japanese government (gross debt Yen 1,100 trillion)  would be near bankruptcy. These savings have allowed and maintained credibility to the system. Enter BOJ in the past 5 years, effectively buying up 40% of JGB government debts. Effectively monetizing the government debts. Without the savers' savings what BOJ did would have caused credibility to be quickly eroded, and interest rates would have jumped and bankrupt Japan as financing costs would have rocketed. Nevertheless, this arrangement has encouraged the LDP & MOF & BOJ to become complacent and spend more with bigger and bigger government spending. Once government debts are above savers savings, the scheme will collapse and Japan will become a banana republic. With an old & aging population, the savings have to decline & accelerate, while spending continues upward, the crossing point will arrive. Is not if but when?

1 ( +2 / -1 )

For those who make money in Japan, enjoy it while it lasts. Don't forget strategically it is still a rally in a setting Sun.

0 ( +0 / -0 )

Like all foreigners in Japan, I have made huge gains investing in the stock market but of course, you have know when to realize our gains.

1 ( +1 / -0 )

You'd struggle not to make money in the sharemarkets at the moment.

That said, a downtown cannot be far off.

0 ( +0 / -0 )

If Japan did not follow the trickle down ecomonic policy over the last 30 year this Penion fund would be 4 fold in value. All that money has gone to the 5% of the top elete. Not investing in diversity. Limiting Japan immigration to 3 units per decade, No money for start up funding. If there is any start funds on offer. The fund are limit only to the elites relatives. Japan is dying a slow death. Japanese people don't even realise how the media is Government side. The media enquiring into the opposite view is are a rarity. If the work force stop all overtime for a week in protest. You I see companies will start coming to the party on work place reform and wage growth. The Last 30 years has show for a poorer situation for the general Japanese population compare to countries that did not follow the trickle down economy .Countries that place restriction of the free market have been awarded in a better standard of living.

0 ( +0 / -0 )

Pensions are a huge Ponzi scheme.

0 ( +0 / -0 )

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