Posted on 01/16/2016 7:26:39 AM PST by 444Flyer
"A key barometer of world trade has crashed to a record low in a worrying sign the global economy is grinding to a halt.
The so-called Baltic Dry Index, which measures the cost of shipping raw materials such as coal, iron ore and grain, has fallen nearly 70 per cent since August to its lowest level since its introduction in 1985.
The slump – which analysts said showed 'global trade is really suffering' as the outlook worldwide darkens – fuelled fears that the economy is heading for the rocks.
It came on another bruising day for investors as worries about China and the rest of the world sent the price of shares, oil and other commodities sharply lower.
(Excerpt) Read more at dailymail.co.uk ...
“Which is worse, inflation or deflation? Well, during inflation I had a good paying job. During deflation I don’t.”
Quite true. During the late 70’s/early 80’s high inflation period, I was getting a “COLA raise” every three months on top of a performance raise yearly. If you owe money at a fixed rate, inflation is actually good, as long as you have a good job.
All was well without the debt load.
Holy crap.
20 goofy responses before there was any semblance of sanity?
Sure are a lot of totally clueless people around here.
Then 20 more silly posts full of the same uninformed junk. No doubt there will be more.
The Baltic Dry Index is now mainly a function of previous overbuilding, and has been for some years.
The shippers do it every time. When the last of their laid-up hulls are scrapped, dry shipping prices will recover.
We’re getting there, but it will be a while. Longer than most think. Another year or two.
All of which has absolutely nothing — NOTHING — to do with shipping volumes or demand in general.
Many more of the current bunch of dry cargo shippers will be bankrupt or closer to it before dry rates recover.
Of course, that will never stop anyone with no idea of what they’re talking about from spouting their usual “OMG the sky is falling” garbage.
To them, ignorance is bliss. Too bad it’s also meaningless.
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