Japocalypse Now - Machine Orders Crater 19.5%, Biggest Monthly Drop On Record

Tyler Durden's picture

"Bye, bye, Abe" Just when you thought Japanese macro data couldn't get any worse... it does. Plumbing new depths in the "you can't print your way to prosperity" plan, Japanese Private Sector Machine Orders collapsed 19.5% month-over-month - the largest monthly drop ever (as the dragged-forward pre-tax-hike demand left a hole the size of Fukushima behind it). With Abe's disapproval ratings soaring and inflation surging, hopes for more 'bad news is good news' QQE should be quickly dismissed.


This 19.5% collapse MoM (compared to expectations of a 1.1% rise!!!!) is not made any more easy for Abe to bear than the 14.3% Year-over-year plunge as Abenomics exuberance makes comps now considerably harder....


Think this is normal post-tax hike behavior!! Think again.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
fonzannoon's picture

nikkei flat.....10yr jgb .55%

i_call_you_my_base's picture

How many ETFs are being bought by the BOJ right now?

Cognitive Dissonance's picture

One little piggy, two little piggy, three little piggy moar.

bunzbunzbunz's picture

The dollar, and Yen, and Renminbi are getting replaced by bitcoin. Get some free at http://freebitco.in/?r=25727

jeff montanye's picture

replaced, possibly.  but slowly.

at this stage i would go with the silver miners.

first majestic silver.  ag.  for starters.

El Oregonian's picture

It only gets Bitter from here...

wallstreetaposteriori's picture

down 19.5%.... I guess all the US corporations cap ex spending went into share buy backs last month.....

Bernoulli's picture

Thanks for the info, dude. No need to post this stuff here though. Really.

DoChenRollingBearing's picture

One of our Japanese bearings is our No. 2 best selling piece (we carry some 600 different items).  Maybe this decline in machinery orders will free up bearing capacity for us in Peru.  MBS (Japan) also makes our Nos. 19, 21, 24, 27, 32, 34 and 39 pieces (by $ sales volume).  So, even though MBS is the smallest of our four regular suppliers, their pieces are very important to us.

Maybe we can get lower prices and better delivery too...

jeff montanye's picture

thank you for your always unique and illuminating discourse.  and the inside look at the crucial bearing industry.  i remember the effort in ww2 to destroy germany's ball bearing manufactury; it had albert speer very worried for months before the allies, inexplicably, stopped.

a ball bearing rolled toward me at the winn dixie today (about 3/8ths of an inch diameter) and i pocketed it.  it is now in a tiny, jeweled metal shoe at the center of three pewter hippopotami (jaws out and open) inside an open, red silk-lined, sterling silver heart-shaped box.  

love my bearings.


DoChenRollingBearing's picture

It is my opinion that all bearing guys are swell!  So give yourself a pat-on-the back!  52100 steel is a precious metal in our book...

My limited reading of the Allied bombing of the Schweinfurt ball bearing plants is that they did NOT bomb them into complete rubble.  Apparently they would bomb (not very accurately in those days), take note that the factory looked "kaput", and then go find something else to bomb.  The problem was that the Germans would then quickly rebuild the factories and get back into production.  The Allies NEVER PULVERISED the machinery, THAT would have probably done the trick.

JoBob's picture

Too many people have lost their bearings in today's world.

One corrective solution would be to bombard them with bearings. Lots and lots of big, heavy bearings.

Antifaschistische's picture

as for "you can't print your way to prosperity" 

this is not true and has never been true...counterfeiters (perfectly legal in this context), or the historical money clippers...or whatever you'd call them, have always been able to "print" THEIR way to prosperity.

It's all about choosing the winners and losers.  

booboo's picture

Abe is going Machine buying next, he can store them at FuckUshameUS

i_call_you_my_base's picture

And magic loses again.


Once you get to zero orders, it only gets better from there....crisis solved. 

TheReplacement's picture

Good for you, always finding the silver lining. 

CrazyCooter's picture

Just buy the customer, then one can have all the sales one desires.

- Keynesian Proverb



Wait What's picture

the real silver lining?

China's exports only missed estimates by 3% in June. burrish!

China's trade surplus only missed estimates by 10%. burrisher!

it's all looking like rainbows and unicorns from here on out.

remain calm's picture

10 year JGB 0.57%. All is good. Please move along no need to worry.Wait for the fourth arrow please.

RaceToTheBottom's picture

The carry trade, right out the door.

Cognitive Dissonance's picture

All is going according to plan. One world (corporate) order bitches. We must squeeze the slaves to the point where they beg for even greater slavery.

Once the user becomes an addict all questions of choice are moot.

Yen Cross's picture

  Korean imports and exports YoY also in the shitter.

      KRW         South Korean Exports (YoY)     -10.60%           -8.10%      
      KRW         South Korean Imports (YoY)     -8.80%            -6.80%     

Rainman's picture

these shittz were predictable ..

  " Government bureau .... where the taxpayer leaves his shirt "

          ...   Anonymous

hustler etiquette's picture

is this another buy signal? Market is a ferris wheel

yogibear's picture

More bad news is bullish. The lever is stuck at bid up stocks.

oklaboy's picture

making alot of nothing on those machines

TheReplacement's picture

Yes but think of the cost savings from reduced power consumption and wages.

TheRideNeverEnds's picture

e-mins don't care, e-minis don't give a fuck.


We have moved passed the era of production and industry into an era of cloud computing; no real machines needed.


way of the future

SMC's picture

Party time is over.
Now enjoy your long painful hangover.

TheInfoman's picture

Somewhere in Texas a man named Kyle Bass has cracked a smile.

The Most Interesting Frog in the World's picture

Not so sure. Nikkei is down only .08%. Abe stepped up buying or nobody gives a fuck. Not sure it matters...

Oldwood's picture

No one wants nor can afford for it to go down...so it won't. Its all made up anyway, so they make new rules as they go along.

Son of Loki's picture

I really sympathize with the Jap-on-the-street, so to speak. It appears the average hard working Japanese person is getting a screwjob similar to the average hard working middle class merikan. I have visited there several times in the past and found the people to be fairly friendly, extremely clean and uber-industrious and the streets very safe [except maybe in Okinawa near the USA military base].

I lost my idealism long ago and stopped hoping for [unpossible] world peace. However, I still hope for all those Asians to get along with each other [especially since I love visiting their countries is my selfish reason].

RockyRacoon's picture

Yup.  Those mild-mannered, fun-loving Japanese.  I reckon the folks of Nanking might tell another story...

Oldwood's picture

They are probably just on vacation, or it rained, or the phone rang, or the dog ate their orders, its just that time of the month, or something. Its always something unrelated to destructive policies directed by economic rubes who will never be held to account. They will simply be remembered as brave geniuses who shepherded their economy through rough times. Western countries are just going to have to take lessons from African nations and simply change their names to erase their debts. FOOLS, "Fellowship Of Obscenely Leveraged Society" gets my vote, because we know,without consequences, we WILL do it again.

UselessEater's picture

Oldwood I fear that "Western countries are just going to have to take lessons from African nations and simply change their"... entire standard of living & life expectations. Catherine Austin Fitts talks about a "slow burn" perhaps correct or not, but its certainly equivalent to the 30+ yr demise of average black & white standard of living in Zimbabwe now in free fall. As we all know the globalists go after every nation relentlessly year after year one way or another, whether or not debt is theoretically erased.

BTW I once had a peach face parrot that did shred my homework for her nest... my teacher got used to seeing the nibble marks on most my papers, but I still had to turn in the work, sigh.

PS Mugabe's mates are CFR & Rockefeller mates.


Strive Masiyiwa is Zimbabwe’s wealthiest man and one of Africa’s most celebrated businessmen. Masiyiwa, who is worth $600 Million by FORBES estimates, is the founder of Econet Wireless Group, a Pan-African mobile telecoms company with operations across Africa, the U.K and New Zealand. He is also a member of the Advisory boards of the Rockefeller Foundation and the Council on Foreign Relations.

Oldwood's picture

Everyone wants to make money and the easiest way to do it is to not see people as fellow human beings, only something to be subjugated, used, consumed or controlled. Big business and big government are the epicenter for this kind of thinking, but anyone can adopt it. Many a murderous criminal sees it as the easiest path to prosperity, and most of us reject that kind of behavior, but we tend to be more tolerant of it as our dependencies gain more reliance upon them. We live in corrupt times, where concentration of power and abandonment of morality is seen as necessarily positive to ensure our continued existence, at least until it is our turn to be consumed.

Seasmoke's picture

Whatever happen to that Typhoon that was about to direct Hit ???

Oldwood's picture

Deflation...its a typhoon killer.

SilverIsMoney's picture

USD/JPY nearing the 101.5 level...

Baby Eating Dingo22's picture

They're not selling to China

Their trade just did a face plant

Of course, futs barely reacted.

Can't show fear. Can't show negativity. Can't show lack of confidence

Living on a thin line


Dear Japan Manufacturer,

I hear printers are hot

hairball48's picture

What's wrong with y'all? It's the weather stupid!


Caviar Emptor's picture

Biflationary typhoon

yogibear's picture

Just turn the charts upside-down. Problem solved.

kchrisc's picture

Japan needs to quit feeding the blackswans.

pitz's picture

At least they still got SUKI (tm), The New World Religion (tm) there.