Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Nuclear Power Industry Praying Japan Will Avert a Nuclear Disaster

Stock-Markets / Nuclear Power Mar 14, 2011 - 10:59 AM GMT

By: Martin_D_Weiss

Stock-Markets

Best Financial Markets Analysis ArticleExplosions and meltdowns at nuclear reactors in Japan this past weekend will forever change the world of energy.

Authorities have already scheduled widespread power outages starting today — and they could continue the planned outages for weeks or even months.


Nuclear power plant explosion in Fukushima, Japan, on Saturday, following that nation's strongest earthquake in history.
Nuclear power plant explosion in Fukushima, Japan, on Saturday, following that nation’s strongest earthquake in history.

But that’s just a metaphor for the sustained global energy shortages that are likely, as the safety and long-term viability of nuclear power comes under more intense scrutiny than at any time in history.

How do we know that’s the likely outcome?

Because prior nuclear disasters, such as Three Mile Island and Chernobyl, had a major long-term impact on nuclear plant construction.

Moreover, those two disasters were ultimately written off to antiquated facilities or poor safety precautions. In contrast, the Japanese nuclear industry prides itself on safety, and the plants struck by the earthquake had far better staff training and equipment, including multiple back-up systems, all of which failed.

Some nuclear experts will counter that newer and safer technologies now exist or can be developed. But given the history of similar promises in the past, those are bound to fall on deaf ears.

The public will now ask …

Is there a fundamental incompatibility between the potential dangers of nuclear energy and the unpredictable wrath of Mother Nature?

That question defies any quick answer and could take years to resolve. Until then, further growth in nuclear power production could be drastically reduced, with potentially far-reaching consequences:

  • Chronic global energy shortages, especially in countries that were counting on new nuclear energy for a large portion of their electric power.
  • Massive, long-term upward pressure on crude oil prices as producers, consumers, and investors upwardly revise their forecasts of fossil fuel demand.
  • Vast sums of investor money diverted from nuclear power plant construction to other alternative energy sources, such as wind, solar, and bio-fuels.

Impact on the U.S. Nuclear Industry

In the U.S., no new nuclear power plants have come online since 1974, largely because of the Three Mile Island disaster. And still, nuclear energy accounts for 20 percent of the nation’s electricity supplies.

One new nuclear reactor is due to start production next year, and another 16 reactors are expected by 2020. But some of those could now be delayed, and any new plans could be ditched.

What does all this mean for the immediate future?

Even before the earthquake struck Japan on Friday, the House of Representatives had scheduled hearings on nuclear energy for this week, and Energy Secretary Chu is expected to testify the day after tomorrow.

So you can expect the entire focus of the hearings to shift to the unfolding disaster in Japan, with serious questions raised about its implications.

Again, expect mounting political pressure to delay or cancel construction plans, followed by massive upward pressure on crude oil prices, commodity prices and global inflation.

And all this assumes the situation in Japan gets no worse!

If there’s an even larger catastrophe than what we’ve seen so far, all bets are off: There’s no financial or econometric model in the world that can forecast what the global consequences might be.

But that’s not the only reason I’m praying Japan will avert a bigger nuclear disaster.

A Chuo Line elevated train pulling into a Japan Railways (JR) station near the center of Tokyo.
A Chuo Line elevated train pulling into a Japan Railways (JR) station near the center of Tokyo.

The other reason is that our son Anthony — and many of our friends — live in Japan.

When the Big One struck on Friday, Anthony was on the Chuo Line, pulling into the Akihabara station in the center of Tokyo.

Ironically, I didn’t learn about his whereabouts through typical communications. Instead, it was in a Los Angeles Times article that I was reading online shortly after the quake.

In fact, just as I was wondering where Anthony might be, there he was, “talking” to me — and thousands of other LA Times readers — about the train rocking sharply back and forth, dust and small debris falling, people scrambling for the doorways, and aftershocks continuing every few minutes.

Now he’s safe in his apartment on the other side of town, but our concern has shifted to the explosions and meltdowns at the nuclear reactors in Fukushima, 175 miles to the northeast.

It seems that, at each new stage of the unfolding disaster, officials add another new layer of vague promises and reassurances, always seeking to minimize the danger.

Their actions, however, speak louder than any words:

At first, they delay any aggressive steps as long as possible. Then they resort to desperate, last-ditch measures, such as flooding the reactors with salt water, destroying them forever.

At first, they evacuate only a few thousand residents in the immediate vicinity. Then, they evacuate hundreds of thousands.

They admit “minor meltdowns” are occurring, but fail to define what that means. A standard definition of “meltdown” is temperatures in the reactor core rising higher than 2,000 degrees Celsius, releasing dangerous levels of radiation into the atmosphere. And that’s precisely what has happened at the reactors in Fukushima, Japan. But how they manage to utter the word “meltdown” in the same breath as the word “minor” escapes me.

Prime Minister Naoto Kan declares that Japan is “facing its worst crisis in the 65 years since the end of World War II.” But still, neither he nor anyone in an official capacity seems willing to reveal any meaningful details.

The Japanese people are heroic in their preparedness, calm and stoicism. But government bureaucrats seem almost as concerned about information leaks as they are about radiation leaks.

We are not reassured.

Nor are investors who count on stable commodity prices. Indeed, it seems that …

Nearly every recent crisis or global trend creates ever scarcer natural resources and energy!

The unrest in the Middle East, which continues to deepen and spread, threatens the largest reserves of petroleum in the world. (See “Inflation surges! Silver near 31-year highs! Profit opportunities abound!“)

The disaster in Japan, which is far from over, could lead to massive political resistance against nuclear energy and far bigger demand for oil.

Most important, as we’ve stressed here continually, we are witnessing a long-term global shift of wealth and economic growth from the West to the East. Yet it’s in the East where we find the majority of the earth’s population, also driving up the demand for natural resources.

Everywhere, the upward pressure on prices is mounting.

My Recommendations:

  1. Keep most of your money safe in the strongest financial institutions you can find. (Stand by for a new Weiss Ratings press release on this subject.)
  2. Protect yourself against inflation with a stake in gold, using instruments like GLD.
  3. Plus, use any intermediate corrections to buy a stake in the most promising mining companies.

Good luck and God bless!

Martin

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules