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]