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The Baltic Dry Index Collapses To 18-Month Lows; Worst July Since 1986
The bulls will ignore it, shrugging that it's merely over-supply of ships that the resurgent world economy will quickly soak up as it 'recovers'... However, World GDP growth expectations are collapsing, trade volumes are slowing, and the Baltic Dry Index has continued to slump to its lowest since the start of January 2013 (a holiday period). For some context, this is the lowest July level for the Baltic Dry since 1986... "noise"
There's this...
and then there's this...
Which is the worst July level for the global shipping index since 1986...
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And if you think the market is just ignoring this... think again... The bonds of CMA CGM - France's largest world wide shipping firm - are tumbling...
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Of course - H2 will be great and this is just a 13-month dump of noise...
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For God sakes, there's a drought on. How can you ship stuff with weather like this.
Recovery is strong! Jobs growth! Woo-Hoo!
Who the hell cares about charts when Turbo Tuesday gots you back ?
Remember "A thousand points of light"?
How about a thousand flying dutchman ships? Don't they park them somewhere over in Indonesia in some kind of floating graveyard?
The Baltic Dry measures actual goods, being transported, to people who want them..., and can pay for them.
Sooooo Twentieth Century.
President Obama touts STRONG US ECONOMY - 2 days ago
http://www.breitbart.com/Breitbart-TV/2014/07/19/Obama-Touts-Americas-St...
Weee! It is official: We now live in "If it is bad news, then it must be good news!". That means officially it must be OPPOSITE DAY!!!
I posted it as satire, considering that the earth is on fire while Obama is oblivious...
Cash or Letters of Credit?
What the hell am I saying. NOBODY uses cash anymore.
"The BDI contains route assessments based only on time-charter hire rates "USD paid per day per Metric Ton".
Now consider that the BDI is a nominal measure, not a real (inflation adjusted) number. In real terms, we are way, way below 1986.
Didn't everyone get the memo that oceans have dried up due to global warming?
Rail between continents is the future, baby.
baltic dry
another name for....
zero hedge yacht club ...
The Baltic Dry-Dock Index.
No dry dock. Can't afford it. Mysterious sinkings with insurance payouts, yes.
As I said early 2013, Quantitative Easing was designed to harm USA and World Economy in order to make large banks live another day.
We are here now and only solution left is: VIOLENCE
Don't forget, the first step is ALWAYS bullshitting the dumbasses. They need somebody to attack.
No need for that.
We'll see lobbies assassinating each other members.
I'm talking about bloodshed violence between competing lobbies now.
Yeah, the 2008 Global Financial Crisis just won't go away.
Just Look at this
1) Workforce Participation crashing
2) Consumption Crashing
3) Housing Still in Slumps except for Foreigners or Others working
4) Debt Rates way high, USA not quiet to the UK Level yet, India Debt, China Debt, China needs for expanding Credit is unbelievable, US needs for expanding Credit is out of sight
5) US Federal Budget is like Fascist Italy or Fascist Spain
6) US Shadow banking is apparently the Same as in Europe & London, OUT OF CONTROL
7) Modern Manufacturing seems to mostly lay in China as most UK, Spain, French, USA factories have not been upgraded or retooled for 30 years
8) Immigrants pour into USA & Europe, but don't have Skills, creating kinetic energy for Civil Unrest
9) All Politicians suck and never reveal the full picture of corruption, bribery, and Economic Malaise
10) No one person Really sees the whole Global Economic picture when taxes, subsidies, social programs, manufacturing, debt, credit, bank linkages, insurance swaps, and derivatives are included
11) How can the world Trust US Financial Markets after it caused the Global Crash
12) How can the world Trust the USA when it bails out Banks, allows them Bonuses, Gives them Free Money in ZIRP, QE & TARP... with no punishment, no loss of banking advantages, no investigations, no CEO Firings, No Fraud Found, No US Public Executive Responsibility, and No "NONE" Clean up of Financial System Regulations & Accounting.
13) US Reputation is Ruined. But we pretend we are superior. Fascist USA. But mostly Fascist Executives and Leadership and Institutions.
14) We ignore the shortages in Pensions, Social Security, MEDICAID, and University & Municipal Trust Funds... but we want new wars, more immigration (spending bill for amnesty), and we want to give more money to TBTF Banks even if we have to have Bail-Ins.
http://ellenbrown.com/2014/07/16/did-the-other-shoe-just-drop-black-rock...
The people are great though.
Shut up dude. Kimye is pregnant again. That's all that matters.
Junk in the trunk...
all are "engineered" distractions -assembled by the .1% who are desperate to find annonymity among them in the coming mess.
TeethVillage88s,
Let's make it easy:
You print, print, print, then go to war - Marc Faber
Shhhhhhhhhh, you'll spook the sheep!
ekm1 "As I said early 2013"
Wow! We're so impressed that you realized something few months back
QE, by design, protects the wealthy at everyone else's expense. QE saves the banks and the markets while creating higher costs for everyone. Higher costs = lower purchasing power, thus BDI index dropping out like rock.
QE by design protects only and only and only INSOLVENT bank lobby oligarchs, and harms oil and industrial lobby oligarchs, as well as, now, Military complex.
At this point this is no longer rich vs poor.
The game is a lot simpler:
Insolvent Rich vs Solvent Rich.
Hence "suicides".
Assassinations to follow soon, if QE continues. We'll see, most probably, bankers and executives shot down in plain light.
makes absolutely no sense.
Where do you think the "SOLVENT RICH" keep their money? in their sock drawer? THEY ARE ALL VESTED IN MARKET and STOCKS of their COMPANIES IN THE MARET!!!! AND THE MARKET CANNOT SURVIVE WITHOUT BANKS and QE!!! The INSOLVENT RICH aren't INSOLVENT at all, in fact they are richer today than they have ever been!! The banks (corp) may be insolvent but they know the FED/GOV will NOT let them go under and risk a total collapse.
This raises an important issue - what kind of trade is most profitable when a banker dies?
The Organ Trade?
When we trade them to Satan!
ekm1,
You said: "Insolvent Rich". That's a correct point, in my view.
Then you said: "QE by design protects only and only and only INSOLVENT bank lobby oligarchs, and harms oil and industrial lobby oligarchs, as well as, now, Military complex.
That's not correct. Here's why:
How would lower oil prices help oil oligarchs?
How would fewer taxes help the Military complex?
Please NOTE that I am not in favor or against QE. The right solution should have let the banks failed in the 80's and 90's. And the very least, nationalization in 2007/08.
<Recovery!
<Planned deindustrilalization
Moar like de-globalization.
Moar like de-humanization...
Oh who gives a fuck.
According the Feds, Americans dont need food or energy (or their bill of rights and/or that barbaric relic, no not gold, the constitution).
Signed,
Yellen is still a cunt
What does this equal in Gartmans?
I will give you a thousand Gartmans for a hamburger. Deal?
Is that in yen or euro terms?
Who in the world would want to ship anything dry to the Baltic? Maybe it should be zero
yeah, maybe they are shipping everything with vermouth
I'll drink to that
Holy Fuck!
no its ho li fuk, BDI, wei tu lo
Sum Ting Wong
Come on guys! Everybody knows the Baltic is still frozen over this time of year. Why, just wait until September............
BDI chart reminds me of currency velocity. Ships built, money printed, but not being used...yet! The promised land is just around the corner. The next corner. Not that corner, the next corner. Here it comes around THIS corner. No not that corner....
"Ships built, money printed, but not being used...yet!"
This explanation could be the most correct one yet. Based on the prediction of runaway inflation, those idle vessels will be needed to transport shiploads of money to our trading partners for those items we desire.
Lower shipping costs = bullish
C'mon. Just a Summer lull. Transitory. 1986 was a good year.
Slackened shipping over fear of hurricanes, and sharknadoes.
Put this 0ne out to pasture with the vix.
But none of it makes any difference. Until it does.
No vessels needed anymore, it's all about glass fibres now.
Eat more iPads!
Nowhere to go but up...right?
I'm sure this is another foolproof Zero Hedge indicator that the sky is falling.
Blame the heat!!!
Blame the heat!!!
None of this matters when we have the Fed and a lot of ink jet cartridges.
Still above par, so not a collapse. Wake me when they're below 90.
No problem. War will fix it.
Just sink a shit load of ships.
BDI should go up pretty quickly at that point.
yellen??? krugman??
....nevermind
Surely this is merely just a reflection of Amazon.com's decision to use a fleet of drones for delivery of everything, no?
You think this MJ legalization is some sort of easing for taxes? No, it is a very conscious retreat by the government looking to quell dissent amongst 18-30 yr old males. Sitting on your couch, obese, xbox distracted and high as a kite makes for few riots.
Unless I'm reading that bond chart wrong, CMA CGM are trading at 104 which is above par, right? Not exactly the definition of tumbling or impending doom. Having said that, I generally avoid investing in shipping as it is a money sink hole most times.
I want to know what happened in 1987 :)
Oh I remember http://en.wikipedia.org/wiki/Black_Monday_%281987%29
Of all the indexes which could use some adjustment, the BDI could.
It needs to be adjusted for available cargo carrying capacity, otherwise it cannot really be used to measure trade volume. For example, one could have a large increase in trade taking place, but if there is a glut of ships, the BDI would still be down.
Actually, ship builders do overbuild during trade booms, and the early noughties was the mother of all trade booms. I don't doubt that dry volume is also decreasing, but a ship takes 2-5 years to build, so there were still ships coming online last year that were commenced in 2008.
Iron Ore shipped from Port Hedland hit a record in volume this year, so I am inclined to say that the continuing decline in BDI is probably more due to an oversupply of ships than a material drop in dry volume shipped.
Alabama Mexicans Bitchez!
Washington BS, egos, and lies could fill up a few container ships.
Dont worry BDI
Comex ( backed by the Fed * SEC) is coming to fix things up.
They soon start trading for you and in no time there will be a boom in your index.
And as for growth- even better as Krugman will be your consultant
Hockey stick recovery.....just around the corner.
Um, you are retardz. This is the Baltic Dry Index.
This isn't fucking Facefuck or else it would be called Facefuck.
You like your facefucked. Good for you. Fuck you. Fuck your face. Your are stupid assholes.
I hate you. Go and pretend.
You are telletubbies.
Go to hell.
I love you. Go and be real.
THE PERFECT STORM (see p. 59 onwards)
The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf
Nothing else matters
Indeed. Tullett Prebon are good at this analysis.
Something that is not widely discussed "yet" is that Western systems of government - all that accountable democracy stuff and rising State spending on welfare to buy votes etc - have been constructed and operate on the basis of rising economic growth, more jobs, higher wages and more wealth.
All predicated on the back of a plentiful supply of cheap energy.
The political elites have milked this without a thought for the future.
As we witness the end of cheap energy with no replacement in sight, these systems of democracy are breaking down because it is a system that can only exist and operate in the "good times".
They are now being replaced by "law of the jungle" and "grab what you can" mindsets. Government itself is becoming ever more criminal and operating outside of the Rule of Law, banksters are carrying out massive frauds and the big corporates are ripping people off at unprecedented levels. Collectively, they are all becoming fascist.
It looks like the tipping point is getting close which will lead to [ insert here what you think will happen ].
No you're mistaken. This is "less noisy". Get it right!
Much of the economic landscape is beginning to look like something out of "Alice And The Looking Glass" A bizarre and unrecognizable land, a land that is distorted and papered over by ream after ream of paper. This paper has been rolling off the printing presses of central banks all across the world in an attempt to mask reality.
Peter Schiff says, printing money is to the economy what taking drugs is to a drug addict. In the short term it makes the economy feel good, but in the long run it is much worse off. What was once the "long run" or "distant future" may be getting much closer. More on this in the article below.
http://brucewilds.blogspot.com/2013/01/what-happens-after-momentum-ends_...
7 years of LIES and manipulated numbers but the Baltic tells whats really going on.