We are told everything is pretty much hunky-dory, the economy is “recovering” (whatever that means), there’s no chance of a recession, etc.

There are a couple of data points that might cast a little doubt on that scenario. The first is gasoline consumption, which is tanking. (Not my pun, I hasten to add).

Gasoline deliveries reflect recession and growth. The recent drop in retail gasoline deliveries is signalling a sharp contraction ahead.

The second is the Baltic Dry Index, which reflects the price of shipping bulk dry cargoes, such as coal and iron ore. This index has been sinking rapidly (OK, that was me).

Yes, there have been a lot of ships added over the last couple of years. No, they weren’t added in the last two months. This is the lowest level in two decades.

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  • By Sunday, Sunday « Financial Reality on February 12, 2012 at 10:00 pm

    […] at the expense of actual economic output. Look at the gasoline consumption chart in the previous post, and ask yourself why the price of gasoline is going up when supply is at least constant and demand […]

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