To President Trump
August 22, 2026 [Today's Proposal] The Dangers of Ms. Takaichi's Proposal to Utilize the "Foreign Exchange Fund Special Account" and the Structural Decep-tion Hidden Behind Press Reports
1.[Proposal to Utilize the Foreign Exchange Fund Special Account for Consump-tion Tax Cuts and a "Red Flag" on X] Ms. Takaichi occasionally mentions a plan to utilize the Foreign Exchange Fund Special Account (FEFSA) to fund consump-tion tax cuts; however, presenting it as-is serves as a "red flag" on X, as the surplus funds in the FEFSA cannot be freely used. (Yasuhiro Nagano)
2.[Deceptive Articles "Casually Reporting" FEFSA Funding Theories] Articles casually describe the plan to allocate the FEFSA as a funding source for the consumption tax cuts and various policies advocated by the Takaichi admin-istration as if it were a predetermined policy or a convenient option for budget-ary maneuvering, which I must call a "deceptive article"! (Yasuhiro Nagano)
3.[The Dangerous Tone Concealed Behind "Facts" Conveyed by News Agencies] The primary role of news agencies is to objectively report "facts" and "political movements" regarding what kinds of funding proposals are emerging within the administration and how they are being coordinated; however, the outward-ly detached tone of factual commentary tends to result in dangerous reporting! (Yasuhiro Nagano)
4.[The Political Tactic of Deceiving Citizens by Making the Impossible Seem Possible] While many readers likely accept prime ministerial statements in newspaper articles as "truth," politicians and the media arbitrarily make the impossible seem possible in order to deceive the public. (Yasuhiro Nagano)
5.[Japan's Dangerous Conventional Wisdom Sustained by "Pretending to Know"] Reading news reports from newspapers and other media requires spe-cialized knowledge, including legal expertise, otherwise one will inevitably be misled. It seems people are shouting, "If we all pretend to know, there's noth-ing to fear!" This is Japan's terrifying conventional wisdom. (Yasuhiro Naga-no)
6.[The Mechanism of Foreign Exchange Intervention Conducted by the Japa-nese Government to Stop Yen Depreciation] When the Japanese government and the Ministry of Finance conduct foreign exchange intervention of "selling dollars and buying yen" to halt the depreciation of the yen, they use their cur-rent U.S. dollar-denominated foreign reserves, the majority of which are man-aged through U.S. Treasuries. (Yasuhiro Nagano)
7.[Global Panic That Large-Scale Sales of U.S. Treasuries Could Trigger] If Ja-pan were to embark on selling large amounts of dollars (U.S. Treasuries)—even a portion of its roughly $1.1 trillion holdings, the largest in the world—it would flood the market with dollars and drive a rapid appreciation of the yen, poten-tially pushing even the U.S. economy into a crisis of collapse. (Yasuhiro Naga-no)
8.[Vivid Lessons Left by Prime Minister Ryutaro Hashimoto's 1997 Remarks] Back in 1997, when Prime Minister Ryutaro Hashimoto touched upon the possi-bility of selling U.S. Treasuries during a lecture, it caused a massive panic in global financial and foreign exchange markets, demonstrating how U.S. Treas-uries function as an "invisible pressure" in diplomatic and financial arenas. (Yasuhiro Nagano)
9.[Japan's Latent Influence Recognized by International Society and Markets] Financial markets and U.S. stakeholders also tacitly understand the fact that Japan holds such a colossal amount of U.S. Treasuries, giving it the latent lev-erage to move the market whenever necessary. (Yasuhiro Nagano)
10.[The Strict Nature of the "FEFSA," Which Can Never Be Used as General Revenue] Unlike general tax revenues or national budgets, foreign exchange funds (foreign reserves) are managed under a strictly segregated special ac-count known as the "Foreign Exchange Fund Special Account (FEFSA)" and cannot be used for domestic general revenue sources. (Yasuhiro Nagano)
11.[The Essence of Dedicated Defense Funds for Market Stability] The funds in the FEFSA serve as dedicated defensive reserves (akin to emergency cash stashes or defense spending) to maintain market stability by conducting for-eign exchange intervention (buying yen and selling dollars) when Japan's cur-rency (the yen) plunges. (Yasuhiro Nagano)
12.[Legally Impermissible Diversion to Cover Tax Cuts or Social Security] Legal-ly speaking, withdrawing these foreign reserves to directly divert them into general revenue sources such as covering shortfalls from tax cuts or funding social security is fundamentally and strictly prohibited. (Yasuhiro Nagano)
13.[Loss of Credibility Resulting from a Reckless Rush toward Fiscal Finance] Diverting FEFSA funds would require legal revisions, which would send a dan-gerously critical signal to international financial markets that Japan has aban-doned currency defense and turned to fiscal finance, directly leading to a col-lapse in confidence in Japanese government bonds and the yen. (Yasuhiro Na-gano)
14.[Ms. Takaichi's Irresponsible Statements Deceiving the Uninformed] Ms. Takaichi's remarks—making it appear as though ample funding for consump-tion tax cuts exists if funds from the foreign exchange account are utilized—constitute an extremely malicious and deceptive statement that fools citizens lacking such financial and legal knowledge. (Yasuhiro Nagano)
15.[The Madness of Fund Diversion Evoking Memories of the Pearl Harbor At-tack] Arbitrarily diverting surplus funds from the FEFSA would be a reckless outrage equivalent to a repetition of the Pearl Harbor attack, shaking the foun-dations of America's financial and security framework, and from the perspec-tive of the United States, it is a course of action that can by no means be toler-ated. (Yasuhiro Nagano)
Part 1 Related URL
Macro Scope: FEFSA and FILP Bonds, Successive Funding Proposals for Ms. Takaichi's Policies Lead to Tightrope Fiscal Management https://jp.reuters.com/world/japan/FL4MZQOZKZLMZMGSG3N7VX2SOU-2026-06-08/
I will write again tomorrow.
Yasuhiro Nagano
2. Saturday Edition (土曜版)
Part 2: The Immigration Control Act Violation Case [Saturday Edition]
For the case overview (Chapters 1 and 2), please refer to the Weekday Edition.
Throughout this unjust trial, I consistently maintained my innocence based on rigorous legal logic. However, the police and prosecution ignored my arguments, attempting to coerce a confession based on arbitrary generalizations.
Read the full text here: To World Media
https://toworldmedia.blogspot.com/
[Chapter 3] Appeals to the International Community and Legal Contradictions
Article 31 of the Constitution of Japan guarantees due process, stating that no person shall be deprived of life or liberty except according to procedure established by law (the principle of legality). Yet, the prosecution in this case forcefully misapplied administrative provisions to fit the Penal Code’s definition of aiding and abetting. This demonstrates a severe lack of legal competence and constitutes an abuse of official authority.
Following our case in 2010 and a nearly identical incident involving Philippine Embassy staff in 2013, international criticism intensified against Japan's arbitrary enforcement of the law.
Consequently, the Japanese government amended the Immigration Control Act in December 2016 (effective January 2017) to explicitly criminalize the act of "providing false employment contracts."
This statutory amendment is irrefutable proof that no such crime existed under the previous law when we were charged, meaning we were entirely innocent. Article 39 of the Constitution strictly prohibits retroactive punishment (ex post facto laws). Despite this clear legal reality, the government has offered no apology, restoration of honor, or compensation.
[Chapter 4] Supporting Legal Documents
The official indictment and the validity of my legal arguments are publicly accessible through the following documents (available in Japanese and English):
Official Indictment (JA/EN)
http://www.miraico.jp/ICC-crime/2Related%20Documents/%EF%BC%91Indictment.pdf
My Legal Argument (Japanese)
https://blog.goo.ne.jp/nipponnoasa/e/d28c05d97af7a48394921a2dc1ae8f98
My Legal Argument (English)
https://blog.goo.ne.jp/nipponnoasa/e/ac718e4f2aab09297bdab896a94bd194
[Chapter 5] Petitions to International Organizations
Following my release, I sought redress from foreign embassies in Japan, the Office of the United Nations High Commissioner for Human Rights (OHCHR), and the International Criminal Court (ICC).
An ambassador from an African nation advised me that while diplomatic ties prevented an official state protest, they could engage networks within the ICC. I believe this international pressure ultimately forced the 2016 statutory amendment.
The number of foreign nationals—including Chinese, Korean, Filipino, and American citizens—who fall victim to such arbitrary legal interpretations in Japan is estimated to be in the tens or hundreds of thousands. This is an alarming crisis that the international community cannot ignore.
Continued in the Sunday Edition.
Part 3: Special Economic Zones (Business Model)
Global Special Zone Project NO2
https://world-special-zone.seesaa.net/
Nagano Opinion NO1
https://naganoopinion.blog.jp/
*Please refer to the "Sunday Edition" for Parts 4 through 10.
Yasuhiro Nagano
Archive Blog (Past Articles): To World Media
https://toworldmedia.blogspot.com/
If you have any questions, please feel free to contact us!
enzai_mirai@yahoo.co.jp
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