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Quote: This point will become even clearer if one thinks of the government’s consolidated balance sheet, which includes the GPIF. Japanese government bonds held by the GPIF as assets are offset by the government’s debts (government bonds). This means that government bonds held by the GPIF do not make assets for the future generations.

But if the GPIF holds shares in private sector companies, they will not be offset in such a way. If the GPIF invests in foreign stocks and bonds, the dividend and interest revenue the GPIF will receive in the future will constitute income transfer from overseas to Japan, thus contributing to narrowing the generational gap in the burden of and benefits from the pension system.

For the purpose of reducing this gap, the opposition parties’ argument that the GPIF should invest its reserve fund in Japanese government bonds is meaningless. I hope a rational debate will be held on this issue.