It really seems like at this point Japan is in deep trouble. I'm wondering what the consequences of this are?
1) Japanese tourism will be shot, for years.
2) Japanese food production is deeply in question. This means that more food will be imported from abroad, which also means that food prices will increase. If more money is spent on food, then that means less money will be spent elsewhere, meaning that GDP will be hurt.
Now that the disaster is raised to level 7, will people be less apt to buy Japanese products? If the economy goes into recession, then what sort of dominoes will fall?
1) Will a Japanese recession drag down the US economy?
2) Will this finally be the point where Japan's 200% Debt-to-GDP finally catch up with them?
To me, it really seems like Japan could be the domino that takes down the rest of the world's economies. I don't know anyone who will be willing to travel to Tokyo with this radiation catastrophe. That already is going to be a huge hit to the economy. If the economy really does take a nosedive, then maybe Japan's day of reckoning in terms of their debt will finally catch up with them, and it could cause interest rates to skyrocket, and then maybe it will cause "contagion" to all other countries that hold a lot of debt, ourselves included.
If my thesis is correct, what is the best investment? Gold? Real estate? Is this a deflationary or inflationary situation?
1) Japanese tourism will be shot, for years.
2) Japanese food production is deeply in question. This means that more food will be imported from abroad, which also means that food prices will increase. If more money is spent on food, then that means less money will be spent elsewhere, meaning that GDP will be hurt.
Now that the disaster is raised to level 7, will people be less apt to buy Japanese products? If the economy goes into recession, then what sort of dominoes will fall?
1) Will a Japanese recession drag down the US economy?
2) Will this finally be the point where Japan's 200% Debt-to-GDP finally catch up with them?
To me, it really seems like Japan could be the domino that takes down the rest of the world's economies. I don't know anyone who will be willing to travel to Tokyo with this radiation catastrophe. That already is going to be a huge hit to the economy. If the economy really does take a nosedive, then maybe Japan's day of reckoning in terms of their debt will finally catch up with them, and it could cause interest rates to skyrocket, and then maybe it will cause "contagion" to all other countries that hold a lot of debt, ourselves included.
If my thesis is correct, what is the best investment? Gold? Real estate? Is this a deflationary or inflationary situation?
