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The epic 9.1 quake, Japan’s largest in its history, and
the devastating tsunami damaged Japan’s infrastructure so badly that
manufacturing plants had to be shut down. But more worrisome is the endless
destruction of bridges, roads, electrical, and ultimately the nuclear
disaster in progress.
As I speak, they just tried to use helicopters to drop water on
the reactors and the spent fuel rod storage. It was just cancelled due to
high radiation…does this remind you of another disaster?? Beginning
with a C and in Russia?
If Japan cannot control the situation at the reactors, they
ultimately could spread a big fallout cloud across half of Japan. Reports out
that some minute contamination appeared in a city over 50 miles away in the
tap water.
We have maybe one week left or even days before a total
evacuation of that area if things don’t improve quickly. But take a
look at this picture of the reactor areas and you tell me if it looks
workable for emergency workers:
 
They have a mere 50 workers trying to control 6 damaged
reactors. It is not working so far. Each reactor normally has 100 workers.
They have pulled back. If the many stored spent fuel rods burn, they already
had one storage pool catch fire of these, it can release enough radiation in
the atmosphere to make it worse than Chernobyl. It would definitely result in
millions of evacuees. Get this, the storage pools for the spent rods are
stored OVER the reactors! And the bulding roofs blew off!
After the disaster, the commodity complex got hammered; even so
the Japanese stocks rallied 6 % last night. Gold sold off hard and this is
typical in any major market crash as people sell gold to cover margins.
Reversal of Yen carry trade
But, importantly, is a repatriation of Japanese money from
abroad and also out of markets and the Yen carry trade. Considering how huge
the Yen carry trade is, and that any time there is deleveraging, the Yen
rises, and the Yen is rising on and off again, indicates that if this reactor
mess goes more out of control, we might see some more major market action in
a week. Crash wise.
This also has implications for the ending of US QE2, as the
Japanese are the second largest holder of USTs. But it’s not likely
they would dump them. Nevertheless, they won’t be buying much. This
once again forces the Fed to be the lender of last resort, and we will see in
Summer if QE3 comes into being.
The commodity currencies are taking a bit of a hit, and this is
due to the expected economic slowing and lower orders for natural resources
from Japan.
We had forecast a realignment (weakening) of the AUD and CAD to
the USD by Summer due to expected ending of US QE2 (the Fed’s purchase
programs) which might or likely would cause some significant world market
deleveraging.
Well, this Japan situation just moved that up several months.
Supply chain
What if Japan has to evacuate, and say a 100 mile radius is
implemented?
Japan would basically shut down if that happened. And Japan is
in the MIDDLE of every supply chain you can imagine, not only for US
companies, but also for half of Asia.
Half the products are made with components from other countries
and then assembled in Japan or China. If the supply chain is disrupted, and a
mass evacuation would do it, then countless hits to world GDP will happen.
Apple already is delaying orders for new products from Japan as
we speak for example.
Prophecy
I am a Christian, and we have been following the biblical
prophecy correlations with current events – many of them are popping up
just this year and last.
One of the prophecies stated ‘the end would come as a
flood’ – IE suddenly.
Seeing the images of the Dec 2005 Indonesian tsunami, then the
Japanese footage that is just riveting, we cannot help but make these
observations.
Muslims too
But not only Christians are following their religious prophecies,
but so are the Muslims for example. And they are expecting the Muslim Mahdi,
a Christ like figure which we wrote about back in 2008, and Iran’s
leader says he is to usher in that leader personally!
Then, with the Middle East in turmoil, and 30 years of peace
treaties being basically ripped up, once again the prophecies come to the
forefront.
In any case, we are finding many Christian prophetic
relationships to present times. Undeniable correlations.
There is no doubt that since these prophecies all talk about
world food shortages, floods, quakes and economic collapses specifically in
detail, even trouble with the Sun, and Jerusalem being a troublesome stone
for the whole world with the Mid East in chaos, people are taking note of the
world changing events we see in progress, and even the markets are following
these events and their prophetic implications with interest.
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Chris Laird
Prudent
Squirrel
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