The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

Global Financial Markets Plunge As The World Watches Japan Descend Into A Nuclear Nightmare

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Global financial markets are in turmoil as the situation in Japan continues to deteriorate.  Stock markets are plunging all over the world as investors flock to investments that are considered to be safer.  The 9.0 earthquake and the unprecedented tsunami in Japan would have been more than enough to spook investors and unleash chaos on world financial markets, but now the unfolding nightmare at the Fukushima Dai-ichi nuclear facility is really starting to cause panic.  Right now there is a mass exodus out of the city of Tokyo.  But not everyone can leave the city.  There are over 30 million people living in and around Tokyo.  So where in the world could you possibly put 30 million refugees?  Sadly, the truth is that millions of Japanese are going to stay in Tokyo no matter how high the radiation gets.  Let us hope that Japanese authorities can get the situation at the Fukushima Dai-ichi nuclear facility under control, but the fact that they have resorted to dropping water from helicopters and shooting water cannons at these nuclear reactors is not comforting.

World financial markets are certainly not expressing a lot of confidence right now.  This week alone, $300 billion in U.S. stock values have been wiped out.  The Dow Jones industrial average lost about 2 percent of its total value on Wednesday.  The Nikkei 225 stock index has lost about 10 percent of its total value since the beginning of this crisis.  At one point it was down more than 16 percent, but a gigantic monetary injection from the Bank of Japan has helped to stabilize things at least for now.  There are also some that believe that the Japanese government is now directly buying up stocks to keep them from falling even further.

Stock markets across Europe have been plunging as well.  An article posted on the USA Today website described some of the carnage on Wednesday….

In Europe, the FTSE 100 index of leading British shares closed down 97.05 points, or 1.7% at 5,598.23 while France’s CAC-40 fell 84.29 points, or 2.2%, to 3,696.56. Germany’s DAX ended 133.82 points, or 2%, lower at 6,513.84.

The financial ripples from this crisis are going to be felt for a long, long time.

In order to rebuild Japan, the Japanese government is somehow going to have to borrow massive amounts of money.  But the Japanese national debt was already projected to reach 228 percent of GDP this year.

The Japanese government has become an incredibly bad credit risk, but lowering their credit rating right now would seem to be in very bad taste.  So far, all three major credit rating agencies are taking a “wait and see” approach when it comes to Japan.

Unfortunately, the crisis in Japan is far from over.

The situation at the Fukushima Dai-ichi nuclear facility just seems to grow more dire with each passing day.  Right now, the primary concern is the 40 years of spent fuel rods that are stored throughout the complex.

Ed Lyman, a physicist at the Union of Concerned Scientists, recently explained why the pools that store the spent fuel rods are the biggest problem at this point….

“For the time being, the greatest concern is the spent fuel pools because there is a clear pathway for release of radioactivity from the pools into the environment.”

The phrase “spent fuel rods” may make it sound like they should no longer be a threat, but the truth is that these fuel rods remain extremely hot and extremely radioactive for years after they are done being used.  For some reason, someone thought that it would be a good idea to store these spent fuel rods in huge pools of water near the top of each of the nuclear reactor buildings at the Fukushima Dai-ichi complex.

These spent fuel rod pools are not housed in the same kind of containment vessels that the nuclear reactors are.  Therefore there is a much greater danger that radiation from these spent fuel rods could be released into the surrounding environment.

A recent article by Paul Joseph Watson did a great job of explaining just how big of a problem these spent fuel rods represent….

The Fukushima Daiichi plant has seven pools dedicated to spent fuel rods. These are located at the top of six reactor buildings – or were until explosions and fires ravaged the plant. On the ground level there is a common pool in a separate building that was critically damaged by the tsunami. Each reactor building pool holds 3,450 fuel rod assemblies and the common pool holds 6,291 fuel rod assemblies. Each assembly holds sixty-three fuel rods. In short, the Fukushima Daiichi plant contains over 600,000 spent fuel rods – a massive amount of radiation that will soon be released into the atmosphere.

Each of these 600,000 spent fuel rods is a potential “dirty bomb”.

Are you starting to grasp just how serious this all is?

It is absolutely critical that all of these spent fuel rods remain submerged in water.

If the water drops in the spent fuel pools there will be nothing to keep the spent fuel rods cool and they will start to degrade very, very quickly.

Unfortunately, things don’t look good right now.  U.S. authorities today expressed their belief that the spent fuel rods in unit 4 are now exposed and that a great deal of radiation is being released.  In fact, Gregory Jaczko, the chairman of the Nuclear Regulatory Commission, stated during Congressional testimony today that he believes that an extremely high level of radiation is being released by exposed spent fuel rods at the Fukushima Dai-ichi nuclear facility at this point….

We believe that radiation levels are extremely high, which could possibly impact the ability to take corrective measures.

It would be hard to understate the courage of those that are working inside the Fukushima Dai-ichi nuclear facility right now. They all likely realize that they are all going to die very quickly. They are laying down their lives in an effort to save their countrymen. According to a recent report from CBS News these workers say that they are not afraid to die….

Although communication with the workers inside the nuclear plant is nearly impossible, a CBS News consultant spoke to a Japanese official who made contact with one of the workers inside the control center.

The official said that his friend told him that he was not afraid to die, that that was his job.

Would all of us respond the same way?

Even the media that are reporting on this disaster in Japan are starting to be affected by this radiation.  Lester Holt revealed this morning that his entire crew had tested positive for radiation after returning from an assignment.

Meanwhile, Barack Obama is acting as if all of this stuff going on in Japan is no big deal. In fact, as Keith Koffler recently observed, Obama seems to be really enjoying himself in the midst of this crisis….

This morning, as Japan’s nuclear crisis enters a potentially catastrophic phase, we are told that Obama is videotaping his NCAA tournament picks and that we’ll be able to tune into ESPN Wednesday to find out who he likes.

Saturday, he made his 61st outing to the golf course as president, and got back to the White House with just enough time for a quick shower before heading out to party with Washington’s elite journalists at the annual Gridiron Dinner.

If you are curious about Obama’s picks for the NCAA tourney, they are posted on the official White House website.

This weekend, the Obamas are headed down to Brazil. According to an article in Forbes, the Obama plan to do a good bit of sightseeing while they are there….

The Obama family will also take in the sights in Rio. A trip to Corcovado mountain, where the Christ the Redeemer statue stands (France gave us Lady Liberty, gave Brazil Jesus) is supposedly on the itinerary. What trip to Rio would be complete without it?

Isn’t it great to see Obama acting like a true leader in the midst of one of the greatest moments of crisis that the world has seen since World War 2?

What in the world is Obama possibly thinking?

One thing about a major crisis is that it reveals the true character of those affected by it.  Many are responding to this crisis in Japan with great acts of courage and heroism.

Others are not rising to the occasion.

Let us just hope and pray that the Japanese figure out a way to get the situation at the Fukushima Dai-ichi nuclear complex under control.  If a “worst case scenario” happens we could soon be facing an unprecedented nuclear nightmare.

  • VyseLegendaire

    Obama is done.

  • LiberatedCitizen

    Life imitates art?

    Michael Lewis’ 1989 Article: “How A Tokyo Earthquake Could Devastate Wall Street & The Global Economy”

    Read more:

  • I am embarrassed and ashamed at Obama’s frivolity during this crisis. At the very least, our country’s leader should be communicating with the US population with frequent and truthful updates on the crisis and its potential effect on our homeland.

    I agree, Obama is toast. Alas, I have a tough time at the moment coming up with a viable alternative.

  • Johnson

    I guess the Japanese are going to wish they had spent less time on dancing robots and the like and more time on developing robots that could be helpful in a nuclear power plant emergency.

    They don’t even need real AI. Just a robot that could be controlled externally to drag and point a hose would have been very helpful.

  • Eric V. Encina

    Calamity & Reconstruction Business Under Debt Finance Disaster Capitalism & Usury

    By Eric V. Encina

    Tsunami in Japan is terribly nightmarish as if in the phase of the apocalypse.

    Economists estimate the total cost of disaster relief and reconstruction could reach as much as 16 trillion yen ($200 billion), nearly 4 percent of Japan’s gross domestic product.

    Earthquake-Tsunami in Japan is terribly nightmarish catastrophe as if apparently in the phase of the Apocalypse. Tsunami photos speak some billions of unspeakable words. Man-made by adroit design catastrophe or God’s wrath? But why only Japan?

    Now after Tsunami, comes the reconstruction and rebuilding of the damaged areas in Japan. Japan needs huge funds to do so. Recovery is always difficult. Japan in its already terribly dwindling first world economy, needs to borrow money at interest at bitter pills of conditions, except by using debt-free money creation by Bank of Japan.

    Some leaders and politicians of other nations, multinational building corporations, business men, contractors, financiers, agents, et al, stand ready to make huge prognosticated profits by facilitating and selling building materials to Japan to do the rebuilding. If this Tsunami is by design intentional other than Mother nature’s doing or God’s wrath to Japan (Why only Japan? Which country is gonna be the next target or the next God’s wrath?), they have therefore achieved two aims. One is to punish Japanese Government for its stubbornness before the powers-that-be’s NWO global agenda, and secondly these evil men will make super huge profits on building materials that shall have to be bought by the Japanese Government, and the taxes to be imposed upon the Japanese people.

    It has been reported that Japan is also already in the edge of terribly weakening and dwindling financial-economic situation with its increasing budget deficits and debts that accordingly in the equivalent value of its 200% GDP.

    Why borrowing? If and when Japan can use its “Bank of Japan” – Japanese Central Bank to create money debt-free to finance calamity rehabilitation without any need of resorting to interest-bearing loans to foreign and international banks?

    Calamity rehabilitation can be less difficult to be tackled on by Japan and by any government in the world if there is debt-free money creation through public banking facility or by the facilities of the central bank and the provision of necessary funds for all the calamity victims without borrowing money at interest.

    Borrowing at interest either or both from domestic and foreign sources in times of calamity is another bondage of combined calamities, and accompanied by political calamity and simultaneous evils of corruptions. This debt finance calamity aggravates both natural and man-made calamities.

    Recovery is extremely difficult because of the inborn calamities of debt finance at usury. Any calamity-stricken country needs to succumb, and is pressured tremendously, to borrow interest-compounded-usury-bearing foreign and international loans with the same imposed conditions. The successive calamity events in the Philippines in 2008-2009-2010 caused the Philippine Government additional series of gargantuan debts at interest without any hope of repayment.

    Man-made and natural calamities, unfortunately, create another vicious cycle of debts under the imperialism of debt finance disaster capitalism and usury upon the debt-addict governments and over-taxed, calamity-stricken and economically-damaged citizens. At times, it is probable, calamities are intentionally and adroitly created to weaken a nation or resisting nations to have grounds for colonization and or by economic means to be conquered, and therefore can be used to prop up further debts, more imposed interest rates, and or to harbor government-to-government scams or global banking scam inter-play and perpetuating corruptions.

    In times of calamity, I personally advocate charity of prayers, means and efforts to help the victims and now to our fellow human beings and creatures in Japan. Charity must be done just as justice be given directly to the victims. Charity or aid does not need to be necessarily passing through Governments and politicians, banking and corporate institutions and churches, but it can be given directly to the victims, of course with certain measures of criteria and monitoring. Charity or aid passing through the government is becoming futile. In our experiences in the Philippines on most calamitous events, aid does not feed down to the victims, to the poor and the needy.

    Lastly, we hope and pray that nuke disaster and or any nuclear meltdown and contaminations would not continue to happen outside of Japan particularly to its neighboring countries in South East Asia, and of course to USA and Canada. This must be addressed by all concerned Japanese, rich-nation global leaders particularly the United Nations, in all honesty and in expediency to avert global disasters and thus save millions of peoples.

    I am also aware of the end times scenario when we would be facing off 2 Horsemen of the Apocalypse such as calamities – earthquakes, famine, wars and more deaths. Apparently we are now in the phase of this morbid situation as the Holy Bible demonstrates. And likely there are impending calamities that men of earth must be prepared.

    What I am interested is how to get rid the most calamitous of all, that is, debt finance disaster capitalism at compounded usury?


    Eric V. Encina

  • No, this is bogus. What exactly is it that Obama is supposed to do? Let me ask you this: if the disaster had happened in our country, would we be anxiously awaiting the Japanese to come and save us? No, we’d be working on it fully ourselves, figuring to be able to do the best job possible, and anyone else would be seeming to get in the way! Listen, the Japanese are fairly advanced and educated. They are pretty good at engineering–like, we buy all our cars from them, remember?–and we should be ready to give them help only when they ask for it!

    Right; the earthquake was Obama’s fault! 😛

  • Phong Le

    Do you have any information that the Japanese government ask Obama for US help and was denied? I’m curious, what exactly do you want Obama to do concerning Japan? The last time I checked, Japan is a sovereign country. Let me go check again. Yep, it still is.

  • roadrunner

    Obama is done, and he knows it. As a matter of fact, he’s more than just….done…he’s toast with many around the world. This is why they are livin’ it UP on the country’s dime. It’s nice to go on a lux vacation every 2/3 weeks.

  • Hello Kitty Karmic Justice Baby

    As Dr. Doom has said, “They will begin QE3,4,5,6,7,8,9 on to 18”. Money Printing will keep up “appearance” for quite a while.

    The “Inflation Game” can keep things going for a long time.

    Don’t hope for the Great Pumpkin Cataclysmic Crash–rather expect a long steady horrific decline.

    When will Japan’s Emperor express sincere contrition for the Millions they Murdered in the 1930’s and 40’s.

    When will Japan pay Monetary Damages to the relatives of those they murdered and the few who survive Japan’s aggression.

  • Jeff

    This is indeed a crisis, and you have no problem using it as an excuse to bash the President.

  • jet

    And Rush Limbaugh is making fun of the incident. Come on, you are going too far in trying to somehow paint Obama negatively.
    Yea he may not have shown enough sensitivity on the tragedy but please stick to what you do best.

  • Matt

    Obama is a perfect poster child for all you liberals out there – he is you – you are him. He has no real-world solutions – doesn’t know how to handle adversity, runs & hides from it – pretends it doesn’t exist – doesn’t want to be ‘bothered’ with it – and at the end of the day, drops out and tunes in American Idol…

  • Let’s blame Obama. Maybe he sholdn’t go on this trip but the REP & Tea Partiers blame him for high gas prices and just about everything that is going wrong. Maybe we should step back and blame 8 years of Bush, Pentagon selling weapons to dictatars and backing them as allies, regulators not doing their jobs(nuclea, finicial, housing, etc),
    Obama is guilty of believing what people around him tell him as truth!
    Japan was always to be trusted as honorable was at the core of life but guess the GREEDY LIEING SICKNESS from the US Bankers & Corporations spread to Japan – SAD!!

  • Jeremiah

    I hate for this to sound uncompassionate or stupid, but I am curious (and probably ignorant): Can Japan be cut off from the world economic market until they recover and then enter it again? If they were cut loose for a while until they were recovered, would that help the remaining economy?

  • mel

    Don’t Worry. With Bernanke around and all the top “brains” working in Wall St, DJ will rebound in no time. See how quickly it went up this morning.

  • Dan McDonald

    Thank-you for your brief but informative explanation of what is taking place. It does not bode well for northern Japan. As far as Obama, why aren’t his advisors communicating to him his need not to act as if life is now normal for him. I don’t mind his watching a basketball game or two, a degree of keeping a normal life in a crisis can be an asset. But PR is so much the work of a national and global leader. To have the president’s bracket picks on the White House website definitely sends a horrid message. We have discussions about no-fly zones in Libya, and nuclear radiation crisis in Washington, and the advisors in the White House are letting the president be known for his NCAA picks. He needs to get a new staff, they are not serving him or his family well.

  • DownWithLibs

    Nice to see that the President has his priorities in order. (Insert eye-roll here)

  • Jasper


    The writing is on the wall. Look at what has transpired since 1/11 – now……tic toc

  • JulietteofOhio

    This lucid explanation of the situation in Japan is most appreciated, and I also appreciated seeing some honest criticism of Obama for a change. For Karen, Bush has been blamed constantly for everything that goes wrong on Obama’s watch and nothing is ever the fault of the CURRENT president. Bush, at least, would have shown great concern about this horrific situation and he would probably have done something to aide the rebels in Libya instead of throwing them under the bus, as Obama is so wont to do. I found it interesting that “Narcissism” was determined not to be a mental illness after Obama took office. He is the classic narcissist and nothing will ever deter him from his own pleasure and his own interests. I pray to God that he doesn’t get another term, and think maybe even he knows he won’t, which is why he’s living it up while he can, on our dollar. The mainstream media will soon forget this brief episode of pique and Obama will again be the golden child. The rest of us probably won’t forget and the die-hard left will go back to blaming Bush. (And Bush didn’t cause the earthquake either, although I would not surprised to see him blamed.) Obama is showing his true colors and a decent man wouldn’t require a team of public relations experts to make him do the right thing.

  • GetsTheLastWord

    Well I can tell you want Obama doesn’t need to do. He doesn’t need to take a vacation every 5 seconds, give his opinion on sports outcomes, throw extravagant parties at the WH, bow to other world leaders, or turn his back on Israel.

    Obama is the worst president ever! Glad I didn’t vote for him.

  • Spider Man

    Nobody can blame Barry for the earthquake; however, it seems that he is poorly advised on how to address public opinion about the ongoing events in Japan: wondering why he doesn’t inform the populace that US reconnaissance planes are already surveying radiation levels across the Pacific Jet stream and/or monitoring stations have been erected all over the West Coast to asses the radiation levels as well (the brute and ignorant masses won’t panic if these types of measures are being carried out). His actions tend to confirm that Obama won’t seek reelection because he knows very well that United States is now collapsing and he doesn’t want to be held responsible for that.

  • What is Obama thinking?

    How about:

    “All those stupid crackers who voted for me! They didn’t realize that I play for keeps.”

    Nobody talks about all the lobbying efforts by Washington to force the Japanese to buy these reactors. Now they play the blame game. They knew all along where the reactors were being sited and the spent fuel stored.

    Now I can understand better why they attacked us in WWII. They know we are a bunch of Gaijin snakes.

  • Freemen

    Michael March 17th, 2011 at 9:34 pm
    What is Obama thinking?

    How about:

    “All those stupid crackers who voted for me! They didn’t realize that I play for keeps.”

    LMAO great comment thanks for the laugh keep posting. 🙂

  • The Beast

    Obama Superhero? I don’t think so. Besides, America needs to pay more attention on its domestic issues which are not less important than the Japanese nuclear issue.

  • Conservative Constitutionalist

    The worst president we have ever had..

  • Great article!!! Will continue to watch all the markets in the world to see if this disaster in Japan will cause a domino effect on world markets!!! Be very vigilant to see in coming months other earthquakes of similar magnitude in different parts of the world!!! If there is another earthquake disaster in other parts of the world that has this much effect like Japan, the markets will collapse!!! The book of Revelation predicts there will be a total of four earthquakes (Revelation 8:5; 11:13; 11:19; 16:18) These earthquakes will increasingly rip up the surface of the world, and the infrastructures of travel, communication and manufacturing will collapse during the Great Tribulation. Prepare spiritually my friends, read God’s Word in Daniel and Revelation and ask the Lord for discernment from all the reading and studying you do!!! God will give wisdom and knowledge to those that diligently search for Him, you can be assured!!!

  • Global financial markets are plunging because this is not just a Japanese problem.

    (1) Japan’s government required that 95% of commercial earthquake insurance be written outside Japan so the US, Europe, and other countries are bearing the risk. Insurers are now selling stocks and bonds to help pay claims.

    (2) With money flowing into Japan, the Yen is surging against other currencies. A stronger yen will have a negative effect on Japan’s exports and stock market. With infrastructure problems, Japan will have less goods to export. Residents fleeing Japan to avoid radiation exposure could also depress commerce and manufacturing.

    (3) A weaker Japanese economy will result in fewer imports from the US, Australia, China and other countries.

    (4) Zirconium is used as cladding on the fuel rods. Hydrogen comes from the reaction of steam plus zirconium. Since the reactor’s cooling capability was limited, and the water inventory in the reactor was decreasing, engineers decided to inject sea water (mixed with boric acid – a neutron absorber) to ensure the rods remain covered with water. Spent fuel rods stored in a boric acid solution also release hydrogen and have caused many smaller unreported explosions in other parts of the world.

    (5) Since Obama is not an expert on economics or nuclear physics, the world would probably be a safer place if he just left it alone.

  • And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring;

  • blueuniform

    You people need to quit making excuses for the muslim, illegal alien, president. Even if he was a citizen, his actions are embarrassing! Could you imagine how different a real president would be handling this crisis? President Bush, or even President Bill Clinton, would never run off on vacation every time there is a serious problem. It’s no wonder the rest of the world is loosing respect for our country, we have a joke for a leader. Even if you didn’t agree with his politics, you have to admit President Bush loved his country, and worked extremely hard to protect it. No one is going to say that about this current “illegal” president when he’s out of office.

  • JulietteofOhio

    I voted for Hillary and she was so prescient in asking “Who do you want to have answer the phone?” She would probably have made toast of Ghaddafi by now and I bet she and Bill would have figured out the economic mess. Obama has to be told everything and even then, he can’t get off his butt and actually accomplish something of merit. It’s like having an adolescent driving your card and in full possession of your credit card. Go Hillary!

  • Just the other day, the U.S. House of Representatives passed a continuing resolution to fund the federal government that would cut 6 billion dollars from U.S. government spending.

    On that exact same day, the official U.S. national debt figure rose by 72 billion dollars.

  • impeachRonPaul

    Thank you Bush for destroying our econmy and to the religous right for taking our freedom away.

  • Kevin Benko

    Some would claim that there is a need for a government, otherwise “who would take care of the poor”. This claim asserts that government would actually give a damn about the poor.

    This would imply that government is kind, beneficent, and helpful, in general– that government possesses a certain moral quality that one might attempt to claim is *good*.

    If that were the case, then it would make sense that government would care more about someone’s really messed up collection of nuclear reactors going all critical and stuff, as that is a much more drastic situation than being merely poor.

    Look at what the US government is doing. Not a damn thing. The imperious president does not seem to be doing a thing, Apparently, he considers this *global*problem* a distraction to his leisure. The US legislature, at whom we should really be pointing our fingers, doesn’t seem to be accomplishing squat.

    So much for government being anything resembling moral.

    If my neighbor’s kid is in trouble, say he’s started a fire in the field behind our neighborhood, and I see him trying to put it out. Now, while I don’t really like the kid, I am going to get off my ass and help the kid put out the damn fire before the thing grows too large to be manageable, because I am a decent human being.

    The US government can show it is composed of decent human beings by getting off it’s ass and helping their neighbors put out the damn fire and help Japan deal with their nuclear powerplants. Not because the US government has any obligation to do so, but because it is the decent thing to do.

  • this is no doubt in my mind the final blow to the world economy to kick start the REAL GLOBAL DEPRESSION.


    there is NO way Japan will ever recover from this, that entire island country is destroyed, and like dominoes the rest of the worlds economy’s will follow!

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...