Caterpillar Posts Record 21 Consecutive Months Of Declining Global Retail Sales, Worse Than Financial Crisis

Tyler Durden's picture

Once upon a time, when such things as industrial production, machinery sales and construction, trade and commercial interactions mattered, today's Caterpillar retail sales, which painted a grusome picture for global manufacturing and industrial production, may have gotten more than a casual comment on page... well, nowehere really.

However, since everyone is hypnotized by a "recovery" on the back of "smart-beta" aka $10 trillion in liquidity injections by central banks, and a global "service" economy in which all tha matters is shuffling every greater numbers of pieces of paper from point A to point B and collecting commissions while clicking on FaceBook ads, it obviously doesn't matter to anyone that according to CAT the mini industrial recovery in the US has plateaued and after retail sales rose 14% Y/Y two months ago, dropped to 11% in July and to 8% most recently (blue bar on chart below), and coupled with a double digit collapse in Asia, EAME and Latin America sales (by -24%, -17% and -29% respectively), the industrial bellwether has now seen a mindblowing 21 consecutive months of declining Y/Y global retail sales.

Putting this number in context, the 21 consecutive months of declining sales is now 2 months worse than the previos record: 19 consecutive months of declines posted starting with the collapse of Lehman.

With fake recoveries like these, who needs all too real global recessions?

Source: Caterpillar

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jubber's picture

wow down a whole 50 cents

Syrin's picture

Well these idiots had to hand over the blue prints to all their machines in order to set up factories in China.   The Chinese then copied then and massed produced them cheaper.   What a shock.

BlindMonkey's picture

Our globe is now post-capital improvements.  Alibaba and Amazon have this from here  thank you very much.  

LawsofPhysics's picture

...and the stock goes to an all time high!


< wait for it >

ekm1's picture

Supply chains are breaking down.


Two options left now:


1) $10 trillion to be extinguished and few primary dealers vanish


2) Assassinations of bankers by military complex, which will lead to number 1 anyway


Pick one

ekm1's picture

Richard Fisher speech today:



It'd be a mistake to hike rates rapidly



They are planning exactly that

lasvegaspersona's picture

Destruction of the currency is where we are heading...slowly, painfully, regrettably...but inevitably.

It is the only acceptable solution.

Don't worry about the elites...they know how to handle themselves.

and don't forget...all that debt that will be the wealth of the 99%.

The idea that TPTB 'would not allow' such a thing to happen is just silly. It is the way currencies (fiat that is) always terminate.

LawsofPhysics's picture

Optimist.  You damn well know that option #1 would lead to #2...


unfortunately, that is not how fascism/cronyism and currency collapses work.

ekm1's picture

DXY ripping higher.

Practically a margin call under way.

NY Fed draining dollars, QE unwinding under way.


Will they stop?


We'll find out

Bell&#039;s 2 hearted's picture

Disinflation turning toward deflation


learn it


love it

LawsofPhysics's picture

QE is irrelevant in a ZIRP world.  Shit, the money is fucking free (well, for some people/corporations anyway).

Hohum's picture



Don't hold back, man!  ZHers want more details.

ekm1's picture

I have no details 

I only do systemic analysis


USD collapse = Military complex collapse = Temporary Bank lobby survival


USD survival = Military Complex Survival = Bank lobby collapse


This is it

Can't have both

p00k1e's picture

Inflatable artificial sphincters!

Inflatable artificial sphincters!

Get em while they re hot!

Dr Strangemember's picture

Aaahhhhh, no worries... just borrow no cost money and buy back more shares = shares appreciate.  So simple. 

buzzsaw99's picture

chinese boycott cat then ipo baba. i love it when a plan comes together. [/The A (shares) Team]

Cognitive Dissonance's picture

There seems to be a skip in this record. Will someone please kick the jukebox.

NoDebt's picture

To which everyone under the age of 40 just said "what's a record?" because they've never played one and have no idea what a skipping record sounds like.

Showing your age, man.  Showing your age.  ;)

Emergency Ward's picture

I got stung thunk, I got stung thunk, I got stung thunk, I got stung thunk...

youngman's picture

Put that to a RAP beat..and you have a hit

q99x2's picture

When Loyd Blankfein said that he was doing God's work he meant he was replacing reality with FRAUD so powerful that the bankers could claim victory over the earth.

He was mistaken.

Monty Burns's picture

"But he was mistaken."

Maybe. But he'll still have one hell of a luxury retirement, just like Stan O'Neall.

MidwestJester's picture

It's just noise.... Everything is fine, I promise!  - Old Yellen

Kaiser Sousa's picture

Dow 19,000 by the end of the close in London....

yogibear's picture

Doesn't seem to matter anymore. Everything is bullish.

William Dudley is pushing the buy buttons.

youngman's picture

This is a bellwether of 2 years do not buy construction equipment if you are not going to build anything..and to build something takes 18 months or to me the people are saying the next two years are going to be slow


MidwestJester's picture

Seeing as how it's been declining for 21 straight months, that would mean that it's pretty slow already too, right?

General Decline's picture

The market is flooded with used equipment. Why buy new?

Dr. Engali's picture

They're having a lot of trouble digging themselves out of a hole.......  Ba Dum tssss....

p00k1e's picture

Hopefully we get to bailout more pension funds.   It would be wrong for us to eat while they can’t because they believed in a plan. 

Hail Taxing Authority. 

gossamer's picture

this is great news.  more back door QE via Belgium on its way

Gaius Frakkin&#039; Baltar's picture

There must be an app for moving earth now...

Dr Strangemember's picture

No need for an app... my dog moves plenty of earth!

silverer's picture

It's just like the kids sandcastle on a beach.  The urge just becomes too much for other kids when somebody builds something really cool on a grand scale.  We have reached that point in the world, when the building is over and the looting begins.  Hello flattened sandcastles.  Yes, it's that simple.  Didn't you just know it intuitively all along?

TheABaum's picture

On January 1st, Caterpillar's locomotives do not meet the EPA Tier IV emissions requirements. It's not going to get better.  

orangegeek's picture

do what the car guys do - make the shit, sell it to a dealer and park it in a corn field in nebraska


no one says that accounts receiveable has to be collected to make it revenue or profit



Emergency Ward's picture

Obama's next visit to a CAT factory will feature Obama pointing toward a bright new tractor emerging from the assembly line while he tells the workers, "You didn't build that!"

MansaMusa's picture

This DOW crash will be one looooooong ride down!  then splat!

madcows's picture

sounds like they need a cash for construction clunkers program.

CheapBastard's picture

So what does CAT produce? Nothing anyone online wants. And CAT doesn't 'friend' anyone 50 times a day and doesn't prance a big kardashian butt around on TV....CAT needs a new businss model. Maybe sell $5 crap online to boost their bottom line like ali or the other e-com-Farce thingies.

oklaboy's picture

who needs to make things anymore?

Chuck Knoblauch's picture

Africa's population expected to grow by 4 billion by 2050.

Will CAT be around to benefit from building straw huts?

Nothing a stock repurchase couldn't fix?

RMolineaux's picture

The whole world knows that Caterpillar sells Israel the machines it uses to destroy Palestinian houses. Can that have something to do with it?