Perhaps it is not very sensitive
analyze the economic consequences of the earthquake, when the only concern should be the victims. It is clear that a catastrophe of this size, one of the most influential economies in the world, will have a significant impact not only within the country but on international markets.
Japan faces a rebuilding effort with a public debt currently accounts for 200% of your product, but only 5% of it is in the hands of foreigners, and the rest is absorbed by banks, insurance companies and domestic pension funds. The interest rate is only ten years 1.3%, in a country where consumer prices decrease. So far all the investors who have ever bet on a rate hike by increasing debt, plus the fact that agencies have lowered the credit rating of the country have been wrong. However, this extraordinary effort of the government deficit has failed to sufficiently encourage the economy and domestic consumption grows a little. Now, the reconstruction will have a public and a private component, the first will be an additional debt that will be subscribed by foreign investors and will surely lead to a rise in interest rate debt, a good thing to maintain profitability and pay pensions deprived of an aging population.
As companies in Japan have cheap and abundant credit, little debt and are seeking investment opportunities abroad rather than within. Now the industry will have to replenish stocks and to meet the demand for infrastructure and housing repair, thus recovering part manufacturing industry in decline over the past two decades. The country's employment rate is 98% and unemployment is less than 5%, the weak growth of the relatively small population and immigration (from China, Korea, Brazil and Peru) have avoided a problem of unemployment, despite low economic growth, which provides about 2%. The margin that leaves the current unemployment, although small, and immigration will help to have the labor involved in reconstruction and industrial expansion.
Moreover, the problem with nuclear reactors generates uncertainty about the evolution of energy costs. However, the yen appreciates to return money to the country by investors and insurers. There will be a new momentum in trade with the countries of the region, correcting the growing export surpluses of Japan and stimulating domestic demand, domestic price increase would, in these circumstances, a very good stimulus for production.
not the first time a disaster serves to restore economic activity in countries that have material, human and financial. But above all, shows how in these circumstances are set aside wars internal fiscal and foreign exchange trading, and spontaneous solidarity appears showing that there are other values \u200b\u200bbeyond those that reflect the quantities and prices. Gumersindo
Japan faces a rebuilding effort with a public debt currently accounts for 200% of your product, but only 5% of it is in the hands of foreigners, and the rest is absorbed by banks, insurance companies and domestic pension funds. The interest rate is only ten years 1.3%, in a country where consumer prices decrease. So far all the investors who have ever bet on a rate hike by increasing debt, plus the fact that agencies have lowered the credit rating of the country have been wrong. However, this extraordinary effort of the government deficit has failed to sufficiently encourage the economy and domestic consumption grows a little. Now, the reconstruction will have a public and a private component, the first will be an additional debt that will be subscribed by foreign investors and will surely lead to a rise in interest rate debt, a good thing to maintain profitability and pay pensions deprived of an aging population.
As companies in Japan have cheap and abundant credit, little debt and are seeking investment opportunities abroad rather than within. Now the industry will have to replenish stocks and to meet the demand for infrastructure and housing repair, thus recovering part manufacturing industry in decline over the past two decades. The country's employment rate is 98% and unemployment is less than 5%, the weak growth of the relatively small population and immigration (from China, Korea, Brazil and Peru) have avoided a problem of unemployment, despite low economic growth, which provides about 2%. The margin that leaves the current unemployment, although small, and immigration will help to have the labor involved in reconstruction and industrial expansion.
Moreover, the problem with nuclear reactors generates uncertainty about the evolution of energy costs. However, the yen appreciates to return money to the country by investors and insurers. There will be a new momentum in trade with the countries of the region, correcting the growing export surpluses of Japan and stimulating domestic demand, domestic price increase would, in these circumstances, a very good stimulus for production.
not the first time a disaster serves to restore economic activity in countries that have material, human and financial. But above all, shows how in these circumstances are set aside wars internal fiscal and foreign exchange trading, and spontaneous solidarity appears showing that there are other values \u200b\u200bbeyond those that reflect the quantities and prices. Gumersindo
Ruiz.
(Grupo Joly 03/15/2011)
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