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14 Reasons Why The Economic Collapse Of Japan Has Begun

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March 16, 2011 – Comments (22) | RELATED TICKERS: EWJ , JPP , SCJ

The economic collapse of Japan has begun.  The extent of the devastation is now becoming clear and many are now projecting that this will be the most expensive natural disaster in modern human history.  The tsunami that struck Japan on March 11th swept up to 6 miles inland, destroying virtually everything in the way.  Countless thousands were killed and entire communities were totally wiped out. 

So how does a nation that is already drowning in debt replace dozens of cities and towns that have suddenly been destroyed?  Many in the mainstream media are claiming that the economy of Japan will bounce right back from this, but they are wrong.  The tsunami decimated thousands of square miles.  The loss of homes, cars, businesses and personal wealth is almost unimaginable.  It is going to take many years to rebuild the roads, bridges, rail systems, ports, power lines and water systems that were lost.  There are going to be a significant number of Japanese insurance companies and financial institutions that are going to be totally wiped out as a result of this great tragedy. 

Of course in the days ahead the Japanese people will band together and work hard to rebuild the nation, but the truth is that it is impossible to “bounce right back” from such a massive loss of wealth, assets and infrastructure.

Just think about what happened after Hurricane Katrina.  Did the economy of New Orleans bounce right back?  No, there are some areas of New Orleans today that still look like war zones.

Well, this disaster is much worse.

Full article

 

22 Comments – Post Your Own

#1) On March 16, 2011 at 12:42 PM, portefeuille (99.78) wrote:

what is the point of posting all this Schiff garbage and now that?

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#2) On March 16, 2011 at 12:50 PM, kdakota630 (33.35) wrote:

portefeuille

Why not?

I find them interesting (as it appears others do as well), educational and could very well help influence the way people invest, hopefully in a positive manner.

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#3) On March 16, 2011 at 3:01 PM, rofgile (99.00) wrote:

How pessimistic you are!

 Bah, Japan has been through far worse damage to their infrastructure and culture - and will do well again.

 -Rof 

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#4) On March 16, 2011 at 3:12 PM, Momentum21 (98.33) wrote:

I find them interesting (as it appears others do as well), educational and could very well help influence the way people invest, hopefully in a positive manner.

They are certainly trying to influence the way folks invest..."the economic collapse blog" appears to have already come to a conclusion and are filling in the support material on the fly...

I always try to keep an open mind but this goes a few notches below Schiff in the education department. Just my opinion of course...  

 

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#5) On March 16, 2011 at 3:23 PM, kdakota630 (33.35) wrote:

rofgile

Japan has been through far worse damage to their infrastructure and culture - and will do well again.

Far worse? I'm not sure I'd go that far as this is extremely bad and still unfolding.

Momentum21

The "Economic Collapse" title isn't mine, but I'm not suggesting that this is the end of Japan as an economic power.  They'll "do well again" as rofgile said, but obviously this is going to take a long time for a nation already troubled for decades to overcome.

As an investor who has been looking at investing in Japan for a while, I found the points quite educational.  I haven't written Japan off, but they're obviously further on my back-burner than they were a week ago.

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#6) On March 16, 2011 at 3:36 PM, mtf00l (47.57) wrote:

I suspect the "they've been through worse" comment is in reference to the atom bomb.  Lest we forget, it was America that rebuilt Japan and then transferred our productive interest to Japan for electronics and vehicles.

China will pick up the slack left by Japan.  Toyota and Nissan are cutting back production and that was before the incident occurred.

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#7) On March 16, 2011 at 3:42 PM, Momentum21 (98.33) wrote:

kdakota630 (99.85) - the name of the source is actually called "the Economic Collapse Blog" and all I am saying is that I wouldn't make any investment decisions about Japan based on one word originating from that publisher. That site is littered with posts about collapse, calamity and crime...across the world. 

If you added some context perhaps the post would have made more sense from an investment (in Japan) standpoint. 

 

  

 

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#8) On March 16, 2011 at 3:53 PM, kdakota630 (33.35) wrote:

mtf00l

I suspect the "they've been through worse" comment is in reference to the atom bomb.

You're probably right.  I was only thinking natural disasters.  I'm sure people could argue which one was worse, comparing damage over a wider area vs casualties or whatever.  In any case, arguing over which was worse isn't a debate I wouldn't want to have.

Momentum21

The website is The Trading Report, but you're right, they do tend to focus on the negative, especially in regards to Japan, but I wouldn't dismiss them solely for that reason.

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#9) On March 16, 2011 at 4:00 PM, Momentum21 (98.33) wrote:

kdakota630 - perhaps they are owned by the same company/individual but the author is cited as: 

http://theeconomiccollapseblog.com/

I am sure the headline brought tremendous traffic to both sites. 

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#10) On March 16, 2011 at 4:26 PM, kdakota630 (33.35) wrote:

Japan Earthquake: before and after

Aerial photos taken over Japan have revealed the scale of devastation across dozens of suburbs and tens of thousands of homes and businesses.

Hover over each satellite photo to view the devastation caused by the earthquake and tsunami.

 

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#11) On March 16, 2011 at 4:28 PM, kdakota630 (33.35) wrote:

Momentum21

LOL.  You're probably right.  I just get a regular newletter/e-mail from The Trading Report and hadn't noticed a connection until now.

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#12) On March 16, 2011 at 5:32 PM, jesusfreakinco (29.60) wrote:

Bank Holiday Imminent?

http://www.zerohedge.com/article/bank-holiday-imminent

This wouldn't be good...

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#13) On March 16, 2011 at 7:04 PM, awallejr (82.46) wrote:

The author could try to give 50 reasons why the economic collapse of Japan has begun, but as Mark Twain once said "Reports of my demise have been greatly exaggerated."

If the author was trying to simply write about the hurdles Japan will face, that is one thing, but I see no value to that headline aside from trying to write off an entire country.

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#14) On March 16, 2011 at 7:38 PM, kdakota630 (33.35) wrote:

awallejr

I'm willing to forgive the author for the attention grabbing title he decided to go with, despite the fact it's probably a little exaggerated/misleading.  To me, it's more powerful than "14 Hurdles Japan Will Face and Have to Overcome".

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#15) On March 16, 2011 at 7:57 PM, whereaminow (73.00) wrote:

Good article. Of course it's not as wonderful as the Keynesian line that this destruction is actually an economic benefit ;) (see Summers, Larry), but it's pretty good.

I notice the BOJ response is the only response they know: print, print, print. Can you build factories and shipyards with paper?

David in Qatar

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#16) On March 16, 2011 at 8:37 PM, Pennyperson (< 20) wrote:

I do not agree.........

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#17) On March 16, 2011 at 8:50 PM, russiangambit (29.96) wrote:

Disasters tend to unite the population towards the common goal, which helps a lot and makes the nation stronger. However, I do agree that the road back to prosperity will be very difficult and their fiscal situation is not helpful. But look at this from another point of view - these people will spend their efforts rebuilding their homeland together,  helping each other, which is far more meaningful that worrying how you are going to make your next 10k, 100k, 1 mil, 1 bil all on your own ...

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#18) On March 16, 2011 at 11:17 PM, awallejr (82.46) wrote:

I'm willing to forgive the author for the attention grabbing title he decided to go with, despite the fact it's probably a little exaggerated/misleading.  To me, it's more powerful than "14 Hurdles Japan Will Face and Have to Overcome".

That's what tabloids like The Nartional Enquirer are for.  Rumor has it that Bigfoot is alive and well and living in NDakota.

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#19) On March 17, 2011 at 12:03 AM, whereaminow (73.00) wrote:

You're seriously comparing that headline to bigfoot?  Anti-schiffism is turning into a psychosis.

David in Qatar 

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#20) On March 17, 2011 at 8:15 PM, awallejr (82.46) wrote:

Nope I am seriously comparing sensationalist garbage to sensationalist garbage.  Schiff has nothing to do with this, unless he wrote the headline.

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#21) On March 17, 2011 at 8:23 PM, kdakota630 (33.35) wrote:

awallejr

You're going to completely dismiss the validity of an article based on a sensationalistic headline?

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#22) On March 18, 2011 at 1:03 AM, awallejr (82.46) wrote:

Yes.  Because the headline is the conclusion, the article is the argument.  Others understand this that is why they critisized it, and rightfully so. 

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