Is Japan, the world's fourth-largest economy, on the verge of a quiet collapse? For over three decades, the nation has been battling the ghosts of its past—a spectacular market crash in the 1990s that kicked off the "Lost Decades" of economic stagnation.
In this deep dive, we expose the full story of Japan's 40-year crisis. We uncover how a single deal in 1985, the Plaza Accord, set the stage for disaster and how Japan fell into a "liquidity trap" with zero interest rates and crippling deflation. We'll explore the radical economic policies like Yield Curve Control, the staggering national debt, and the demographic time bomb that threatens its future.
Finally, we analyze how a modern trade war launched by its closest ally is forcing a dramatic geopolitical shift, pushing Japan to abandon its post-war dependence on the U.S. and forge new, uneasy alliances. This isn't just a story about Japan—it's a warning for the entire global economy.