According to this chart, very soon, nothing will be moving. This means catastrophic food shortages. Medicines will not be shipped. Those who still have jobs will not be able to drive to work. This is why China devalued its currency. And in retaliation, this is China was attacked, twice, this past week. The point of no return has been reached.
Good Monday Morning, the world’s stock markets are in free fall and the banks and their worthless paper currencies are next!!!
The world is in the middle of a global economic meltdown. What does that mean? The simple answer is that it will not be long until every modern country is consumed by hyperinflation resulting in the crash of most of the paper currencies on the planet. This will result in an economic shutdown. Starvation will become commonplace. Unrestrained violence will occur and eventually the world will slip into World War III.
I literally have at my finger tips two dozen economic indicators which demonstrates that total and global economic collapse is at hand. In the interest of brevity, I will only highlight two of these indicators and if these were the only indicators, an economic collapse would still be in our collective futures.
A Dead Global Economy
Three weeks ago Reuters reported that shipping freight rates for transporting containers being transported from the ports in Asia to Northern Europe dropped almost 23% to $400 per 20-foot container in the week ended on August 3, 2015 and the data was obtained from the Shanghai Containerized Freight Index. At that time, at least the crippled Baltic Dry Index was holding its own. That is not longer the case. The BDI is in total free fall. Oil prices are in free fall. Very little is moving. The Chinese Stock Market is disintegrating before our eyes. Read this chart and weep. This is the end. There will be no more warnings, only progress reports about the collapse. According to the BDI product is NOT moving!
The Baltic Dry Index
The Baltic Dry Index (BDI) is absolutely the best measure of global economic health. The BDI is used by economists as a leading global economic indicator because it predicts future economic activity. The BDI, uses the U.S. dollar as a benchmark and measures the global supply and the corresponding demand for commodity shipments among bulk carriers. Commodities, in the form of raw materials like grains, lumber, coal and precious metals form the backbone of the BDI. Over time, the BDI is the best indicator of global economic health because, unlike the futures market, the BDI does not engage in speculation as it provide near real time data on what and what is being shipped. The determinations made by the BDI are such an accurate indicator of economic activity because businesses don’t book freighters when they have no cargo to move. In short, the BDI is the world’s financial blood pressure measure. The BDI is said to be one day away from reaching its all-time low. Ultimately, what the BDI tells economists is that we are headed for a depression that will make 1929 look like a picnic.
Back in February of 2015, the BDI had fallen on 43 of the past 47 days because of a shipping strike. Back in February, the world was days away from a total economic shutdown. However, the crisis was resolved and product began to move and the world bought a few more moments of relative peace.
If Product Does Not Get Shipped, You Do Not Eat!
Let’s look at this issue through the lens of common sense. If raw materials are not being transported in sufficient numbers as the BDI strongly indicates, what will happen to manufacturing? To the cognitive dissonance crowd, please take off your rose colored sunglasses and honestly answer this question, what does a low BDI mean to manufacturing? Low BDI means low manufacturing, period! In turn this means less finished products coming to market. Please note that the BDI includes grains in its analysis. With fewer grains being shipped to market to be packaged and distributed to your grocery outlet, this will lead to severe food shortages. This is not fear-mongering, this is simple Economics 101. Look at the chart representing the collapse of the BDI and ask yourself, where will your Thanksgiving turkey come from?
When the full effect of this impending train wreck is felt, there will not be a government in the civilized world that will be safe from assassination. I know, some of you will say that this will never happen. Well, let’s take a look at what Paul Craig Roberts and Sam Ro said back in February about the conditions in Greece.
Read the rest here:
http://www.thecommonsenseshow.com/2015/08/24/these-are-the-final-chest-pains-of-a-dead-global-economy/