With reshuffled cabinet, Kishida gets to work in choosing next BOJ head

...there is a small chance, which is increasingly talked about in political and financial circles, that Kishida may choose a dark horse to distance himself from Abenomics, which has failed to produce solid, sustainable growth in the world's third-largest economy

What ever decision is taken, I hope for the average tax payer that the corporate rort ends. It's well known outside of Japan (though rarely reported in the Japanese mainstream media) that instead of investing for business growth, Japanese financial titans takes QE money from the BoJ, only to buy J Gov debts and make easy money doing virtually nothing and taking on no risk.

Why would they bother lending to businesses when they can do so well profiting off of taxpayers.

https://www.statista.com/statistics/756192/japanese-government-bonds-by-type-of-holders/

Kishida may choose a dark horse to distance himself from Abenomics, which has failed to produce solid, sustainable growth in the world's third-largest economy.

A rare moment to acknowledge this truth.

Yet the Nikkei hit a record high in 2021 and a wide spectrum of corporate profits remain strong.

Abenomics and New Capitalism are abject disasters for the people of Japan but the LDP/Japan Inc. combine has aims and goals that are orthogonal to the people.

What ever decision is taken, I hope for the average tax payer that the corporate rort ends. It's well known outside of Japan (though rarely reported in the Japanese mainstream media) that instead of investing for business growth, Japanese financial titans takes QE money from the BoJ, only to buy J Gov debts and make easy money doing virtually nothing and taking on no risk.

Why would they bother lending to businesses when they can do so well profiting off of taxpayers.

Completely agree in this case.

The LDP is getting away with this QE Basic Income socialism for the rich right under the nose of the public.

https://twitter.com/mcuban/status/1318929147348090882

Let me guess…it’ll end up being someone with a tie to the UC.

These politicians are certainly working hard - amazing efforts!

years of ultra-low interest rates have taken money away from ordinary people. 

Apart from "ordinary people" who have bought their own homes and invest their savings instead of hoarding cash.

to avoid any damaging spike in long-term interest rates

Oh, why might that be a concern…. Gee I wonder…

said Izuru Kato, chief economist at Totan Research.

Actually Kishida should consider Kato for the post.

Yuri Okina sounds like she has a good head on her shoulders, too.

Japanese financial titans takes QE money from the BoJ, only to buy J Gov debts and make easy money doing virtually nothing

That seems a little incorrect - the primary market dealers buy newly issued JGBs from the ministry of finance, and then flip them to the BOJ for a profit. But yes it is silly, and basically a work around to avoid the overt illegality of the BOJ financing government spending.

the Nikkei hit a record high in 2021 

It wasn’t a record high. It is still way off record highs.

Apart from "ordinary people" who have bought their own homes and invest their savings instead of hoarding cash.

The problem is that some people do not have enough money to buy a house or take risk to invest in stocks. Especially some elderly people who live on these ridiculously low public pension. Investing in stocks require a 10 years time horizon (well in Japan much more as market is not yet back to its bubble level!).

Will be more of the same as they can't afford to raise rates. would destroy the governments budget.

Ordinary people have indeed suffered - huge swathes of the population have no idea how to "invest" or can't buy now overpriced property. They have been robbed.

the Nikkei hit a record high in 2021 

It wasn’t a record high. It is still way off record highs.

The LDP/Japan Inc. combine benefits from downplaying their obscene financial gains because they are so dissonant from the populace. It is feudalism.

https://www.japantimes.co.jp/news/2021/12/30/business/financial-markets/nikkei-2021-year-end/

Great Image, Taking full advantage of his wide angle lens, Or do these new mirrorless cameras have a software mode for lens perspective these days ? Still a exceptional image.

Good luck! No one in their right mind would want the position. Kuroda should exit his monster QE policy before handing it off.

Kuroda is probably believing his is a genius having reach the 2% inflation target.

Being 77 years old, he does not really care about what will happen after him. This is the problem with the geriatric leadership. Same for the 81 years old spring chicken Aso!

The problem is that some people do not have enough money to buy a house...

Japan is one of the most affordable OECD countries. Talk to middle-income residents of Vancouver, Sydney, London, New York, California, etc. if you want to hear horror stories of lack of affordability.

That seems a little incorrect - the primary market dealers buy newly issued JGBs from the ministry of finance, and then flip them to the BOJ for a profit.

Take a look at the link I posted, the BoJ conducts open market operations (buying corporate bonds) and J Gov Bonds on the open market.