Reuters has posted a article about the disaster in Japan that takes a new look at the disaster- how can the Japanese people take the disaster and use it to make themselves a stronger, better people- and improve their economy at the same time?
The hope is that this event will spur the government and the people to do two things- 1) come together as a nation and work together and 2) that having to rebuild their cities and lives that the people will invest in Japan and improve its economic situation.
On of the best sign that this will take place will be in the state of the Japanese gov. bonds. The majority of the Japanese debt is held by the Japanese themselves- either in the different banks or by the public in bonds.
Jeremy Lawson, an economist with the Institute of International Finance, a lobby group for global banks in Washington, agreed. The trajectory of Japan's debt is unsustainable, but, in the short term, "domestic residents may display even greater willingness to lend to the government as an act of national solidarity," Lawson said in a report.
The hope is that this event will spur the government and the people to do two things- 1) come together as a nation and work together and 2) that having to rebuild their cities and lives that the people will invest in Japan and improve its economic situation.
On of the best sign that this will take place will be in the state of the Japanese gov. bonds. The majority of the Japanese debt is held by the Japanese themselves- either in the different banks or by the public in bonds.
Jeremy Lawson, an economist with the Institute of International Finance, a lobby group for global banks in Washington, agreed. The trajectory of Japan's debt is unsustainable, but, in the short term, "domestic residents may display even greater willingness to lend to the government as an act of national solidarity," Lawson said in a report.
"But out of this crisis affecting a large part of the population, a sense of 'public morality' is already building up," Hamasaki said. "If the country's leaders can harness this spirit in the long term, then I'm sure Japan will move in a positive direction."
This civic duty, an impulse of shared responsibility, is likely to count for more than any spreadsheet in trying to assess the impact on Japan's bond markets of financing the still unknowable bill of rebuilding after the quake, the strongest on record here.
The original article can be found HERE.
For some reason I see it very difficult that this disaster will help Japan on the debt problem. It probably will make them more in debt. They will need more money to fix all the problems that are left.
ReplyDeleteI agree no natural disaster helps others out.
ReplyDeleteSeems likes bad things do make countries stronger. Look at 9/11. It unified us for a little while at least.
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