I don’t want this kind of inflation

For the past two months, 1 US dollar has become 118 yen! Is it 129 yen? !! I was struck by the rapid depreciation of the yen, but the exchange rate last weekend finally exceeded 130 yen in TTS (yen → $).
As I said every time, this will raise prices again. At this time, 50 years after returning to the mainland of Okinawa, the first thing that comes to mind is that the exchange rate was 300 yen or more per dollar at that time, and compared to that, is it still better now? No, the price of an item that was 1 dollar at that time has now risen to 3 dollars, so in the end you can’t buy it unless you pay 300 yen or more. In other words, the price increase rush that hits the household budget directly, such as the same level of super-depreciation of the yen as 50 years ago, is full of my head. dance.
This is another phrase I’ve become familiar with, but it’s not that inflation is bad. It is dangerous that people’s income does not increase as expected, but prices continue to rise.

Under these circumstances, it is often asked that “it is necessary to change the axis of asset formation from” savings “to” investment “.” In the current situation of distorted inflation, where income does not increase even if you stay still, interest rates on deposits are equal to zero, and prices rise only due to the influence of overseas conditions, you are “strong against inflation. We should seek asset formation. In fact, the government is also trying to guide the public’s awareness there. However, looking at the current breakdown of Japanese citizens’ assets, stocks and investment trusts account for only 14.3%. It is much lower than 51% in the United States and 27.8% in the Eurozone.

In the United States, “investment” seems to be a very common means for the general public to think about asset formation. Even in Japan, during the bubble period, many ordinary people went to securities companies to buy investment trusts and so on.
However, 25 years ago, the “Yamaichi Securities Bankruptcy Shock” occurred. … Perhaps this is the reason why the people who remained floating due to the residual heat of the bubble that had somehow remained, finally woke up from their dreams, or realized the reality of the bubble collapse. Aside from professionals, ordinary individual investors have disappeared in a rippled manner. It may be exaggerated to say that investment allergies have taken root in Japanese DNA since then, but the low interest rates, unstable employment, and bright prospects for the future have made it difficult to find out. I think more and more young people dislike high-risk investments. … Well, I haven’t taught about finance in high school classes like in the United States, so it’s probably because investment isn’t very familiar to Japanese people. I would like to pay attention to what will change in the attempt of “money education” that started this spring (although it is strange that it is in a home economics class).

Anyway, the problem is our story, which is already an adult now. Now, even if you keep your money in a bank or your house, it will not increase at all, but a sharp rise in prices will substantially reduce the value of your currency, and there is a risk that your assets will be reduced. The pressure on the household budget is said to be greater for the younger generation, but especially for the older generation. The rise in prices is mainly noticeable in food and fuel costs. For older people who spend most of their time at home, raising electricity, gas and water prices can be painful. Looking at the support policies for people’s lives that have been implemented in the last few years, I think that early childhood education, free childcare, and reductions in mobile phone charges were major factors, but the main benefits were these. It is a young active generation. The place where you spend money is different between the younger generation and the older generation.
After all, “investment” is scary unless you study properly. Like 30 years ago, going with a squid (dead word?) Is likely to cause serious injury. However, just holding hands is a hindrance. I think we have to think about measures to overcome the frenzied inflation that is happening now.

By Admin|2022-05-16|2022,News Release|

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