Stagflation In Japan

Japan’s GDP is contracting as its inflation mounts, but newly installed Prime Minister Sanae Takaichi isn’t up to the stagflation challenge, William reports. Her massive stimulus package risks stoking inflation, as do US tariffs and a weak yen. That’s unnerving investors, and the Bond Vigilantes are circling. … Also making investors nervous: Takaichi has pledged Japan’s allegiance to Taiwan, triggering China’s President Xi Jinping and jeopardizing Japan’s relationship with its second biggest trading partner. Xi has retaliated with trade and tourism bans that aren’t helping the cause of simulating Japan’s economic growth.