Signs, Signs, Everywhere a Sign, Economic Signs, and More Bad Signs

by John Galt
August 2, 2015 13:30 ET

 

And not the kind of signs in the headlines one wants to see if they think the economy is going stay “strong” for much longer.

For example, on Friday the headlines directly contradicted the triple washed super duper electrochemically re-calculated GDP figures from the previous day:

US wage growth falls to record-slow pace in Q2

Consumer sentiment hits lowest since May

Of course the used car salespeople masquerading as journalists on the financial broadcast networks don’t want you to see this story either:

CHINA_CAP_OUT_JPMjgfla

The mainstream financial press is maintaining that $450 billion in capital outflows over the last 4 quarters from China is no big deal, even though it is the largest outflow in the past decade. So don’t worry about this sign, stop means go, left means right, etc.  The funny thing is, these are the same “experts” who said the housing problems in 2006-2007 were ‘no big deal’ and that the system could handle any shocks because of it.

Of course the oil and mining collapses have not created a shock that is not a big deal either, right?

Saudi central bank curbs credit card cash withdrawals

How Canada went Into Recession

Royal Dutch Shell Layoffs: RDS to Cut 6,500 Jobs

Expendable industry: Oilfield service companies, workers deal with layoffs in wake of low oil prices

Itemizing The Oil Bust: 75,000 Layoffs And Counting

Layoffs and empty streets as Australia’s boom towns go bust

Three Years Ago This Coal Mine Was Worth $624 Million. Now It Sold for $1

From the last article above via Bloomberg, this chart speaks volumes about not just the coal industry, but the steel industry:

COAL_COKING_BBGINT_JGFLA

 

To illustrate how severe the collapse in demand for steel has become in China and the developing/developed world, here is the CME October 2015 price for Iron Ore:

CME_IRON_ORE_OCT15jgfla

But don’t worry, despite the slowdown, China wants to maintain their safe haven in the United States, right? After all, the U.S. is still the safest rubber ducky in the midst of a hurricane…

China’s Record Dumping Of US Treasuries Leaves Goldman Speechless

But that’s only China, there’s nothing to worry about unless you’ve been reading the Financial Times this summer:

Treasury volumes raise liquidity concerns

And this chart below from the above article? Pffft, who cares, Obama has it all under control with Old Aunty Yellen at the helm:

FT_UST_MKT_jgfla

It’s just another sign of trouble, immediately ahead of our markets.

But don’t worry boys and girls. We are only heading into August, September, and October; the most volatile periods for financial markets and trading almost every year.

And we are only light years past due for a correction.

Or a crash.

Enjoy.

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