I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Ever since I discovered "economics" my eye tends to see the capital structure that surrounds us just as much as the people. A sidewalk used to be just some concrete laid down decades ago, now I appreciate it for the durable good that it is, the service it provides -- it is wealth in a very tangible form!
That area of Japan is rather dependent on primary-sector small-plot ag and fishing -- seeing their boats destroyed and their fields flooded over was watching their fixed capital being eliminated.
The lost loved ones is the immediate shock for them of course, but going forward tens of thousands are going to have a hard time getting reestablished in their business and this is going to have a knock-on effect in the area's wider economy.
All the reinvestment in replacement capital goods could have gone into new capital for new enterprise in the nation.
AFAIK Kobe didn't really recover that well from their disaster, the container traffic went elsewhere and didn't come back.
This is certainly a big enough disaster to break the back of the Japanese economy, if it is in fact an unsustainable mess.
I don't know whether it is or it is not. Their trade surplus of $1000/yr/capita says their economy is sustainable I guess.
For decades, the United States has relied on a tortuous financial arrangement that knits together its economy with those of China and Japan. This informal system has allowed Asian countries to run huge export surpluses with the United States, while allowing the United States to run huge budget deficits without having to raise interest rates or taxes, and to run huge trade deficits without abruptly depreciating its currency. I couldn't find a single instance of Obama discussing this issue, but it has been an obsession of bankers, international economists, and high officials like Federal Reserve Chairman Ben Bernanke. They think this informal system contributed to today's financial crisis. Worse, they fear that its breakdown could turn the looming downturn into something resembling the global depression of the 1930s.
Unreal tune!
ReplyDeleteI think you played it for my Birthday which is tonight!!!!!!!!!
Or not.
My fav:
ReplyDeletehttp://www.youtube.com/watch?v=AdKjEHfHINQ
Parsley, sage, rosemary, and birthday time! ;)
ReplyDeleteStag,
ReplyDeleteI echo the moment of silence. The response of the Japanese to their tragedy was telling. Very courageous people.
GYC,
Happy B-day. Knock back a few cold ones!
http://www.youtube.com/watch?v=PSxihhBzCjk
ReplyDeleteEver since I discovered "economics" my eye tends to see the capital structure that surrounds us just as much as the people. A sidewalk used to be just some concrete laid down decades ago, now I appreciate it for the durable good that it is, the service it provides -- it is wealth in a very tangible form!
ReplyDeleteThat area of Japan is rather dependent on primary-sector small-plot ag and fishing -- seeing their boats destroyed and their fields flooded over was watching their fixed capital being eliminated.
The lost loved ones is the immediate shock for them of course, but going forward tens of thousands are going to have a hard time getting reestablished in their business and this is going to have a knock-on effect in the area's wider economy.
All the reinvestment in replacement capital goods could have gone into new capital for new enterprise in the nation.
AFAIK Kobe didn't really recover that well from their disaster, the container traffic went elsewhere and didn't come back.
This is certainly a big enough disaster to break the back of the Japanese economy, if it is in fact an unsustainable mess.
I don't know whether it is or it is not. Their trade surplus of $1000/yr/capita says their economy is sustainable I guess.
S & G were the only pop act I've ever paid to see.
ReplyDeleteTroy (& all),
ReplyDeleteNovember 28, 2008
Debt Man Walking: The US, China, Japan and the Foundations for a New Bretton Woods [Updated]>Debt Man Walking: The US, China, Japan and the Foundations for a New Bretton Woods [Updated]
For decades, the United States has relied on a tortuous financial arrangement that knits together its economy with those of China and Japan. This informal system has allowed Asian countries to run huge export surpluses with the United States, while allowing the United States to run huge budget deficits without having to raise interest rates or taxes, and to run huge trade deficits without abruptly depreciating its currency. I couldn't find a single instance of Obama discussing this issue, but it has been an obsession of bankers, international economists, and high officials like Federal Reserve Chairman Ben Bernanke. They think this informal system contributed to today's financial crisis. Worse, they fear that its breakdown could turn the looming downturn into something resembling the global depression of the 1930s.
We're all debt men walking now. Sigh.
Oops. I had a copy and paste error on that link. It still works but let's try again.
ReplyDeleteDebt Man Walking: The US, China, Japan and the Foundations for a New Bretton Woods [Updated]
Freaking mess. Lost for words for once.
ReplyDeleteGYSC,
ReplyDeleteI was certainly speechless. I couldn't think up a post that had more than 2 words.
Earthquake bad.