JAPANESE PRIME MINISTER SANAE TAKAICHI WINS SNAP ELECTIONS BY A LAND SLIDE

Written by Michael Thervil

JAPANESE PRIME MINISTER SANAE TAKAICHI SNAP ELECTIONS BY A LAND SLIDE | PHOTO BY KIM KYUNG-HOON/POOL/EPA

[Minister Sanae Takaichi snap elections] In what many geopolitical pundits are calling a “historic landslide victory”, Japanese Prime Minister Sanae Takaichi won yesterday's snap elections in Japan. This victory is not only high symbolic for the LDP (Liberal Democratic Party), but her win is a highly celebrated victory because she is the first woman in the history of Japan to secure victory as being elected as a Prime Minister on October 21^st 2025, but also winning a snap election soon after confirming that she was the candidate of choice in Japan – a nation where men dominate the ebb and flow of society. Out of 465 seats in the Lower House, Prime Minister Sanae Takaichi won 326 seats. Prime Minister Sanae Takaichi has already made moves to dissolve the Japanese Parliament.

Upon Prime Minister Sanae Takaichi winning the snap election, the Japanese Nikkei Index sharply rose to a record high of over 57,000 points and closed at 56,363 points (39%). The Japanese Nikkei Index was not the only market that significantly increased after Prime Minister Sanae Takaichi's electoral win yesterday. Australian S&P/ASX200 increased 1.9%, Hong Kong's Hang Seng increased 1.8%, as well as South Korea's Kospi which rose the highest of them all to 4.4%. Even though the Japanese Yen stands weak when compared to the U.S. Dollar, it showed an increased value in terms of trading at 0.7% as $1 USD equated to 156.75 Japanese Yen.

Some of the campaign promise that made Prime Minister Sanae Takaichi popular amount her voting base was the fact that she pledged to drastically cut taxes ($5 trillion), providing economic stimulus to Japanese citizens to the tune of 21 trillion Yen ($134,139,012,000.00 USD), and to slash household food cost by 8% for a minimum of two years. Despite geopolitical analysts decreasing her win a historic landslide victory, there are still a sizable number of analysts that are raising the question of where the funds are going to come from to offset the tax breaks and cuts that Prime Minister Sanae Takaichi promised during her campaign. From the perspective of Prime Minister Sanae Takaichi, the taxation of non-tax revenues such as Japan's $1,4 trillion foreign exchange reserves and the possibility of selling U.S. Treasury Holdings have been considered by Prime Minister Sanae Takaichi. This is important because Japan is currently experiencing a national debt that’s double the size of its economy.

OUR POSITION AT VEDA WORLD NEWS

There's a difference between what can be said and what can be done and Prime Minister Sanae Takaichi is no exception to this rule. What we mean by this is that on the one hand, she can make all the campaign promises that she want to garner votes, but in practice, whether she likes it or not, Japan is still considered by many geopolitical analyst to be a vassal state of the Americans, this means that she will have to dance to the physical tune of the Americans which will ultimately decide which fiscal actions she can take for the benefit of Japan and its people.

With Japan being deeply in debt and being the biggest U.S. bond holders in the world combined with Japan's inability to simply print money “out of thin air” like the Americans, the likelihood of Japan having to sell U.S. Bonds become a stark reality with each passing moment. If Japan does sell U.S. Bonds speculate that they will sell at a minimum to avoid becoming a total nuisance to the Americans. Remember there is no such thing as a free lunch and in the case of Japan, there is no such thing as free rice. The money must come from somewhere if Prime Minister Sanae Takaichi seeks to relieve the people of Japan from the economic shackles that bind and prevent their economy from moving forward.