Why Do Successive Prime Ministers "Throw Away" Trillions of Yen Overseas? ~From the 5% Kickbacks of the Showa Era (1926–1989) to Kasumigaseki's "Ultimate Legal Alchemy"~

Once upon a time, there was a leader of a newly formed political party. He was originally a prefectural governor, but it is said he became astonishingly wealthy after becoming a member of the House of Representatives. A mere Diet member attracts far more money than a governor, the top executive of a local region. Why? Because national politics holds the "authority to create laws and move the national budget."

Recently, whenever successive or current Prime Ministers generously pledge hundreds of billions, or sometimes trillions of yen in financial aid to foreign countries, angry voices erupt on the internet: "Don't throw our tax money away to foreign countries!" or "It's just a massive giveaway!" But I want you to think about this a little more calmly. They are by no means just "throwing money away" to foreign countries. That overseas aid is actually the switch for a massive "legal alchemy" designed to enrich Japan's elite class.

■ The "5% Kickback" of the Showa Era (1926–1989) is a Third-Rate Crime In the old days, politicians received a 5% cash kickback from contractors who won public works projects, pocketing it as a slush fund. However, this is an extremely barbaric and third-rate method that carries the risk of being arrested by the Tokyo District Public Prosecutors Office. Today's sophisticated elites (bureaucrats and politicians) absolutely do not take such risks that could end in handcuffs. They have perfected a system to extract money with zero risk, using the ultimate shield called "the law."


■ ODA (Official Development Assistance) as the Perfect Ecosystem When financial aid to a foreign country is decided, that money is not simply handed over directly to the foreign government. It always passes through a massive filter known as "Japanese affiliated organizations."

  1. Creating a "Company to Make the Plan": First, huge "research outsourcing fees" are dropped into consulting firms and think tanks to investigate what kind of infrastructure the developing country needs.

  2. Creating an "Agency to Execute": Next, massive independent administrative institutions and foundations move to manage and distribute the funds. Enormous "administrative expenses" are budgeted here, and a large number of Amakudari (golden parachute/revolving door) positions for retired bureaucrats are prepared.

  3. Creating a "Company to Evaluate": Finally, "evaluation work" is outsourced to evaluation agencies or university laboratories to assess "whether the aid was used correctly and was effective" after the fact.

Have you noticed? Insiders provide the money, insiders plan it, insiders execute it, and insiders evaluate it as a "great success." It is a perfect, self-contained loop with absolutely no external auditing.

■ A "Clean Cut" in the Name of Salary The most artistic aspect of this system is that no illegal slush funds exist at all. Everything moving is a "legitimate outsourcing fee" based on the law, or tens of millions of yen in "executive compensation" and "severance pay" received by former bureaucrats who have landed their Amakudari positions.

Taxes are budgeted under the beautiful cause of "international contribution," and as they circulate through Japanese affiliated organizations, they are safely "laundered" straight into the salary accounts of the elites. Because it's not a bribe, no one gets arrested. The reason the Prime Minister promises massive aid overseas is not for the developing countries. It is to pour massive amounts of water into this network of "affiliated organization pipes" spread across Japan, feeding everyone involved.

A portion of the trillions of yen that we angrily claim is being "thrown away to foreign countries" actually changes form and is used to pay the rent for magnificent office buildings towering over prime real estate in Tokyo, or to pay off the mortgages of luxury condos owned by the elites.

This is exactly the ultimate "legal alchemy" where handcuffs are never needed.

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