It’s Deja 2008 all Over Again!


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Lowest Ever: The Baltic Dry Index Plunges To 394 As Global Trade Grinds To A Standstill

Michael Snyder, on January 14th, 2016

(icliks comments in Magenta)

For the first time ever, the Baltic Dry Index has fallen under 400.  … I never even imagined that it could go this low.  Back in early August, the Baltic Dry Index was sitting at 1,222 … Of course the Baltic Dry Index crashed hard just before the great stock market crash of 2008 too, but at this point it is already lower than it was during that entire crisis.  This is just more evidence that global trade is grinding to a halt and that 2016 is going to be a “cataclysmic year” for the global economy. …

Some people try to dismiss the recent drop in the Baltic Dry Index by claiming … there is simply too much (shipping) capacity out there these days.  And I don’t dispute that. (Too much capacity? You could say that about the entire emerging market economy especially, and the world; fueled by the U.S. Fed ZIRP since 2008. This is the problem.)  …  The truth is that exports are way down all over the world  … extremely ….  Global trade is contracting quite rapidly ….

(Also) many people are not paying any attention to the economic fundamentals because they are too busy looking at the stock market (which is like an engorged parasite, bloated by ZIRP, as it has sucked all the blood out of the now zombie economy.) … If the stock market is up today that does not mean that the economy is doing well …

Yes, the health of the financial markets can greatly affect the overall economy.  We saw this back in 2008.  When there is a tremendous amount of panic, that can cause a credit crunch and make it very difficult for money to flow through our system.  The end result is a rapid slowdown of economic activity, and it is something that we will be experiencing again very soon (now that the economy is entirely bloodless.) …

Initial jobless claims just hit their highest level in about six months, and companies … are laying off thousands of workers.  Things are already bad (Can you ignore the media spin and the ZIRP-induced somnambulance and see it?), and they are rapidly getting worse. … And … so far this year (says) CNBC, approximately 3.2 trillion dollars of stock market wealth was wiped out globally during the first 13 days of 2016 (And that’s just the stock market. Credit downgrades have destroyed a few trillion more. Wait until the shippers, drillers, miners – see Noble Group’s “Margin Call” Part II: The Enron Moment – , and for that matter emerging market nations, lose their investment grade credit ratings and that starts to percolate out, and defaults and bankruptcies start in earnest.) …

Over the past six months, there have now been two 10 percent “corrections” for U..)S. stocks.  The only other times we have seen multiple corrections like this were in 1929, 2000 and 2008. …  In all three years, we witnessed historic stock market crashes.

The stunning collapse of the Baltic Dry Index is just more evidence that we have entered a global deflationary crisis.  Goods aren’t moving, unemployment is rising all over the planet, and commodity prices have fallen to levels that we have not seen in over a decade.

Around the globe, there have been dramatic stock market crashes to begin the year, and we should expect to see much more …

Prepare for what is coming … The debt-fueled (fueled by ZIRP, not necessarily by you or I borrowing or using our credit cards) standard of living that so many of us are enjoying today is just an illusion.  …

A great shaking is coming to the global economy, and the pain is going to be unimaginable.  …

(Read it all.)

And See

Junk Bond Zombies

Recession Coming

Big Broker Doom

U.S. Oil Debt Timeline

 

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About icliks

Biding my time in central ms ... yours too, if ur reading this.
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