This page has been archived and commenting is disabled.
"It's like a tax-cut for the world's freight shippers..." oh wait...
New Record Low at 553...
Consequences:
Not unequivocally good
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
No future Orders BITCHEZ WE ARE BROKE!!!!!!
This will drive Somalia into a depression.
Good bye fresh fruits and veggies, it was nice growin ya.
When you factor in inflation the index is even way lowerer, not to be negative just saying.
Must be all those drones used by Amazon and Alibaba now.
And doesn't Uber provide shipping too?
Uber shipping? Now that is a good one...
Soo... World commodity prices have collapsed and global shipping prices have collapsed?
But asset prices are sky high?
Monetary velocity is being compressed at an alarming rate and nobody knows why or what to do about it (activity/trade is slowing, but wealth/assets are rising).
Monetary easing has FAILED to stimulate monetary velocity. This divergence between economic activity and wealth is unsustainable. The wealth is not real if it can generate no income, the emperor has no clothes.
Assets are not rising in price, the price of cash is crashing. Currencies are no longer anchored, all of them are collapsing in value. This is why equity markets (ownership of hard assets and real world organisations).
Everything is deflating, but it's difficult to spot because currencies are deflating faster than assets are deflating. The result is that markets continue to make new highs. It's not that these assets are performing so well, they are merely outperforming the value of the currencies in which they are priced, currencies which are in a state of collapse.
Yep,
Don Pardo, tell this man what prize he won!
It's a brand new...bunker!
And so the zombie bird cometh home to roost. caw CAK CAW!
Look pal, we hate negativity around here.
unless you're talking about HIV
double negative
Actually, I have been wondering if the spike in the USD is contributing to this plunge in this index, since it is measured in USdollars.
This should be very good for stocks.
"goodbye fresh fruits and veggies. . ."
Don't you mean goodbye nasty tasteless unripe out of season food-like crap?
Organic/local/homegrown or nothing, FTW.
Finally....this IS the recovery.
Now stop talking about it.....or you're going to jinx it.
Of course it's not good. Nothing is ever good on ZH. Demand for commodities is low despite the increase in liquidity by central banks around the world. So much for that QE = inflation theory.
What you're not grasping is if you print enough money......you can deflate any damn thing you want straight into the ground.
It's just a balancing trick.
"Nothing is ever good on ZH"
14 weeks is not enough time to develop a solid gallows humor funny bone.
Its actually all good....some call it reality.
My other account of over 4 years was deleted. All of it is either Libertarian or permabear dogma which always concludes with buy gold because of hyperinflation.
It's not longer funny, just tragic.
This is yesterday's news. It was record low yesterday.
Again?
Yeah... Just like in "Groundhog Day"
SSDD Same shipping different day?
Was 554 yesterday and still going down and believe it tied the record yesterday for the low...so it would now be the new low on record today.
That's an IRA trade!
This economy is a god.
http://youtu.be/6VF5P7qLaEQ
Just a little bit lower and shippers will be paying China to ship something, anything with them, and that will be seen as bullish.
"like paying China to ship something"
Sounds a little like NIRP to me.
who needs to ship things around the world when you can manipulate bonds, carry forex trades from one currency to another or front-run interest rates you helped create instead?
Load ships with 1 bn each and let them circumnavigate. This will both ginger up the Baltic Dry and the global money turnover.
Problem solved.
I see global economic ativity is picking up like Barry said it would.
Hope......yeah......I'm feeling it!
Hey I just priced rotgut foreign tile at Home Depot yesterday and was surprised at how low the prices have dropped. Rah rah for shipping rates and the roaring DXY. The world may end but I'll get to watch the end while standing on a nice looking kitchen floor. Go America!!
He just might have started cheering at the worst possible moment. Talk about lousy timing. Like that guy who started yapping about stocks having reached a permanent high plateau - in the autumn of 1929. If things blow up significantly within the coming weeks or months, your POTUS will have secured his place in the history books.
I thought he already did secure his place. Mr Change haha.
The day after he made that "crisis has passed" comment I stated here that it was code for "there's a major shit storm coming. "
The term is Jonah. Bad luck follows him like a stench
As I predicted in May 2013 when Fed changed the mind and did not rase rates.
It will get worse and worse and worse unless 10 yr yield goes 5% or so.
A rate hike will be an economic boom in 18 months
If the 10 year goes to 5 percent this year I will do as another ZH poster and shit a live clucking chicken.
I see it going to below 1% before it goes to 5%, and either scenario is death to THIS economy.
"shit a live chicken"
Not a vailid threat until you specify the variety.
I would suggest a Jersey Giant.
That would be chicken-shit.
https://www.youtube.com/watch?v=z0KeJ4KBUNo
fed can't raise rates, he didn't change anything, it's going according the plan..
There is no plan
I think the plan is not to pay any more interest on the trillions of debt than we have too.
That's not making my grandkids any less furious however.....they are major leagued pissed off.
Who needs a "plan" when you have access to hundreds of billions at zero interest?!?!
The bankers and financiers need to repay us or face retribution, period.
Of course there's a plan and it's been running smoothly since well before Lehman; The Fed's got it covered...cheap $ for the banksters and the rest of us can fuck off. It's so simple they're counting on people like you insisting, "There is no plan".
"A rate hike will be an economic boom in 18 months"
Can you explain your logic?
Normal rates by definition expand the economy.
Normal = 5%-8%
Zirp kills the economy
15% kills the economy
Economy is expanded by Suppliers, not by Demand
Demand = Wants = Infinite
Supply = Reality = Scarce
Supply rules and supply needs NORMAL RATES 5-8% of 10yr
Your logic is perfect for a free market...that doesn't exist. They have gone too far; do nothing and collapse, raise rates and collapse.
Such respect for capital is long dead, especially among the bankers, financiers, and their political puppets.
Banks would get squeezed by low interest income and high interest cost (fed funds rate). Fed rates can't go up or it bankrupts the banks.
For whom?
Rich people are always rich. Boom will be middle class and poor
You mean boom as in this whole tinder box blows up! There will be no recovery, that is the biggest JOKE I've ever heard.
Unfortunately if rates approach historical average the gov't defaults in 12-18 months.
And?
I would not give it a year, if they raise rates. The debt becomes unmanageable. You would also see taxes go SKY HIGH, be prepared to give the corrupt govt 90% of your income, it has happened before!
Yes, so has default. This time, the political elite would be in deeep shit because of all the free money we have been giving the bankers and financiers. A refund or serious retribution would have to be paid.
The key now is to not have income for those pricks
I'm trying my best, I swear I am...
Retribution has a bit of ring to it, no?
They'll try for 90%, history says commerce will immediately go underground... but not sure how that works in today's world of big-box Wally World.
FYI- the U.S. has defaulted three times in the last 100 years!
Only politicians are allowed to define the word default
Governments are currently pretending they haven't defaulted. This is the point where they say that they left their wallet at the house and can they borrow some more money to last out the day. Don't worry that wallet is at the house.
Another twist, they have to float this until the boomers liquidate their retirement. Any large move prior to the largest demo getting paid out would start an avalanche. They have no clue how to get out of this alive.
That's going to be a slow bleed because the Boomers aren't retiring.
Agreed, but avalanches start slow. Nobody wants a granny revolution.
Another sign of the robust recovery I'm guessing. Should lift the Dow quite a bit.
Social media is what's important now! They make great sums of money advertising products that were made in......oh wait....
Keep your powder dry. This collapse is going to be EPIC! Strap on your Chinese nose guards, the ride will be bumpy!
Just some more fodder:
https://www.youtube.com/watch?v=zf-C2kearTw
Keep squeezing out the real economy in favor of the paper one.
Great news. All we need now is a face that will launch a 1000 ships.
I nominate Mr. Yellen, he's like the anti-Helen, and any sailor who saw him would want to depart immediately (to throw himself overboard).
Time to BTFD in this index?
Hells yeah! All in bro!
The Commerce Department said last week that the U.S. trade deficit jumped by 17.1 percent in the fourth quarter of 2014. At $46.6 billion dollars, the increase was the largest since November of 2012 and the biggest percentage increase since July of 2009.
http://www.globaldeflationnews.com/u-s-trade-deficit-growing-december-la...
Fortunately, that doesn't matter anymore.
You won't need a Norden bombsight .... to hit the fan !
To all those 1% looking to hide out in New Zealand come the apocalypse: Do you think that Aussies will sit idly by and wave hello?
Why ask why? Ship Baltic Dry!
Trade is the only thing that keeps humans from killing each other. Prepare for the blood-letting.
same as it ever was...
At some point, billions of unfunded liabilitys will need to be liqudated.
A clearing of the balance sheet, so to speak.
The day after the BET I mean EBT cards read '0' is the day the riots (full scale violence) begin.
Imagine if that chart wasn't log.
no kidding! it's bad bad ugly now... But I have a plan!! We can cut a deal w/ Chineses for one ship full of cheap pocketknifes, create some more money for wall street elites, then the rest of us can sit about whittling hand crafted f*cking maseratis... millions upon millions unemployed, maybe half or better recieving mail box money and eating bon bons.. that leaves millions upon millions unemployed. Young snake oil salesman carny Rockefeller was taught that "competition is a sin". This is what happens when you go against God's design. Meanwhile, I need a $20 to buy some rice :-(, since I'm part of those millions upon millions that don't get mailbox money...
PS - real estate in the country is pretty fair priced... bring your guns, you'll probaby need them.. the cities are likely to be showered with bioweapons, sorry city slickers :-(
And yet the Chinese want to spend billions to build a canal through Nicaraugua?
The BDI measures the actual productive capacity of the worlds labor force.
The production of goods of value useing labor and materials has cratered.
Billions of peoples very existance relys upon the continuation of limitless credit creation.
May the farce be with you.
If shipping is off and the trade deficit jumped, things are much worse for the (strong $) US
Nobody's buying anything, nobody's shipping anything, nobody's making anything - if all that doesn't blow the DJIA right past 20,000, I don't know what will....
Combine that with a dock worker's strike on the west coast - the economy is ROARING!
The economy is strong...we promise.
Fill boat with bankers, attorneys and accountants from China. Haul to middle of Pacific, dump. Pick up American scum bankers, attorneys and accountants, haul them back to middle of Pacific and dump. One stupid fantasy for a serf. Me.
Tell them that there is free coke and Whores.
Hey guys I turned my computer screen upside down and am happy to report that the chart is looking much better!
That doesn't work on my Android phone.
hahahaha,..that is a good one Quin! freaking screen keeps up with ya...
Do a headstand
you are innovative! kudos...
problem is I will break my neck.
worked for these guys
https://www.youtube.com/watch?v=M1owcncKCHg
Banker excess, always has the same result as they only have one product, loans/debt, they let people take money from the future to spend today.
Boom today and crash tomorrow.
That is all they do.
1929/2008 - Wall Street Crash
1930s/2010s - Global recession, currency wars, end of globalisation phase and rise of nationalism and extremism
It is always the same.
I order to get a "tax cut" you first need to have income.
Is the theory: an economy cannot run on singing Idols and reality stars?.... pure hogwash.
Yes, it also need Stars dancing and football to be successful.
In order for the goods to meet customers the medium of exchange, namely money, has to be sound. Suppression of the interest rates by the central banks has screwed "money" beyond proportions. No sound money, no exchange...
Good thing were not in the Baltic....
It peaked when Obamacare passed.
shipping efficiency and over capacity - MOAR deflation
you getting this yellen? how about you barry?
Question will soon be in what currency do we trade?
Where is the money for the Trade?
And which Banks do we use for Trade?
The BDI is not likely to move up till such time as answers are available!
If it keeps getting cheaper....I might rent a ship to do an around the world tour.....could be fun...you could sure play golf on the poop deck I assume...and you could bring your car for no extra charge...
Hanjin Shipping Co. pulls out of Portland, Or.
1600 + containers per week gone.
650 direct jobs gone. at $225,000 each
Direct economic loss 60 million +.
Export of Farmer products comes to a crashing end.
All because the unions didn't want to negotiate 4m in savings or increase productivity.
Albeit an imperfect indicator but the best available gauge on the state of the global real economy. Keep going with the piles of fancy papers atop this flow. Greater the bonfire of papers the better it is to cure the self deceit of the many preys.