Interest rates in the US will rise because of this. Japan will by necessity stop financing US debt. China's already getting cold feet about US fiscal policy. In order to attract other investors, the US will have to raise the interest rates.
Does anyone actually have a clue what is going on in Japan right now? It seems like a wasteland when I see the videos, and I can't imagine the global impact of this earthquake at this point.
Indonesia was tragic, but outside of hotels and a bunch of relatively primitive cities, that disaster had almost no impact on global commerce.
I hate to sound crass, but in these economic times, I can't help but think of how this is going to impact the modern world.
I heard CNN this morning say that some parts of the main island have reducted under the sea permanently ala Indonesia. I haven’t heard that from Fox, however. Lower sea level would explain why the tsunami came inland 6 miles in some areas.
blurb from AFP: FOCUS News Agency
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Tokyo. An explosion was heard Saturday from a quake-hit Japanese nuclear plant and smoke was seen billowing from it, as several workers were injured and radioactivity rose 20-fold outside, reports said, cited by AFP.
http://www.focus-fen.net/?id=n244320
As far as the quake, where it hit was a relatively small town in rural surroundings. It was quite a distance from Tokyo. Having said that, if there is a real nuclear meltdown, the whole country may be SOL, and depending on the direction of winds, who knows how much of the world (including at least one of our coasts) will be affected by radiation.
“I can’t help but think of how this is going to impact the modern world.”
Japan is considered to be part of the modern world. They have a pretty large stock exchange. Ours is being bought by the Germans.
The effect on pacific economies such as australia and new zealand is likely to be felt for a long time. But we will all pull together and rebuild.
Interest rates in the US will rise because of this. Japan will by necessity stop financing US debt. China's already getting cold feet about US fiscal policy. In order to attract other investors, the US will have to raise the interest rates.