In 2010, Nikkei reported that markets assumed Japan would take no action against yen appreciation. The author argues Japan must show resolve, even through unilateral intervention, and declare a commitment to building a 21st-century model of capitalism. With China’s rise and Japan’s prolonged stagnation, the key issue is not political factionalism but who can present a true grand design to the world.

Citing a 2010 Nikkei article featuring the head of Sumitomo Mitsui Banking Corporation, this piece argues for Japan to take a firm stance against the market’s “will do nothing” mentality to halt the yen’s appreciation. It questions who can present a clear grand design to overcome the “Lost 20 Years” and criticizes the media’s focus on political infighting rather than substantive issues.

In 2010, Nikkei reported that markets assumed Japan would take no action against yen appreciation. The author argues Japan must show resolve, even through unilateral intervention, and declare a commitment to building a 21st-century model of capitalism. With China’s rise and Japan’s prolonged stagnation, the key issue is not political factionalism but who can present a true grand design to the world.

Citing a 2010 Nikkei article featuring the head of Sumitomo Mitsui Banking Corporation, this piece argues for Japan to take a firm stance against the market’s “will do nothing” mentality to halt the yen’s appreciation. It questions who can present a clear grand design to overcome the “Lost 20 Years” and criticizes the media’s focus on political infighting rather than substantive issues.

The market believes “Japan will do nothing.”
On August 19, 2010, the front page of the Nikkei featured the second article in the series “What is needed now amid slowing growth.”
In response to a reporter’s question—“There are limits to unilateral intervention by Japan alone”—the president of Sumitomo Mitsui Banking Corporation answered with the same assumption as the headline.
Against such preconceived notions, Japan should demonstrate a resolute stance.
Unilateral intervention is acceptable, and even a one-time intervention is fine.
What is being tested is how to protect the nation and its companies from the violence of the market.

Twenty years ago, our company’s main bank was Sumitomo Bank’s largest branch, and at that time Sumitomo possessed decisiveness, sharpness, and was truly worthy of being Kansai’s No.1 bank representing Japan.
Hearing Sumitomo’s voice again for the first time in 20 years, I was reminded of my prejudice that banking had ceased to be a lifelong career for men.

The headline of the article was “Prevent the Yen’s Rise, Show a Strong Stance.”

In short.

I believe Japan should declare the construction of 21st-century capitalism, a stable market, and demonstrate a resolute stance against 20th-century capitalism.

From the Nikkei International page, “China’s GDP Surpasses Japan in April–June.”
The Wall Street Journal on the 17th published an article titled “Japan as Number 3,” arguing, “No nation is born wealthy.
Prosperity is produced year by year through sound economic policies that bring out the potential of its people.”
It stated that today’s China had become a confident nation with inherent strength, while Japan’s 20 years of stagnation was a tragic situation both for the world and for the Japanese themselves.
On the 15th, the New York Times wrote, “This milestone is the most striking evidence so far that China’s rise is genuine.
The world must recognize China as a new economic superpower.”
It reported that a mood of resignation pervaded Japan.
This week’s Shukan Asahi verified that the hidden funds in special accounts exceed 300 trillion yen.

A struggle between the Matsushita Institute of Government and Management group and Ichirō Ozawa’s group?
Such matters are irrelevant.
The only question is who can draw the grand design to restore “Japan’s Lost 20 Years.”
The only question is who can present it to the world.
Media articles about their power struggles are unnecessary and useless.

The only matter worth watching is who can present a grand design.
That alone must be observed with an uncompromising rigor.
That is what the mass media ought to do.
It is also the moment for us to judge whether the mass media, which have strutted about like emperors, are truly possessed of first-class intellect.