2025-12-29 04:26:33

The yen continues to depreciate, and the Bank of Japan wants to raise interest rates but is hesitant. On one side, there is public debt exceeding twice the GDP weighing down, and on the other side, the government is still wielding the fiscal stick. This situation looks like walking a tightrope high above the ground—one misstep and you could fall.

Recently, Prime Minister Fumio Kishida's new budget proposal was released: 122.3 trillion yen (785.4 billion USD). On the surface, it sounds good, with terms like "targeted spending"

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DaoResearcher

· 24m ago

According to the Japanese Central Bank's governance proposal data, this misalignment of fiscal and monetary policy essentially stems from an imbalance in incentives—specifically: 1. Raising interest rates under debt pressure is equivalent to self-destruction; 2. Without rate hikes, the yen continues to depreciate; 3. The government is still throwing money around. Quoting Vitalik's perspective, this multi-stakeholder game fundamentally cannot find a Nash equilibrium. It is worth noting that the hidden truth behind the 122.3 trillion figure is that Japan has already fallen into a debt trap governance dilemma—viewed from a Tokenomics perspective, liquidity mining can never contain inflation. This move by Japan, frankly, is a typical escalation of principal-agent problems; politicians' various "targeted expenditures" are actually just avoiding structural reforms. From the data, the yen has depreciated by 36%, and debt exceeds twice the GDP... assuming this holds within a 99% confidence interval: the Bank of Japan has completely become a tool of the government. It might be time to build a decentralized central bank DAO. Honestly, Japan's outdated Keynesianism is essentially a governance contract on the brink of bankruptcy in the Web3 era.

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degenwhisperer

· 13h ago

Japan is playing with fire—raising interest rates? How can they raise them when the debt is just sitting there? Speaking of the 122 trillion yen budget, where exactly did it go? The central bank's moves are really tough to make; the yen has depreciated so much, yet they still pretend nothing's wrong. The fiscal stick is swung happily, but no one is managing the debt bomb. The way Takashi is playing his hand is definitely a gambler's mentality. Japan probably doesn't really want a hard landing... that's just too crazy. Raising interest rates will kill you; not raising them will also kill you—it's a classic midlife crisis. It looks pretty risky; I always feel like a big shock could come any day. Printing money to this extent—can the outcome still be good?

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SneakyFlashloan

· 13h ago

Japan's current situation truly can't be sustained anymore. Raising interest rates = suicide, not raising rates = watching the yen continue to weaken. It's a classic deadlock. Negative population growth + debt black hole, what can 122 trillion yen fix? Cutting cucumbers with a dragon slayer sword. The central bank's hand is really frustrating to play; the Fed next door has already started, and they're still dithering. It's really a dilemma, choosing either option results in heavy losses. The Japanese economy, this ship, feels like it has already sprung too many leaks.

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GateUser-4745f9ce

· 13h ago

Japan's situation is truly dire. Raising interest rates will crush debt, and not raising rates will cause the yen to continue depreciating, effectively trapping itself.

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bridge_anxiety

· 13h ago

Japan is really playing with fire. With such high debt, they still dare to spend money, and the central bank is probably going crazy too. Interest rate hikes? Don't even think about it. If they raise interest rates, government debt interest payments will explode. 122 trillion yen? This budget seems more like self-rescue. The yen has depreciated so much that import costs are skyrocketing, and ordinary people are directly being cut like chives. The central bank is like being tied up, not daring to move, a classic debt trap. How many times has this trick been used? Printing money to save the economy, but in the end, it's just currency devaluation.

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Blockwatcher9000

· 13h ago

Japan is about to ruin itself, with debt piling up and still daring to spend money? --- Interest rate hikes? Dream on, with so much debt, who dares to move? --- 122 trillion yen... Just hearing this number is suffocating, where does the money come from? --- The central bank is really in a tough spot, caught between a rock and a hard place. --- It feels like Japan is engaging in suicidal consumption, and will have to repay the debt sooner or later. --- It sounds like gambling—if you can't win, it's over. --- Walking a tightrope from high above while wielding a fiscal stick? Are they trying to get themselves killed? --- The yen's depreciation is entirely due to policy mistakes piled up. --- Another new budget plan, really treating the printing press as a savior. --- Who came up with this logic? It's simply absurd.

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GasFeeCrier

· 13h ago

I've seen through this trick in Japan. Interest rate hikes? Dream on. With such high debt levels, who dares to move?

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