Japanese disaster’s economic fallout spreads globally
Japan’s earthquake, tsunami and nuclear meltdown emergency have begun not only to destabilise the world’s third-largest economy, but deepen the slump and financial fragility afflicting global capitalism as a whole. Widespread production halts, rising sovereign debt, disruptions to investment flows and soaring energy prices are delivering shocks to Japan’s economy, with profound international implications. With large numbers of ports, airports, highways and manufacturing plants shut down, the Japanese government predicted “considerable impact on a wide range of our country’s economic activities.” Yesterday, Japanese stocks closed down more than 7.5 percent, wiping out $US287 billion in market capitalisation in the biggest one-day fall since the eruption of the global financial crisis in 2008.