CHART OF THE DAY: Expect Future Dollar Debasement

12/02/20 07:58AM EST

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

The perverse reality continues to be that policies to CTRL+Print Inflation (then jobs) in Devalued Dollars is what continues to perpetuate 2 of the main political problems that Yellen was telling sad-depression-era stories about yesterday:

A) Low-to-no-income Americans are seeing epic INFLATION #accelerating in their largest cost of living line items
B) High-to-elite-income (you know, “rich” people like us) are front-running The People being long of Inflating Assets

Oh yeah, I parade around Connecticut as Mr. Big Time Elitist Yale Guy, eh? Sadly, I think you all get the joke.

The real bad joke is going to be on the middle-income people (don’t call my family part of a “class”, that’s a joke too – they are hard working human beings) in America who have their retirement assets allocated to both duration and deflation…

For at least the next 3-6 months, that is. Why?

A) What PE Powell thinks or says about inflation doesn’t matter to long-term interest rates – they’re going up
B) #Quad2 should ramp the UST 10yr Yield through @Hedgeye TREND of 0.99% and go wherever it wants, quickly

CHART OF THE DAY: Expect Future Dollar Debasement  - 87

© 2021 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.