Thursday, 30 October 2014
Put a fork in Japan its done!
If you were culturally aware during the 90's it was reasonable to wonder if Japan would buy America.
I absolutely love Japan. I remain faithful to Sony and Honda. Tokyo in particular is the most remarkable city in the world. So what went wrong?
I do not know which came first, the people (women in particular) going on strike or Japanese manufactures loosing their manufacturing monopoly. These two paradigm shifts account for the economic tsunami that now threatens to wash over Japan in a way the world has never experienced.
For comparison the basket case that is Greece has 136% of GDP debt. However the GDP of Greece is only 0.39 percent of the world economy. Japan represents almost 10% of the world economy.
If that were not enough Fukushima continues to spew uncontrollably. My opinion is that large parts of Tokyo are now technically uninhabitable. And that would be a best case scenario. Pre-Fukushima 48% of electricity in Japan was generated by Nuclear. For three years that source has been shut down. How can a country handle that? The answer 難しい Muzukashī, which means difficult.
To top it off Japan has to worry about conflict with China. The Chinese have not forgotten WW2. Likely the Chinese would not only like to see Japan go over the cliff, they would give it a push.
Japan is going to break very soon. The impact on the global economy? Be afraid, be very afraid.