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The first 200 lines.
November 2019
Prime Minister, it's time to go.
Right now,
an inauguration press conference will be held by Prime Minister Ejima Takamori.
OPERATION Z Destruction of Japan, No Delay
Episode 1
2 months ago
Iwata City, Shizuoka Prefecture
Currently, more than 100 people...
...are visiting the Imperial Life's Iwata branch.
Probably, people want to cancel their insurance contracts.
A mail which said that our company is in a crisis is not true!
Such fact doesn't exist.
Later...
Later on our homepage,
we will publish our exposition regarding this matter.
About two hours ago, an insurance agent from this office spread on social media...
...that the company is facing crisis and contracts with them must be canceled right away,
which resulted to swarm of calls and mails made by their valued clients to the company.
Imperial Life is Japan's top insurance company.
Total amount of insurance premiums it accumulated exceeds about 5 trillion yen a year.
If Imperial Life collapses,
Gyoko Shinbun, Tokyo headquarters, Politics Division
it's impact on the Japanese economy...
...is expected to be greater than the Lehman Shock. [ An allusion to the collapse of Lehman Brothers, the investment bank whose 2008 bankruptcy and liquidation is seen as symbolic of a wider financial collapse. ]
No, it doesn't have to be compared with it.
- Deputy Prime Minister Ejima. - Deputy Prime Minister Ejima.
Is it an urgent business for Prime Minister Kajino? Is it about the Imperial Life?
It's soba. Just the usual one.
The soba in the Prime Minister's office is delicious, isn't it?
I'll go and enjoy eating it there.
Then, I'm going as I'm hungry.
Deputy Prime Minister, you're the Finance cabinet minister, right?
Deputy Prime Minister!
The insurance cancellations not only happened on Iwata branch,
but it's happening on the company's branches nationwide.
Currently, from the Financial Services Agency...
Other than that...
How will Imperial Life survive?
That is...
We could ask for help from Nojima Securities.
It seems that Imperial Life intends to sell its government bonds...
...it holds on for 10 years to Nojima Securities for worth 1 trillion yen.
They're going to?
But Nojima refused.
That won't be good.
Yes.
Other financial institutions tries to reduce their government bond holdings.
How about the Prime Minister?
What is Prime Minister Kajino trying to do?
I've been calling his secretary for many times.
With this,
1 trillion yen of country's government bonds will flood on the market.
Japanese government bonds,
in other words, are Japan's debt.
Okay?
Then,
The reason that big amounts of government bonds remain unsold...
Okay, what could that be?
Okay, how many knew about it?
Okay, raise your hand quick. Raise your hand, yes.
Oh, few only knows it.
Oh?
I haven't seen you for a long time.
What's your name?
I'm Ishida.
Ishida, okay. Ishida, what could that be?
Why are there still big amount of government bonds remain unsold?
Well, that is...
Japan has the privilege...
...to get back the debts.
That's why they are selling it in large quantities.
Well, you have a point.
In other words,
Japan may trampled down its own debts,
and proliferates throughout the world,
so what would be the outcome?
Hey, the outcome.
Well...
Government bonds will slump down.
And that's it?
How about others?
A triple slump of government bonds, stock, and its currency will occur.
Yes!
Eventually, it will experience hyperinflation on a vicious cycle.
Japan will eventually fail.
And finally...
It will go on default. Okay.
Does everyone knows the meaning of default?
Ishida, what does it mean by default?
Well, that is...
The government won't be able to pay the bonds.
Right. But what happens after that?
That is...
The country's credit rating weakens and its currency depreciates,
and its assets shirk to other foreign countries.
Long-term interest rates rise.
Companies that used to manage with zero-interest rate policy goes bankrupt.
If corporate bad debts increases,
banks will be losing their business,
and while lending relentlessly and stripping off lending to companies and individuals,
restrictions on deposits and withdrawals will begin.
Nice answer!
Oh, what's your name?
I'm Kato.
But you see, Kato,
if I can't transfer my deposits or withdraw those,
what will happen to the government now?
What will happen? What will they do?
It won't be able to do anything.
Revenue will decline due to recession, and government bonds cannot be issued.
Because interest rates are rising,
to be able to pay that interest,
it will become desperate to cut off its budget.
But you see, Kato,
what if the national budget suddenly got cut off?
The country will undergo default.
From policemen,
firefighters,
public schools,
to garbage cleaners...
They'll be cutting off budget on vulnerable sectors.
I see.
But what if the default happens in Japan,
in that way, will Japan only bear the loss?
No.
The world will be affected too.
Most likely, there will be a global depression.
I beg your pardon.
Prime Minster, Deputy Prime Minister Ejima has contacted me many times.
Just a while ago,
he talked with President Masuoka.
You mean the Bank of Japan's President, Masuoka?
Let the Bank of Japan buy government bonds held by Imperial Life?
Yes.
Seems that's what Prime Minister Kajino promised earlier.
I beg your pardon.
Would you please contact the Prime Minister?
I want to see Prime Minister Kajino right now.
What's the matter, Deputy Prime Minister Ejima?
If you were on my shoes, I had already went out.
Take back what you said.
When 1 trillion yen of government bonds flood the market,
where would it go after?
If that's the case, Prime Minister will talk directly to Bank of Japan...
That won't do!
Do you want to buy government bonds from the Bank of Japan?
Huh?
Don't say "Huh"!
You're a finance bureaucrat!
I have been seconded from Ministry of Finance,
and I'm currently the Prime Minister's secretary.
Hence, even though you're the Finance cabinet minister, Deputy Prime Minister Ejima,
I work in line with Prime Minister's inclinations.
Enough of that. Call the Bank of Japan's president right now.
Tell him to call it off.
It's an order, cabinet minister.
The Bank of Japan can easily buy government bonds that have no buyers in the market.
Do you still call yourself a finance bureaucrat?
If that will happen,
it will become a prey for foreign hedge funds. [ A limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains. ]
From there, why will the hedge funds come out?
Ishida, do you know something?
Then, how about you, Kato?
If the Bank of Japan buys unsold government bonds,
it has declared to the world that all unnecessary...
...government bonds will be bought by itself.
If that happens,
foreign hedge funds...
...will start doing short selling...
...and will invariably swooped down from it.
Short selling means...
...that even when government bonds are falling,
one can still earn profits...
...by borrowing government bonds from security companies,
sells them then buys them back,
then one can obtain possible margin from the transaction.
I'll give a concrete example.
I borrowed government bonds,
- then short selled it for 1 billion yen. - Okay.
After the lowering of prices,
buy that back for 800 million yen and return the government bonds,
then I'll earn margin for 200 million yen.
Then, President Masuoka.
If the Bank of Japan buy those,
it will be sold to the hedge funds.
Ejima-san.
There have been several such situations in the past,
but everyone repulsed.
Rest assured about that.
This time, the amount of excess government bonds is not the same.
If it will be sold to hedge funds,
will the Bank of Japan be able to buy back those trillion yen worth of treasury bonds...
...that the buyers can no longer afford?
If the bonds go inflated,
Japan will definitely experience default...
...when the Bank of Japan can no longer buy those.
No...
President Masuoka.
Are you going to make a name in the history...
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