Japanese Finance pity: $ 300 million in cash under the bed sleeping


Source: Oriental IC Japanese businesses are hungry for capital, but "unfortunately the money" Japanese confused in cash hidden in their bed。  According to Mizuho Securities (Yasunori Ueno) estimates (Mizuho security) Ueno, chief market economist Kang, as of March 25 this year, the Japanese were at home amassed 36 trillion yen (US $ 30.1 billion) cash。  According to CNBC reports, unless a crisis occurs once every hundred years, these days the amount of cash will continue to "sleep"。  Ueno Kang said: "The Japanese cash in their bed below lying too long, I do not know what factors can motivate them to put these money out。"Economic, chief economist at Dai-ichi Life Research Institute (Dai-ichi Life Research Institute, DLRI) Hideo Kumano (Hideo Kumano) reluctantly said:" These cash like an iceberg, it is difficult to melt。"Last year, Japan's Finance Minister Taro Aso (Hideo Kumano) had accused the Japanese practice of hoarding cash。Aso said: "This approach is ridiculous, you should put the cash in the bank, so promising industries receive financial support。"As for the reason Japanese people on the grounds of the home there will be cash very simple: Japan's deposit interest rates too low。  According to data Mizuho Bank (Mizuho Bank) released ten-year deposit interest rate in Japan is only 0.0 to 10%.15%。In such a low interest rate environment, even if the money in the bank, Japanese households will not get much interest。  In fact, the Japanese conservative deposit can be traced back to the early 1990s。  After 1985 years ago, Japan's long-term presence of US trade huge surplus, reserves a large number of foreign exchange, leading to continued appreciation of the yen, after the United States and Japan signed the 1985 Plaza Accord, the Japanese government liberalized the yen, the sharp appreciation of the yen against the dollar。The Japanese government order to reduce the value of the yen, the yen had to drive down interest rates, but the domestic currency liquidity can be released, Japan's asset bubble began to surface。  In 1989, massive asset bubble makes the Japanese economy deformity, structural imbalance, the real economy to shrink。The Government had to tighten credit, since the asset bubble burst。Subsequently, the Bank of Japan [microblogging] to cancel a partial guarantee on bank deposits。For panic, the Japanese began a wave of hoarding cash。  Yasunori Ueno according to estimates, only in the period from 2003 to 2013, alone, about 24.5 trillion yen in cash (US $ 203.7 billion) disappeared from the Japanese "economic radar"。  Hideo Kumano also acknowledged the inevitability of this situation: "In the context of Japan's deflation, cash is king。"He said that unless the Japanese occur once in a century financial crisis, set off hyperinflation and capital flight, otherwise people hoarding cash 'bad habits' will continue。  The consequences of this situation brings could be disastrous。Hideo Kumano, said: "If the yen-dollar exchange rate continued to decline for many years, people will be worried, had to transfer money through banks abroad。"The best outcome is to get cash back into the banking system, and the easiest way is to raise interest rates。However, this is saddled with heavy debt for the Japanese government, it is not easy。  According to Bloomberg statistics, in 2014, the Japanese government saddled with about 1,000 trillion yen (about 8.$ 5 trillion) huge debt。Ratio of public debt to GDP in Japan has reached 226 percent, ranking first in the world。  According to the Organization for Economic Cooperation and Development (OECD) in 2015, Japan's public debt is expected to reach 232 GDP.5%, compared with the ratio in Greece is only 188%。A rising debt being intensified concerns about the Japanese government's solvency。Perhaps the Japanese have cash lying while under the tatami。