The Slowing Machinery of the Global Economy

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A dispute between Japan and China over tiny islands threatens to "throw one more (big) monkey wrench into the slowing machinery of the global economy."

The origins of the dispute date back centuries but came to a head last month after Japan nationalized the tiny islands, called Senkaku in Japan, the world's No. 3 economy, and Diaoyu in China, the world's No. 2 economy. The move set off violent protests in at least two dozen Chinese cities. Angry mobs torched a Panasonic factory, looted several Japanese retail outlets and burned Toyota and Honda car dealerships.

Learn what the long term effect is here.