The Japanese central bank (BOJ) presently holds more than $1 trillion US Treasurys and dollar-backed assets. PM Hatoyama should announce that USTs will be liquidated incrementally at 5 percent per week until the balance is zero.
The government should warn that it will temporarily close Toyota plants now operating in the United States at a pace of one per month.
There should be a thorough review of import tariff policy, with the prospect of raising tariffs on US imports by 30 to 50 percent.
US nationals working in Japan should be required to update their Visas on a monthly basis pending resolution of the Toyota controversy.
New regulations and taxes should be targeted at US industries and financial institutions operating in Japan.
Hatoyama should appoint a blue ribbon commission to determine whether US military bases in Japan should be terminated or mothballed.