A magnitude 7.1 (7 or 6.8 based on conflicting assessment) has hit southern Japan, Kyushu island, with 13 confirmed dead. The airport was closed, train service ceased, water and electricity service stopped. With hundreds of thousand evacuated due to aftershocks... There was a tsunami warning which was later lifted.
The 2nd floor of Aeon mall collapsed, and there was a reported gas explosion. Employees and guests were trapped.
This tops the suffering of Japanese; this is on top of rains and flooding they are all ready suffering
We sympathize and we are with the people of Japan and victims at Kyushu island in this terrible disaster.
A swarm of earthquakes also hit the Philippines Wednesday 77 in all... with 4 in magnitude 5 and above
This is not going to be good for US market and Japan. Japan has more than 250% of its debt vs GDP and for a long time has fed US with less than market % for its debt. Japan accumulates trade deficit with US over. It has increased its bond rate up to 2% ending the period of free source of funds for arbitrage (borrowing yen for higher yield investment) Japan supported both deficits of US: trade and budget.
What has happened? Japan has decided to grant stimulus package to companies because of static growth of the economy. To finance this QE, Japan has to unload some of its treasuries (Which will not go unnoticed by the world financial market). This puts pressure on US borrowing, now saddled with $37 trillion in debt, higher servicing of its debt, now at 15% of GDP and $1.2 debt servicing. With the QE, the Yen is devaluing and Japan has to prop up its currency
Its now over, the yen is on free fall and very likely its going to be devalued and Japan economy could collapse. Japan was a big headache for IMF for a long time according to former boss Lagarde.
Japan used to be the 2nd largest economy in the world after US, and was the hotbed of manufacturing. But now its famous brands have fallen: Toshiba, Sharp, National, Sony. Now Japan is campaigning itself as a tourist destination. Do you think that this is Karma for Japan, following its atrocities in WW 2.?
What are the other consequences. The carry trade. Arbiters and currency traders, borrowed from Japanese banks at zero or near zero interest and used the same to hedge: buy other currencies, invest in foreign stocks etc to gain some tidy profit. However this feast is over, as the Japanese bonds are now more expensive. So companies on carry trade have to cash out or drown under water. This business, totaling $20 trillion could cause massive strain on world financial liquidity, even for US
This also means that US debt US treasuries will mean more interest expense for US homebuyers and consumer finance from credit cards.
China is also dumping US treasuries due to political and trade tensions And with both China and Japan US two biggest creditors dumping US treasuries, US will find itself paying more for debt and even a liquidity crisis
Also note the end of US Petrodollar and Chinas payment system bypassing SWIFT and BRICS nation bypassing the US dollar altogether. When Eurodollar and Petrodollar start coming home to roost, watch how more US dollars coming home means hyper inflation for USA.
There is a P1.23B bridge in Cabagan Sta Cruz Isabela. There could be many causes for collapse. Netizens noted that it could be a steal bridge.
How sad.?! There have been reports that many construction projects are not as per specs because of huge cuts made by the sponsors of the project.
While many of us follow the rule to be in the service of others as are other "public servants" this is not the case for many of our leaders: dpwh, congressmen, coa, lgu heads. Each one must partake of the spoils and in the end, substandard materials and methods are left in the project.
Former Cong Ron Paul in many places and including the above article predicted the collapse of US as international reserve currency. All ready, the US dollar is no longer a petro dollar. 10 nations have agreed to ease out US dollar as international trading currency. China and Russia announces plan to scrap US dollar - Jim Rogers
The biggest issue vs the dollar is that there is no gold standard backing this up and thus leads to irresponsible budgeting and spending leading to inflation and double deficit.
Under Obama, we are witnessing the financial calamities:
I. The State of US finances
The national debt is $19 trillion dollars
The unfunded, yet mandated liabilities (e.g. Social Security, Medicare, etc) now total $230 trillion dollars and,
Of course the 800 pound gorilla in the room is the $1.5 quadrillion credit swap derivatives debt.
2. The collapse of oil price - while it is good for the consumers, it is bad for the banks who lent to the oil companies, and oil companies, and economy in general. It leads to weaker cash flow and bank illiquidity
“Since the start of 2015, 42 North American oil companies have filed for bankruptcy, 130,000 good paying energy jobs have been lost in the United States, and at this point 50 percent of all energy junk bonds are “distressed” according to Standard & Poor’s. As you will see below, some of the big banks have a tremendous amount of loan exposure to the energy industry, and now they are bracing for big losses. And the longer the price of oil stays this low, the worse the carnage is going to get.”
And as it is the European banks, there is no end in sight to this financial massacre of America’s economic life-blood. Let’s not forget that the best measure of global economic health, the Baltic Dry Index, continues to plummet to all-time low of under 300.
3. The start of dot com bubble collapse.
Yahoo price is down by 37%
4. Crime rate has increased in major US cities: Chicago, LA
