20 Is Better Than 8! For Now At Least

            NPR’s Planet Money had an interesting brief post a few days ago titled “The G8 Still Exists!” The title portrays the situation fairly accurately; don’t forget the still powerful G8. To those who don’t know, the G8 is comprised of the United States, United Kingdom, Russia, Japan, Germany, France, Canada and Italy, and was the go-to group for any large scale decision not too long ago. Off late, China alone has amassed an economy larger than that of nine of the G20 nations, and other countries such as Brazil and India have stepped to the fore front of international policy. Though the G8 continue to control major global institutions, the broadening spheres of influences have given rise to the more comprehensive G20 which includes Argentina, Australia, Brazil, China, the EU, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea, Turkey and the current G8. This group represents major players from across the globe, each wielding power unto their own, who in collaboration are in near total control of world affairs. Though some believe the G20 simply represents a transition group to a new G8 encompassing tomorrows superpowers, for now power rests in this large group.

Hope and Heroism in the Face of Tragedy

               It seems like there are too many major events going on these days for even the most ravenous news stations to keep up. One story that seems to have slightly faded in the mess of updates is the status of Japan as it continues attempts to cope from the major catastrophe  and somewhat more urgently, to stabilize the condition of its nuclear power plants. There have been a lot of misconceptions about what is going on in these reactors particularly that we are on the verge of a nuclear meltdown that could cripple East Asia just as the Chernobyl explosion once did. This post by another blogger appears to shed some well informed light on the issue and I would greatly encourage you to read it particularly if you don’t work at a nuclear plant yourself.

                I feel it worth noting the efforts of Japanese workers who have stayed back as US forces and other on site officials have retreated to safety. We all owe some pride to these individuals who demonstrate true heroism. Though as I said, the situation isn’t utterly volatile, it is dangerous and has the potential for spreading radiation. These workers have been working hard to prevent the situation from worsening, all the while exposing themselves to radiation.

                I thank the efforts of these workers and hope for the best as they continue to alleviate the situation.

Japan: The Economic Picture

The crisis in Japan has taken a huge toll as is evident in the widespread destruction, infrastructural failures and terrible loss of human life. Despite this, from a purely economic standpoint, the natural disaster offers a unique scenario that does not appear very fiscally threatening.

The thing that makes this disaster different from say the earthquake in Haiti or the Tsunami in Indonesia is that Japan isn’t poor. Quite to the contrary it currently stands as the third richest nation in the world and consequently its economy reflects the vitality and resilience of say American or English markets. Sure some regions have lost all manufacturing output. The result is that many manufacturing plants such as automobile lines are shut down for lack of parts supplied by stricken regions. And yet, these areas only account for about 2% of the country’s annual output, and parts can quickly be channeled in from other sources.

NPR’s Planet Money team offered a great historical comparison to illustrate this. During World War II, the allies sought targets that they could bomb to cripple the German economy. After thinking on end, they finally thought a ball bearings factory would be great to destroy and so they did. German production lines were forced to stop almost immediately but soon enough ball bearings were brought in from elsewhere and everything resumed.  To emphasize this further just think of today’s times. I have cell phones on my mind after the At&t and T-Mobile merger, so think about your cell phone. For many of us, our cell phones are our life lines, so imagine for example if due to some disaster or technological failure that Verizon crashed. Sure there’s panic right away; millions will lose their cell service and large portions of the country will be shut out of communication. Yet as morbid as the situation may seem, give it a month or two and if Verizon isn’t already working again, people will have already switched to At&t or Sprint or a smaller carrier and all will be fine. The point is it takes a lot to bring down a modern economic power. Unless perhaps Tokyo were hit, no one part of the country could bring down the entire nation because for every service there is a redundancy.

Now in the less developed countries I mentioned above like Haiti and Indonesia, a natural disaster can be irreparably damaging, but for now it appears that Japan will not be affected. If anything, some predict that reconstruction from the disaster will prove to be a stimulus package of sorts, allowing for investment, new jobs and the movement of capital. But that’s just the economics of it; otherwise this is a terrible disaster whose toll in lives shall never be repaid.

Heroism in the Face of Tragedy

It seems like there are too many major events going on these days for even the most ravenous news stations to keep up. One story that seems to have slightly faded in the mess of updates is the status of Japan as it continues attempts to cope from the major catastrophe  and somewhat more urgently, to stabilize the condition of its nuclear power plants. There have been a lot of misconceptions about what is going on in these reactors particularly that we are on the verge of a nuclear meltdown that could cripple East Asia just as the Chernobyl explosion once did. This post by another blogger appears to shed some well informed light on the issue and I would greatly encourage you to read it particularly if you don’t work at a nuclear plant yourself.

                I feel it worth noting the efforts of Japanese workers who have stayed back as US forces and other on site officials have retreated to safety. We all owe some pride to these individuals who demonstrate true heroism. Though as I said, the situation isn’t utterly volatile, it is dangerous and has the potential for spreading radiation. These workers have been working hard to prevent the situation from worsening, all the while exposing themselves to radiation.

                I thank the efforts of these workers and hope for the best as they continue to alleviate the situation.