〓Attributing current economic conditions solely to the impacts of the war in Ukraine (2022) or the military operations in Iran (2026) is a superficial analysis.
〓The overwhelmingly dominant factor is that Communist China, which was once a source of long-term exogenous import deflation, has now transformed into a source of long-term exogenous import inflation.
〓Around the time of the Iraq War (2003), because Communist China acted as a persistent source of exogenous import deflation, Japan’s underlying deflationary trend remained unchanged—even when WTI crude oil futures skyrocketed on NYMEX to nearly 150 USD in 2008, a level higher than what we see today.
〓The decline of Japan—once the world’s second-largest economy accounting for 10% of global GDP—and the "Lost 30 Years" of Heisei deflation were ultimately sealed by Communist China’s "beggar-thy-neighbor" export drives. These drives relied on the mass production of inferior goods (cheap knock-offs) by exploiting an almost unlimited supply of migrant labor from the inland regions (the *Nongmingong*) working at mere subsistence wages.
〓Because price levels within Communist China have now caught up with those of Japan and other Western advanced nations, Communist China’s export drive could no longer function as a "safety valve" for price stability during the supply shocks following the outbreak of the Ukraine war in 2022.
〓On the contrary, Communist China is now inflicting stagflation (rising prices amidst a recession) upon a Japan that has yet to fully recover from its "Lost 30 Years."
1
0
https://gyazo.com/a83ec2b5268a54dc909d1040ea69f0da
〓Attributing current economic conditions solely to the impacts of the war in Ukraine (2022) or the military operations in Iran (2026) is a superficial analysis.
〓The overwhelmingly dominant factor is that Communist China, which was once a source of long-term exogenous import deflation, has now transformed into a source of long-term exogenous import inflation.
〓Around the time of the Iraq War (2003), because Communist China acted as a persistent source of exogenous import deflation, Japan’s underlying deflationary trend remained unchanged—even when WTI crude oil futures skyrocketed on NYMEX to nearly 150 USD in 2008, a level higher than what we see today.
〓The decline of Japan—once the world’s second-largest economy accounting for 10% of global GDP—and the "Lost 30 Years" of Heisei deflation were ultimately sealed by Communist China’s "beggar-thy-neighbor" export drives. These drives relied on the mass production of inferior goods (cheap knock-offs) by exploiting an almost unlimited supply of migrant labor from the inland regions (the *Nongmingong*) working at mere subsistence wages.
https://gyazo.com/a15ed838ab07b35eee5179cde2876f94
〓Because price levels within Communist China have now caught up with those of Japan and other Western advanced nations, Communist China’s export drive could no longer function as a "safety valve" for price stability during the supply shocks following the outbreak of the Ukraine war in 2022.
〓On the contrary, Communist China is now inflicting stagflation (rising prices amidst a recession) upon a Japan that has yet to fully recover from its "Lost 30 Years."