A Tale of two Economies on the cusp of a “Lost Decade:” How does present-day China compare with Japan in the early 1990s? The past year is surely one that Chinese economic policymakers in Beijing are glad to have behind them. The last 12 months were marked by disappointing inflation numbers, which consistently came in below expectations, particularly in the fall, reflecting anemic consumer demand and the looming threat of deflation. At the same time, the real estate sector remained mired in crisis. As if that were not enough, it now appears that the growth of China’s Gross Domestic Product (GDP) over the past two years was actually well below the official Government figures. On top of that, the bond market issued a negative verdict on the Chinese economy, with long-term bond yields in China falling below those of Japan for the first time ever. The last data point underscores that the “Japanification” of the Chinese economy may well be underway...