Economic Overview: Ed’s Daily Notes for April 16th   6 comments

It’s time to take a look at the world economy.

First, “Doctor Copper” is trading at the lowest levels in years:

Copper

Second, the Baltic Dry Index is also dropping like a rock in the ocean (although it is still trading slightly above the lows of the past few years):

BDI

Wall Street Journal: Fruit and Vegetable Prices Are Rising

Grocery shoppers may soon need more green in their wallets to afford their next salad.

The cost of fresh produce is poised to jump in the coming months as a three-year drought in California shows few signs of abating, according to an Arizona State University study set to be released Wednesday.

The study found a head of lettuce could increase in price as much as 62 cents to $2.44; avocado prices could rise 35 cents to $1.60 each; and tomatoes could cost 45 cents more at $2.84 per pound. (The run-up in produce prices is in line with other projections showing that overall food cost gains are expected to accelerate this year.)

Associated Press: CHINA’S GROWTH SLOWS TO 7.4 PERCENT IN 1Q

China’s economic growth slowed further in the latest quarter but appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

The world’s second-largest economy grew by 7.4 percent over a year earlier, down from the previous quarter’s 7.7 percent, government data showed Wednesday. It matched a mini-slump in late 2012 for the weakest growth since the 2008-09 global crisis.

Translation: The growth was strong enough for Chinese leadership to avoid stimulus. Of course, that assumes the numbers are accurate, which is never a certainty with China.

Overall, there are a lot of various events poking at the world economy. Normally, any of them could be shrugged off by a strong world economy, but we don’t have that now. I won’t say the “world is ending”, but I will say the world economy is on the brink of another recession, and it won’t take much to push it over.

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Posted April 16, 2014 by edmcgon in Economy, News

6 responses to “Economic Overview: Ed’s Daily Notes for April 16th

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  1. Just what I don’t want to read: Greens will cost more greens. My wife and I started a Vegan diet a little more than three weeks ago.

  2. “This is how much Samsung’s Galaxy S5 costs to build” http://www.cnbc.com/id/101586764

    Those low life capitalist, why are they charging poor people so much! 🙂

    • So we stay poor and they can make more money 🙂

      The mobile phone industry is making money hand over fist. I’d love to make products that don’t even last 2 years and cost a few hundred. And there customers are happy when they brake.

      • Actually it is pretty much only Apple and Samsung who are making any money. I believe they combine to make something like 87% of all mobile phone profits.

        Robb

  3. Ed, That video I posted about China said 4% of good growth is fine.

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