Mother Nature’s Devastating Power
In today’s present time the great nation of Japan is under great devastation. The surprising fact is that it is not coming from any other nation.It is because of its geographical location filled with earthquakes and tsunamis.
The effects of the most recent earth shaking disasters can be noted in the article Historic Earthquakes . one of the earliest earthquakes goes as far back as September 1, 1923, an earthquake at a magnitude of 7.9 took the lives of 142,800 people. To add insult to injury, the Japanese people have to face great financial hardship because of Japan being attacked by earthquakes.
Based on Japan’s track record, its lack of being ableto control its' ever growing deficient it has become another factor working against the world’s third largest economy. According to The Guardian, to prevent the country’s economy from defaulting on its debts, the government formed a “quake” recovery budget to recover from March 11th’s natural disaster. It is because of that day, both Toyota and Nissan made an announcement that they were stopping production in their twenty factories stationed in Japan. Toyota declared that employees from two of the factories in the worst area affected locations to perform an emergency evacuation. The two shut down factories produce 420,000 small cars every year for other countries. Out of all that was affected by the disaster none worried Japan more than the nuclear power plant catastrophe.
Nuclear Plants Shut Down
Japan relies on the power plants to produce some of the country’s electricity. Thanks to Mother Nature, one-third of the nation went without power. Six of the Nuclear power plants located at Fukushima is permanently offline. Mother Nature forces two million homes to go without power and 1.4 million are forced into a drought. The Japanese government gave soft loans to regular banks so that the citizens who are customers to those financial institutions would not run out of currency. Japan's financial system is “export- led”. So without the closed factories the mounting debt will continue to rise. As dark as the situation seems the country shows several signs of recovery.
Light at the End of the Tunnel
As time went on according to the article, Japan begins to show recognizable signs of rebounding. Even though the Nikkei had a loss of eight percent five days after the disaster, initially the value of Nikkei gained a five percent increase ten days later. Finally because of the lack of demand for oil, prices fell three-percent. It looks as though the Japanese citizens may have the last laugh after all.