Chapter 46: CH 46

Earn 2000 trillion yen!

Translated by Dawn

Edited by Dawn

Earn 2000 trillion yen!

After bringing the students of the school to the MIC, we, the people with abilities, took our seats in the auditorium and listened to Director Sayuri’s urgent report.

“First, let me summarize our situation to you once again.”

The director’s brow was furrowed and her voice was clouded not with anger, but with hatred.

–Scary…….

“Japan’s annual budget is 100 trillion yen. But tax revenue is 50 trillion yen. The shortfall was covered by issuing government bonds. JGBs are like credits, like IOUs. Japan sells 50 trillion yen worth of JGBs to domestic and foreign investors, banks, and insurance companies, in other words, Japan borrows money. That is ¥2,000 trillion, but there is no need to be pessimistic. It is a debt that it owes to itself.”

I have heard that story before.

“This is because the majority of JGBs are purchased by the Bank of Japan (BOJ). The BOJ is a close family member of the government agency. When the government borrows money from the BOJ, it is like saying that the same person uses two wallets and that wallet A owes money to wallet B. The BOJ prints 10,000-yen bills to meet the government’s needs and gives them to the government, ostensibly under the guise of debt. So, even with ¥2,000 trillion in debt, Japan will not go bankrupt. B U T!”

A blue streak appeared on Director Sayuri’s forehead.

“The prime minister promised the BOJ president the post of the next finance minister, but then, through a friend’s appointment, he installed a close member of the Diet as finance minister. The angry BOJ president said he would not buy JGBs, so other banks and insurance companies also did not buy JGBs, and Japan’s budget this year is only 50 trillion yen from tax revenues. On top of that, the value of the Japanese yen has dropped overseas and imports are no longer possible. So, we enlisted your help and others to protect domestic businesses by obtaining imported items while earning 50 trillion yen. Then, on the next redemption date (repayment date), which is the end of the year, the Bank of Japan will have to pay off ¥2,000 trillion, or technically, ¥1600 trillion of the BOJ’s holdings. If they don’t pay by the end of this year, the BOJ will seize their assets!”

“Huh?  But Sayuri-chan. Aren’t the JGBs held by the BOJ not obligated to be repaid?

“That’s right. Strictly speaking, if Japan issues a [refinancing certificate] that says the bonds will be paid back next year, the repayment can be carried over to next year. This is a special law that is enforced every year.”

“Isn’t that no longer a special exception……?”

“That’s right. The BOJ president just held an emergency press conference to officially announce that he will not accept [refinancing certificates] this year because it is not originally allowed.”

“No, no, no, that’s just revenge, no matter how you look at it!”

“That’s right. Revenge.”

With a sharp gaze, Director Sayuri said in a chilling voice.

“The BOJ president planned to have the prime minister apologize for sounding off on half the budget and become the next Finance Minister. But we saved Japan. Hence the second attack.”

“How can he dictate such arrogance?”

“The president of the Bank of Japan, Kaneda Yasunori, is a man of such immense authority that he has been nicknamed Cloistered Emperor Kaneda. The Kanada faction is spreading throughout all banks in Japan, not to mention the Bank of Japan, and it is safe to say that the Japanese banking and financial industry is controlled by Yasunori Kanada. No one can go against his decisions.”

“Which evil boss are you!?”

Shisae shouted frankly, and Director Sayuri held her head in her hands.

“Seriously. Repaying the debt to the BOJ would eliminate the Japanese yen from the domestic market, what a foolish thought.”

–If we return it [to the BOJ], the Japanese yen disappear? Isn’t that some weird phrasing?

Followed by Shisae, I raised my hand.

“Director Sayuri, what does that mean?”

“As I mentioned earlier. Although it is called “debt,” in reality it is nothing more than the Bank of Japan increasing the amount of currency that the Japanese government has decided should be released into the market as the economy expands. In other words, the ¥2,000 trillion debt is simply the total amount of currency the BOJ has printed up to now.”

“What? So if we collect it and give it back to the BOJ……”

“First of all, the Bank of Japan is the main currency maker. What would they do if they got the money back that they can make themselves? What’s the harm in not getting it back? If the 100 million yen earned from the sale of Kiriha’s royal jelly were used to pay for public works projects, the 100 million would be used to pay the salaries of construction company employees, the employees would spend the money, and the money would circulate in the market, and the economy would be stimulated. However, if that 100 million is given to the Bank of Japan, that is the end of the story. Just 100 million yen less currency in circulation slows the economy rather than stimulates it.”

“Guuahh. What a villain! Maria! Let’s copy the BOJ president’s treasure folder on the net with all his personal information attached!”

“I understand.”

“What understand!”

I struck a karate chop pose to control Maria.

“So, Director Sayuri, what are you going to do about the Prime Minister and the Minister of Finance?”

“He threw it to me.”

She said with a straight face.

I stopped thinking.

“…eh?”

Director Sayuri sighed heavily with a somber expression.

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“As I mentioned earlier, the current Finance Minister is a financial amateur who was chosen because he has been a member of the Diet for a long time but has never held any position and is pitiful. The prime minister also has a university degree in law and is not familiar with economics. So he threw it to me that the issue of financial collapse is under the jurisdiction of the different departments.”

–Is this alright, our government…….

The students of the Inou Academy, as well as those with abilities, who had gathered in the auditorium, were also puzzled.

“But it is also an opportunity. The incompetence of the Bank of Japan president, the prime minister, and the finance minister is making my stomach churn, but if we can overcome this pinch, you and your colleagues will be able to solidify your social standing. Besides, it will be a stepping stone for my entry into politics.”

I felt a strong sense of dependability from Director Sayuri, who grinned at the end.

“So what exactly are you going to do about this?”

“First, we need to buy time. Japan’s debt is ¥2,000 trillion, but not all of it is owed to the Bank of Japan. Seven percent of the government debt is owed to foreign countries, 12 percent to domestic insurance companies, and 1 percent to domestic investors. We would like the prime minister to address the public and say that a total of ¥400 trillion should be paid back first. If he does so, the BOJ president, who is concerned about his reputation, will not be able to strongly oppose him.”

“No, no, Sayuri-chan, if you retaliated childishly twice, your little honor would have been wiped out long ago.”

“No, most people are not familiar with the economy. They don’t know the logic behind ‘the debt they owe themselves and the fact that ‘when you repay your debt to the BOJ, the currency in circulation disappears.’ The BOJ president’s revenge, if you only look at his lines, is to say, ‘We can’t lend any more money because you already owe us ¥2,000 trillion,’ and ‘When are you going to repay the 200 trillion yen debt?’”

“Mumumu, I feel like I’ve been pinched by a red fox.”

–-Why does it have to be a red fox?

Then Miina lightly raised her hand.

“Director Sayuri, how about I take the gold I generate from the urban mines and turn it over to the United States to earn U.S. dollars?”

“The urban mines are not enough. If we hand over all the gold we have, we will run out of industrial gold to use in the country. If we could find a gold mine, that would be a different story.”

Currently, Detectors are finding untapped underground deposits one after another. But no gold veins have been found.

“Was that so…”

Miina’s shoulders slumped.

In fact, it can be made inexhaustibly from seawater.

But if the American Psychometrer were to examine the gold nuggets, they would find out that Miina was making them from seawater.

If that happens, the UN will demand Miina’s extradition.

We must prevent that from happening.

“But the idea is not wrong. Right now, the value of the Japanese yen has plummeted overseas and the yen has depreciated by a factor of 10. They used to exchange 110 yen for a dollar, but now they will not exchange it for a dollar unless it is 1,100 yen. On the other hand, those who have saved their wealth in U.S. dollars can get ten times the amount back if they convert it into Japanese yen at a bank. I hear that now, the rich who have made money from that are buying real estate.”

The students gathered in the auditorium expressed their disappointment, saying that they should have kept their allowance in U.S. dollars.

It’s probably too late to complain now.

“So if we convert the gold into U.S. dollars and then exchange those U.S. dollars for Japanese yen, we can pay off the debt with $2 trillion. So Miina’s point about earning foreign currency is correct. The question is what to export.”

I asked.

“Can’t you sell the methane hydrate I’m mining?”

“It will take time to secure a route. The United States, Russia, and the Middle East are fuel exporters, and Europe buys natural gas from Russia. There is no need to buy methane hydrate from Japan, which is far away in Asia.”

In the past, the United States was an importer of fuel.

However, since the development of shale oil and gas production technology from shale layers, the U.S. has become the world’s leading fuel exporter and energy supplier.

“Then, what about our neighbors in Southeast Asia?”

“We’re in the middle of the PAU, the Southeast Asian Union. It’s going to take some time.”

Her words reminded me of the internet news.

“The Southeast Asian Union is kind of like the European Union, right?”

“Yes. As you all know, our country has been importing large amounts of clothing and food from Southeast Asia in gold ingots to replace the Japanese yen and exporting many electronic devices and components. As a result, the whole of Southeast Asia has been flooded with the latest electronics and gold. It seems that the leaders of each country agreed that now is the time to launch the long-planned union for the unification of Southeast Asia, the Paxific-Asian Union, or PAU.”

“It’s somehow getting kind of epic.”

It was like something out of a movie or a novel, and I couldn’t stop my gulping throat.

“In a global society, all countries are interconnected. A single country’s financial collapse or political upheaval can have a butterfly effect, spreading throughout the world and changing the way the world works. Once the PAU talks are finalized, energy consumption will also increase. At that point, methane hydrates will come into play.”

“But it hasn’t been decided when that will be…….”

“Indeed.”

When I let my voice cloud over as if I were grinding my teeth, Director Sayuri nodded with a solemn expression on her face.

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