Wednesday, March 16, 2011

The economics of a pegged needle on your Geiger counter

The Dow dropped another 240 points today as concerns about Japan’s crisis weighs on the trans-national companies that dominate the index’s listings. The USD has gained against the Yen but is still weak against the Euro reflecting the oil market as most oil is still traded in USDs and while the price of oil is down speculation still dominates. Keep in mind the Federal Reserve is putting something on the order of a 120 billion USD into the markets every month or you would likely see the Dow fall through the floor.

Japan’s central bank has been pumping massive amounts of Yen to keep their markets from melting down. A bad pun I know, but it is a reasonable analogy just the same as Japan’s economy now teeters on the edge of oblivion. Japan has been “competing” in the world market by monopolizing the production of hundreds of critical electronic and industrial components. Much of this production is concentrated in the part of Japan now devastated and facing total abandonment without some sort of miracle at the nuclear plants.

The US Nuclear Regulatory Commission official under oath before Congress today testified that the Japanese are either understating the crisis or are unaware of the magnitude. The US NRC says the radiation is already at lethal levels around the reactor site and this is not just guesswork as the US is big in the spy satellite business. We have the capability to track nuclear radiation emissions with a high degree of accuracy.

Germany has ordered the immediate shut down of all its Nuclear plants based on the GE Mark one design. Three GE engineers resigned their jobs when these time bombs were being built over the stupidity of their design. The 36 GE Mark one reactors in the US have the very same waste fuel rod cooling pools on top of the reactor building with basically no shielding. Any long term failure of the cooling system will result in a complete melt down and metallic fire regardless of whether these plants are even in operation.

GE stock was down 3.37% today, double the market drop. Not that they will ever be held accountable for their negligence, companies this size never are, but they are not a US company anymore and the collapse of Japan where much of their business is based will hurt their bottom line. GE’s partner in Japan is Hitachi which holds an 80% stake and will bear the brunt of the responsibility for the disaster if anyone is held to account.

China, not being run by fools has ordered the immediate halt of all nuclear plant construction. President Obama is still paying lip service to the nuclear industry saying it is essential for our future. Japan’s and especially the foreign money elite there have bought up all corporate jet leases to ferry their people out of the country. The future, while often murky comes to complete clarity if your Geiger counter pegs the needle at the top of the scale.

And for all you people who think my references to canned goods are a joke, the stores in Tokyo are now empty.


Messy Kitchen, Frazzled Cook said...

Working in retail, today I experienced the total panic (okay, they try and act like it is a casual thing,,,,you know, I was wondering if you might have some Potassium iodide...just in case, to keep in my emergency kit, ha ha ha.) Where were these same people when I was out protesting Diablo Canyon Nuclear Power Plant in California?

It isn't safe, it has never been safe and these are the results from pressing on regardless of the consequences! Nuclear power uses obscene amounts of water, water we don't have and that will become the next oil.

I fear not for my life, as I am old. But for my children and the rest of the world, I have no illusion that things are going to improve anytime soon. We have sold our soul to the devil!

Unknown said...

Actually the yen is still at near a post-WWII high against the dollar. The dollar is extremely weak against the yen.

It seems that all your posts are apocalyptic, yet no apocalypse has occurred or is likely to anytime soon. Japan is not about to collapse. Japan is not a radioactive wasteland or is likely to be. All the experts I've seen say that even in Tokyo it will be minimal, even with complete meltdowns of the cores. I'm not sure if they are correct, but your apocalyptic predictions lose their punch after awhile when nothing ever pans out.

prairie2 said...

The price of Yen tells you all you want to know? Keep clinging to your rightwing talking points. The people your "experts" work for (rich people) are all bugging out of Japan. I do not make predictions, you have me confused with the right wing con men. I lay out the facts and consequences. Okay I did predict in 2007 that the big banks were going to fail in 2008, how did that work out?

Unknown said...

I am not a right-winger. I hate them as much as you do. It's just that everything seems so doom and gloom, and it usually isn't that bad, especially where it concerns Japan's ability to recover. No one is better than Japan at recovering from disasters.

I am on the same team as you are; it's just that when I hear Mike Malloy reading every word of your posts it pains me to hear how upset he gets, thinking the world will end tomorrow.

prairie2 said...

Mike doesn't need me to get worked up, I'm the one that knocks down the really crazy stuff that comes in. There is a big difference between "worst case" and apocalyptic. Take my Walking out of Michigan short story, there is nothing in that piece that isn't already happening to millions of people. It just isn't happening fast enough for people to perceive the end. Pretending these things can't happen won't keep them from happening. By the way the reactor that is on fire is a plutonium fueled reactor not uranium fueled. Look that up.