These 4 Charts Signal Impending Economic Collapse

by C Serpa, Grams Gold The Baltic Dry Index, “which tracks dry-bulk shipping rates for four types of vessels on 23 ocean routes, has tumbled more than 60% in the past three months,” states Barron’s. The index continued to crumble this week to lows never seen, with the Baltic Dry Index (BDI) at 530, its lowest level ever. Well below the all-time low of 554 points on August 6, 1986. Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food; the index is also seen as an efficient economic indicator of future economic growth and production. The BDI is termed a leading economic indicator because it predicts future economic activity. baltic dry index 2015 IMPORT PRICES Import prices dropped 8.0% YoY (modestly beating expectations of an 8.9% plunge) and 2.8% MoM. The last time import prices started to fall at this pace was a month after Lehman Brothers BK’d. baltic dry index 2015 WHOLESALE INVENTORIES In fact, as Wolf Richter recently wrote about, the wholesale inventories to sales ratio has now hit a level that we have not seen since the last recession… In December, the wholesale inventory/sales ratio reached 1.22, after rising consistently since July last year, when it was 1.17. It is now at the highest – and worst – level since September 2009, as the financial crisis was winding down: baltic dry index 2015 As Jeff Clark recently explained, “We usually see a spike in the 10 year Treasury yield about the time the market is peaking before a crash…”, states Michael Snyder. Continue Reading>>>

Sharing is caring!