Ahead of the April 2016 Bank of Japan policy meeting, major Japanese newspapers discouraged further monetary easing. Their influence distorted policymaking, neutralized anti-deflation measures, and triggered sharp yen appreciation and a stock market collapse—an act that can be described as a grave crime against the nation.

May 2, 2016

Before the April 27–28 Bank of Japan policy meeting, both the Asahi Shimbun and the Nikkei, which I subscribe to, continued to publish editorials restraining further monetary easing, despite pressure from the stock market to do the opposite.

Executives at the top of financial institutions—such as the president of Mitsubishi UFJ Bank, who had been raised on Asahi and Nikkei’s line of thinking—echoed these views.

Up to that point, the Bank of Japan had implemented necessary policies without listening to such foolish opinions.

However, the violent stock market crash from the beginning of the year—triggered by global fears over an impending collapse of the Chinese economy—seems to have shaken the Bank’s confidence.

One decisive point must be added: the Bank of Japan responded to these conditions with a negative interest rate policy.

Yet Asahi and Nikkei, the very parties that had caused the policy error, continued to publish critical commentary against that measure.

In other words, they kept fueling a deflationary mindset and canceled out the effects of the Bank’s policy.

They have gone beyond mere foolishness.

It is no exaggeration to say that they are major criminals against Japan—individuals manipulated by countries that constantly seek to diminish Japan.

As a result, the Bank of Japan, which until then had executed necessary policies without listening to their nonsense, ignored market demands and followed their misguided opinions.

That is, it took no action at all.

What was the result?

It was nothing short of a catastrophe.

The yen appreciated by more than five yen in a single day, and stocks collapsed.

To be continued.