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hardnox604008
Veteran Advisor

Baltic Dry, an opinion

http://www.zerohedge.com/article/baltic-dry-and-growth-trade

 

"-China trumps everything. It's not just shipping rates; all the froth in the commodities market is at risk."
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4 Replies
smokeyjay
Senior Contributor

Re: Baltic Dry, an opinion

Perhaps so, not only in their presence in the markets, but also what happens around the world.  If the global economy stays down for too long, China will feel the pinch as factories close doors and have to retool. 

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GoredHusker
Senior Contributor

Re: Baltic Dry, an opinion

China is an interesting economy.  When they enacted their stimulus, they were giving their citizens electronics who in most cases didn't even have electricity.  They did this so they could make more.  It's kind of like one of their colleges they built.  It was built for 2.3 million students.  Currently, there is 11,000 enrolled.  China's forming bubble makes almost all other bubbles seem rather small.

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nwobcw
Advisor

Re: Baltic Dry, an opinion

If or when the China bubble pops it won't be pretty.

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GoredHusker
Senior Contributor

Re: Baltic Dry, an opinion

Interesting news out of China is that it may happen sooner rather than later.  It was estimated that their trade surplus would be 20 billion in December.  It came in at 13 billion which compares to a November surplus of 23 billion.  This might explain to some degree the Baltic Dry Index falling.  Either China isn't shipping as much or they're buying a lot more.  The report stated they just aren't shipping as much as demand for their products Worldwide is falling.  I'm thinking China goes boom here in the next 24 months.  Can you imagine how they'll react the first time their trade surplus turns negative?

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