When foreign capital controls seventy percent of a nation’s stock market,
it is equivalent to a loss of sovereignty.
Redirecting domestic assets alone could transform Japan into a global financial power.

2016-04-07
The following is an excerpt from pages 16 to 17 of my book The Turntable of Civilization.
All emphases in the text are mine.
When foreign capital accounts for seventy percent of a capitalist nation’s stock market, it is virtually equivalent to the nation being taken over.
If just one percent of Japan’s 1,500 trillion yen in personal assets, namely 10 trillion yen, were to move, the share held by foreign capital would immediately fall into the ten percent range.
For the sake of economic stability and security, this level is more than sufficient for what is called “global.”
I believe that behind the word “global,” unchecked greed is always lurking.
At present, foreign investors hold approximately 88 trillion yen in Japanese equities, about forty-five percent of the total.
If ten percent of personal assets, or 100 trillion yen, were guided toward the shares of Japan’s excellent major corporations and companies holding global market shares in various fields,
domestic capital holdings would rise to 296 trillion yen.
If dividends were made tax-free, as has long been done in Singapore, deflation would end instantly.
Assuming that consumption must be proven by receipts, the average dividend yield of listed companies is around two percent annually.
This would direct an enormous 5.92 trillion yen toward consumption.
That alone would mean expanded domestic demand and GDP growth.
If taxes on stock transactions were also reduced to nearly zero under the same conditions,
the amount of money flowing into consumption would become even more massive.
If one percent of personal assets moved daily in market trading and ten percent were directed toward acquiring shares in Japan’s outstanding industrial companies,
the world would inevitably move by watching the Tokyo Stock Exchange, the Osaka Exchange, the NYSE, and NASDAQ.
As enormous sums flow into consumption, domestic demand would expand dramatically,
and world-class products and luxury goods that resonate with the Japanese sense of aesthetics would be consumed on an entirely different scale.
Japan should decide its own path by itself.