Thursday, 11 February 2016

This Global Economic Indicator Hits A New All-Time Low! Part 2...from TPC

It was only one month ago, on January 16th, that it was reported the Baltic Dry Index or BDI had plunged downward through the 400 level for the first-time ever!

Now, on February 10th, it has broken through 300 to a level of 290.

The collapsing BDI is a sad reminder of the cluelessness of global central banks that are pushing interest rates negative, except of course for the ultra-clueless US Federal Reserve that has actually raised them!

1 comment:

iOpener said...

In fact, trade volume is slightly up.

However, shipping supply is largely up so prices of shipping thus fall.

"Maersk owns the world’s largest container shipping company and is seen as a bellwether for global trade, which it estimated grew just 0-1 per cent last year against double-digit growth before the financial crisis. It forecast an increase of 1-3 per cent this year, still below its post-crisis estimate of 4-5 per cent growth."

Growth of between 0 and 1 percent is not a contraction, is not good, but is not the end of the world.