How commodities confirm the worst

If anyone had any lingering doubts about the seriousness of the global economy's collapse, recent moves in the commodities markets should firmly dispel them. A look at the leading index soon shows why.

Anyone with doubts about the voracity of the collapsing global economy, only needs to look at the CRB Index, an index of commodities, to see that something truly important and very serious has happened.

Since December last year, a base formed as commodity prices stopped falling. That base has now been violated and unless it recovers quickly, is almost certainly a harbinger of further global economic decline. Of all the charts we look at, for the time being we think this is key.

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