|Increase of assets caused by minus interest rate
What may be the first problem by introduction of minus interest rate is
decrease of assets. As minus interest rate decreases currency, assets decrease
[Minus interest rate may not be accepted in terms of depositor protection.].
Opinion like this may be expressed. But, please think of it calmly. If
plus interest rate is continued under the condition of minus economic growth
rate, amount of currency increases, but value of economy doesn’t increase.
Debtor’s loss over the increase of currency occurs under minus economic
growth. This is the reason for bad debt occurrence. Received interest is
paid by debtor’s loss. Therefore, it should be considered that economic
value doesn’t exist in received interest. After all, depositor can’t be
rich essentially by continuing plus interest rate under minus economic
growth. Amount of currency merely becomes more than scale of economy.
As a result of interest rate over economic growth rate, richness can’t
be grasped by the amount of assets of deposit etc.. It is because real
economic value is less than amount of currency.
Minus interest rate is needed to decrease the difference. By introduction of minus interest rate, burden of loan of companies decreases and employment increases. As increase of labor leads to increase of income, consumption increases. Increase of consumption leads to expansion of economy and additional value of economic activity increases. Nation can be rich by the increase of additional value. If economic growth rate becomes plus, interest rate can also be plus.
After all, minus interest rate should be introduced to deposit to recover
economy under the condition of minus economic growth, without maintaining
plus interest rate of deposit. It leads to rich life. If it becomes common
recognition of nation, recovery of Japanese economy will not be so difficult.
Old people or people who are unable to work may feel uneasy in their
lives because assets decrease by minus interest rate. But economic recovery
by minus interest rate leads to increase of profit of company and tax income.
Richness of nation increases. Proper distribution of this richness makes
old people rich.
Excessive pursuit of asset may the cause of falling birthrate. Continuity of plus interest rate is excessive burden of interest for debtor. As a result, companies decrease labor cost and number of regular staff of young people decreases.
Balance of national bond / local bond has been increased excessively by
the cause of plus interest rate, and repayment burden of it is heavier
for young people. It is because repayment period is longer for young people.
If balance of debt is 700 trillion yen, balance of debt is about 5.5 million
yen per head of nation. Balance of debt of young people is about 10 million
yen per head. Thus, balance of national bond / local bond is debt of young
people for old people. Young people are poor as much as richness of old
As a result, young people feel atmosphere of [We are not rich]. As they
are not stable economically, they can’t feel room. As they feel uneasy
in the future, they do not want to increase the number of child.
The only way to solve this uneasy is for young people to be rich. Minus interest rate should be introduced for this purpose.
Minus interest rate decreases the amount of asset / debt. Balance of national
bond or local bond decreases naturally. As debt repayment burden of company
is reduced, employment is increased. Then, the number of official staff
of young people may increase. Stability of social position solves uneasy
in the future and increases birthrate. Then, aging problem of Japan is
solved. Increase of number of child makes whole nation rich.
After all, the more people are cling to plus interest rate and possess
asset with heat, the more huge debt occurs and whole nation get poor. The
reason why American economy, saving rate of which is lower than that of
Japanese, maintains No.1 scale and influence in the world and Japan can’t
catch up is that American people consume positively. Therefore, it may
be necessary for Japanese to learn proper consumption and proper saving.
Then, economy is much more revitalized.
Asset is Japanese economy itself for Japanese people. Therefore, to realize
situation of stable evolution of economy is best way to increase asset.
It leads to stable life. It is necessary to introduce minus interest rate
for this purpose.