Editor’s Note: I can’t understand those Americans that think everything is going good. It isn’t and for many, this next terrible crash will devastate them. The cold hard financial facts are here but few care about knowing about them. The financial red flags are waving that disaster looms and a severe downturn is next. This next crash will affect the entire world – no one will be exempt. Are you watching and heeding the signs? What’s your faith in? Money, the stock market, commodities, banks, your job? Seek God and find rest in Him. Put your faith in Him and trust Him with all your heart.
Get ready, get prepared, get right with God while we still can find Him – Amos 8:11.
The following article was originally published by Michael Snyder at The Economic Collapse Blog. (Used by permission)
“The Outlook For The Global Economy Has Deteriorated”: Oil, Copper And Lumber Are All Telling Us The Next Economic Downturn Is Here
By Michael Snyder in Nov 2018
Oil, copper and lumber are all telling us the exact same thing, and it isn’t good news for the global economy. When economic activity is booming, demand for commodities such as oil, copper and lumber goes up and that generally causes prices to rise. But when economic activity is slowing down, demand for such commodities falls and that generally causes prices to decline. In recent weeks, we have witnessed a decline in commodity prices unlike anything that we have witnessed in years, and many are concerned that this is a very clear indication that hard times are ahead for the global economy.
Let’s talk about oil first. The price of oil peaked in early October, but since that time it has fallen more than 25 percent, and the IEA is warning of “relatively weak” demand out of Asia and Europe…
The International Energy Agency said on Wednesday that while US demand for oil has been “very robust,” demand in Europe and developed Asian countries “continues to be relatively weak.” The IEA also warned of a “slowdown” in demand in developing nations such as India, Brazil and Argentina caused by high oil prices, weak currencies and deteriorating economic activity.
“The outlook for the global economy has deteriorated,” the IEA wrote.
Meanwhile, the price of copper has been declining for quite some time now. The price of copper also fell substantially just before the last recession, and many analysts are pointing out that “Dr. Copper” is now waving a red flag once again…
The message of weakening demand on the oil front was reinforced by the falling price of copper. The base metal is often referred to as “Dr. Copper” on its presumed ability to forecast the peaks and troughs of business cycles since it is used in different areas of the economy such as homes, factories and electricity generation. Copper has served as a leading indicator of both recessions and economic booms.
The price of lumber is a “third witness” that indicates that big trouble is looming.
Last month, lumber dropped more than 10 percent, and that was the biggest monthly drop that we have seen in more than 7 years…
In October, prices for softwood lumber in the U.S. dropped 10.3% – the largest decline since May 2011, according to the Producer Price Index (PPI) release by the Bureau of Labor Statistics. The producer price index for softwood lumber has fallen 21.2% since setting the cycle and all-time high in June.
If oil, copper and lumber are all telling us the same thing simultaneously, don’t you think that we should be listening?
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Fear God and Flee from Evil!
-BPWatcher, Internet Preacher and Bible Prophecy Watchman
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