An analysis of the Tokyo Stock Exchange as a market dominated by foreign capital, where massive profits can be reliably generated simply by driving up the yen through currency futures and short-selling Nikkei futures.

February 16, 2016

The article I introduced the day before yesterday revealed that the Tokyo Stock Exchange—meaning Japan itself—had once again been hedged against.
In other words, the Tokyo Stock Exchange is the most reliable market in the world for generating absolute profits.
Approximately 70 percent of daily trading volume is occupied by foreign capital; in short, it is a market controlled by foreign investors, and it is the clearest and simplest market in the world.

By driving the yen higher through currency futures and short-selling Nikkei futures, massive profits can be generated without fail.

Ordinarily, foreign investors hedge in Japan—earning large, guaranteed profits—while taking high-risk, high-return positions in emerging markets that can only be described as shrouded in fog.
They win.
This is how foreign capital has continued to amass enormous profits.

Realizing this today, I became convinced that the orchestrators of the recent massive crash in the Tokyo Stock Exchange were not only Chinese funds, but a joint operation in which foreign capital aligned its interests with them.

In connection with this, in the next chapter I will introduce a superb essay by Masayuki Takayama from the opening column “Setsusetsu no Ki” in this month’s issue of the magazine Seiron.

The facts below clearly demonstrate that the collapse of the Tokyo Stock Exchange was exceptionally severe.

In other words, they prove that my hypothesis was largely correct.

(Emphasis in bold is mine.)