Many people think that the stock markets are the “indicators” and signs of whether the economy is healthy or otherwise. The mainstream media controlled by Wall Street and governments are always painting a rosy picture of the economy and placing the wool on people’s eyes.
As many (not that many actually) know the too-big-to-fail banks have failed, but because they are still seemingly conducting business as usual, most would think , “Oh its just a small hiccup” and are very confident that their governments are there ever-ready to protect their monies and assets. Anyway, that’s what an elected government is for right? Wrong!
The boneheads in the financial sector depend on the central bank$ to “regulate” the casinos and Ponzi schemes of the world’s banks and bursars. In every tight situation they would wait for the central ban$ter$’ solutions, eagerly with their fingers crossed hoping the sun shines again the next day for another bigger scoop, or a newer scheme to rob the masses. The picture is downright pathetically horrendous.
Once again, the rosy view on U.S. economy wilts
Federal Reserve bigwigs meet this week to debate when to raise a key short-term U.S. interest rate. The outcome, however, is not expected to be a cliff-hanger. Wall Street investors only see a 15% chance that the Fed will hike rates.
The final nail in the proverbial coffin may have come with a decline in retail sales and manufactured goods in August, reflecting persistent caution on the part of consumers and businesses. – Market Watch
Latest today…a real classic garbage from who else – The Financial Times
Oil prices rise on talk of Opec deal to stabilise global production
For me, I look at the sea where I could see the ships. If the horizon is empty of freighters it simply means no cargo is moving. One cannot make up the data of the Export-import (Exim) business. No buying means no selling, no manufacturing means no trading, and its that simple to gauge the (real and true) economy. The Baltic Dry Index figures dropped to its all-time low.
In trading Thursday, the benchmark Baltic Dry Index continued its fall with another record low at 298, its first value ever below three hundred points. Capesize and supramax day rates were down, while panamax vessels traded slightly higher. The worsening market is forcing an increased volume of vessel and enterprise sales, and, for well-positioned buyes, creating an opportunity to purchase at distressed-asset prices. – The Maritime Executive
The word economy has taken a turn from its original meaning and intention by Keynesian economists and what is apparent is its now only meant to measure the profits, wealth and assets of the 1 percent and has nothing to do with the 99 percent.
The reports of the shipping industry is terrifying news for the global economy. The horizon is empty and the shipping lanes are scarce if not empty of cargo ships.
The shipping industry is taking a beating.
As the Wall Street Journal reports, about 1,000 ships capable of hauling 52 million metric tons of cargo will be cut up and sold for scrap metal this year. Owners have only ordered 293 vessels this year through July — a stark decrease from 2010 to 2015 when owners were buying 1,450 ships annually.
The reason? A stagnant global economy that stems back to little growth in Europe and a slowdown in China. Chinese imports from the European Union fell 14% last year, the WSJ reports. In the first quarter of this year, Chinese imports from the EU fell 7% from a year prior. Exports to Europe have fallen as well. Continue reading
That sinking feeling for Hanjin as falling freight rates fuel a global shipping crisis
They just keep slitting each other’s throats with lower rates,” the shipbroker says. His sense of desperation is common in the industry, but he still asks not to be named. Tomorrow he will be fixing deals for the same shipowners who have flooded the market with new vessels in recent years, driving shipping rates lower as the glut of unused vessels grows. – The Telegraph
China’s ports hit hard by global trade slowdown
In the first half of the year, Hong Kong handled 10 per cent fewer containers than during the same period in 2015 and is on course for its fifth consecutive year of declines. – FT
Look up the Internet for more reports of the dying sea-freight business, and you’d find its definitely not a sign of a healthy global economy, but the world’s economist will tell you differently and that’s because the economic profession is in a sad state
It is not an exaggeration to say the current reputation of economists is probably just below that of a used car salesman. The recent failures of economic policies to boost growth or employment have tarnished this image even more. This, however, is in sharp contrast to the past when economists were seen as the intellectual roadblock to popular misconceptions, bad ideas, or more importantly, government policies sold to the public on false assumptions. – Frank Hollenbeck
Hanjin to return chartered vessels
South Korean container line says it is losing $2m a day
Hanjin Shipping is to return all of its chartered vessels to their owners to cut costs, after the South Korean container line said it was losing $2m a day amid the logistics chaos prompted by its bankruptcy last month. – FT
If Wall Street and the world’s con-stock marketers, and their stocks are in shipping containers they would all sink to the bottom of the oceans…literally.