Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman

Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman (Zerohedge, Nov 5, 2014):

Nothing to see here, move along…

We are sure it’s nothing to worry about, and in now way indicative of any global aggregate economic weakness, but global commodity prices (that would be the ‘stuff’ that is used to make the ‘stuff’ we all buy every day) are collapsing at the fastest rate since Lehman…

Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman

Of course, it’s all about over-supply, not under-demand… just like the Baltic Dry was not low because of shitty trade volumes but because of too many ships… but it’s just the other side of an uncomfortably real mal-investment-driven fiasco…

As the chart below shows… maybe it is the economy stupid and with US GDP expectations being ratcheted down after construction spending and trade deficit data, maybe the US is not decoupling after all.

Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman1

But is merely ‘lagging’ as it always does…

Charts: Bloomberg

1 thought on “Global Commodity Prices Are Collapsing At The Fastest Pace Since Lehman

  1. Commodities are everything….from metals to coffee. What does this really mean? Have people cut back on everything? If so, we are in deep trouble, people are only buying what they need to stay alive. No growth can come from this, and if everything that is normally consumed or used is dropping in consumption, we are right with the EU, in a “triple dip” recession……just great for republicans. They love to make people suffer, and this will be an excuse to cause more misery clothed in the guise of good works.

    Republicans will make it worse. The democrats do nothing, so the damage is kept down, but with the republicans in power, now all will be bad for the people, good for the corporations. Obama is a corporatist, so he will work well with the republicans, and every time he goes along with them, he will whine how they “made him do it.”

    Mitch McConnell and that drunken Boehner can not do us any good. Why are they still in power?

    Commodities are down. Isn’t that another word for consumption?

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