Whether Abenomics proceeds or not, this increase in longterm interest levels is going to induce the financial downturn.
The effects of increasing long-term interest levels are much more serious about the government’s financing.
In spite of the present ultra-low rate of interest, the government bond interest payments amount to 10 trillion yen annually.
Immediately If interest rates climb, the interest rates on government bonds increase, placing pressure on public financing.
The government should execute stringent austerity measures due to the requirement to create this.
This relationship holds true even when the rate of interest climbs for a certain reason. Government bonds will collapse.
Last This time, together with the conclusion of Abenomics, I want to spell out the chance that the Japanese market will be in trouble by 2022.
Now enormous buying of government bonds from the Bank of Japan since there is, interest rates are extremely low.
Sonia is the Writer working at Mandir IP KV. She loves to write and have been writing for a few years before joining Mandir IP KV.