Wednesday, September 19, 2012

Baltic Dry Index Collapsing | Western & Chinese Equity Markets Diverge

The Baltic Dry Index became entirely detached from stocks and commodities 2 years ago, and continues to break down preparing to take out it’s all time low set in early 2009 in the aftermath of the Lehman Brothers - financial collapse. The Baltic Dry Index is actually collapsing in the midst of what is typically the strongest shipping season of the year. As the global shipping index prepares to take out 660 to the downside, how low might it be by March 2013? 400? 300?  

September 2008 launched an extraordinary chain of events: General Motors, the world’s largest company, went bust. Washington Mutual became the world’s largest bank failure. Lehman Brothers became the world’s largest bankruptcy ever. The damage inherent to the nature of Credit Default Swaps and Credit Default Obligations quickly spread around the world, shattering global confidence in the fundamental structures of the international economy. Millions of Americans have lost their homes, tens of millions of Americans can't find a decent job and 44 million Americans are on food stamps.

Gabriella Mittelman points to the peculiar fact that US-stocks and most of the associated equity markets in IMF- and FED-dominated countries experience an inflation-driven boom and are rocketing, while stocks in China keep falling since October 2007

However, China is the rising power amidst this camouflaged world depression, and Zhuangzi said: "There is nothing on earth which does not rise and fall, but it never perishes altogether. The Yin and the Yang, and the four seasons, keep to their proper order … such is the law of creation."