Australian interest ratesCommoditiesGlobal Macro

Albert Edwards: Deflation shock dead ahead

David Llewellyn-Smith
Friday, 9 July 2021
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I get by with a little help from my friends. Albert Edwards of SocGen with the note:

The unravelling of the inflation/reflation trade has accelerated over the past week.US 10y bond yields continue to decline and have now broken a crucial technical level. This could see the rally accelerate sharply, and with it, the continued unravelling of cyclicals and commodities.

 I absolutely still believe that during the course of this economic cycle, we have begun to move away from The Ice Age secular theme into what I have dubbed The Great Melt (OK I know it sounds like a giant Swiss fondue but it is also the title of a BBC David Attenborough documentary–link).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.