Econintersect: A Global Europe Anticipation Bulletin released this week from think-tank LEAP/Europe 2020, published in partnership with the Dutch foundation GEFIRA, says that Japan will be forced to sell massive amounts of U.S. Treasuries to raise money to rebuild. The result will be a crash in the U.S. Treasury bond market in the second half of 2011. The world’s exporting economies will also suffer declines in the opinion of Leap E/2020.Other effects on the world economy will include rapidly rising prices for refined oil products as Japan increases imports to replace the lost refining capacity, as well as a myriad of parts shortages because of lost Japanese production.
Source: GEI Opinion
