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The first supply chain shoe drops: no food, water, gas, electricity or body bags in Japan – the wealthiest Asian country dealt a major blow

March 14, 2011

The most earthquake prepared country in the world is suffering from a 1-2 punch.  One of the world’s largest earthquakes followed soon after by mind boggling tsunami waves along a big stretch of it’s coast – in some areas inundating over six miles inland.  Followed by six nuclear reactors shutting down, some near the dangerous “melt-down” stage.  A volcano shooting off in the south islands.  What else could happen?!?!?!  As it turns out, lots!

The country is running out of everything…the first casualty of supply chain failures.  Japan itself.

There are wide reports of food shortages in areas far away from the damage. Tokyo is running out of food. There are many areas with no water. Many parts of the country with no gas or diesel for cars and trucks.

Body bags are in acute supply.  The country has ran out.  Japan is starting to reach out to other countries for supplies and assistance in dealing with working with the dead.

The country has begun rolling blackouts – in many areas lasting up to eight hours.  The loss of those nuclear power generation plants is taking its toll in more ways than one.  This is likely to last for weeks…maybe longer.

What is the next shoe???? For the world, it is probably a 1 – 2 punch.  Supply chain disruptions of a global scale and the impact to the world economics. In 2010, the IMF reported that Japan is the third largest economy in the world (US is first, followed by China) as sorted by their GDP.   It also has one of the largest debts, 7.47 trillion dollars.  This will make the restoration required after this Armageddon-like-disaster a serious financial challenge.

And the final blow…the prospect of a nuclear catastrophe as announced tonight (March 14, 2011) as a real possibility.

Light some candles, say a prayer and hold on.  It is going to be a long ride for all of us.

http://www.cnsnews.com/news/article/japan-overwhelmed-tsunami-victims-food-s

http://www.visualeconomics.com/gdp-vs-national-debt-by-country/

http://www.nytimes.com/2011/03/15/world/asia/15nuclear.html?emc=na

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