Tuesday, March 15, 2011
From Gas to Gadgets: Japan's Disaster Means Higher Prices
I know there has been tons of talk about the implications of the earth quake in Japan, but here is a good article on how prices of various goods will be affected by the destruction. It is interesting to see how much the crisis will affect the United States and how the international trade will be hurt between the two countries.
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2 comments:
there is no doubt that what's going in Japan will hurt the international trade. However, as prices are going up, it is in accordance with the Fed's plan to generate some inflation in the economy. I would see this as an opportunity for the economy to recover rather than a threat.
The demand for natural gases in Japan has increased due to the breakdown of nuclear reactors, and there are speculations that the international price of natural gas will increase. There is a news on CNN today saying that this won't be the case in the US since the domestic market already sits on a glut of the relatively cheap fuel used to power homes and buildings. Indeed some aspects of the international market will be affected, but we need to view it on a country to country base.
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