Economic depression started in the light industrial field at the end of 1948 and then caused a chain reaction in the heavy industry. It rapidly hit iron and steel industry in March 1949. As a result, about 4 600 companies went bankrupt in the first half of that year, causing a huge surplus work force. The number of the full unemployed was expected to increase to 13 million within 1950. The profits of monopolies drastically dropped to 28.4 billion U.S. dollars in March 1949 from 36.6 billion U.S. dollars in September 1948.

The monopoly tycoons of the U.S. urged the ruling quarters of the administration to start a new war, expecting the government to make preparations for giving a fresh strong shot in the arm of economy.

"War for prosperity!" was a call of U.S. monopoly capitalists who were struggling to rid of the crisis caused by over-production.

The reactionary government speaking for the interests of the U.S. billionaires finally put spurs to the war preparations, stepping up militarization of economy and arms race.

Arms race unprecedented in peacetime in the U.S. history was kicked off with 1948 when economic crisis started as a momentum and the horror of economic crisis reached at its height in 1950. The Korean War broke out that year against this background.

Commenting on this, Japanese book "Korean War" said that "Korean War was a way-out of economic crisis that faced the U.S."

The U.S. ignited the Korean War also because the puppet regimes in Asia were on the verge of collapse.

The south Korean puppet regime of Syngman Rhee faced a serious ruling crisis after its shameful defeat at the puppet National Assembly election on May 30, 1950.

The Rhee clique held just 47 seats out of 210 seats in the NA while the "faction calling for negotiations with the north" dominated it.

If a "presidential election" was held under that balance of forces in the NA, it was very likely that a "candidate from the middle faction" would be elected.

As an American historian commented, a war was "the last hope" of the Rhee clique to survive under that situation and it was to ignite a fratricidal war as soon as possible.

Traitor Syngman Rhee sent Jang Myon to Washington to inform it of the fact that the "government" might collapse around June 10 - 13 and "asked for prompt U.S. assistance" to help him weather the crisis.

Upon receiving an urgent message from Rhee, Truman had to prevent the collapse of the puppet government in south Korea as there was no other way for him but to "support him" and had no option but to ignite the projected war as early as possible, as he confessed.

Another reason for the U.S to decide to go to war was the information that the Chinese people were planning to liberate Taiwan in summer of 1950.

According to what was confessed by Mun Hak Bong, former advisor to the CIC and political advisor to Syngman Rhee, the U.S. received information that the Chinese people would conduct an operation for liberating Taiwan in July, at the latest, and came to make a decision to take an initiative. This prompted the U.S. to advance the date of the start of the Korean War.