Another side to the Japanese Catastrophe
"Japanese politicians pushed for an emergency budget to fund relief efforts after Kan asked them to "save the country," Kyodo news agency reported. Japan is already the most heavily indebted major economy in the world, meaning any funding efforts would be closely scrutinized by financial markets."
This is from Jan 11, before the quake:
Longest Bonds Sustain ‘Edge of a Cliff’ Budget: Japan Credit
Japan, the most indebted nation, is locking in the world’s lowest interest rates by selling record amounts of 30-year and 40-year bonds to life insurers as the population ages. Government debt may reach 210 percent of gross domestic product next year, according to the Organization for Economic Cooperation and Development,
How does one rebuild their home, their country, when you're already waaay past stone broke?!?
Obama has pledged that we're going to stand with them as they recover and rebuild from this tragedy," during a White House news conference.
And of course we should try to help our allies.
But where are WE going to get the money?
I think this quake is going to rock the world, not just physically but fiscally, due to the interlocking of markets and the Mutually Assured Destruction (Economic) models that our leaders have worked so hard to put in place.
In my view, potentially trillions in assets & collateral has just vaporized and pancaked.
How does the world pull this rabbit out of thin air?