Disaster Will Undoubtedly Spike Commodities

The unexpected rebuilding of the Japanese infrastructure will undoubtedly bolster the price of many commodities worldwide. Things like building materials especially steel, Oil, natural gas, copper will spike dramatically. The United States and other countries will benefit greatly as they strive to meet the sudden demand, on the flip side the American public will have to dole out more for energy, food, and other vital resources. This should contract consumer spending as the middle class goes into a defensive cost cutting mode, and only time will tell if the overall benefits will be to our advantage. Wall street might see the commodities markets eclipse other sectors which have recently seen greater profits, and the bond market will probably see an up-tick in infrastructure tied projects. The Japanese government will spend reserves and borrow more from foreign countries in an effort to finance huge projects, unemployment in japan will plummet to meet the labor demand, and a major portion of retirement allocations will be spent to offset uncovered expenditures. The IMF announced today that there will be no bailout for any Japanese liquidity problems, so we will more than likely be asked to participate in another nation building project. This means one of two things, more TREASURY sales to CHINA or OVERTIME for the PRINTING PRESSES.