If you believe the mantra on an “improved economy,” you need not look but to one very critical measure: The Baltic Dry Index. The index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as building materials, coal, metallic ores, and grains. As one can see the chart in no way supports the existence of an improving (global) economy. (Chart from Bloomberg.com)
Since the past three year, things are demonstrably worse as displayed in this latest Index chart that includes other economic indices overlaid:
Yes, the Baltic Dry Index is graphed in orange. Three years ago, it stood at 1,115. Today, it stands at 291! But, it gets even better. This is a five year chart. Look closely at the S&P 500 (blue), Dow Jones Industrial Average (red), and the NASDAQ (green). Now, “Riddle me this, Batman.” When most of our industrial output has been “outsourced” to other countries (China), and these three aforementioned indices allegedly reflect the “book value” of companies (based on their profitability) who, for the most part, are in the business of selling products, products now mostly produced overseas (China), then how exactly can the shipping index (Baltic Dry) begin a precipitous, downward descent (most recently in 2014) while at the same time the other three indices show a slow, but consistent rise?
Is this prima facie evidence of willful fraud being perpetrated against investors? A willful fraud being perpetrated against the entirety of the People of America by creating the false image of a “recovering” economy?