Telling the Tale

ZH preaches:

While the Achilles heel to the endless “economic data” BS coming out of China may be its electric production and demand, both of which show a vastly different picture than what the Beijing politburo’s very wide brush strokes paint, the US itself is not immune from indicators that confirm that anything the BEA dishes out should be taken with a grain of salt. One data set that we showed recently that paints a drastically different (read slowing) picture of the US economy which we noted recently is railcar loading of waste and scrap for the simple reason that “The more we demand, the more waste is generated by that production.” Of course, the propaganda manipulation machinery only focuses on the “entrance” of production, and completely ignore the “exit.” But an even far more important metric of the general health of the US economy may be none other than broad energy demand, in the form of petroleum deliveries and gasoline demand. If this is indeed the relevant metric to observe, then things are about to get far, far worse. As Dow Jones notes: “U.S. petroleum deliveries, a measure of demand, fell by 2.7% in July from a year earlier to the lowest level in any month since September 2008, the American Petroleum Institute, an industry group, said Friday.” It gets worse: “Demand in the world’s biggest oil consumer, at 18.062 million barrels a day, was the weakest for the month of July since 1995, the API said. Year-to-date demand is down 2.3% from the same period in 2011.

Macro factors make a difference. Showing, yet again, that the ‘miracle of China’ is so much bovine excrement.

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Getting a massage simply does not use as much steel as building an airport.

See Zerohedge.

Real content coming soon, I promise…

In Credit Suisse’s view, China was the key factor behind the global commodity supercycle. After a period of economic slowdown, all eyes are on China, hoping that the middle kingdom can return to its might in commodity demand.

Interdasting huh?

the other hand

In light of the recent news, I’m having  a case of the, “watch what the other hand is doing” syndrome attack me today.

  • The Dollar is way down, within a few points of the 2008 levels just before the crash.
  • In turn, commodities are soaring – gas is at $3.80+ in my immediate AO.
  • Silver is at $47! Forty, bloody, seven!
  • Gold is shockingly unrealistic.
  • Food is moving through the roof as well.

There is no doubt we are at a tipping point. To what, I have no idea, but there is something lurking just beyond the shadows waiting to pounce. I’ve stood by for a long, long time now just waiting for the hammer to fall. It seems as though that time is immanently at hand…