Now that the Japanese Yen has skyrocketed to an all time high against the US$, what are the raminifications for the world at large? Japan is after all the 2nd largest economy in the world for the majority of the last few decades, until recently overtaken by China.
Japanese have a great deal of investments (direct or indirect) in the world. Japanese also holds a lot of treasury bills. This has the world at large trembling with fears as to what the Japanese would do in order to save their very own economy.
Will the Japanese:
Issue government bonds? Who will they sell it to? Internally or externally?
Dilute their foreign holding of investments and assets?
Raise taxes (esp. consumption since it is quite low as compared to major developed countries in the world. A mere 5% compared to Singapore’s 7%)?
Rebuild their infra-structure as quickly as they did the Kobe’s earthquake in 1995?
Interestingly, major hotels in Hong Kong are no longer supplying fresh fish used in sashimi and sushi in their restaurants. People from all over the world whose babies are feeding on Japanese milk powder are stocking up old stocks or simply refused to buy Japanese milk powder unless it’s certified free of radiation while some are crazy enough to buy all those powder in the supermarkets for their unborn babies! So, even if they didn't get hit directly from the tsunami, some Japanese encounter the tsunami in their businesses. Exporters see their orders cancelled overnight and can't do anything about it!
What’s the direct impact for you and me? Well, if you’re interested in buying the iPad 2, you better make it to the shop quick. Apparently, Japanese’s supply chain would be affected and part of iPad’s components are actually manufactured in Japan. As with some components on the Boeing 787!
In terms of logistic, with some ports and airports closed in Japan, some flows are affected where transportation sector is involved. With less power, many plants and manufacturing plants are also closed for business. So, yes, the full impact from all areas has not been measured and discounted. The aftershocks are tremendous in the business arena. No one clearly knows what the future would bring. It's too mind-boggling! One silver lining is that the Japanese people are very resourceful and resilient. So, have confident that they will come back in no time!
I remembered back when I was a child, there was a Japanese tv series titled "The Sinking of Japan" (A movie was later made in 2006, I believe). We love it so much so we were glued to the tv whenever the series was on. When I saw what happened to Sendai this afternoon (a city I had once visited), instinctively, THE SINKING OF JAPAN came to mind. Yes, I spent an afternoon following the news and images. Clearly, seeing it on the news is a vast difference from experiencing it live. The one … more
As if an 8.9 magnitude earthquake and a 23 foot tsunami were not enough the people of Japan now have to deal with the potential fallout from a massive explosion that has rocked the Fukushima-Daiichi nuclear power plant. It is not yet clear whether massive levels of radiation have been released into the atmosphere. This powerful blast has the potential to exacerbate the problem many times over and put millions more people at risk. Please join me in praying that this turns out not to be … more
Exactly a week after the 9.0 magnitude and tsunami in northern Japan, I found myself landing in Shanghai, a city which is a mere 2 hours flight from Tokyo. Flights, I was told, are full for those trying to get out of Tokyo. It's a hectic exodus for many foreigners who study, live or vacationing in Japan. Foreign companies are chartering flights to get their staff out, no matter what the cost is! So, the potential danger? Radiation! Yes, we heard … more
8.9 Earthquake in Japan and Asian Tsunami
Across the Pacific By: Dr. Joseph S. Maresca
An 8.9 earthquake ( Richter scale) hit Honshu, Japan earlier today . There was tremendous
devastation everywhere. The last major event of this size in Asia was on
12-16- 1920 in Gansu , China. 200,000 people died in the Gansu earthquake.
The actual loss of life in Japan may not be known for weeks. The biggest
By Dr. Joseph S. Maresca 8.9 Earthquake in Japan and Asian Tsunami Across the Pacific An 8.9 earthquake (Richter scale) hit Honshu, Japan just hours ago. There was tremendous devastation everywhere. The last major event of this size in Asia was on 12-16-1920 in Gansu, China. 200,000 people died in the Gansu earthquake. The actual loss of life in Japan may not be known for weeks. The biggest concern in Japan right now is the impact on nuclear power plants in the country. Reactors … more
For an earthquake of that magnitude, it hasn't wrecked as much havoc as it could have. The blessing lies in that it hits not the most populated area of Tokyo but Sendai instead. Yes, the tsunami caused financial damages insofar that a lot of farmlands are wiped out. Hopefully, as of now, it is not one that rivals that of the 2004 tsunami! Death tolls have climbed to 1598 (Monday) with 9500 unaccounted for in one city. It's total destruction in some areas in Sendai and nearby cities.
The 2011 Sendai, Japan earthquake was an 8.9 magnitude earthquake. It was located off the east coast of Tohoku, Japan on Friday, March 11, 2011 at 05:46:23 UTC at a depth of 24.4 km (15.2 miles). Originally a 7.9, it was upgraded to an 8.8, then again to an 8.9 by the United States Geological Survey.
The earthquake occurred on 130 km (80 miles) east of Sendai, Honshu, Japan. It presented a possibility of triggering tsunami in the area as well as in Yoshi, Japan. The quake rattled buildings and toppled cars off bridges and into waters underneath. In Tokyo, crowds huddled together and tried to reach relatives via cell phone. Its epicenter was 373 kilometers (231 miles) from Tokyo, the United States Geological Survey said. A 7.7 aftershock was reported 30 minutes following the initial quake. As a result of the quake, smoke could be seen rising from a building in Tokyo port while Shinkansen bullet trains stopped and Haneda Airport suspended operation after the quake struck.
More than 4 million buildings lost power, and many buildings caught fire.
The earthquake triggered a tsunami warning for Japan's pacific coast and various other countries, including Russia, Guam, Philippines, Indonesia, Papua Guinea, Nauru, Hawaii, northern Marinas and Taiwan. The tsunami warning issued by Japan was the most serious on its warning scale, implying that the wave was expected to be 10 meters high. A 0.5 meter high wave hit Japan's northern coast.