Chapter 349

Nuclear Weapons

Anyone with a basic understanding of international affairs should have heard of the Tokyo District Public Prosecutors Office.

In the internet age, countless sources have referred to it as a shadow branch of the CIA in Japan.

Or perhaps it was the US's secret police station in Japan.

But what exactly was going on? Well, we can only start from the end of World War II...

Japan's defeat led the Allied forces stationed in Japan to plant their flag on the small island.

General Douglas MacArthur, then Supreme Allied Commander, became the de facto ruler of the island nation, effectively exercising indirect control over this tiny island.

In 1947, when the Allied forces were taking stock of their supplies, they discovered that the actual amount of supplies looted by Japan during the war differed from the accounts by 240 billion yen, and a large amount of gold and silver had disappeared.

Furthermore, well-informed sources indicate that after realizing their defeat was inevitable, Japan transferred a large amount of its domestic assets before surrendering, in an attempt to avoid post-war purges.

Since these items were considered the exclusive property of the Allied forces, MacArthur was very displeased upon hearing the news and wanted to investigate the whole matter thoroughly. Therefore, he established a department called the "Hidden and Hidden Supplies Investigation Department" to conduct investigations and summoned various bigwigs in Japan.

This was the predecessor of the Tokyo District Public Prosecutors Office.

Therefore, at its core, the Tokyo District Public Prosecutors Office is indeed a masterpiece of the Americans.

However, what truly made the Tokyo District Public Prosecutors Office famous was the Japanese Kurodo, which couldn't withstand scrutiny.

As a country where powerful families are prevalent, Japan has a serious problem of collusion between politics and business. While investigating the hidden supplies, MacArthur inadvertently unearthed the Showa Denko incident.

Showa Denko was founded in 1939 and is one of the most important companies in Japan. In 1948, in order to obtain government loans, they bribed the Japanese cabinet with more than 70 million yen.

Through their extravagant spending, they secured a loan of 2.3 billion yen.

At that time, their company's total capital was only 230 million.

Although the tenfold return on the bribe was shocking, MacArthur didn't care because it was none of his business. However, the leader of the opposition party in Japan at the time was a "good friend" of MacArthur, and seeing an opportunity to rise to power, he asked MacArthur to investigate thoroughly.

Then, the Showa Denko incident directly led to the complete collapse of the Japanese cabinet at the time.

After this battle, they were branded as the US secret police.

However, this label was only worn for a few years before the United States took it off on its own initiative.

The Yoshida cabinet, which rose to power with MacArthur's help, was not without its flaws. A large number of cabinet members were implicated in the shipbuilding scandal that erupted in Japan in 1954. The bribes they received could have enabled an ordinary citizen to work for over two hundred years without eating or drinking.

When the Tokyo District Public Prosecutors Office discovered this, they acted decisively and began collecting evidence.

Finally, the Yoshida Cabinet members were taken directly to court.

Subsequently, the Yoshida Cabinet resigned to take responsibility.

After this incident, the Tokyo District Public Prosecutors Office gained immense prestige in the Japanese public sphere.

The term "Eastern Depot" is no longer sufficient to describe its power.

He was able to influence the political situation in Japan, much like an emperor emeritus, looking down on all living beings from a high and mighty position.

It seems that as long as the US is willing, Japan can start all over again.

But the truth is...

is also like this.

The Lockheed bribery scandal that broke in the 1970s was actually a game of capital between the US military and civilian sectors.

The big shots' brutal brawl ended up leaving the Japanese territory completely devastated.

Once this fact exists, the best way to resolve the issue and quell rumors is to use the strongest spear to pierce the weakest shield.

As for Ethan's idea...

This immediately made the old principal burst out laughing.

"Okay, Okay, Okay..."

"Oh, Ethan, your ideas are even wilder than I expected..."

"Should we have the Tokyo District Public Prosecutors Office arrest them directly?"

"Then let Tai Dong and the former president of the Motion Picture Association of America explain the facts?"

"This idea is really too..."

"How dare you!"

The old principal commented with deep emotion.

Her bright eyes were fixed on Ethan.

The murky appearance of the past is no longer visible.

Instead, there is a spirit of reminiscing about the past.

At the same time, he murmured words of remembrance—

"Ethan, the name Tokyo District Public Prosecutors Office is from far too long ago."

"So long ago that I can't even remember MacArthur's grumpy face anymore."

"I've met him before, I know him, so I know exactly what the Tokyo District Public Prosecutors Office is."

"And when you mentioned the Tokyo District Public Prosecutors Office, I think you should understand that this thing cannot be used casually, because it is our weapon to curb Japan, so..."

Are you sure you've thought this through?

"I can help you call and arrest them."

"But if you get caught this time, I won't be able to help you next time."

"Because I broke the rules."

The old headmaster's sincerity made Ethan raise his eyebrows.

Make eye contact with him.

Those bright eyes held only caution.

"Headmaster, I know this is a very difficult decision," Ethan sighed, "but at the same time, it's the best solution right now, isn't it?"

This question made the old principal purse his lips.

He stared at Ethan for a long time.

Finally, he turned the wheelchair handle and arrived at the windowsill.

Feeling the warm sunshine bathing the earth, he smiled and asked, "Ethan, what are your thoughts on Japan? Or rather, have you paid any attention to this country?"

Although the old headmaster's topic shifted somewhat strangely, Ethan still strolled over to his side and said, "Headmaster, what would you like to ask?"

"My question is, do you think Japan poses any threat to us now?"

The former principal spoke frankly.

"I think so, but I don't," Ethan answered honestly.

"Oh? Why do you say that?" the old principal asked curiously.

"The reason is simple." Ethan rested his hands on the windowsill, gazing at the campus outside, and slowly said, "Because Japan's rapid development over the past few decades has been built on the demographic dividend. Their rapid industrial development is thanks to the post-war baby boom. The continuous release of the demographic dividend has allowed them, like countless other economies, to enter an era of large-scale urbanization."

"The benefits of this era cannot be controlled by individual will, so the resulting threats are the problems we must face and deal with."

"But at the same time, we all know that the demographic dividend is also a business model, and for this business model to succeed, it must have two foundations."

"The first requirement is a strong industrial manufacturing capacity that can generate a huge trade surplus. The second requirement is an efficient tax collection capacity."

"That is, while relying on low labor costs to earn huge amounts of foreign exchange, it is also able to concentrate profits in a special way. Only in this way can the whole model operate like a snowball rolling downhill."

"The first foundation will not have any problems when it is in operation because it is a country's industrialization process and also a source of wealth for the people of that country. However, the second foundation has caused countless industrialized countries to suffer when it is implemented because taxes have never been easy to collect."

"unless……"

"Playing the real estate game."

"Or perhaps..."

"It's finance and real estate."

Ethan paused at this point.

The old principal, sitting in a wheelchair, stared in surprise at the hunched back.

Although Archmage Barbara Babcock had told him many times before that Ethan didn't seem like a guy who hadn't received higher education.

He had the same feeling while listening to Ethan's materials on a daily basis.

But only now does he truly realize how much Ethan had been pretending to be stupid.

As for the reasons?

Very simple.

Because Ethan revealed the Pandora's box of finance and real estate.

And this is, in fact, the tightrope that Japan is currently walking.

"You're right, the financial and real estate game isn't that fun."

Since Ethan was no longer pretending, the old headmaster no longer hesitated.

Reclining in his wheelchair, he sighed softly: "Over the past decade, Japan's automotive, electronics, and steel industries have brought them huge trade surpluses, which have given them a foundation of national wealth. Recently, they have wanted to turn that national wealth into national wealth. They are using a poll tax model in the financial and real estate sectors to collect all the money in the hands of the people into the national treasury in order to achieve true national wealth."

"And I think you are very clear about the reasons for choosing this method."

"Taxes are very costly."

"Take our country's National Taxation Bureau for example. When it was first established, they were like robbers collecting taxes everywhere, because no matter what products we tax, there will always be people who will find a way to evade it."

"But the financial and real estate sectors are different."

"As long as land prices and housing prices are speculated on."

"Then the people will obediently hand over all their money."

"Many people have always felt that when they pay their high housing prices to developers, the developers make the lion's share of the profits. But in reality, we all know that the financial real estate industry is a low-profit, high-leverage model. Take Japan as an example: land transfer fees, various taxes and fees, homebuyers' loan interest, land acquisition bank interest, and construction team operating costs are the root causes of rising housing prices."

"In this process, currency is actually just a unit. After removing the unit of currency, what people rely on when buying a house is actually their own future value."

"When they can acquire rapidly appreciating assets without having to pay huge sums of money upfront..."

"A country can collect a large amount of tax revenue at a relatively low cost."

"Because the people will voluntarily hand over everything."

"Then……"

"Japan's economy will take off instantly."

Upon hearing this, Ethan turned around.

Leaning against the windowsill, backlit by the sun, he smiled at the old headmaster and said, "So, we have to puncture it, right? Because only then will they collapse."

"Yes." Ethan's words made the old principal nod, and he said, "That's also the reason why I didn't recommend you use the Tokyo District Public Prosecutors Office, because it might become a tool for us to burst the bubble."

"His presence is serious and crucial."

"He may serve our personal interests, but if our personal interests affect the collective interests, then most people will no longer help us."

Ethan understood what the old headmaster meant.

The Tokyo District Public Prosecutors Office is a powerful weapon; it's best to avoid using it if possible.

And the greatest use of this powerful weapon right now.

That is to deliver a devastating blow to Japan Real Estate at a crucial moment.

This may sound complicated, but it's actually very simple.

Ultimately, the tax model for finance and real estate carries significant systemic risks.

If a country's manufacturing sector continues to thrive, then finance and real estate are merely icing on the cake. But what if the wealth-creating power of finance and real estate surpasses that of manufacturing...?

Real estate will then become a speculative industry for the people.

Once someone achieves financial freedom through leverage, it will inevitably attract countless others to join in, leading to a more prosperous but also more hollow real estate market.

Because all the leverage is actually applied to manufacturing and exports.

The booming real estate market is fundamentally due to the strong performance of manufacturing and exports; however, once these two sectors decline...

I'm sorry.

They all have to die!

This is why Japan collapsed so quickly after the Plaza Accord.

The real root cause is the imbalance between the real economy and the financial system.

More importantly, Japan failed to achieve industrial transformation, and the entire country's technology industry was suppressed by Silicon Valley, which Fred Terman nurtured with his life's reputation.

When their exports falter and their high-tech industries fail to take off...

How can we not bomb a country that has no physical presence?

It was precisely because Ethan knew these things that he was able to grasp the meaning behind the old principal's words immediately. And since the Plaza Accord and the semiconductor war were things of the future, the old principal, who had no foresight, was unaware of them. That's why he valued the Tokyo District Public Prosecutors Office so much at this moment.

Because once they fall into a strategic failure.

That would allow them to use violence to forcibly take people away.

They directly burst Japan's real estate bubble.

This is like long-arm jurisdiction.

What does it matter if we have to resort to violence if we can win?

And to use such a powerful weapon to save the game of fate?

The old principal could get people to participate in the lottery, but he really didn't want to.

He was afraid that if he tried to draw a number now, he would never be able to draw one again.

This is like a nuclear weapon.

Its greatest significance lies in deterrence.

Once you've actually played that shot, there's no going back.

"So you still want me to help you catch people?" The old principal raised an eyebrow.

"Of course." Ethan nodded seriously.

"Why?" the old headmaster continued to ask.

Ethan stamped his foot and said, "Because the future lies beneath our feet."

"While video games are a product of entertainment, they are also a part of the software industry."

"It is the best channel for the general public to access technology."

"It can drive the rapid development of industries such as computers, semiconductors, and electronic communications."

"It was because we actively embraced video games that Apple was able to become a hit in the shortest amount of time, and it was because the public accepted Apple that spreadsheets had the opportunity to be born."

"And when everything seemed perfect..."

"How could we possibly give up on it so easily?"

"Or rather, how could we allow our own people to run rampant?"

Perhaps they knew their words lacked impact.

At this point, Ethan clapped his hands again and said, "Headmaster."

"I think you've heard of Japan's semiconductor support program, right?"

"Steve Ross is a traitor."

"So, can we take them now?"

Fred Terman was stunned by the question.

But soon he laughed.

"If that's the case..."

"You can actually take it." (End of Chapter)