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I am puzzled by the world's reaction to Japan's economic problems. Yes, deflation drives up labor cost, Yen appreciation lowers exports, and an aging/decreasing population is sin to growth ... But Janpan's economy started to fall at a very high level. In the past 20 years, the standard of living in Japan has decreased but still way up there. In fact, I read that pensioners in general are happy with the deflation. The media talks about Japan as if it is the end of the world.

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