Impact of Japan on the World Economy

[Southern Senator North Carolina Yankee]

Could the destruction cause significant economic problems in Europe or the US? Some very important manufacturing supply chains have been disrupted. Not to mention the impact in general on Japan's economy as a whole, the blackouts etc etc.

[Sbane]

I can't imagine how it doesn't have an impact. How significant is a much harder question to answer though.

[Sam Spade]

When Japan blows up, the entire financial edifice of the world will also. [insert your analogy here]

We're not there yet, of course.  And I highly highly doubt this would be the triggering event - it doesn't feel right.  Though something blew up in the Yen today - probably repatriation and carry trade unwind.

[opebo]

Should lead to a massive stimulus.  What has been needed in the world for the last 2 years and long before was government takeover of the major economies.  Japan will have little choice but to take over the economy now, and hopefully others (US, Europe, China) will follow suit.