Japanese economy post Quake of March 11 2011
14 Mar 2011
There will be a short downturn , then an upturn to about 7% growthrate for at least 10 years . Expect major socio-economic changes .
Growthrates after the collapse of the property market in the 1990's remained low because :
1.The Japanese people were rich and in a comfort zone .
2.Structural problems in the economy could not be fixed because of voter inertia .
This is all about to change .
The destruction due to the quake is far less than the Japanese Reserves .
But the shock to the system will not die down , but escalate at least until 2013 .
See http://andreswhy.blogspot.com "Solar Storms" Mar 3 , 2011
Expect political instability of the same scale as recently seen in the Middle East .
The Japanese system has been kicked out an attractor basin of comfortable torpor into another , more active attractor basin .
Expect some interesting times in the Far East .
Some consequences :
1.Japanese military spending will increase sharply .
2.Demand for commodities will increase sharply .
3.R&D expenditure will increase sharply , especially Space Endeavours .
4.A search for a proper solution to the high ratio of elderly . Most likely tapping them as a source of Wisdom and Experience , using a Facebook type environment . Very lucrative and wealth-creating .
5.Competition with China to increase greatly , especially oil and gas .
6.This will raise the problem of Taiwan again .
7.Japanese emigration to fertile , more stable land areas to increase drastically , with government support . Australia could benefit tremendously , especially the MacKenzie Basin , which is in dire need of high-tech resuscitation .
All this will require funding .
Cashing in US bonds would be self-limiting , as it would depress the whole global economy . Some enterprising bank will make a fortune collaterising Japanese foreign assets for immediate expansion funds .
This is dedicated to the victims of the March 11 , 2011 earthquake and tsunami .
Their deaths will not have been in vain .
Some background can be obtained at
http://andreswhy.blogspot.com "Solar Storms" Mar 3 , 2011
http://andreswhy.blogspot.com "Money" Oct , 2008
http://andreswhy.blogspot.com Various "Financial Crises" posts
Search for "Destruction of Money" arguments .