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BREAKING: #Deflation Confounds Fed's 'Transitory' Storytelling - Deaflation cartoon 12.09.2015

Wall Street is finally waking up to our view on #Deflation. (That call is now 18-months old.) Not by choice, of course, they had to wake up... deflation is pervasive.

Hedgeye CEO Keith McCullough ran through some of the deflationary data in a note to subscribers earlier this morning:

 

"The 19 Commodity CRB Index hit a fresh 2015 low of 174 (-24.3% YTD) yesterday, so you’re going to see one of the many dead-cats that have bounced this morning- WTI led that, +1.8% yesterday and +0.5% this am w/ a risk range of $34.05-38.15."

 

Here's the chart...

BREAKING: #Deflation Confounds Fed's 'Transitory' Storytelling - CRB index twitter 

The Fed calls these falling prices "transitory." Transitory? Don't forget that the Fed's forecasts are wrong around 70% of the time.

Deflation proof? Take a look at the 0.0% CPI month-over-month print this morning. That didn't come as a big shocker to our macro team. We'll see whether deflation proves transitory or not.