Japan Disaster to Trigger Liquidity Crisis Like 2008
The Fukushima Daiichi nuclear power plant struggled to contain leakage of radioactive water into the sea as the ripple effects from Japan’s crisis worsened considerably on April 4, 2011 which is expected to cause a liquidity crisis and another financial crisis like what happened in 2008 soon.
Toyota announced it will shut down all of its North America factories due to parts shortages while AutoNation warned “production disruptions will significantly impact product availability from Japanese auto manufacturers in the second and third quarters of 2011.”
These announcements follow GM’s temporary shutdown of its Shreveport plant and reports Apple is facing a shortfall of batteries for its iPad 2 as a result of the disaster in Japan.
Chris Martenson, author of “The Crash Course“, expects more “product shortages and associated work stoppages” in the coming weeks, and warns Japan’s natural and nuclear disaster could inflict a “Mortal Wound” to the global economy.
As the title of his book and video series implies, Martenson has a proclivity to see events unfolding in a worst-case manner but there is typically logic to his thesis, as is the case here.
In a nutshell, he sees Japan’s economic crisis leading to a global liquidity crisis, which could trigger a series of “Financial Accidents” — similar to what occurred in 2008.
If Japan needs to sell Treasuries to fund its rebuilding — or merely stops buying — it could be the first peg in the U.S. “Funding Crisis” leading to another “Financial Crisis” Martenson, and many others, have long warned was coming.
“If something comes along that makes liquidity pull out of the system, we could have the exact same dynamic as in 2008,” he says, as discussed in more detail at the Chris Martenson website.
But this time around, you need to have all of your basic preparations completed soon warns Chris Martenson..
* If you live on the west coast of the US, you must prepare for a fallout.
* Get cash out of the bank and keep it somewhere safe.
* Move your money to liquid vehicles.
* Top off your fuel tanks.
* Buy extra food at the grocery store.
* Have long-term storage food put aside.
* Stock up on medicines if you take them.
Chris Martenson has no idea if anything is going to transpire or not, or when. How’s that for indecisive? But he can tell you that the pressures are larger than they’ve ever been throughout this long emergency and that conditions are ripe for an economic avalanche.
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