Ok. So... container freight costs going down. Fuel going down. Beef going down.
This will benefit the average American. The one’s it doesn’t benefit are the kings of the stock market.
So why is this bad ?
It is bad because such a dip in world trade usually presages a deep world recession that includes the USA. If you remember, recessions are bad things that usually hit woking people the hardest.
This will benefit the average American. The one's it doesn’t benefit are the kings of the stock market.
So why is this bad?
Empty stacked containers mean no one's shipping, no one shipping means there is a drastic reduction for the goods that once shipped in those containers. No buy, no ship, no trade, stagnation.
GG2, long ago an economist tracked domestic production by cardboard box and paper bag production as an indicator.
It is always 2 sides of the coin. Cheaper consumer goods = lower profits = layoffs and fewer jobs created.
If you have a secure job, you can enjoy the lower prices. Others can enjoy then too, while they have an income.
Because somewhere there is an elderly old widow who is a shareholder in one or more of these companies and her quarterly dividend check will be reduced.
And besides, even if it just so happened to be the case that the vast majority of stock is owned by crony capitalists, everyone knows that we all go to work everyday to increase shareholder value. Anything that threatens shareholder value, threatens the American Way of Life.
Please say prayers for the Baltic Dry Index. It's only the patriotic thing to do.
Because it means that people will start losing jobs and won’t be able to afford the cheap beef, gas or anything else.
We need people out there with a little excess to keep spending so the average Joe can earn a living.
Ask the “beneficiaries” of the Great Depression how that worked out for them. It wasn’t just the Wall Street crowd who suffered.