WAR IN CHINA: Silver and Lead

"Senso wa zuibun aku-eikyo wo atae-ta," said many a Japanese citizen in private last week. The sentence had to be said in private because it was a grave admission: "The war hits us pretty heavily." The Japanese have come to realize all too well that their adventure in China is now primarily a currency war rather than an orthodox military engagement. Last week they began to take official notice of the fact that in the currency war, China has both natural advantages and allies with cash, while Japan has neither.

According to Tokyo's...

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