CHART OF THE DAY: Are Central Planners Arresting (Or Perpetuating) #Deflation?

03/10/15 08:23AM EDT

CHART OF THE DAY: Are Central Planners Arresting (Or Perpetuating) #Deflation? - COD

Editor's note: This is an excerpt from today's Morning Newsletter written by Hedgeye CEO Keith McCullough. Click here to learn more and subscribe.

Can the world’s central-planners arrest the #deflation? Or are they now perpetuating it?

To review slide 8 of our current macro deck:

  1. Burning Euros are not going to magically create inflation
  2. Burning Yens are not going to produce inflation “targets” either

Instead, $1.07 Euro (-11% YTD vs. USD) and $121.67 Yen (-1.5% YTD vs. USD) are creating the mother of all ramps in the US Dollar. Picking up right where it spiked to last week, the US Dollar Index is already +0.7% this week to +9.1% YTD.

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.