Another side to the Japanese Catastrophe

[BrianW]

http://news.yahoo.com/s/nm/20110312/...s_quake_toll_1

"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
http://www.businessweek.com/news/201...an-credit.html
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?

[Franco]

Add to that the fact that with thier Nuclear Power accident, they are sure to switch to more fossil fuels further increasing demand.

Obama could do us all a favor and reopen the areas cleared for drilling by Bush in 01.

[dnf777]

http://news.yahoo.com/s/nm/20110312/...s_quake_toll_1

"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
http://www.businessweek.com/news/201...an-credit.html
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?

Another way of looking at it is that the large corporations and banks, that have a vested interest in keeping Japan viable and the "MAD network" afloat, will have to release some of their holdings to put into rebuilding. This will result in at least short term economic growth, jobs, etc...and may spark a larger recovery if it gains traction.

There are HUGE amounts of wealth being hoarded. Maybe some of that will "trickle down" finally?

Just trying to be optimistic, but I share the concerns you outlined also.

[BrianW]

http://uk.news.yahoo.com/18/20110313...c-5268574.html

Japan says quake impact on economy 'considerable'


Leading risk analysis firm AIR Worldwide said the quake alone would exact an economic toll estimated at between $14.5 billion and $34.6 billion, without taking into account the effects of the tsunami.

The Bank of Japan plans to pump "massive" funds into markets on Monday in a bid to help them stabilise following the linked disasters, Dow Jones Newswires said late Sunday.

Tokyo's benchmark Nikkei index is meanwhile expected to tumble, with the index possibly breaking the psychologically important 10,000 level.

[BonMallari]

when the last earthquake hit in Kobe Japan a few years back it damaged/flattened the plant that manufactured Maxfli golf balls (which incidently was my ball of choice) but also the choice of many PGA golf professionals..they stopped production and have never captured the market share they once had as one of the top 3

Now making of golf balls is insignificant, but the other goods produce in Japan manufacturers that were forced to shut down factories will have an impact on the market...Sony, Toyota

[Roger Perry]

December 21, 2012 is approaching rapidly (end of Myan Calandar).

[Gerry Clinchy]

http://www.bbc.co.uk/news/world-asia-pacific-12725646
Video of the tsunami hitting Japan

[M&K's Retrievers]

http://www.bbc.co.uk/news/world-asia-pacific-12725646
Video of the tsunami hitting Japan

Kind of makes you feel meaningless in the big picture....

[Franco]

There is an article this monring on Barrons.com about the fear that Japan may sell 100 billion in U S Treasuries in thier attempt to boost the Yen and rebuild thier country.

If it is true, this would further devalue the dollar worldwide. It would also make Japanesse products that much more expensive here in the USA.