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. www.prairie2.com