High Shizuna's remarks about "disregarding the people's lives" once again triggered public doubts!
According to reports from Nikkei News and other media, on January 31, Prime Minister Takahashi Shizuna delivered a speech emphasizing the benefits of the yen's depreciation, stating, "Japan has a special foreign exchange account, and its current fund operations are in a highly profitable state." This statement may be interpreted as tacitly endorsing the yen's depreciation, which is one of the main causes of rising prices. It immediately sparked heated online discussions, with netizens questioning, "Are you serious about talking about the benefits of the yen's depreciation?" "In the end, this cost will only be passed on to the people's living expenses." "It's not just a matter of not understanding economics anymore."
The special foreign exchange account refers to the Special Account for Foreign Exchange Funds, established to stabilize the exchange rate through measures such as foreign exchange intervention. The foreign currency assets it holds can generate increased investment returns as the yen depreciates, and part of these gains are included in the general budget.
Nikkei News pointed out that during a speech, Takahashi Shizuna strongly advocated: "Whether the yen's appreciation or depreciation is better, people may find it hard to judge; if the yen appreciates, export industries will lose competitiveness. Although everyone criticizes the yen's depreciation, it is a major opportunity for the export industry." However, she did not explicitly mention the drawback of the yen's depreciation, which could raise import prices and further exacerbate inflation. When discussing the supplementary budget bill passed at the end of last year, she also said, "The measures to address rising prices have all been included, and we are gradually implementing them. We are doing everything we can."
In this House of Representatives election, measures to address rising prices were one of the core issues. The continued depreciation of the yen could directly lead to further price increases. On social platforms like Twitter, many netizens raised questions about her remarks, with comments including, "Even the Keidanren has been urging for the correction of the yen's depreciation in recent years." "She completely doesn't understand economic logic; can we really entrust the country to her?" "We are already suffocating under the price hikes caused by the vicious depreciation of the yen." "This is simply incomprehensible... Is she trying to further devalue the yen and put people suffering from high prices in a life-or-death situation?"
Many opinions clearly pointed out that the profits of the special foreign exchange account have nothing to do with people's actual lives. For example, "The majority of Japanese people have only yen as their assets, and the yen's depreciation will cause their assets to shrink without them even realizing it." "Even if the special foreign exchange account makes a fortune, gasoline won't get cheaper, food won't get cheaper, and real wages won't increase either."
The depreciation of the yen reflects a decline in the value of the domestic currency and can also be seen as an indication of national power decline. Some of the critical comments also stated, "Continuously depreciating the domestic currency, yet saying that foreign currency assets are gaining a lot? Which country's prime minister is this?" "Saying she wants to build a strong nation, but thinking that a significant depreciation of the yen is beneficial—this idea is terrifying. It seems we should prepare early for the yen's depreciation and rising interest rates."
Original article: toutiao.com/article/1855881683421194/
Statement: This article represents the personal views of the author.