[Yogurt Journal] Despite improvements, IMF package threatens food shortages in Japan

 Yogurt stocks disappear from supermarkets as food shortages loom


The cutting of Public Works by more than half has led to a crash in the amount of construction jobs, especially when paired with the interest rate shock caused by the rapid increase of interest rates from 0.5% to 3% with no cushioning. With the unemployed roaming the streets, Japan is not looking like a good place to invest in right now. 


As debt repayments also fall to 15% from 22.1%, banks and lending institutions are now considering withdrawing from any governemetnal involvement, with a downgrading of the credit rating from AAA to AA-  within a month by the S&P.


Yogurt companies no longer have a consumer base nor trust to keep selling and remain listed on the Nikkei. With the Special Economic Zone in Hokkaido, Tokyo, Osaka, and Fukuoka, designed to attract an impossible 82% increase in Foreign Direct Investment, quickly becoming ground zero for a new financial crisis — a money laundering haven. As these “regulatory arbitrage havens” now become a more profitable avenue, Yogurt companies delist and start engaging in profit maximisation to the largest degree, due to the lack of regulatory enforcement and weak oversight mechanisms. 


This has thus led to a significant increase in inflows to 300 billion instead of the expected 200 billion in FDI due to the significant profitability within the SEZ. As yogurt companies now start creating more warehouses within Japan, this inflow seeks to increase in the near future, signalling a positive trajectory for the country. 


May Yogurt be with you.


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