A Chilling Indicator of What’s Ahead for the Economy

[robert l. bentham]

Earlier this year, I introduced a popular key indicator—the Baltic Dry Index—that measures the shipping rates of transporting bulk dry commodities worldwide.
It is considered a key indicator because it gauges the demand of the basic raw material inputs that go into every factor of finished goods, building materials, and food.
This key indicator registers a high number when economies are strong because of strong demand for all commodities like zinc, iron ore, iron, steel, etc. In an economic slowdown, demand falls, and so do rates.
Due to the economic slowdown, in January of this year, this key indicator reached a 25-year low. Since then, the index has just continued to fall, and remains near its low. Since 2008, this key indictor has plunged 90%!
Here is the three-year chart, which is further evidence of a global economic slowdown:

http://www.profitconfidential.com/e...f-whats-ahead-for-the-economy/?subid=OUTBRAIN

 

[adz]

I was speaking with a young apprentice carpenter recently and apparently the particular fab plant he's working at has been pretty much idle for the past six months.

 

[FluffyMcDeath]

Been watching the BDI for years now. Not a happy little number.

 

[metalman]

economists consider the Baltic Dry Index a leading economic indicator, and the current historically low levels of the Baltic Dry Index signal deflationary pressures and a slowing economy. Also, this number cannot easily be manipulated since it arises from so many disparate sources.

recently shippers have offered negative shipping rates, just to offset some of the fuel costs of moving ships to better, more active ports.

 

[redrumloa]

Fluffy and I have been warning about ugly times for many years now. We've been right, obviously, but martial law and widespread blood in the streets is a little delayed (thank god).

 

[metalman]

Fluffy and I have been warning about ugly times for many years now. We've been right, obviously, but martial law and widespread blood in the streets is a little delayed (thank god).

China's bubble is about to burst ...