Baltic Dry Index below 400, is it China, the US or both?

So reading this article an important question came to mind, is the economy in China collapsing because of us here in the states?

Does that mean our economy is actually crashing right now but it's showing first in the Asian markets?

Let me just say I'm trying to learn here so please explain.

shipandbunker.com...

The Baltic Dry Index Wednesday fell under 400 points for the first time ever, and some analysts are now suggesting a demand recovery may be as far out as 2018.

So no one is buying anything.

I just can't see how this is good.

Are we about to witness an event?

I think there has been a tremendous loss of jobs in this country in the last 10 years and it is beginning to show in lack of discretionary spending.

originally posted by: Sunwolf
I think there has been a tremendous loss of jobs in this country in the last 10 years and it is beginning to show in lack of discretionary spending.

Oh for sure when the largest economy in the US has half of its states residents on welfare then something ain't right.

I think it's a combination of both, US and other nations have been investing in China, China has been investing overseas

So if one happens to show a sign of a dip the other will respond in kind but it ends up spiraling out of control as one goes down the other goes down which cause the other to go down even more and thus the cycle perpetually repeats until we have another economic crisis

Not to mention I believe those responsible for the crash of 08 have been doing the same housing bond BS in China (They started doing it again in US/Europe under a different scheme name last year too) due to the boom there and basically none existent restrictions but it's going to be much much worse when China's housing market crashes and millions of people start defaulting on their loans because the economy has gone sour

a reply to: Discotech

They are sub prime car lending all the time too I'm surprised that doesn't have a greater impact on the economy.

Our system is totally bunk.

is the economy in China collapsing because of us here in the states?

No. And Yes. No because China has been delaying the crash for some time. Rather than a hard landing, it's banking arm is trying to do a soft landing, more or less a controlled burn.

Commodities in general are in the tank (poor Brazil and Australia), their housing market is caving in on itself and worse, their stock market is heading south faster than geese during winter.

Yes because quite frankly, QE sent a shockwave through the global economy. It's hard to balance your books when your biggest customer prints dollars to keep it's currency and banking sector from imploding. It doesn't help when the EU is following 'Murica's footsteps.

Say what you want, but I'm cheering on Super Mario (Mario Draghi, i just call'em Super Mario since he called the EU out, hehe)

Does that mean our economy is actually crashing right now but it's showing first in the Asian markets?

Nope. Our economy has already crashed my friend. Stawks are doing good so the malaise was papered over. It just got worse and worse. And now thanks to the State Department and Saudia Arabia, one of the bright spots of our economy, the energy sector, is getting the red headed step child treatment.

The Baltic Dry index is an indicator of the shipment of raw materials by sea, so it rises and falls. Doesn't help when, as your pointing out, it's all all time lows. Also, it doesn't help when it costs more to mine gold than what it's worth, as an example. Same for iron ore. And copper, good (non-existent) God!

It's the down turn....one can see the canary in the coal mine ...the GBP/JPY....trading instrument.....has been tanking for a week..

a reply to: cenpuppie

If no raw materials are being shipped that means nothing is getting manufactured correct?

Well, the Asian markets all seem to be down tonight, seems like our market here will be falling again tomorrow morning.

The stock market hasn't been acting rationally for six years now. I don't know why it didn't correct properly after 08. The Feds are letting Wallstreet lie like crazy yet if you put the wrong information or words on a loaf of bread they are all over you. They must think bread is money.

a reply to: GBP/JPY

What do you mean by trading instrument?

Thanks

originally posted by: rickymouse
Well, the Asian markets all seem to be down tonight, seems like our market here will be falling again tomorrow morning.

The stock market hasn't been acting rationally for six years now. I don't know why it didn't correct properly after 08. The Feds are letting Wallstreet lie like crazy yet if you put the wrong information or words on a loaf of bread they are all over you. They must think bread is money.

Lol

originally posted by: GBP/JPY
It's the down turn....one can see the canary in the coal mine ...the GBP/JPY....trading instrument.....has been tanking for a week..

So I would dump all my stock and put money back into safe havens like gold until the correction is over?

a reply to: onequestion

Yes, you're correct. But the Baltic Dry Index is an indicator, like the word on the street. So while it looks like hardly nothing is moving in reality, there is simply very little.

More or less, just enough to "keep the lights on". Instead of purchasing say, a six months supply, instead you opt for two or three. And when it's by the tonnage it will start to show in shipping. Why buy a six months supply, when you know the price will decrease as time goes by, even though I have no idea where the bottom is, me personally, I would have called bottom years ago but heh, you still get surprises.

Wow, I never knew what the Baltic Dry Index was. It is lower than it has been in five years.

I still don't know what the Baltic Dry Index actually does, it seems to be just shipping that is going on and not orders. It seems to go down every year after Christmas, rising before Christmas season. Does it mean the shipments have been reduced around twenty five percent in the month?

a reply to: onequestion

Not so fast. No one knows what the bottom is for gold. And I wouldn't invest all my cash in gold because I don't live by any large bodies of water to "loose" it in. If you invest all your cash in gold and it does get bad, Uncle Sam will repo the precious, for the children of course... their children

a reply to: rickymouse

You know why Ricky. How many bodies you think will turn up once millionaires and billionaires learn their own bank stole their wealth?

originally posted by: cenpuppie
a reply to: rickymouse

You know why Ricky. How many bodies you think will turn up once millionaires and billionaires learn their own bank stole their wealth?

The bodies are going to start turning up soon because everyone is tired of living in poverty while watching idiots live in mansions.

a reply to: onequestion

Hey, there....it's a currency pair that's traded by the big boys, it used too be the carry trade instrument which is an important banker trick. But would make us angry if we knew about this country club elite ideally for triple interest on Wednesdays... claiming since they don't receive interest on the weekend.....Let's give triple interest on Wednesday.....yea, that's the ticket, now I remember

a reply to: onequestion

Heh, that's why the Chinese government is snatching everyone and anyone involved with the stock market in China.

America isn't that hungry, not yet. We still have something to lose. It's when America has nothing to lose when it gets dangerous.

a reply to: cenpuppie

How far away is that?