Wow, what a week … it looked like it was right out of the Book of Revelation.
An 8.9-magnitude earthquake hit off of the coast of Japan on Friday. There have been numerous aftershocks in the magnitude of greater than 5.
There were other quakes that same night that didn’t get near the attention by the media because the one off the coast of Japan was so massive. There was one in Hawaii that registered 4.6, a 4.4 in Alaska, 4.0 in the Dominican Republic and a 6.5 in the Bali Sea, etc.
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The moon has a gravitational pull that controls the tides, etc. But earthquakes, hurricanes and tidal waves are even more prone during these times when the moon is closer. It’s like a magnet that draws closer to its object. The pull strengthens the closer it gets.
Remember the huge tsunami that struck on Dec. 26, 2004? There was one of these “Super Moons” then too that was happening.
Japan’s earthquake and the 2004 tsunami both happened about a week or two before the closest point that the moon would reach from the Earth.
There was also a devastating cyclone that hit Darwin, Australia, back in the 1970s. Guess what? The moon was really close then too.
News reports today in Japan say workers are battling to prevent a nuclear meltdown after a second blast rocked an atomic plant north of Tokyo, as helicopters and convoys of army trucks head toward areas worst-hit by Japan’s strongest earthquake.
The 8.9-magnitude temblor and subsequent tsunami has killed thousands and left millions without electricity or water.
Tokyo stocks plunged and the Bank of Japan poured record funds into the economy, after Prime Minister Naoto Kan said the country was facing its worst crisis since World War II.
The financial devastation will be enormous.
This is horrible for an economy that was already so debt-laden to begin with.
It’s only going to become tougher for Japan’s economy in the months ahead. This will take a toll upon their economy and will just be one more thing that weighs upon the global economy.
Oil is rocketing to the sky. Interest rates are already being raised in some parts of the world again. Copper prices are slumping again (showing early signs of a global slowdown possibly forming) … and the list goes on and on.
I just don’t think that global stock markets can take many more “ankle weights” being strapped to them.
It’s making it tougher and tougher for corporations to get over so many hurdles like higher oil and gas prices that I think it’s going to show up in global stock prices soon.
When this happens, it’s going to give temporary life to the greenback.
As Japan suffers more economically from the earthquake, I believe it will weigh upon the yen over time and cause it to continue to slump.
It will also ensure that interest rates stay low in Japan. So once again, it may become the ultimate “carry trade” as investors borrow in that low yielding currency to only turn around and buy up higher yielding currencies with it.
And with inflation on the rise, many central banks will be raising interest rates in the months ahead. That will only pump up the yields on many currencies and cause the “yield seekers” to come out of the woodwork to buy these high-yielding currencies versus the low-yielding yen.
About the Author: Sean Hyman
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