Hedgeye Podcasts The Best of Hedgeye: Hugh Hendry → A Macro Reality Check with 'The Acid Capitalist'
Oct 2, 2025
Hugh Hendry, founder of Eclectica Macro and known for his bold macro insights, joins Keith McCullough for a compelling discussion. They tackle the ongoing macro crisis, criticizing the Fed's limitations and the impact of digital banking on stability. Hendry highlights risks in the banking sector likened to the 1930s and explores potential asset moves, including long treasuries. He also delves into AI's economic implications and suggests establishing a U.S. wealth fund for disenfranchised citizens. A thrilling mix of market strategy and candid observations!
AI Snips
Chapters
Books
Transcript
Episode notes
Fed Is A Powerful Propaganda Engine
- Hugh Hendry believes the Federal Reserve is more propaganda machine than omnipotent policymaker and that its balance sheet influences risk assets heavily.
- He argues global savings (esp. China's surplus) and the eurodollar system drive asset inflation beyond Fed control.
Eurodollars Fuel Global Asset Inflation
- Hendry highlights a $7+ trillion excess of global savings that flows into the eurodollar system and creates non-sovereign dollars with high leverage.
- He links that offshore liquidity to persistent asset price inflation and a weakened U.S. entrepreneurial economy.
Use Fiscal Policy To Rebuild Competitiveness
- Consider running larger, well-targeted fiscal deficits focused on healthcare, education, and onshoring productive capacity to retain jobs.
- Use policy tools like payroll tax cuts or targeted spending rather than banking bailouts to rebuild domestic competitiveness.
