marți, 15 martie 2011

Content Farms – What You Can Learn and Apply Graywolf's SEO Blog

Content Farms – What You Can Learn and Apply Graywolf's SEO Blog


Content Farms – What You Can Learn and Apply

Posted: 15 Mar 2011 08:07 AM PDT

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While Google has taken action against content farms, from a strategic perspective I still think there are lessons that every publisher can learn from the content farm model. If you haven’t already seen it, please take a look at the leaked AOL document on content farms.

… AOL sees content as a commodity to sell ads against …
The first slide worth taking note of is slide 15 – content generation process. Basically, the slide goes through the decision process for determining how valuable a piece of content will be and determines if it gets created and who creates it. They use keyword/news tool to determine a piece’s “demand” and, depending on how valuable it is, it goes to low cost, in house, or vetted freelancer. Evergreen content, which will generate long term value as opposed to short term content, gets special consideration and special “SEO treatment.” To be honest, you should be doing this with your posts/content already. The pieces which will generate the most revenue or most links (see building links with encyclopedic content) should be produced by your best writers and be fully optimized with the best SEO Tools.

Slide 17 talks about the day to day creation of content. The key takeaway here is “how much” will it cost to produce this content, how are we going to monetize it, and what is its monetization potential (see adding revenue streams into your website). Slide 20 breaks down the decision process even further. As you are going down this path just be careful you don’t fall into the pageview journalism trap: once you do, you sacrifice quality for quantity, and chances are good that you’ll never make it out.

Google is a willing complicit conspirator in this low budget content creation process…
The next slide worth noting is slide 30, which talks about scaling the content creation process and how to promote the content so it gets maximum exposure. It’s a whole lot less shoot-from-the-hip and a whole lot more planning than you may be used to, but it’s a good starting point for developing your own plan. Slide 36 is the last slide that I think is noteworthy. It goes into detail about recruiting outside writers into the network or promotion strategy and how guest posts are a win-win for both parties.

On the opposite side of the coin, it’s important to see what someone who lived this plan has to say. Paul Miller was an engadget writer who recently left and had this to say about AOL … “AOL sees content as a commodity to sell ads against.” As the bar to becoming a publisher constantly lowers (a concept discussed in some detail in Cognitive Surplus by Clay Shirky), it becomes easier for low budget publishers to eek out profits, but high cost publishers can’t break even unless they cut production costs to the bone. Or, put another way, a $5 piece of content is going to be a lot easier to monetize than a $30 piece of content, no matter what level of traffic you have.

While it’s easy to blame publishers like Demand Media and AOL, don’t lose sight of the fact that Google is a willing and complicit conspirator in this low budget content creation process. By creating adsense and making it possible for anyone to monetize a website without needing to hire a sales staff, to pick up the phone cold calling advertisers,  or to pound the pavement, they brought monetization to great, unwashed masses. No single product has created more pollution on the web as Google’s Adsense program has. They may have started out the with “don’t be evil” mantra but, like so many before them, they have become what they set out to destroy. They are the virtual drug dealers of the 21st century, selling ads wrapped around other people’s content, creating information polluted ghettos, and they will become the advertising equivalent of a drug lord poised to rule the web.

So what should you takeaway from this post?

  • Use keyword or demand tools to help you decide which pieces to create
  • Create content based on monetization potential and link building potential
  • Send your content out to the appropriate writer based on monetization and link building potential
  • Evergreen and SEO flavored content should be given extra consideration
  • Have a plan for promotion
  • Beware of falling into the high volume, low quality, page view journalism model

 

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Content Farms – What You Can Learn and Apply

March Madness Webinar Week

SEO.com

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March Madness Webinar Week

For the second straight year, SEO.com is hosting its own Madness. This year, it’s not just one day. This year, it’ll fill up the entire week.

The March Madness Webinar Week will feature daily webinars from March 21-24. It will cover everything needed to help boost your website’s search engine rankings, increase your presence on social media, drive paying traffic, and convert that traffic into sales.

The March Madness Webinar Week will include four presenters covering the following topics:

  • March 21: Greg Shuey, VP of SEO.com, will make your head spin with “Link Building in Real Time”
  • March 22: Claye Stokes, Dir. of SEO, will blow your mind with “SEO’s Role in the Evolution of Advertising”
  • March 23: Scott Cowley, SEO manager, will change your life with “Learn to SEO Your Blog Like a Pro”
  • March 24: Boyd Norwood, Dir. of SEO, will excite you during his “Life After the Farmer Update”

SEO.com March Madness Webinar Week

When: March 21-24, every day at 9:00 AM MDT time. (8:00 AM PDT, 10:00 AM CDT, 11:00 AM EDT)
Cost: It’s free, but you must register to attend.
Sign up for the madness. Become an SEO Ninja and be happy.

Click here to register now.
 

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Helping Every Child Get Ahead

The White House Your Daily Snapshot for
Tuesday, March 15,  2011
 

Photo of the Day 
 
Photo of the Day

President Barack Obama looks back at Education Secretary Arne Duncan during remarks to students and teachers at Kenmore Middle School in Arlington, Va., March 14, 2011. While at Kenmore, the President visited a classroom and delivered a speech on reforming education to better prepare students to out-educate and out-compete the world in the 21st century economy. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog.

President Obama: "It’s Not Enough to Leave No Child Behind. We Need to Help Every Child Get Ahead."
The President lays out his principles for fixing No Child Left Behind and reforming our education system.

Women in Uniform, From World War Two to Today
In honor of Women's History Month, the Department of Veteran Affairs has posted a set of photos of women in uniform over the last half century.

Introducing FOIA.gov
The Department of Justice launches a new website dedicated to the Freedom of Information Act that makes it easier than ever to find information, make a request, and share ideas.

Today's Schedule

All times are Eastern Standard Time (EST).

10:00 AM: The President and the Vice President receive the Presidential Daily Briefing

11:25 AM: The President is interviewed by KOAT Albuquerque, KDKA Pittsburgh and WVEC Hampton Roads on the importance of education reform and the need to fix No Child Left Behind

12:30 PM: The President and the Vice President meet for lunch

1:30 PM: Briefing by Press Secretary Jay Carney WhiteHouse.gov/live

1:45 PM: The President meets with student finalists of the Intel Science Talent Search 2011 competition

2:00 PM: The President meets with senior advisors

4:30 PM: The President and the Vice President meet with Secretary of Defense Gates

5:30 PM: The President and the Vice President meet with the Combatant Commanders

7:00 PM: The President and the First Lady host a dinner for the Combatant Commanders and spouses; the Vice President and Dr. Biden will also attend

WhiteHouse.gov/live  Indicates events that will be live streamed on White House.com/Live.

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Seth's Blog : Are you doing a good job?

Are you doing a good job?

One way to approach your work: "I come in on time, even a little early. I do what the boss asks, a bit faster than she expects. I stay on time and on budget, and I'm hardworking and loyal."

The other way: "What aren't they asking me to do that I can do, learn from, make an impact, and possibly fail (yet survive)? What's not on my agenda that I can fight to put there? Who can I frighten, what can I learn, how can I go faster, what sort of legacy am I creating?"

You might very well be doing a good job. But that doesn't mean you're a linchpin, the one we'll miss. For that, you have to stop thinking about the job and start thinking about your platform, your point of view and your mission.

It's entirely possible you work somewhere that gives you no option but to merely do a job. If that's actually true, I wonder why someone with your potential would stay...

In the post-industrial revolution, the very nature of a job is outmoded. Doing a good job is no guarantee of security, advancement or delight.

 
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luni, 14 martie 2011

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Potential Nuclear Disaster as Radiation Levels Rise; "Way Past Three Mile Island"; Major World Indices an Ocean of Red;Nikkei -12.5%,US Futures -2.5%

Posted: 14 Mar 2011 09:47 PM PDT

Major stock market indices are getting clobbered late Monday evening (Tuesday afternoon in Tokyo) in the wake of more reactor fears in Japan.

"It's way past Three Mile Island already," said Frank von Hippel, a physicist and professor at Princeton. "The biggest risk now is that the core really melts down and you have a steam explosion."

The New York Times reports Japan Faces Potential Nuclear Disaster as Radiation Levels Rise
Japan's nuclear crisis verged toward catastrophe on Tuesday, after an explosion at one crippled reactor damaged its crucial steel containment structure and a fire at another reactor spewed large amounts of radioactive material into the air, according to official statements and industry executives informed about the developments.

After an emergency cabinet meeting, the Japanese government told people living within 30 kilometers, about 18 miles, of the Fukushima Daiichi Nuclear Power Station to stay indoors, keep their windows closed and stop using air-conditioning.

Officials said emergency efforts to pump seawater into three stricken reactors at the plant were continuing, but that most of the 800 workers at the Daiichi facility had been told to leave to avoid exposure to unhealthy levels of radiation at the plant. They said 50 workers would remain at the plant to pump seawater into three reactors and fight the fire at the fourth reactor.

Prime Minister Naoto Kan briefly addressed the nation on television at 11 a.m., pleading for calm as engineers struggled to bring the damaged reactors under control.

Mr. Kan said that radiation had spread from the crippled reactors and there was "a very high risk" of further leakages.

Some outside industry executives were skeptical of official Japanese accounts of what was happening at Daiichi. One executive with extensive contacts among Japanese nuclear industry and government officials said the situation had in fact spiraled out of control and that all plant workers would almost certainly need to leave the plant to avoid excessive exposure to radioactive leaks.

If all workers do in fact leave the plant, the nuclear fuel in all three reactors is likely to meltdown, which would lead to wholesale releases of radioactive material — by far the largest accident of its kind since the Chernobyl disaster 25 years ago.

Even if a full meltdown is averted, Japanese officials have been facing unpalatable options. One was to continue flooding the reactors and venting the resulting steam, while hoping that the prevailing winds, which have headed across the Pacific, did not turn south toward Tokyo or west, across northern Japan to the Korean Peninsula. The other was to hope that the worst of the overheating was over, and that with the passage of a few more days the nuclear cores would cool enough to essentially entomb the radioactivity inside the plants, which clearly will never be used again. Both approaches carried huge risks.

"It's way past Three Mile Island already," said Frank von Hippel, a physicist and professor at Princeton. "The biggest risk now is that the core really melts down and you have a steam explosion."

Adding to the complexity of the situation was that reactor No. 3 reactor uses a special mix of nuclear fuel known as MOX fuel. MOX is considered contentious because it is made with reprocessed plutonium and uranium oxides. Any radioactive plume from that fuel would be more dangerous than ordinary nuclear fuel, experts say, because inhaling plutonium even in very small quantities is considered lethal.
Major World Indices an Ocean of Red



The above chart from Yahoo!Finance. Click on link to refresh.

US Futures



Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Nikkei Drops 6% on Tuesday, 12% in 2 Days; Another Reactor Explosion; Anxiety Grows Over Bodies; Message Boards Used to Find Loved Ones

Posted: 14 Mar 2011 06:58 PM PDT

The New York Times reports 3rd Blast Strikes Japan Nuclear Plant as Workers Struggle to Cool Reactor
An explosion early Tuesday morning damaged the No. 2 reactor at Japan's Fukushima Daiichi Nuclear Power Station, the third in a series of blasts that have now hit each of the three crippled reactors at the plant, plant officials said.

It was not immediately clear if the blast was caused by the buildup of hydrogen, as occurred at the two other reactors at Daiichi — one on Saturday and the most recent one on Monday, when there was also a large explosion at the No. 3 reactor. Some early reports in the Japanese press suggested the latest explosion amounted to a different and more critical problem than the previous two.

This explosion, reported to have occurred at 6:14 a.m., happened in the "pressure suppression room" in the cooling area of the reactor and inflicted some degree of damage on the pool of water used to cool the reactor, officials of Tokyo Electric Power said. But they did not say whether or not the incident had impacted the integrity of the steel containment structure that shields the nuclear fuel.

Any damage to the steel containment vessel of a nuclear reactor is considered critical because it raises the prospect of an uncontrolled release of radioactive material and full meltdown of the nuclear fuel inside. To date, even during the four-day crisis in Japan that amounts to the worst nuclear accident since Chernobyl, workers had managed to avoid a breach of a containment vessel and had limited releases of radioactive steam to relatively low levels.

Details of what happened remain unclear, with executives of Tokyo Electric Power, the plant's operator, giving only preliminary reports and declining to answer questions from reporters pressing for more information, while repeatedly apologizing "for causing concern and inconvenience."
Nikkei Drops 6% in First Hour on Tuesday, 12% in 2 Days

CNNMoney reports Tokyo's Nikkei drops nearly 6%
Japanese stocks continued to plummet Tuesday, falling nearly 6% in the first hour of trading, as the nation continues to cope with the aftermath of last week's earthquake.

The Nikkei-225 index, the most prominent measure of Tokyo market stocks, dropped 566 points, or 5.9%, within the first 60 minutes of the session. That was on top of a 6.2% drop Monday, the first full trading day after the quake.

The Tokyo market opened shortly after the owner of the Fukushima Daiichi nuclear power plant in northeastern Japan reported an "explosive impact" at the plant's No. 2 reactor, a day after a hydrogen explosion rocked another reactor.
Anxiety in Japan grows as rescue workers find more bodies



Message Boards Used to Contact Loved Ones



URL to the above videos: CNN Videos

Nikkei 5-Day Chart



Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


US-Saudi Tensions Intensify; Saudi Troops Enter Bahrain to Squash Unrest; Western Journalists Deported from Yemen, Three Soldiers Killed

Posted: 14 Mar 2011 05:24 PM PDT

Saudi Arabia is upset at the US for abandoning Egyptian president Hosni Mubarak and also for Obama's embracing "peaceful protests". The New York Times discusses the strained ties in U.S.-Saudi Tensions Intensify With Mideast Turmoil
Even before Saudi Arabia sent troops into Bahrain on Monday to quell an uprising it fears might spill across its own borders, American officials were increasingly concerned that the kingdom's stability could ultimately be threatened by regional unrest, succession politics and its resistance to reform.

So far, oil-rich Saudi Arabia has successfully stifled public protests with a combination of billions of dollars in new jobs programs and an overwhelming police presence, backed by warnings last week from the foreign minister to "cut any finger that crosses into the kingdom."

Monday's action, in which more than 2,000 Saudi-led troops from gulf states crossed the narrow causeway into Bahrain, demonstrated that the Saudis were willing to back their threats with firepower.

The move created another quandary for the Obama administration, which obliquely criticized the Saudi action without explicitly condemning the kingdom, its most important Arab ally. The criticism was another sign of strains in the historically close relationship with Riyadh, as the United States pushes the country to make greater reforms to avert unrest.

Other symptoms of stress seem to be cropping up everywhere.

Saudi officials have made no secret of their deep displeasure with how President Obama handled the ouster of the Egyptian president, Hosni Mubarak, charging Washington with abandoning a longtime ally. They show little patience with American messages about embracing what Mr. Obama calls "universal values," including peaceful protests.

When Secretary of Defense Robert M. Gates and Secretary of State Hillary Rodham Clinton were forced to cancel visits to the kingdom in recent days, American officials were left wondering whether the cause was King Abdullah's frail health — or his pique at the United States.

"They're not in a mode for listening," said one senior administration official, referring to the American exchanges with Saudi officials over the past two months about the need to get ahead of the protests that have engulfed other Arab states, including two of Saudi Arabia's neighbors, Bahrain and Yemen.

In the view of White House officials, any weakness or chaos inside Saudi Arabia would be exploited by Iran.

For that reason, several current and former senior American intelligence and regional experts warned that in the months ahead, the administration must proceed delicately when confronting the Saudis about social and political reforms.

"Over the years, the U.S.-Saudi relationship has been fraught with periods of tension over the strategic partnership," said Ellen Laipson, president of the Stimson Center, a public policy organization. "Post-September 11 was one period, and the departure of Mubarak may be another, when they question whether we are fair-weather friends."
Saudi Troops Enter Bahrain to Help Put Down Unrest

Please consider Saudi Troops Enter Bahrain to Help Put Down Unrest
Troops from Saudi Arabia and police officers from the United Arab Emirates crossed into Bahrain on Monday under the aegis of the Gulf Cooperation Council to help quell unrest there, a move Bahraini opposition groups denounced in a statement as an "occupation."

Witnesses said a convoy of 150 armored troop carriers and about 50 other lightly armed vehicles carried about 1,000 troops across the bridge linking Saudi Arabia to the tiny island kingdom, and a Saudi security official told The Associated Press that the troops were there to protect critical buildings and installations like oil facilities. However, witnesses later said that the convoy seemed to be heading for Riffa, a Sunni area that is home to the royal family and a military hospital that is closed to the public, Reuters reported.

The opposition statement said it considered the arrival of any soldier or military vehicle "an overt occupation of the kingdom of Bahrain and a conspiracy against the unarmed people of Bahrain."

A senior administration official said the United States was "definitely concerned" by the deployment of troops, saying the protests in Bahrain needed "a political solution, not military." The State Department dispatched Jeffrey D. Feltman, the assistant secretary of state for Near Eastern Affairs, to Bahrain on Monday. He had been scheduled to join Secretary of State Hillary Rodham Clinton on her travels to Egypt and Tunisia this week.

The latest protests occurred a day after Defense Secretary Robert M. Gates stopped in Bahrain and warned the Khalifa family, which has ruled Bahrain for two centuries, that it must go beyond the "baby steps" of reform to meet the economic and political demands sweeping much of the Arab world.

The White House issued a statement on Sunday that said the United States strongly condemned violence that had occurred in Bahrain and Yemen, and added, "We urge the government of Bahrain to pursue a peaceful and meaningful dialogue with the opposition rather than resorting to the use of force."

Bahrain, a kingdom on the Persian Gulf, is home to the United States Navy's Fifth Fleet and is a crucial American ally. The Obama administration has supported the Khalifa family through the unrest, in contrast to its efforts to remove the leaders of Libya, Tunisia and Egypt. But the White House has tried to push Bahrain's government to meet many of the protesters' demands, worried that Iran, which is overwhelmingly Shiite, could exploit the unhappiness of Shiites in Bahrain.

Bahrain's crown prince, Sheik Salman bin Hamad al-Khalifa, meanwhile, renewed a call for national dialogue on Sunday, promising that the talks would address proposals to increase the power of Parliament, Reuters reported.

"We have worked actively to establish contacts to learn the views of various sides," he said in a statement that was read on Bahrain TV, "which shows our commitment to a comprehensive and inclusive national dialogue."

Mr. Gates said on Saturday that he told the king and crown prince that change "could be led or it could be imposed."

He added, "Obviously, leading reform and being responsive is the way we'd like to see this move forward."
The New York Times reports Provincial Governor Stabbed During Clash in Yemen, Journalists Deported
A Yemeni provincial governor was stabbed in a melee with antigovernment protesters on Monday, the official news agency Saba reported. Local reports said the stabbing occurred after the governor's bodyguards opened fire on the protesters, injuring dozens.

The clash was the most violent of several reported around Yemen in the widening uprising against President Ali Abdullah Saleh.

In a sign that the government was ratcheting up its efforts to control news coverage of the unrest, four Western journalists said they were seized in an armed raid on their apartment in the Yemeni capital early Monday and expelled from the country.

The injured governor, Naji al-Zaidi of tribal-dominated Marib Province, was taken to the capital, Sana, and hospitalized.

In Al Jawf, a desperately poor northern province also dominated by tribes, local reports said that security forces open fire, injuring about 15 protesters.
Global Growth Will Slow

Recent news has not been favorable in Japan, in Yemen, in Saudi Arabia, or in Libya. Meanwhile, Europe is bracing for a series of rate hikes by the ECB. In the US, the effects of state cutbacks have yet to be felt, and China has done little to reduce overheating.

In light of the above highly doubt GDP estimates will be met in Europe, in the US, or in Asia.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Risk of Meltdown Rises, Japan Requests International Assistance

Posted: 14 Mar 2011 11:20 AM PDT

Yahoo!Finance reports Meltdown threat rises at Japanese nuclear plant
Water levels dropped precipitously Monday inside a stricken Japanese nuclear reactor, twice leaving the uranium fuel rods completely exposed and raising the threat of a meltdown, hours after a hydrogen explosion tore through the building housing a different reactor.

Water levels were restored after the first decrease but the rods remained exposed late Monday night after the second episode, increasing the risk of the spread of radiation and the potential for an eventual meltdown.

The cascading troubles in the Fukushima Dai-ichi plant compounded the immense challenges faced by the Tokyo government, already struggling to send relief to hundreds of thousands of people along the country's quake- and tsunami-ravaged coast where at least 10,000 people are believed to have died.

Later, a top Japanese official said the fuel rods in all three of the most troubled nuclear reactors appeared to be melting.

Of all these troubles, the drop in water levels at Unit 2 had officials the most worried.

"Units 1 and 3 are at least somewhat stabilized for the time being," said Nuclear and Industrial Agency official Ryohei Shiomi "Unit 2 now requires all our effort and attention."

Late Monday, the chief government spokesman said there were signs that the fuel rods were melting in all three reactors, all of which had lost their cooling systems in the wake of Friday's massive earthquake and tsunami

"Although we cannot directly check it, it's highly likely happening," Chief Cabinet Secretary Yukio Edano told reporters.
Japan Appeals for International Aid in Fight Against Meltdown

Bloomberg reports Japan Appeals for International Aid in Fight Against Meltdown
Prime Minister Naoto Kan appealed for international help and workers battled to prevent a nuclear meltdown after a second blast rocked an atomic plant north of Tokyo. Millions remained without electricity or water following Japan's strongest earthquake, which may have killed 10,000.

Japan's government asked the United Nations atomic agency to provide "expert missions" to help stabilize the nuclear reactors, International Atomic Energy Agency Director General Yukiya Amano said in a statement from Vienna.

The cooling system failed at Fukushima Dai-Ichi station's No. 1 and No. 3 reactors after the earthquake, and it stopped working yesterday at the No. 2 reactor. Operator Tokyo Electric Power Co. said it cannot rule out that fuel rods are melting at the No. 2 reactor after they became exposed for a second time by a drop in water levels.

About 1.3 million households were without power this morning, and 1.4 million had no running water, according to a government report. Rescue teams were having trouble reaching about 24,000 people stranded in northeastern Japan, NHK Television said.

Economic and Fiscal Policy Minister Kaoru Yosano said "the economic impact will exceed the 20 trillion yen in damage sustained during the Kobe earthquake" of 1995. The government still has 1.3 trillion yen ($15.8 billion) in discretionary funds from this year's budget that can be allocated for quake relief, he said at a press conference.
Amid various conflicting reports it is difficult to discern fact from hype regarding the risk of nuclear meltdown. Moreover, it seems the officials cannot do so either because gauges and other measurement devices are not working.

No one really seems to know what precisely is going on in those reactors or the likelihood of a major breach.

Moreover, Radioactive Releases in Japan Could Last Months, even if a major meltdown is avoided. Thus, even in the optimistic scenario that further reactor damage is contained, both the economic damage and the death tolls are both likely way understated.

Note that the official death count is around 2,000, but the police estimate in a single district swept away by the Tsunami is 10,000. If so, the overall total could easily be 15,000 if not more.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Radioactive Releases in Japan Could Last Months; Yen Reversal

Posted: 14 Mar 2011 12:28 AM PDT

In Japan, a second blast rocked another nuclear reactor as officials struggle to prevent more serious meltdowns. Cooling remains the critical issue.

A buildup of pressure makes it difficult to inject water into the reactors to cool them down. Gauges are not working because of power outages so it's impossible to tell how successful those efforts have been.

This prompted one American official to liken the process to "trying to pour water into an inflated balloon," adding it was "not clear how much water they are getting in, or whether they are covering the cores."

Radioactive Releases in Japan Could Last Months

Rounding out a pretty grim picture, nuclear experts now suggest Radioactive Releases in Japan Could Last Months
As the scale of Japan's nuclear crisis begins to come to light, experts in Japan and the United States say the country is now facing a cascade of accumulating problems that suggest that radioactive releases of steam from the crippled plants could go on for weeks or even months.

The emergency flooding of two stricken reactors with seawater and the resulting steam releases are a desperate step intended to avoid a much bigger problem: a full meltdown of the nuclear cores in two reactors at the Fukushima Daiichi Nuclear Power Station.

So far, Japanese officials have said the melting of the nuclear cores in the two plants is assumed to be "partial," and the amount of radioactivity measured outside the plants, though twice the level Japan considers safe, has been relatively modest.

But on Monday, Japanese officials reported an explosion at the No. 3 reactor at Fukushima Daiichi, which appeared to be similar to a blast on Saturday at the No. 1 reactor. Television images showed gray smoke rising from the facility. NHK reported that the blast occurred when a combination of hydrogen and oxygen ignited. The wall of the building collapsed, and nearby residents were ordered to stay indoors.

Japanese reactor operators now have little choice but to periodically release radioactive steam as part of an emergency cooling process for the fuel of the stricken reactors that may continue for a year or more even after fission has stopped.

That suggests that the tens of thousands of people who have been evacuated may not be able to return to their homes for a considerable period, and that shifts in the wind could blow radioactive materials toward Japanese cities rather than out to sea.

And as one senior official put it, "under the best scenarios, this isn't going to end anytime soon."
Nikkei Sharply Lower

In the equity markets, the Nikkei opened lower then quickly plunged before recovering a bit to finish the morning session down 4.53%. In the afternoon session, the Nikkei slipped again to -6.2%.

Nikkei Intraday



Yen Sells Off After Spike Higher



In a huge intraday reversal, the yen initially spiked higher then collapsed giving all the gains back and then some.

click on chart for sharper image

Explaining the Yen's Movements

What follows is a repeat from an earlier post a few hours ago:

I received several emails from people wondering why the Yen might rise given the Japanese government pledge to create "massive liquidity" as well as increase the deficit with "stimulus" money to repair the damage.

The answer in general terms is events of this type increase the demand for money. In this case, businesses and individuals affected by the earthquake need Yen, not whatever carry trade they may have been in.

There will be a repatriation of Yen for sure, although the magnitude is unknown.

Fundamentally, there is little reason to like the Yen, although significant short-term forces are in play. If the Yen does not rally in the face of increased demand, it could be a very telling signal.

Images and Videos

In case you missed it, please see Shocking Tsunami Footage, Cars and Houses Swept Away Like Corks; Nuclear Reactor Explosion Video; Heartbreaking Aftermath Images

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List