Sunday, April 03, 2011

The Tohoku Disaster

Tohoku disaster, one that cannot be simply measured by mere death tolls, is affecting the world. With a lot of manufacturing. The fact is, parts from computer chips to paint pigments have stopped manufacturing and are dwindling fast. The factories are not really damaged, but the crucial supply of water and electricity have made it hard for the world's second largest auto industry to crank out parts. Because the parts are shipped by sea, the real effect is not felt by the world yet, and the port near Tohoku is destroyed. The problem also lies in the fact that the parts manufactured by Tohoku takes a long time to be replaced as the precision monitoring and diagnostics for cars is very specific, and it takes a long time to switch suppliers.

The rising yen. I do not understand the reason why the Yen is rising and how the rising yen would help in reconstruction. I feel that with a high yen, the donations collected would actually buy less and do less.

With the Japanese economy not doing so well, the triple disaster will definitely have a big impact on the economic recovery and unemployment. With the uncertainty to the nuclear crisis, Japan food exports are also affected, along with Tourism, at least for the near future.

-- Iron Bowl

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