“Our economy is in a severe state.”-Masaaki Shirakawa, Bank of Japan

The Bank of Japan is struggling to figure out how to pull Japan’s economy out of the dumps after the March 11 disasters.  Officials now admit the economic situation is worse than first thought.

One analyst pointed out that Japan was already in a recession, this could push Japan into a depression (see my March 17 posting “Japan Disaster start of Global Great Depression”).

The Japanese government is estimating that it will need one trillion yen, to ease employment issues in the disaster struck areas.  That’s just to fight unemployment.  They estimate actual reconstruction cost will be at least four trillion yen.  The problem is, just where are they going to get the money from?