Inflation is a topic about which economics talks every day more and more. The reason is the increase of the U.S. government bond yields which raises expectations of a strong U.S. economic recovery. On the other side, it is pressuring the stock market and forcing investors to confront the implications of rising interest rates more seriously. Higher interest rates could damage companies through higher borrowing costs for businesses.
This moving of yields is going against the dogma that increasing monetary and fiscal stimulus will increase monetary velocity as the world's economy emerges from lockdowns which will increase inflation.
Michael Burry, star investor from the Big Short movie, is calling for Weimar-style hyperinflation in the US. The factors which support the theory is that the US government is inviting inflation with its MMT-tinged policies. M2 increases while retail sales, PMI stage V recovery. Trillions more stimulus & re-opening to boost demand as employee and supply chain costs huge rising.
Performance of U.S. 10Y government bond yield (Tradingview.com)