An inside look on Japan

The Bank of Japan (BOJ) will start experimenting with a Central Bank Digital Currency (CBDC) from April. It sure is a quick move of the BOJ’s new executive director Uchida Shinichi. Of course the BOJ has been planning on CBDC’s like all major economies, but this move paves the road for a bigger focus on the introduction of the Digital Yen.

While I am deeply concerned about safety, privacy and autonomy, it is interesting to see how this will unfold.

Japan introduced a “My Number” system in 2016, increasing the amount of control the government has over its citizens by centrally keeping individual’s personal information, tax payment, salary, etc. With this “My Number” system where all citizens have their own number, it would hypothetically be easy for them to add information belonging to each number.

Going even further hypothetically, wouldn’t it be scary if CBDC’s are somehow liked to your “My Number”?

I suppose it’s not just a concern in Japan. Together with the rise of A.I. the world is changing at incredible speed. But gladly, we are all in this roller coaster together, might as well enjoy the ride!

I just watched the soccer match Japan versus Costa Rica. Unfortunately they lost. I tend to get upset for a short while, whereas euphoric feelings last longer for a win. How about you?

What amazes me about sports in Japan is the general positive vibe that reigns before, during and after a match. Sports are considered fun, not a reason to stressing out or getting violent like it is often the case in Western countries.

Why is that you think? I have a few thoughts:

1 – The ability to ‘let go’.
In Japan there is the expression ‘Shikata ga nai’. Translated: It can’t be helped. If it really can’t be helped, the average Japanese can detach him-/herself from what is happened, accept it and ‘let go’. Although it may sound obvious, ‘Shikata ga nai’ is much more powerful than ‘It can’t be helped’.

2 – The admiration for sports players.
There is a strong admiration for sports players. People seem to really care about the wellbeing of their icons/heroes and are forgiving for mistakes. They generally cheer and support and wouldn’t complain about failures. Japanese can be sometimes seem somewhat disattached to emotion, but the truth is otherwise! While in business they wouldn’t express their feelings much, with sports it is very different.

3 – Strong hierarchy.
Hierarchie, the ranks of society are clear in Japan. People look up at the elderly, to superiors and to professionals. Every school or university has sports clubs where the best get theirselves a place in the best team, or get the chance to proove themselves for the team of another university once invited. Sports teams are up incredible importance. Good players are looked up at and get the best social contacts that help them further with their carreer.

Professional sports players are the center of the attention, and loved by the public. You’d say sports players must have quite a comfortable life!? I think not. The collective culture that empesizes conformity and harmony would bring enormous pressure to the sports players to perform well. They’d feel pressure to perform for their team, district, country and for their fans.

One thing is sure, I don’t envy the enormous weight on their shoulders. Nevertheless, GANBARE NIPPON!!

Uproar in Japan?

The extremely weak yen gives the Japanese much material for discussion; is it good or bad for the country!?
Unsurprisingly the government, as well as the Bank of Japan (BOJ) has been higlighting the benefits in order to calm down the storm.

In Japan this ‘storm’ however, usually feels more like a a little wind. It surprises me how everyone remains calm under the circumstances. In the modern past there have only been few examples of public protests like the student uproar in 1968/1969 or the more recent anti-Abe regime protests in 2018/2019. These protests rather had a pacifist than economic origins.

Would current situation be cause for protests? Possibly, but not likely, unless the economy turns really bad. The ultra loose monetary policy the government has held since 2012 can sure be to blame for the current situation with enormous debts and the BOJ unable to closen the gap of interest rates with the Federal Reserve.

Would the economy turn really bad? I think it would depend how the Japanese react. Especially the 3.6 million small and mid-sized companies would have to make a move… A move overseas! Importing expensive goods overseas only to sell domestically, in a stalling, aging economy is just not feasible! It is not something the Japanese are particularly good at generally speaking. This is why there are institutions like JETHRO (the Japan Trade Organization) or companies like Easy Consulting Japan, to connect cheap Japanese products with large demand markets that do grow.

2022/10/11

Japan reopens for tourists!

A necessary move to revive the weak economy; better late than never. Finally Japan lets in foreigners again!
Before Covid in 2019, a record total of 32 million people visited Japan, after which it dropped during Covid to 245.000 in 2021 at its worst (source).

I experienced the silence at Kansai Airport when I visited Europe in August of this year. The airport had turned into a ghost town with merely tons of empty chairs and a total of 5 flights that day.





How did Japan manage to do without tourism for so long!?

With tourism back on track, Japan will stand in the picture once again. We’re back world! Come and see the most beautiful sights, the excellent service and welcoming people, and the finest quality products. And bring home plenty, show it to your neighbours who can then import loads and spread more Japan accross the globe!

2022/10/2

Prime Minister Kishida of Japan announced on Monday October 3rd that people may remove their masks when walking outside. In public transport it is still adviced to wear one.

This announcement followed quickly after the news that the government plans to revitalise tourism. Japan has had one of the strictest Covid-19 restrictions in the world. These restrictions have been a major barrier for tourism, as well as overseas business, it being difficult to travel here.

The decision is to be applauded I think, although very late. Let’s hope the economy can recover while it’s plagued with a weak yen and an immense amount of debt.

Japan however, remains the third economy in the world. Wile it has enormous prestegious companies like Sony, Toyota and Panasonic, the true power lies with its mid sized quality focused manufacturers that haven’t brought its products overseas.

Last month Japans trade deficit surged to an immensive amount of JPY 2,817 trillion because of the strong dollar and high energy prices overseas. The smaller manufacturers should expend their business overseas NOW! (contact us) There is an infinite potential here sure to be exploited some time, and we intend to help out intermediating supply and -overseas- demand.

https://www.nikkei.com/article/DGXZQOUA037K10T01C22A0000000/