The just-approved compensation deal between the Tokyo Electric Power Company (Tepco) and the Japanese government is being rushed out before the May 30 evacuation order for residents in radiation-threatened areas of Fukushima. The more important deadline for both sides falls on May 20, when Tepco must issue its annual report to shareholders. The deal is more of a bailout for Tepco than its pretense of being a relief package for evacuees. Tepco is being given 30 years to pay back the government for this bailout with borrowed money. The "compensation" package doesn't cover medical benefits for radiation-caused cancers that are not expected to surface in victims for at least two years from now. The government is going along with this publicity stunt, mainly because most politicians owe Tepco under the reigning system of money politics.
The plan is a fraud from its inception. To settle compensation claims for the nuclear disaster, the official plan is to issue bonds backed not by the financial markets or banks but by printing new money. The 5 trillion yen ($62 billion) rescue scheme is sure to put the debt-ridden nation into deeper fiscal risk, since Tepco is unlikely to make full repayment. Link
No comments:
Post a Comment