{"id":2841,"date":"2014-12-11T16:15:45","date_gmt":"2014-12-11T21:15:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2841"},"modified":"2014-12-11T16:29:17","modified_gmt":"2014-12-11T21:29:17","slug":"not-just-oil-guess-what-happened-the-last-time-commodity-prices-crashed-like-this","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2841","title":{"rendered":"Not Just Oil: Guess What Happened The Last Time Commodity Prices Crashed Like This?&#8230;"},"content":{"rendered":"<p><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/not-just-oil-guess-happened-last-time-commodity-prices-crashed-like\">Not Just Oil: Guess What Happened The Last Time Commodity Prices Crashed Like This?&#8230;<\/a>.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">It isn\u2019t just the price of oil that is collapsing.\u00a0 The last time commodity prices were this low was during the immediate aftermath of the last financial crisis.\u00a0 The<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"Bloomberg Commodity Index\" href=\"http:\/\/www.bloomberg.com\/quote\/BCOM:IND\/chart\" target=\"_blank\">Bloomberg Commodity Index<\/a>\u00a0fell to 110.4571 on Monday \u2013 the lowest that it has been since April 2009.\u00a0 Just like<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"junk bonds\" href=\"http:\/\/theeconomiccollapseblog.com\/archives\/near-perfect-indicator-precedes-almost-every-stock-market-correction-flashing-warning-signal\">junk bonds<\/a>, industrial commodities are a very reliable leading indicator.\u00a0 In other words, prices for industrial commodities usually start to move in a particular direction before the overall economy does.\u00a0 We witnessed this in the summer of 2008 when a crash in commodity prices preceded the financial crisis in the fall by a couple of months.\u00a0 And right now, we are witnessing what may be another major collapse in commodity prices.\u00a0 In recent weeks, the price of copper has declined substantially.\u00a0 So has the price of iron ore.\u00a0 So has the price of nickel.\u00a0 So has the price of aluminum.\u00a0 You get the idea.\u00a0 So this isn\u2019t just about oil.\u00a0 This is a broad-based commodity decline, and if it continues it is really bad news for the U.S. economy.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">Of course most Americans would much rather read news stories about Kim Kardashian, but what is happening to the prices of these industrial metals at the moment is actually far more important to their daily lives.\u00a0 For example, when the price of iron ore goes down that is a strong indication that economic activity is slowing down.\u00a0 And that is why it is so troubling that the price of iron ore has almost sunk to a five year low.\u00a0 The following comes\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"from an Australian news source\" href=\"http:\/\/www.theaustralian.com.au\/business\/news\/iron-ore-price-edges-closer-to-fresh-five-year-low\/story-e6frg906-1227150692941?nk=ccaafe7caf323f01a96fb56477e97faa\" target=\"_blank\">from an Australian news source<\/a>\u2026<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\"><!-- [if gte mso 9]><xml>\n <w:WordDocument>\n  <w:Zoom>0<\/w:Zoom>\n  <w:DisplayHorizontalDrawingGridEvery>0<\/w:DisplayHorizontalDrawingGridEvery>\n  <w:DisplayVerticalDrawingGridEvery>0<\/w:DisplayVerticalDrawingGridEvery>\n  <w:UseMarginsForDrawingGridOrigin\/>\n <\/w:WordDocument>\n<\/xml><![endif]--> <!--StartFragment--><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 13.0pt; font-family: LucidaGrande; color: #282828;\">&#8230;click on the above link to read the rest of the article&#8230;<\/span><\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\"><!--EndFragment--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not Just Oil: Guess What Happened The Last Time Commodity Prices Crashed Like This?&#8230;. It isn\u2019t just the price of oil that is collapsing.\u00a0 The last time commodity prices were this low was during the immediate aftermath of the last financial crisis.\u00a0 TheBloomberg Commodity Index\u00a0fell to 110.4571 on Monday \u2013 the lowest that it has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[151,1851,1264],"class_list":["post-2841","post","type-post","status-publish","format-standard","hentry","category-economics","tag-commodities","tag-commodity-price-collapse","tag-recession"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2841"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2841\/revisions"}],"predecessor-version":[{"id":2842,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2841\/revisions\/2842"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}