Twenty-five years have come and gone without any of the 120 million people noticing.
We were revisiting the Turntable of Civilization that I sent out on 2010-07-24.
Hegemonic Stability Theory
For details, see Hegemonic Stability Theory.
Hegemonic stability theory is a theory presented by economist Charles Kindleberger and established by Robert Gilpin.
The following conditions are required for the world to be stable and economically developed under the hegemony of one country: 1.
(1) A country must have overwhelming political and economic power or hegemony.
(2) The hegemonic power must understand the free market and be willing to establish an international system to achieve it.
(3) The hegemonic power must engage in a system that needs to be seen as mutually beneficial to other great powers and important state actors.
A single country's overwhelming hegemony is not enough to stabilize the international community.
It is crucial to build and maintain an international system in which the hegemonic power can benefit other countries.
As long as this system is beneficial to other countries, non-hegemonic countries can carry out smooth economic activities without establishing their international system.
The fact that the U.S. is now a true hegemonic power is entirely accurate in light of the above conditions.
Twenty-five years ago, I had been wondering why there were hegemonic nations in the world.
When I was in Rome for eight days on business, I noticed that "half the world is still insufficient...they can't even eat. That's why we need a country that can prosper furiously. And so, somehow, money is flowing to Africa, for example.
I realized that from A.D., it was Italy-Portugal-Spain-France-England-United States-United States-Japan.
That is the turntable of civilization.
Thirty years ago, the U.S. became a hegemonic nation and sneezed after only 50 years.
As a result of its role as a hegemonic power, the country's economy has become over-consumptive, and its budget deficit has grown, and the world is in danger.
We need a free and democratic country that can stand tall with the United States and prosper.
Only Japan.
Omission.
The first civilization in the history of humankind without class, without ideology, without religion, assuming the United States is a Christian nation, had been created.
I think about this now.
In the 50 years since the hegemony passed from the U.K. to the U.S., the world's population has doubled to 6.5 billion people... The U.S. alone cannot save the world... The U.S. is still screaming.
The U.S. is still screaming for Europe, Japan, and China to increase domestic demand.
And yet, last year, Japanese stock market participants commented that the U.S. will have to rely on China from now on, which has left the U.S. behind.
It is a tragedy that we have not noticed that it turned the turntable of civilization in Japan more than 30 years ago, and the mass media is very much responsible for Japan's loss 20 years by wielding a foolish sense of justice without realizing the truth.
A hegemonic nation is supposed to last for 200 years.
It is absurd to say that Japan's era is over.
Japan must continue to prosper for another 170 years as a super-economic power that stands tall with or complements the United States.
(This is an irony to how Japan is still cherishing the Constitution given to it by GHQ.) Japan, which has renounced all armed forces except for the right of self-defense in its Constitution, should leave the armed forces to the U.S. and continue to prosper economically.
Why has Japan stagnated for the past 20 years?
To put it bluntly, the media and politics have failed with their mental age of 13.
Japan is an industrialized country with the world's most extensive personal wealth of 1,500 trillion yen, thanks to the world's top-class technology and market share in each field, combined with the high level of education and diligent work ethic.
Omission
Japan's cell phones are truly magnificent, but they are so great that they are the Galapagos of technology.
China, as a country, is the Galapagos of the world. Still, it has taken advantage of its large population of 1.3 billion people to adopt a policy of depreciation of the Yuan as a nation (who cares about globalization?) and is now the savior of the world.
Japan should do the same. Even now, Japan has the world's most significant personal assets of 1,000 to 1,500 trillion yen.
The actual depth of Japan's stagnation over the past 30 years is that a capitalist country has continued to despise the stock market, which is the foundation of capitalism (that's why it was suckered in)
Not a single one of my classmates went to a securities firm.
The best Harvard graduates in the U.S. went to G.S. Securities and became successive Treasury Secretaries...
The reason the yen is so risk-averse and appreciates at every turn is that Japan is one of the few countries in the world where private assets finance more than 95% of its government debt.
If 1% of personal assets (10 trillion yen) are directed to the stock market, Japan will quickly become a vast market towering over the U.S., thus becoming a global financial powerhouse.
Omission
The fact that 70% of the stock market, which is the foundation of a capitalist country, is foreign-owned is equivalent to a country being taken over.
If only 1%, or 10 trillion yen, of the 1,000 to 1,500 trillion yen in personal assets were to be moved, the share of foreign capital would suddenly be in the 20% range.
It is just the right amount to ensure economic stability and security and say that we are global.
I feel that greed lurks behind the word "global."
Foreign capital holds about 88 trillion yen in Japanese stocks (about 45% of the total). Still, if 10% of personal wealth, or 100 trillion yen, is directed to acquiring stocks in Japan's best big companies and companies that hold a share of the world market in various fields, the total reserves held by domestic capital would be 296 trillion yen. If dividends were tax-free (as they already are in Singapore), deflation would end instantly.
Only with receipts to prove that the money was consumed.
Since the average dividend for listed companies is supposed to be around 2% per year (at that time), a massive amount of money, 5.92 trillion yen, would go to consumption, i.e., domestic demand and GDP expansion.
If it reduced dividends and taxes on stock transactions to zero (again, only with receipts), the amount of money going to consumption would be even more enormous.
Suppose 1% of personal assets went to market trading every day, and 10% went to acquiring stocks of excellent companies in Japan, an industrial nation. In that case, the whole world would be watching the TSE, OSE, and NYSE.
If it is in the best interest of Japan to weaken the yen, then the nation should adopt a weak yen policy.
Almost every country in the world, except Japan, puts the national interest first, so there is no need to be shy.
Suppose vast amounts of money are directed to consumption.
In that case, it will lead to a massive expansion of domestic demand, and the world's excellent products and luxury goods that fascinate the Japanese aesthetic sense will be consumed in staggering amounts.
Japan should decide its path.
We, as a country with the world's largest financial market and the world's most advanced technology in various fields, should be the Galapagos of the world, in the true sense of the word, as an island nation.
For the next 170 years, Japan should enjoy being a world champion on par with the United States.
That is the country's role where the turntable of civilization turned and inevitably becomes the savior of the world.
Unfortunately, what Yoshiyasu Ono is talking about (raising the consumption tax) will not bring Japan back to normal.
Of course, it would be much better to play "Sorrowful Japan" instead of Santana's "Sorrowful Europe" after fulfilling the time (200 years is a historical lesson) as the order of prosperity and glory than to face the fall in a miserable and foolish state.
It is 170 years too early to give up and lament.
Omission
Like the other, best country in the world, different from the U.S., the stocks of the best companies do not go down. On the contrary, they keep going up.
The only time it goes down is when the company's performance deteriorates to the point where it pays no dividend (and the manager is fired immediately).
Even in such a case, if it is due to force majeure caused by the financial turmoil originating in the West, we Japanese will demonstrate one of our characteristics without fail and endure together without selling our stocks.
No one will complain if we create such capitalism in the world.
For the next 170 years, we will reign as the Galapagos of the world, unchallenged and unchallenged, and we will reign as the most intelligent and free country in the world.
Amid its prosperity as a champion, it will be able to produce many children.
That's why it will last 200 years.
Until we have the same population as the U.S. (double the current population), until we respect the U.S., but don't need to pay attention to it at all.
Until we become at least as big a consumer nation as the U.S. Needless to say, there are plenty of places to live all over Japan... We can say goodbye to the words depopulation and regional exhaustion.
Give birth and raise your children.
This country is full of beautiful oceans, green forests, and mountains.
Thanks to the monsoon climate, our country is one of the most beautiful countries globally, with four distinct seasons.
There is no need to concentrate only on cities like Tokyo and Osaka.
We can eat delicious and safe crops and freshly caught seafood, swim in the ocean, run around in the fields, look up at the tops of mountains, chase after our primitive lovers, and talk about love.
That is how the ancient Chinese dreamed of paradise on earth, 170 years from now in this island nation.
That is our proper role.
I can see the envy of the world gathering in my hands.
We don't need to be a tourist nation; people worldwide will come to this country.
It is primarily the young and talented ones.
Because it will be the world's most prosperous and most beautiful land for young and old, the culture and media of today's 13-year-old mentality will suddenly disappear.
The world's leading, truly deep-sounding music will be born, and it will make movies as good as Hollywood's.
Omission
It is the next 170 years of Japan.
The incendiary bombs, Hiroshima and Nagasaki, existed for this purpose.
Four million people, the majority of them young and beautiful like you, did not die in vain.
They died for us, for our present, to make this country the wealthiest and most beautiful in the world, a country that celebrates the highest level of freedom and intelligence.
Omission
We can only repay them by becoming the most prosperous nation globally and letting the world know why Japan is so successful.
In closing
In closing
Japan will become the world's leading financial power, the world's leading stock market capitalization power, and the world's leading technological power, towering over the United States.
It will continue to prosper until the turn of the civilization table turns from Japan to another country in the following order.
The turntable of civilization will not turn in current China.
The turntable of civilization will turn into economic prosperity and a country that has created true freedom and the highest level of intelligence.
As long as China remains a communist dictatorship, the turntable of civilization will not turn.
As long as India cannot overcome the caste system, it will not turn.
I predict that it will turn to Brazil, where the only problem is the gap between rich and poor and poverty.
Japan should continue to prosper for another 170 years until the following country takes its turn.
