Takeaway: Deflation is real and it's pervasive.

Let’s be crystal clear about what happened last week. Our omnipotent central planners at the Federal Reserve tightened into a slowdown and perpetuated #deflation in doing so.

Essentially, by trying to “demonstrate strength” by raising interest rates into a slowdown revealed the #1 weakness of the macro market last week. It’s called #Deflation.

Here’s what that looks like in the real world:

Repeat After Me: Deflation Is Not Transitory - oil update

Oil is down almost 2% this morning to $34.04 after deflating another -3% last week. Make no mistake,  #Deflation is not “transitory.” On the contrary, it’s been pervasive. And since the U.S. is in an industrial recession right now, it’s finding its way into revs/earnings for 1H 2016.

More to be revealed.