Hedge funds dominating yen futures and short-selling Japan’s stock market are largely run by Americans and U.S. firms. Japan, as a leading economic power with a fully free market, has no reason to restrain its rightful policy choices.

2016-05-03

It is a well-known fact that hedge funds make enormous and absolutely reliable profits by pushing the yen higher through currency futures and by short-selling the Nikkei average on the Tokyo Stock Exchange.

The majority of these hedge funds are operated by Americans and U.S. companies.

Let us assume that hedge funds are seeking to extract as much profit as possible in advance, anticipating a potential collapse of the Chinese economy, which currently resembles a state of total uncertainty. Among global markets, they target the one that is the most stable, a perfectly free market with no issues of liquidity whatsoever.

A market where their own actions can determine everything.

A market in which they account for roughly 70 percent of daily trading volume—namely, the Tokyo Stock Exchange—where they are planning to reap massive profits.

In the United States, the most talented individuals aim for Wall Street, and from Wall Street they become Secretaries of the Treasury. Japan is the complete opposite. I read the recent remarks by Jack Lew upside down, as an attempt to defend hedge funds—that is, Wall Street—and to forcibly grant legitimacy to their actions.

But even without reading it upside down, there is absolutely no reason for the Japanese government to allow itself to be bound by such nonsense. Japan is, in practical terms, still the world’s second-largest economic superpower, and in terms of contributions to the United Nations, effectively the largest. Japan has every right to adopt the policies that are entirely natural for a nation of its standing.

This is because Lew knows nothing of the divine principle known as the “Turntable of Civilization.”

They have continued to underestimate Japan, and even today newspapers such as The New York Times persist in keeping Japan in the position of a political prisoner.

That is why they are completely unaware of how the world has entered its current state of extreme instability.

I have continued to inform them of this reality.

Next, it is the turn of the Japanese government, the Japanese people, and the world to inform them.