An analysis of the Japan quake is provided at the following URL
http://www.glgroup.com/News/Japans-Economy-in-the-Wake-of-Earthquake--Tsunami-Devastation-52915.html
summary points:
temporary close down of certain manufacturing industries
loss of power to Tokyo area
pot facilities to be restored in short term
100's of billions of USD to fund reconstruction
potential to spur domestic activity/ demand
interest rates to stay low
increased demand for loans (printing more money)
Commodities will surge in the wake of the reconstruction effort. Production capabilities will probably not be increased, but perhaps enhanced (new equipment/ infrastrucutre). Domestic growth comes at the cost of further debt - they still have to pay it off. Low interest rates to continue ...... great for gold (negative real interest rates).
GC
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Dani Nadri, Country Manager Australia
Dani Nadri
Country Manager Australia
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