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Jul 18, 2012

Japan Finance Ministry is inflaming financial collapse

*Information from Mr. Takeshita posted on his blog July 13, 2012

English translation of an excerpt from a Japanese article: [Yo ni Kamu Hibi] July 13, 2012

People's Life First [LF] Members Feel Free to Criticize Noda

Yuko Mori grills Noda

Live broadcasts of parliamentary proceedings have become a lot of fun after a long interval.

It was a spectacular sight to see Diet member Yuko Mori in the House of Representatives Budget Committee the day before yesterday.
Her “touching a tender spot” was effective enough to make groan in pain not only Noda but also all the people who take hold on the core elements of this country. 

Eiji Hata, a follower of Diet member Mori’s tweets:

“Diet member Yuko Mori shot the government which pretends to suffer “fiscal predicament” though it has enough financial power to provide foreign aid with 14 trillion yen.  This is going to be a lot of fun.”

July 10, 2012
Yuko Mori  Grills Noda Administration in House of Representatives Budget Committee

Yuko Mori:

I am asking about the total amount of financial aid that you promised to provide for international organization.  Don't chop logic as you like.”

“Well, Prime Minister, please answer my question.  What is the total amount?   The Foreign Ministry and the Finance Ministry reported different figures.   Prime Minister, you are not going to answer my question.  What is the total amount of aid that you as the Noda Cabinet promised to provide?   I think you can answer my question just by looking at the material I have prepared.”

Prime Minister Noda:

“Here is also material for the Committee.  Including the maximum amount of financial contributions and that of financial loans, it totals up to 14 trillion 333.3 billion yen shown here.

Yuko Mori:

“You should have answered so from the very beginning.”

The Finance Ministry has been spreading a groundless rumor as if the country were going to fall into financial collapse now.  However, in fact, Japan still has financial power to provide financial aid in this way.


It is understandable that mass media won't cover this question of Diet member Mori.  They have severely mauled, made fun of, and ridiculed the policy of “people's life first” advocated by Mr. Ozawa.  If they should cover her question, their justifiable claim and premise will collapse.

Lastly, there was another example to disprove the myth that Japan is on the brink of financial collapse, which was posted on my past blog.  I would like to call it a day by introducing it.

(An Omission)

Big Lie of Finance Ministry Inflaming “Financial Collapse” Exposed
(Source: Nikkan Gendai – February 11, 2011 -)  

 A “People's New Party” member of the House of Councilors, Akiko Kamei accused Finance Ministry on TV.

The people who watched the program “Sunday Discussion” on NHK on 20th yesterday must have been unable to believe their own ears.  A People’s New Party member of the House of Councilors,  Akiko Kamei, 45, disclosed a big lie of the Finance Ministry inflaming financial collapse.

The People's New Party has advocated that public spending be boosted by issuance of construction bonds and interest-free, tax-exempt government bonds to escape from the deflationary economy.   Diet member Kamei made to public the exchange of views on these government bonds with the Finance Ministry.  To summarize her remarks on the program, it goes like this.

When I exchanged views (on the interest-free, tax-exempt government bonds) with the Finance Ministry, they said “If we issue such bonds, it will give foreign countries an impression that Japan is having financial difficulties.   We don't need to issue them because government debt is stably redeemed.”
I asked “What?  Isn't Japan in a financial crisis?”
“No problem,” they answered.  (Finance Ministry) says something different to the public and the ruling party.

What a surprise!  If what Diet member Kamei said is right, all argument Finance Ministry and Prime Minister Kan make fuss about, saying “consumption tax hike is necessary due to financial crisis” was not based on the fact at all.

“People's New Party's stance is that it is necessary to create a mechanism which allows money to circulate in the market, to boost domestic spending. They will never stick to issuing interest-free, tax-exempt government bonds.   They have often asked Finance Ministry to suggest them alternatives if this methodology is not acceptable.  They have always evaded answering them.” (By informed source)

We have asked anew Diet member Kamei the real intention of her remarks.

“Finance Ministry premises the consumption tax from the beginning.  Issuance of interest-free, tax-exempt government bonds will cause no problem for anybody.  And yet, exchange of views has reached a stalemate.  Then I summoned a Finance Ministry bureaucrat to our party's office and asked him whether we were in the financial situation of peace time or emergency.  He answered ‘Peace time.’  The Finance Ministry explains abroad “Japan is rich in foreign financial assets and more than 90 percent of government bond is held internally.  This is because Japan is not in a financial crisis.”  On the other hand, the ministry says to the people ‘We are in 900 trillion yen of debt.’  The ministry gives different explanations to foreign countries and the people.”

Two-tongued Finance Ministry bureaucrats who dance to a different tune, depending on the other person they face.  I do want Diet member Kamei to grill them in the Diet.

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