Monday 4 April 2011

Globo-economy makes money go round

The modern globo-economy and the planet
have been likened to the circulation system and the human body.
money and products travel around the world at wicked speeds,
bringing growth and progress for everybody. @sarc

Actually, it's like a body on steroids and heroin at the same time, acting irrationally.
e.g. the UK imports 40 000 tons of wheat and exports 40 000 tons of wheat
If the body doesn't keep going as usual, on drugs,
it will collapse in fits on the 'ground'.

What if Japan is a hand, because it is a great manufacturing country. Make it an arm.
What if that arm stopped working due to a triple seismic, tsunami, nuclear meltdown disaster?


What if Japan turns out to be a "vital organ"? Will the globo-economy be hospitalised?
Well, Japanese car plants are closing around the world, because of a lack of parts from Japan.


International banking and arbitrage are going nuts.
Japan gave away its money for less than 1% interest (free money), for reasons I don't understand, so that bankers
could you use to buy bonds in economies in other countries with good interest rates= the carry trade.
Japan also bought lots of US government bonds.
BUTT, now the Japanese government has to rebuild its country, along with the insurers.
In order to do this, what if Japan needs to repatriate the money that it invested in US bonds and lent out to the carry trade?
Will the US economy choke?

a bionic arm. Bionics give us extra leverage. We can lift stuff that we couldn't before. The metaphor is apt. Instead of living within our means, we have taken to leverage to get what we want; happiness now and to hell with the future. Economically, we're all too highly leveraged to fail. We all have bank loans and credit cards up to the max.
What happens if you have a huge house loan and lose your job at a Japanese company?
Think: bionic arm up. scratch head.
What if the business losses caused by the disaster cause other banks or countries to go bankrupt? It could all lead to a massive hemorrhage or cardiac arrest.

what we have here is a bionic, addicted body
operating at hyper-speed,
which cannot slow down
for fear of complete disintegration,
and it just lost an arm
and is flailing about on the ground
and going nuts.

-Cos67 ¬(%^D>
checkitout:
1
http://allboutauto.com/search/toyota-plant-shut-down/
Japan Quake Causes Shreveport Gm Plant To Shut Down

Japan quake causes Shreveport GM plant to shut down The GM plant in Shreveport is the first one to feel the effects of the earthquake and tsunami in Japan. Read more on WLOX-TV Biloxi COLUMN: NUSE SENSE There is nothing quite like the high-paced, end-to-end action of a Princeton University men’s basketball game. Read more on The Princeton Packe...

GM Plant Shut Down Due To Japanese Parts Delay

Filed under: Truck, Etc., Plants/Manufacturing, Chevrolet, GM, GMC 2010 Chevrolet Colorado - Click above for high-res image gallery General Motors has announced that the automaker is stopping production at its Shreveport, Louisiana assembly plant next week due to a parts shortage caused by the ongoing tragedy in Japan. The facility is responsible for b...
2
http://www.zerohedge.com/article/great-japanese-unwind
the great japanese unwind? Leo Kolivakis
....Say that again Mr. Peng? A nuclear meltdown in the world's third largest economy will not trigger another global downturn? Can central bankers cushion the blow by printing potassium iodide laden paper currency? Let's get real here, if Japan implodes, the fallout will make 2008 look like a walk in the park!
Having said this, there is a tremendous amount of hysteria going on right now and a lot of it is fueled by Japanese authorities who are not being transparent with the world on what is really going on at these nuclear plants. Along with mass hysteria comes crazy market volatility. And market participants are nervously watching the yen carry trade. Fox Money reports, Yen Hits Record High Versus US Dollar: .....