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Undoubtedly Japan's "inflation boom" distracted her leaders last week from hard and ominous facts which they must sooner or later face. Government expenditures are running 70% ahead of current revenue, a catastrophic spread. Like all booms the current, superficial Japanese prosperity is basically unsound. With Manchuria still full of Chinese bandit-soldiers who are still full of fight, the Empire stands committed to further stupendous military expenditures, consequent further inflation of the yen and the most strenuous testing in 1933 of Japan's whole fabric, economic, fiscal, political.