The shipping industry is known as the thermometer of global economic growth. New reports show temperatures are dropping and risks of a market crash are rising.
Two days ago, Bishop Dr. Norman DaCosta shared a vision he saw on October 26 2015 showing a great crash coming. The Lord spoke to him, “A great crash is coming, in a domino style effect.” The crash he saw started when the wheels broke off of a tractor trailer at the hub, which caused it to break down on the highway. Dr. DaCosta then explained, “The manufacturing and distribution systems are going first.” See the details about his dream here: A Great Crash with Domino Effect is Coming Very Soon.
Then yesterday a visitor to this site, David Jones, posted a comment sharing a dream in which he was in an airport when he heard some alarming news. Then he saw a large transport plane crash.
Last Night 10/28/15 I dreamed I was at an airport and suddenly some alarming news was announced. I looked in the sky and watched a massive black transport plane crash. (Dow Transports?) Then I looked up and saw invading military helicopters and then soldiers on the ground. There was no escape and the soldiers were on me in a second. One was British and one was German. They did not do anything to me. Next I was still at the airport but there were no soldiers and I asked a man where they were and he said they were at a busy store because that was where the people were going to buy goods. Interpretation: There will be a warning, then a crash and events in Britain (Europe, Euro) and Germany may be signs prior to the crash.
From his position inside a transport hub, an airport, he sees the crash of a huge transport plane. This sounds like a confirmation of Dr. DaCosta’s dream. Two independent sources report the first warning signs of a great crash starting with the distribution and transportation sector of our economy.
Then yesterday, an article posted on Zerohedge.com reports disturbing news from the U.S. trucking industry, a sudden slowdown in September demand caused a sharp decline in load-t0-truck ratios, which translates into sharp declines in profits.
Among businesses, over-ordering and tepid sales caused inventories to rise and the inventory-to-sales ratio to spike to Financial Crisis proportions. And now businesses are trying to bring them down by trimming orders because they’re having trouble selling more to the middle class, the over-indebted modern proletariat whose stagnant incomes are being eaten up by skyrocketing costs of housing, healthcare, college, and the like – and they simply can’t spend that much on shippable items.
And now this is ricocheting through the industry.
September looks terrible compared to September in banner-year 2014. It still “looks anemic even when compared to the more typical freight movement of September 2013,” Montague said. This slack demand whacked load-to-truck ratios.
Trucking is a thermometer for the merchandise economy. It doesn’t track consumer expenses like rent or college. But it tracks exports and imports, manufacturing, distribution, retail, and other sectors. It tracks a big part of the real economy. And the sudden slowdown in the trucking industry is another wildly flashing signal in our recession watch. (Source: Zero Hedge)
The real culprit driving the slowdown in distribution is slow retail sales. As consumers stop spending manufacturers get loaded with excess inventories, which causes a spike in the inventory to sales ratio.
The crucial inventory-to-sales ratio, which shows how long merchandise gets hung up before it is finally sold, has been getting worse and worse. In July last year, it was 1.17. It hit 1.22 in December. Then it spiked. In August, it rose to 1.31, the level it had reached just after the Lehman moment in 2008.
This can get ugly in a hurry, ranging from a business cycle recession, as in 2001, to a panic, as seen in October 2008, when the supply chain began to freeze over. During both periods, stocks crashed. And now stocks are perched at ludicrously high levels, teetering, waiting for just such an event. (Source: Wolfstreet.com)
The slowdown in shipping is not just happening in the United States. This is a global slowdown.
Global demand is going from sluggish to even more sluggish. Emerging market countries are leading the way, it is said, and China is sneezing. Brazil and Russia have caught pneumonia. Japan is feeling the hangover from Abenomics. Even if there is some growth in Europe, it’s small. And the US, “cleanest dirty shirt” as it’s now called, is getting bogged down.
So freight rates have crashed globally. But graciously, the oil price crash led to lower bunker fuel prices, which has kept some, but not all shippers afloat. (Source: Wolfstreet.com)
Here is where it really gets interesting. The slowdown in the global shipping industry is causing increased stress for the global financial system as heavily leveraged shipping companies are finding it harder to service their loans. And when we follow the trail of shipping industry loans guess where it takes us? Straight to the Bundesbank in Germany!
Germany is a hotbed for shipping loans, to the point where Andreas Dombret, member of the Executive Board of the Bundesbank, highlighted them in February 2013 as one of the four risks to overall financial stability in Germany.
He waded into the bloodbath in Germany: shipping loan retail funds that blew up and were shuttered, banks whose shipping portfolios suffered heavy hits, an industry that was breaking down…. The Bundesbank was looking at it from a “broader perspective,” he said, with an eye “on the stability of the entire financial system.” (Source: Wolfstreet.com)
Now going back to the dream shared by David Jones, after he sees the large transport plane crash he immediately sees a military invasion of helicopters and soldiers on the ground, but not from Russia or China. These soldiers were British and German! Now that is very odd because the UK and Germany are two of our closest allies. That tells us this was not a real military invasion, but was symbolic of what will probably feel like one.
I believe the soldiers showing up immediately after the plane crash shows how fast the economic impact will be felt in the United States. A crash in Germany and the UK would soon impact U.S. markets.
In the dream, the scene changed and suddenly there were no soldiers anywhere in the airport. David Jones asked a man where the soldiers went. He was told they went to “a busy store because that was where the people were going to buy goods.” Why would soldiers go to a busy store? This is another clue it was not a military invasion, but an economic attack hitting directly at the heart of our economy, which is consumer spending. A busy store where people go to buy goods represents our retail markets.
Despite the enormous growth in U.S. government spending in recent years, the big dog pulling our economic sled is still consumer spending. It represents about 69% of our annual Gross Domestic Product (GDP) (Source: FRED Economic Data). So an attack on consumer spending is the fastest way to bring our economy to a halt.
The slowdown in the global transportation industry went into red alert mode with the dismal numbers in September. This could be the beginning of the fulfillment of Dr. Dacosta’s dream with the wheels coming off of a tractor trailer at the hub. This could also be the fulfillment of Neville Johnson’s warning about the wheels coming off in September. Who would have guessed the wheels Neville Johnson saw might have really been wheels?
In summary, sluggish retail sales are causing excess inventory levels for manufacturers and sluggish demand for distribution companies. Then highly leveraged distribution companies start having trouble servicing their loan payments to highly leveraged financial institutions. With everyone buried in debt, there is no longer any wiggle room to absorb losses, which puts the entire financial system at risk, especially at the hub of International shipping loans, which is Germany.
When the wheels come off of the distribution industry a market crash follows soon afterwards. What has already started in the shipping industry could soon feel like a military attack on consumer spending. Be on the alert for German and British soldiers in our shopping malls!
Thanks to Dr. DaCosta for sharing the Zero Hedge story and to David Jones for sharing his dream.
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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