Bank of Japan officials are issuing millions in cash, into the Japanese economy.  This is due to the earthquake and tsunami destroying a major part of Japan’s infrastructure.

Major Japanese manufacturers have closed, mainly because employees and supplies can not get to the factories.  Farm lands have been destroyed by the tsunami.

Japan must focus on financing a major recovery effort, and this will affect U.S. Treasury Bonds.  Japan was one of the biggest buyers of U.S. bonds, helping the U.S. government deal with its debt, but now that money will go to rebuilding efforts.  Also, Japan might be forced to sell off its existing holdings of U.S. bonds, to help pay for the rebuilding of their country.  This will affect interest rates in the United States.

For all those electronic junkies out there, get ready for withdrawal symptoms.  Japan is a crucial electronics supplier, but don’t expect anything now. About 40% of lightweight chips, for computers and phones, are supplied by Japan. Objective Analysis, a semiconductor research firm, said “This may cause phenomenal shortages…”.  You can bet this will affect prices of goods, and trading in stock markets around the world.

Like your Blue-Ray movies?  Forget it, Sony shut down operations at their Blue-Ray plant in Japan, thanks to the disaster.

Were you thinking about getting one of those gas saving Toyota Prius, or Honda Fit?  They are made mainly in Japan, and production has been halted.

Speaking of gas. Expect fuel prices to go up, even more. Japan is being forced to turn to other sources of fuel to run electric generators, now that their nuclear plants are going critical.  Already two tanker ships, with LNG, were diverted from their original destination in Russia, to Japan.