Recently, Japan logged its second-largest current account deficit
(since statistics began in 1985). This concerns the 1.2 trillion yen deficit that was announced in January. Hence, with Japan being blighted by approximately 1.4 quadrillion yen in debt
(roughly $13.1 trillion US dollars and 260 percent of GDP) and the second-largest current account deficit since records began in 1985 – it is presumed that Kishida would be more prudent.
On the contrary, Kishida approved the highest initial budget planned for 2022. This entails approximately one-fifth of Japan’s entire GDP. Defense spending also reached its highest figure under Kishida. Therefore, approximately 107.6 trillion yen (940 billion dollars) will further burden this indebted nation – without altering the economic malaise.
The latest negative news concerning the Kishida administration is the yen plunged to its lowest figure for roughly five years. Hence, by afternoon trading, the dollar reached 117.83 to the yen.
If the stock market continues to decrease, then expect a future budget infusion that helps the stock-owning class and the moribund banking sector – this is a tried and tested aspect of the ruling Liberal Democratic Party. However, for the poorest in society, little comfort awaits.
