Shipping rates hit zero as trade sinks
Freight rates for containers shipped from Asia to Europe have fallen to zero for the first time since records began, underscoring the dramatic collapse in trade since the world economy buckled in October.
This can’t be good.
Had someone told me this was going to happen, anytime prior to actually seeing it in print, I would have bet my net worth it was impossible. This demonstrates–to me–the damage done by the current incomprehensible manipulations going on throughout the "system."
I agree castlewp, this can’t be good. Hopefully someone with some insight into the shipping business can enlighten us here, for these kind of occurences are, to me, as a physicist, the equivalent of dropping a ball and watching it dash off into outer space…
How are logical, thinking human beings supposed to navigate such absurd outcomes?
I would add to that the illogical nature of negative yield Treasuries that we saw about a month ago. Something is very wrong with that.
These sorts of things are prima facie absurd and I personally don’t feel like analyzing them much further. They are a very clear reflection of a failed monetary system. I suppose the shipping industry is going to need a big Plunder Package next as well? I mean after all, globalization and dependance are the greatest economic advancements that have ever touched the earth, right?
The unwind continues…
I think I read somewhere where the US imports more than 50% of its food. Please correct me if I’m wrong.
Now, what are the food ramifications regarding this type of import ceasing?
I understand that there are signs that domestic food producers are having inventories build on falling commodity prices, so is food being thrown out?
I see this as a major issue for us in the very near future.
Can someone help me out here? Thanks
Here’s my gut feeling on it, without extensive research:
Perhaps we import more than half the food we eat, but I’m willing to bet a lot of that is because certain food is in season in other countries when it is not here, etc.
I do believe that on the net, pound for pound, America is still a food exporter.
But the real catch is that we use vast amounts of imported oil to accomplish this. Many people might say that globalization has helped the world, but I would say it has made most of the world less secure in the things they need. If we never imported oil in America, we would have realized long ago that we had an oil problem and that we needed more farmers. This could have caused a gradual shift away from oil. Unfortunately, globalization has allowed everyone to party just a little longer, but now we are not simply worried about depleting resources, we are worried about the depleting political and public will to drive the the intense trade that we need.
Just a random question: Does anyone know which countries are the most independent (i.e. the least "globalized")? Are there any of the big economies that truly don’t trade much at all? I’m not talking about net exports, I’m talking about gross trade? Who is closest to self suffiency?
Ruppert just put up another great post at http://mikeruppert.blogspot.com/
He can really connect the dots.
The US is a food exporter but there are many areas where we are in trouble
Yeah, Ruppert is smart. The way the world is being carved up by the three world powers reminds me of the World War era and that’s not good. The fact that Russia can control Europe via its gas supplies and the world??? via its oil exports really make things a lot more complicated. Of the world powers, it almost seems as if China is the best behaved at the moment.
A few years back, post 9/11, but well in advance of any widespread acknowledgement of the housing bubble, I read numerous "experts" reassure us that World War was not possible because the economies were so interlocked and interdependent thanks to globalization. World War would have limitations, but I content that it is still very much possible. Doubleplusungood.