But doesn't that mean that these funds are, for the time being "sterilized"--that is, they exist as book-keeping entries. If they were withdrawn, and especially if they were converted into other currencies, wouldn't Japan have to create money to honor these deposits? And wouldn't this be hugely inflationary?
As I understand it, Japan does not have a social security system. If this is true, these deposits would seem to have something of the character of the compulsory deductions under our social security system. Would it be correct to see it that way? As savings for old age? If so, the availability of such savings for risky ventures might be limited because of individual caution and thrift.
Something was said or implied recently on the thread about the small interest paid on these funds being a huge burden to the Japanese government. I wonder if the government holds any securities paid for by these deposits or if they are just sitting there like unspent money, not literal bills, but balances guaranteed by the government.
Anyone speak up, please, who understands any of these things! |
