CHART OF THE DAY: The Future Of Dollar Debasement

09/29/20 07:51AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

US Dollar Devaluation dynamics are critical to understanding the non-linear risks of inflation.

But why is that any different than how Bernanke talked about Devaluing the Purchasing Power of The American People in 2008 or 2011? *Reminder: he didn’t. PE Powell has no self-interest in labelling himself a currency manipulator either.

As for what I think about it? Who cares? REALITY: unlike in prior elections, both political parties want MMT. It’s in motion.

You’ll probably get a preview of printing & spending (for votes) during tonight’s US Presidential debate. But the US Dollar has been proactively telling you this story since the US government moved to MMT in Q2 of 2020 (i.e. its been going down).

I’m the government and I’m here to help.” What could possibly go wrong?

As with all great government plans, I can’t imagine that everyone from Kelton to Brainard (next head of the Fed?) and all the way back to Bernanke (again) haven’t thought of ALL non-linear risks that will arise from trying to bend and smooth economic gravity…

But heh, again, who cares? Wall Street needs to get paid. And, unless the Fed swaps their Junk Bond buying spree into buying poor people food and shelter, everyone should know how this story ends.

CHART OF THE DAY: The Future Of Dollar Debasement  - 87

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