As I have been pointing out for the past two years, World Trade has suffered a tremendous collapse. Look at the Baltic Dry Index or DRYS (a shipping stock) to get a picture of how serious it is. Both the index and the stock tell the same story. Global trade has gone to hell. Governments lie about it and pretend that things are rosy, BUT they aren't. World Trade Suffers Record Fall World trade fell by 12 per cent last year as the economic crisis caused the biggest drop since 1945, giving new urgency to the need to conclude trade talks, WTO chief Pascal Lamy says. The unprecedented reduction in global commerce makes it "economically imperative to conclude" international trade negotiations, which are at a standstill, in 2010, Lamy said on Wednesday. "World trade was reduced by 12 per cent in 2009," he told the European Policy Centre, a Brussels think tank. It was the "sharpest decline" since the end of the World War II, he said, and worse than the 10 per cent fall that the WTO had forecast in December.