Baltic Dry Ocean Freight

[errolanderson]

Major fallout in China to U.S. west coast ocean freight rates into March. 40' shipping container rates have now plunged 40% since early December.

U.S. / China slowdown continues to chisel away at the Baltic Dry index ocean rates. Containers now being shipped at stiff losses just to maintain ocean route market share.

[ajl]

It's like big foot or UFO's many claim it exists. However the masses never see their cost of living go down. Be afraid, be very afraid of the deflationary boogeyman.

Money supply is now 4 times higher than 2008 and so is debt. That's the true definition of inflation. Usd is rapidly losing reserve status, arms race is underway. Fed QT failed, Baltic index is signaling more QE and more negative rates. Focus on the macro picture, I'm bullish commodities, and bearish USD.

Farmers tend to be inflationists so they will not recognize deflation if it ran over them. That is why the 80's were such a crisis. Everybody missed the transition from in to deflation and were not prepared. I sold #3 wheat in Jan for 7.04 and now the same product is worth 6.65. That is some deflation. Commodity prices are where you find it. Everything you sell is worth less today than it was last summer. Even pump gas is 0.96 today vs 1.30 last summer. If you extend the time frame, you will see deflation. Some cost of living item have decreased, however tax increases have made up for that, but to a producer tax increases are deflationary.