Another spasm in the Baltic Dry Index
04.02.2012 12:41 in money
For those who have studied the American Financial War, the Baltic Dry Index evidences the death spasms in the decline and fall of the United States. Below is a three year chart (including the RSI and MACD indicators on each image) of the Baltic Dry Index (BDI) saved on 4th Feb 2012, followed by a three year chart saved on 25th June 2010 to give perspective.
The Baltic Dry Index measures the cost of hiring a dry bulk ship such as those as used to carry ore. The current level of the BDI shows that banks are not clearing payments for this kind of trade. This seems to confirms the intelligence leaked by certain sites that large inter-bank settlements (US CHIPS payments) are effectively suspended at this time.
This is followed by the DOW/Gold chart, which is expected to go to 1. A very long term DOW/GOLD chart is below that for perspective. The choices at this time are a sharp plunge in the DOW or a giant leap in gold, most likely both followed by a death swoon. Very volatile markets ahead as people figure out "what is money?", the hard way and discover that "cash in the bank" may be more ephemeral than printed green paper in the pocket.
The true recent history of man has not been taught in classes "except for the gory bits".
Normal people want to know, "who are the goodies and who are the baddies?" . Our advice: Do not jump to hasty conclusions and do not rush to war. The solution lies in deliverable contracts as currency as noted in a recent Open Letter to the IMF Director, Christine Lagarde.
Baltic Dry Index 3 Year chart ending 4 Feb 2012
Baltic Dry Index 3 Year Chart ending 25 June 2010
DOW/Gold 3 Year chart ending 4 Feb 2012
DOW/Gold ratio to 2007 - this data is now available as the DOW in Globals to May 2011
Dow in Dollars Feb 1885 to May 2011
Dow in Dollars and Gold Globals Feb 1885 -May 2011
More long term charts are here.