Global Economy after Japan Quake

It has been three days since the tsunami hit the pacific. Now, when the third largest economy of the world is swallowed by a disaster awhole, it is believed unanimously that it would surely affect the global economy.

The first and the foremost impact visible to the world is the dip in international price of crude oil. With speculations of Japan staying 'out-of-action' for next few months, the international Energy Agency had marginally reduced its global oil demand forecast for 2011.

Following the quake, the Yen lost value soon, as can be the speculations, but pretty soon, it rose higher to what it was before the disaster. It is similar to what happened after the massive Kobe Earthquake(1995) when the Japanese Government, the companies and the investors sold overseas assets and brought money back home.

For the rebuilding of the nation, the money needed might be collected through US treasury bonds, a very likely source, of which Japan is a major holder; pressurizing the already straining US public finances.

The above measures, if taken, are likely to affect the global economy in a detrimenting way; and maybe we should get ready for a financial meltdown, very similar to those fuel rods in the nuke reactors of Japan; resulting into a chain reaction spreading across the Globe..