Japan's Denial & MacArthur's Secret Deal is a soci-cultural-analytical approach to bottom out the cause and effect of what Japan has become today and her current societal dysfunction beyond economic crisis. Japan's Denial & MacArthur's Secret Deal is to unveil the kept secret of Japan when supreme Commander of Allied Powers, General Douglas MacArthur summoned Emperor Hirohito to GHQ right after Japan accepted an unconditional surrender. The socio-cultural analysis examines the unexpected opportunity MacArthur created for the post war Japan as a result of his fateful decision and looks into her formative years as a modern nation to explain how Japan developed a collective unconscious national character disorder which has led both to her success as the world second economy and as her failure to develop a post World War II socio-cultural identity. The analysis depicts the inner working of Japanese psyche and emotion. Discover the roots of conceived myth of Japan as an inscrutable and alien nation in Western experiences yet so approachable via Pokemon, gadget rich electronics appliances and fully-loaded cars, To them, Japan is, in spite of all these exposure, a nation of contradiction and duality.