"We're Gonna Need More War" - November Factory Orders Plunge Most Since August 2014 Despite Defense Spike

Tyler Durden's picture

Following October's pre-election surge in new factory orders, November saw orders plunge 2.4% MoM (worse than expected) and the biggest drop since Aug 2014. This drop comes despite a 103% MoM rise in defense aircraft orders as non-defense aircraft orders crashed 73.8%. Factory Orders also dipped back into negative territory YoY.

An ugly drop in factory orders in November...

 

And Year-over-year, Factory Orders declined for the 23rd month of the last 25...

 

It appears we are going to need more war to keep this dream alive...

 

Does this look like a healthy economy being handed to Trump?

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order66's picture

"Services economy". Drink.

BaBaBouy's picture

Mckain Getting Old, can't push for Wars like he used to...

E.F. Mutton's picture

Give him a sharp stick, a bicycle and three hits of acid and park him at the Russian border. 

Tell him his code name is Rambo.  Problem solved.

BaBaBouy's picture

$8. VS $60. / Hr.

""In San Luis Potosi alone, between 50,000 and 60,000 jobs depend on the auto industry. An average worker in Mexico costs automakers $8 an hour, including wages and benefits, compared to the $60 an hour that Ford said it was spending on an auto worker in the U.S. at the end of 2015.""

http://www.ctvnews.ca/autos/mexican-ford-plant-workers-blame-trump-for-d...

rejected's picture

More like $30 per hour. The rest is the companies version of benefits to write off their taxes. For example the corporation I work for said my medical insurance cost them $12,000 last year. I went to the doctor once and paid the office visit. But they wrote that $12,000 times the number of employees ( about 50,000) off. And they still raised my premium!

And the Auto workers have a 2 tier system. New workers are starting at $15 -16 per hour. That's about $33,000 a year. I don't know how much you want these people to earn but I don't think that is overdoing it at all.

The cost of living in Mexico is 3-4 times less than the U.S. Your $8 fits in with that perfectly. Yearly that is about $16,000. Roughly half.

So, shouldn't a car manufactured in Mexico cost half that manufactured in the U.S? Well maybe not half but at least a good chunk lower.  So where's the diffierence?  They're selling the car there for as much as they are selling it here. Oh yea,,, the poor abused manufacturer.

Again it's the poor, poor manufactures that just cannot afford to pay workers a decent wage,,, but want them to buy their overpriced product and when they leave for greener pastures the government has X thousands more on the dole. 

 

Muppet's picture

$12,000 is reasonable.  For my fam of 3, $20K per year and $7k deductible.  Like you, its insurance we cannot use ourselves, it instead subsidies others. 

Go check rates yourself on healthcare.gov.    Its completely out of control. 

LawsofPhysics's picture

...or more infrastructure.

Just saying, I mean, "debt doesn't matter" right?

Your move Mr. Trump.

NoDebt's picture

It's like the end of 'A Perfect Storm'.  They're steaming all night to get out of the storm, dawn breaks and they see the clouds part just a little.  They start thinking they're going to make it but it closes back in on them again, quickly sinks their boat and and they all die.

 

The boat is The Fed.  The storm is the debt.  We're the fishermen who are going to die.

 

spastic_colon's picture

"The boat is The Fed.  The storm is the debt.  We're the fishermen who are going to die."

Ever see the movie Role Models?  Explaining analogies......priceless.

new game's picture

unless we have a life jacket and can survive hypothermic heat loss. of course we all will be closer to our gold, and isn't that comforting?

tarsubil's picture

Thanks for the daily day brightener.

Osmium's picture

Who needs factory orders when you have a printing press and a stawk market?

spastic_colon's picture

its almost as if at 9:45a the "bang the FANG's" algo went off (including PCLN)

Ecclesia Militans's picture

Cheeburger cheeburger cheeburger cheeburger cheeburger cheeburger....

max_leering's picture

yeah right... moar war for the bankers... then send jamie and lloyd to the frontlines... grab your guns boys, those Russians and Chinese are awaiting a good fight, anywhere and anytime... and it'll make for good YT videos

HokumYTrader's picture
HokumYTrader (not verified) Jan 6, 2017 11:18 AM

We are going to need negative Vix so CB's can keep pumping

small axe's picture

gives "theater of the absurd" new meaning

HokumYTrader's picture
HokumYTrader (not verified) small axe Jan 6, 2017 11:40 AM

The only reason VIX still exists is so that CB's can hammer it to goose stawks.

 

Same for Oil and Yen

 

 

I have shorted it 100s of times and never lost money

HokumYTrader's picture
HokumYTrader (not verified) Jan 6, 2017 11:21 AM

Less than 10% of US Jobs are in manufacturing, we do produce astounding amounts of BS here in the good ole USA

LawsofPhysics's picture

Correct, meanwhile banking and finance is almost 40%!

LMFAO!!!

"Full FAITH and credit"

tick tock motherfuckers!!!!

PitBullsRule's picture

Not to worry!  There's ALWAYS another war...

buzzsaw99's picture

i guess ten trillion per non functioning fighter jet just doesn't cut it anymore.

small axe's picture

Once all the worker bees start to spend their blistering high wages we'll see a big jump in kelvar glove factory orders.

taggaroonie's picture

...and if they put cool racing stripes on the F-35s, that'll boost spending even more. This economy stuff is easy!

StreetObserver's picture

That's what Hillary was supposed to do, fill defense factory orders with her new war in Syria.

The only weapon the American people need now is sitting in their pocket.

Weaponize those wallets and starve the obamanation of consumer spending.

Carry it forward to the administration of the president Trump.

rejected's picture

Could someone list these factories? Be interesting to see what's left of U.S production.

ThrowAwayYourTV's picture

Normally I would be all for War. War is natural for man and goes back to the beginning of time. However. Since war has changed and all the spoiled brats, metro males, techies and fortunate sons stay home, eat steak and salad at mommy and daddy's mansion while ordinary young men and woman fight for their right to do nothing but play with toys, I am totally against war.

Now when I hear that somebody like soro's little brat or some senators or congressmans little brat will be on the front lines with everyone else, I may change my mind.

south40_dreams's picture

Those bastards in the Duchy of Grand Fenwick have it coming.