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>> QUAKE + NUCLEAR cleanup will cost BILLIONS >>> Japan may DUMP US DOLLAR ASSETS, TREASURIES
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[quote:oldboldpilot:MV8xMzkwMzk2XzIyOTIxNDY5X0IyOTA2MDYx] Japan could be the next economy to dump treasuries in light of the cost required to rebuild after the tsunami that tore through the Northern part of their country today. As bond insurer Pimco lead the way earlier this week in selling off all their bond holdings, Japan will need to find an income source to help rebuild its infrastructure, and get its economic machine going again. ...Japan has a track record of dumping their treasuries after large disasters to protect and rebuild their country, and with the tsunami that hit the mainland today, the likelihood of this happening is very good, and could bring strong influence to the economy of the US as well. http://www.examiner.com/finance-examiner-in-national/japan-could-dump-treasuries-to-pay-for-rebuilding-costs-from-the-tsunami#ixzz1GPwv6kj3 [/quote]
Original Message
JAPAN will have to focus on rebuilding...and unprecedented nuclear cleanup costs. There are signs they are already starting to sell US Treasuries to Pay For Quake Damage -
This means a lower USD and much HIGHER US Interest rates ahead. Goodbye to any housing recovery...and hello much higher gas and food prices
[
link to www.examiner.com
]
Japan's Devasting Quake Could Cause Higher U.S. Interest Rates
Should expenses build up and Japan needs to kind of rebuild, they`re going to likely sell, not only sell their current Treasury holdings,
but potentially really prevent them from buying more as they have some spending to do back home.
[
link to www.pbs.org
]
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This comes on top of forecasts that the earthquake in Japan will also cause oil prices to rise. Our fragile economy may not easily handle these dual shocks at this time..:
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Japan earthquake may push oil prices higher
The powerful earthquake and tsunami that slammed northern Japan knocked out car plants and steel mills, stranded thousands in offices and at Disney's resort in Tokyo, and pummeled financial markets in Asia and Europe. But the biggest effect on the world economy may yet come in further roiling oil
[
link to www.latimes.com
]
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Petrol set for rise as aftershocks rock markets
Industry experts say that if Japan cannot get its refineries back online quickly, there will be a spike in that country's demand for petrol, diesel and jet fuel. Global suppliers might find it more profitable to increase shipments to Japan instead of selling the fuel elsewhere, resulting in a bidding-up of prices.
The disaster also has added an element of uncertainty for global rice prices. The Japanese region hit by the tsunami is a major production area for rice. The world's rice supply had been forecast to be robust but economists warned that the effect of the tsunami on Japan and other grain-growing areas in the Pacific Rim may temporarily fuel already-rising global food prices.
[
link to www.smh.com.au
]
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