Try InVideo for free at invideo.io/i/DavidLin and use the code DAVIDLIN50 to get 2x the video generation credits in your first month Will the economy collapse after the election? Subscribe to my free newsletter: davidlinreport.substack.com/ FOLLOW STEVE HANKE: Twitter (@steve_hanke): twitter.com/steve_hanke Email: hanke@jhu.edu
He is missing the main point of tariffs! It has to be a free market. US products must be as uninhibited as foriegn products are in the US. The EU would be our best case and it is not a free market and does not have free speech.
It does matter who's in government, not so much in the short-term, but if Americans can consistently elect people who are financially responsible and not corrupt, then we can turn this trend around. It will take a long time and Americans aren't known for electing financially educated people into office so it's more likely America will simply collapse under the weight of the stupidity of its people while politicians launder all the money they can through pet projects and wars.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson.
I have learnt not to trust corporations, especially these banks. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor and it has been paying off. No major loss has ever been recorded since 2019 i started. I'm closer to having over a million dollars now than i ever was with the banks. I'm never going back to banks full time.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
‘’Annette Christine Conte’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@Dantursi1 I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point. It's tricky during election years.
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
Agreed, I once downplayed the role of financial experts until suffering 40% portfolio loss amid 2020 lockdown, at once I consulted a pro and my portfolio was revamped thankfully. As of today, I'm just about 10% shy of my $1m goal after 100s of thousands invested.
‘’Aileen Gertrude Tippy” is the licensed advisor I use. Just google the name and you’d find necessary details. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
such an eye-opener! cant wait to experience financial advisory at first hand... curiously inputted Aileen Gertrude Tippy” on the web and at once spotted her consulting page, she seems highly professional from her resumé
The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Recently, I have been exploring the possibility of consulting with advisors. As a mature individual, I am in need of guidance, but I am curious to know how truly impactful their services can be?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘Grace Adams Cook’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
The professor has a short view on economic policy. I remember how Chinese dumping of furniture on to the American market destroyed the economy of North Carolina's peidmont. Once that industry was gone, they raised prices.
@@flyingv1215 Are not yachts taxed? Are there property taxes on those houses? And if the tax code is similar to those in Europe, of what value are off-shore accounts?
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Steve is right. The problem is we have way more government agencies than are allowed as per the constitution. We don’t need a Con-con; we just need to follow the constitution as it is written.
Just the opposite for me. I find Hanke's "opinions" some of the most infantile and ridiculous to feature on Lin's show. He's an academic and as is common, academia knows nothing of the real world or realpolitik. He thinks government spending could be cut to 10% of GDP? Show us one country where that has worked. Economic growth relies on strong and stable institutions, those institutions cost money. Try being an unassailable superpower without an army. Try having an economy without law and order. Try having law an order without a social safety net. It's absurd, his no tax utopian fantasy for the world. It's the opinions of a callow teenager. He also thinks simply allowing Russia to eat Ukraine is fine. That they wouldn't simply carry on and eat more neighbours until they're a gargantuan behemoth that forces you fight it directly. Let them eat Ukraine, Georgia, Moldova, the Baltic states...because sanctions hurt us too? There's no cost to allowing Russia to grow ever bolder in its re-imperializing ambitions? Every interview he comes on and shills for Russia like they're some Dreamland and not a dystopian autocratic shithole. He thinks tariffs should be dropped completely, even when another state actor is unfairly subsidizing it's industry. I mostly agree that tariffs are almost always a bad thing, but that doesn't meant they're not completely necessary at times to protect core industries that you'd like to have in the future. The guy is an idiot. An arrogant one at that. Keep him coming on the show sure, but use him as a cautionary tale of arrogance and cynicism.
@@MidnightSouls I couldn't agree more. Apart of money supply there's nothing much valuable to hear from him. I completely agree with everything you said. I wonder what he thinks about an oil embargo against Japan prior to ww2. Secondly his country, USA, also fought bitterly for independence. His philosophical no tax society I won't even be mentioning. Can't he speak in practical terms? Academia, they think they know everything.
Let's consider a simple example of deadweight loss from tax collection costs: Suppose the government wants to collect $100 in taxes from a small group of businesses. However, due to the complexity of the tax system, the government needs to spend $120 on administrative costs (such as salaries for tax collectors, processing paperwork, and compliance enforcement) just to collect this $100. This means that: Total Collected Revenue: $100 Cost to Collect Tax: $120 In this situation, the government has essentially spent $120 to collect $100, resulting in a net loss of $20 to the economy. Why This Creates Deadweight Loss (DWL) The $120 could have been spent on more productive activities - like building infrastructure or funding education - but instead, it went into collecting the tax. The $100 collected in tax might contribute to public goods, but because the collection cost exceeded the revenue, the tax created more harm than benefit to the overall economy. In this example, the excess cost of $20 is the deadweight loss, representing inefficient use of resources. If this happens on a large scale across many tax policies, it can lead to a substantial DWL in the economy, where resources are diverted away from productive use.
I enjoy the dynamic, but I find Hanke's "opinions" some of the most infantile and ridiculous to feature on Lin's show. He's an academic and as is common, academia knows nothing of the real world or realpolitik. He thinks government spending could be cut to 10% of GDP? Show us one country where that has worked. Economic growth relies on strong and stable institutions, those institutions cost money. Try being an unassailable superpower without an army. Try having an economy without law and order. Try having law an order without a social safety net. It's absurd, his no tax utopian fantasy for the world. It's the opinions of a callow teenager. He also thinks simply allowing Russia to eat Ukraine is fine. That they wouldn't simply carry on and eat more neighbours until they're a gargantuan behemoth that forces you fight it directly. Let them eat Ukraine, Georgia, Moldova, the Baltic states...because sanctions hurt us too? There's no cost to allowing Russia to grow ever bolder in its re-imperializing ambitions? Every interview he comes on and shills for Russia like they're some Dreamland and not a dystopian autocratic shithole. He thinks tariffs should be dropped completely, even when another state actor is unfairly subsidizing it's industry. I mostly agree that tariffs are almost always a bad thing, but that doesn't meant they're not completely necessary at times to protect core industries that you'd like to have in the future. The guy is an idiot. An arrogant one at that. Keep him coming on the show sure, but use him as a cautionary tale of arrogance and cynicism.
@@MidnightSouls While academic perspectives can sometimes seem disconnected from real-world complexities, many elements that may appear as mere opinions are, in fact, fundamental economic principles influencing the broader economy. For instance, the point made about the savings rate is crucial, as a higher savings rate can bolster economic stability by increasing capital reserves and fostering investment. Similarly, the economic value derived from tax revenues is essential; if government spending does not yield a value exceeding the tax revenue collected, it indicates inefficiencies and can contribute to an unhealthy economy."
Steve says that people are worried about the national debt. No way. The vast majority of people worry about their own finances and nothing more. Anything apart from that is meaningless. Of course, that will change when the debt causes them personal pain, which it will but then it will be too late. So sad that most people take a very short term view and just assume that everything will be fine long term.
The debt probably does affect the money supply and inflation and such. Hanke can explain it better, of course. Consequently, I would say that whether people realise it or not, the national debt directly affects people's finances.
People are clueless..that's why the majority of so called conservatives adore Trump. They didn't care about all the debt he pumped into the economy..then 6 months later they blamed all that inflation on Bid-enomics.. Trump's greatest accomplishment was losing
@@stevenmccallan9202 the national debt is what the vast majority blamed Biden for the inflation 🤦🏼♂️. Those same people didn't care about the debt under Trump, even though Biden barely caught up to Trump's deficit spending
So much work is process work that exists only to minimise risk of people not doing their job properly somewhere else in the first place. In most large organisations. 100 jobs can be replaced by 1 competent person (or reliable automation). But, many companies require government issued licenses to operate, these are often linked to the company's local employment numbers.
@@TrustNo1butMe That's such an insightful comment. I noticed years ago that I could do the work of 5 to 10 of my colleagues and was puzzled as to why companies could not figure that out. In most cases it was the ones that accomplished less work in quantity and quality that were rewarded.
That tells how much profit is in the system. It reminds me of this .... the US Military has a budget of 850 billion. They spend hundreds of dollars to buy 1 garbage bin. Russia and China spend less than 10% of that amount and yet cannot be challenged. Russia spends 1 dollar on a garbage bin. Money spent in the Western system has no connection to reality. This is everywhere in the system. The Western system always needs to spend and take on debt or it collapses.
First of all: During the Volker-Years, the Fed tried to redefine what's money and what isn't over and over again. They finally gave up trying and went for an inflation target. Second: The liquidity preference of the people can change. If the demand for liquidity increases, the Fed would make a huge mistake if it wouldn't provide more liquidity. If the demand for liquidity decreases, the fed can sell the assets they bought from the liquidity that the brought into circulation before. Ingo Sauer argued very convincingly, that as long as the creditworthyness of the assets that the Fed holds is given, there is no need to worry about accelerating inflation because of more liquidity in the market. Besides: How does Steve Hanke explain, that for 12 years after the 2008-crisis money supply exploded, but we didn't see any accelerated inflation during this time? Monetarists have basically predicted the end of the world, when they saw the money supply explode after 2008. They had predicted inflation within 4 to 8 quarters (the time-lag of monetary policy), but we haven't seen this. Hanke is behind the moon, when it comes to economic insight.
"Keep the old professor coming back to your talk show! It's not just great entertainment; it's top-notch education in action. Every visit is like a crash course in dodging deadweight loss, optimizing savings, and actually understanding real returns after inflation. In a world of increasing noise, he’s the economic signal we all need - efficient, insightful, and infinitely more valuable than any index fund. Let’s keep the education flowing, one inflation-adjusted nugget of wisdom at a time!"
1. 38:25 Absolutely not true and diametrically opposed to what Hanke said on the Hedgeyechannel video released about the same day this one was,... where he agreed with what I believe,.. in saying that QE is not inflationary, as we saw in the period between 2010 and 2020 and also in Japan for the last few decades,... Because the Fed pays for QE with reserves that are only accessible by banks in the banking system as base money to make loans. The real economy has no access to them. Having reserves doesn't mean banks will lend or that entities are willing to borrow. Just look at the excess reserves currently sitting at the Fed. Deficit spending absolutely is printing and adds to the money supply,.. especially when the Fed is doing QT and the banks aren't lending. When David Lin and Steve Hanke,.. not to mention all of those overseas who have excess reserves, buy treasuries,.. yeah it takes their cash,... but then injects it into the economy,.. so the maybe the local cash swap is a net zero,.. not so for Japan and all of the other foreign eurodollars,... but even more,.. the government never pays off its debt. When a treasury matures,.. the government just issues another treasury. So the money supply doesn't shrink as loans are paid off as it does when private sector bank loans are paid off. If you need more evidence QE is not inflationary,.... just look at the period between 2010 and 2020 in the US and the last few decades in Japan. 2. But I do see Hanke has been reading my comments the last year or so and finally coming out and saying, what I've been saying for over a year,...that we could grow our way out of the current debt to GDP ratio by limiting deficit spending to the real growth in GDP. Congrats to Hanke for that. 3. There are many countries with tariffs against the US. And here's an idea,. if you don't want tariffs,.. don't attack us or our allies. 4. Comrade Hanke goes off the deep end when he says we could just end the wars if we just quit funding them. We had an agreement with Ukraine that if they gave up their nukes,.. we'd help defend them. Hey comrade Hanke,.. tell that to russia who had no right to invade Ukraine, or Iran's proxies toattack Israel,.. or china to threaten Taiwan,.. what to do we do just roll over when these bad actors decide to attack? Didn't we do that in WW2??? Btw,.. russia's military has been devastated,.. they've lost about a half million troops,.. and why it has to beg for troops from North Korea to help. 5. As for his book on "waiting",.... this is kind of the reason DEFLATION is bad,... everyone puts off,.. "waits" to spend for a lower price. How does "waiting" increase economic activity???
It does trickle down but not enough to reach the people that really need it. They only need to trickle it down to the ones that are putting them in office and paying for their personal wealth uplift.
The problem I see is that everyone who says trickle down does not work never provides an alternative that does work. The democrat supported theory of "income re-distribution" through ever higher taxes is not viable and does not work; it results in lower economic growth...bottom line things you incentivize you will get more of; things you punish (higher taxes the more income you produce) you will get less of.
@@scott3202u can’t actually run the democrats version of the economy. Reagan ruined EVERYRHING with his tax cuts. The top marginal tax rate needs to be 70% or higher. It will NEVER get back there because “oMg ThAtS CoMmUnIsM”. Demand side economics works and it works better but because the American electorate can’t read, it will never happen.
thank you for educating the public on the subject of economics. if we want a different political representation, we need to raise awareness among the people about economic matters
Thank you, David, for conducting the interview with Professor Steve Hanke. While I don’t entirely agree with his views on the Russia-Ukraine war, I always appreciate your channel for providing a different perspective from your guests.
Hi David - he forgot one thing talking about free trade with china. China has communism’s there is no free trade. The producers make no money (because the system don’t like profit - remember what happened with Jack Ma). If the car companies goes bankrupt they are bailed out …again. Many companies are run by the state. The government often support different industries behind the scene. The people works (almost) as slaves - extremely hours. If they complain they gets no “points” in the society or frown in jail. More than 60mio kids are not raised by the parents because they have to work. Good luck with competing with that system on fair condition….
There actually IS free trade in China. It's not like how you were told in the class room growing up. They let their markets correct themselves for example. Including real estate.
I don’t think he understands how Chinese companies can take estimates from competing American companies to the Chinese government to get the job. The worst part is the USA has tons of import distribution businesses that literally win jobs by telling their Chinese manufacturing partner companies what their competing American companies quote. There is no way to compete. The USA government issuing tariffs is essentially the same thing the Chinese government does except America is transparent.
@@user-xg6yc8ho3ware you telling me that a Chinese manufacturer can’t go to their government for assistance with beating the price an American manufacturer quotes?
They have not lost their way, they are only interested in personal wealth uplift. All your observations of their bad decisions are actually the right decisions for their personal wealth. The outcomes of their actions betrays their stupid talking heads. This is going on in the US on steroids just so you know and we are about to turn the tables on them with Trump and his X men.
Where are the best countries to raise our young people so they do not worry about economic decline, unjustified racial profiling, GreedFlation, cultural wars, climate change crisis, and corrupted governments?
This current market panic seems to be fueled by the upcoming Nov. elections and rumors of WorldWar3. I have a little over 250k that I intend to put in the markets but I don’t know if this is a good time when others are probably selling off
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a licensed advisor
The role of financial advisors can only be overlooked, but not denied. I used to handle investing myself, but faced some losses 2020 pandemic, hence consulted an advisor at once. As of today, I'm just about 10% shy of my $1m goal, after 100s of thousands invested.
@@M.Herlihy sounds good! mind sharing info of this professional guiding you please? how to put my money to work has been my daily thought, thus the search for a reputable advisor
She goes by ''Sophia Verdekal O'neal'' a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the web.
thanks for sharing, I must say Sophia appears to be quite knowledgeable... just inputted her full name on the web and at once came across her consulting page, she seems impeccable
@@turrafirmaguitarchannel I have heard this point a lot, but correlation does not equal causation, as they say. Perhaps if their governments were not big, they would be even better off?
It is because they practice their version of capitalism with a moral base superior to the USA. As we know, Americas moral base has been in decline for decades so the cancer is even in the society at large. It is no wonder it is in leadership as well. If you look closely, Americans are really being taxed perhaps at a greater rate overall and the outcomes are not even close to what the Nordic countries have achieved. Then again they only have like 20 million in each country to deal with and a homogeneous population.
The rich get richer because American society has been involved in a coordinated game of asset-stripping for 20+ years. 20 years ago companies were making decisions that were bad for production, but good for the stock prices, like driving inventory around parking lots until the month’s books could be closed out. People’s entire retirement’s were moved into the stock market (because pensions were systematically stripped in buyouts), which fluffed stock prices and encouraged a whole culture of riskier investment and elaborate fee structures. Subprime home lending enriched (temporarily) builders and bankers, until the bubble couldn’t sustain itself anymore. Consolidation of healthcare, home construction, childcare, education, and elder care invites price-fixing at all stages of human existence. And yes, people have “wealth” on paper, and if you “time the market” right, you can get your wealth back out of your assets if you need to, say, buy a chicken for dinner-but as soon as too many people need money, not assets, that value turns out to be imaginary.
Except no profit/loss in private banking or what passes for it. Also, does Steve ever recommend abolishing the Funny Reserve system and return to gold?
Drive across America and visit the once flourishing small towns where now tattoo parlors are the idea of " business". The Big Box store s, selling Chinese manufactured products put " Made in America" out of business. Academics are not affected. 🌅🙄
Exactly. Free trade global markets sound good when you don't factor in a labor pool of billions that work for magnitudes less than American workers. It is our consumer market they want access to, while being able to out compete our manufacturing due to cheap labor. How did that NOT destroy our manufacturing and gut so much of our middle class? Now they just want open up our country to import all of that cheap labor, further f**k**g over Americans while we simultaneously are expected to pay for housing, food, transportation, healthcare and their children's eduction ffs. I have so had it with our political & elite class.
With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains though but, it's all on a brighter and splurging side for Gold and Silver, should I look that way?
Gold and Silver are often seen as a safe-haven asset that can protect against inflation and economic uncertainty. But like any investment, it carries risks. To determine if gold is the right investment option for you, an investment advisor can help you weigh the potential benefits and risks of investing in gold. They can also help you create a well-diversified portfolio that includes gold as part of a broader investment strategy. An investment advisor can help you decide how much of your portfolio should be allocated to gold and select other investments that can complement your gold holdings.
Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with a financial consultant regulated by the SEC, and started small, but eventually accumulated over $800,000.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Stacy Lynn Staples’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this tip. it was easy to find your coach. and I conducted thorough research on her credentials before scheduling a call with her. Based on her résumé, she appears to possess a high level of proficiency, and I am grateful for the opportunity to speak with her.
Hanke is very pro-Russian. I love how in discussion about Russian economy he conveniently skipped the part RUB value has been dropping drastically. I disagree sanctions are useless, it is more that those are not applied properly. Recently we found out many of German companies still export to Russia, some producing equipment that can be used for military. So, yeah.. it's one big show.
Not initially, but it resulted in one. Ukraine doesn’t recognize the regions that declared independence. Russia is pushing out/ destroying Ukrainian forces out of those territories.
I think professor Hanke is naive to say the betting markets are fully "objective". I personally believe that people use the betting markets as a hedge. For example, maybe they bet a lot of money on Harris, even though they personally don't care if she wins or not, but they do it because they have a trade going on that would work out best if people "believe" its a close race.
There is a huge lag between when rate cuts are implemented and the effects are actually felt. Not only that, but rate cuts themselves always happen based on lagging indicators, such as unemployment (unemployment data always lags hiring data since businesses stop hiring before they start firing). This is why rate cuts have almost never successfully prevented a recession. We saw it in '08. The yield curve uninverted, the fed cut rates, the markets surged for a bit based on false hope and reality set in soon after as the bad unemployment data caught up to the bad hiring data and it was armageddon from there. Anyone feeling the impact of these economic shifts should consider Crypto long-term trading strategies to protect their assets. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 520k from day trading with Francine Duguay's in few weeks, this is one of the best medium to backup your assets incase it goes bearish..
Francine goes deeper than just looking at surface-level trends. she explores technical, fundamental, and sentiment analysis, offering a comprehensive perspective on the market..
He asks why should the government get involved in cross border trade. Ask yourself why did Congress pass long ago the law to let the federal government manage interstate commerce? Why let the federal government manage trade or movement of goods between states? It’s basically the same thing as the government managing international trade.
Also it’s not fair trade if you trade between two countries. It’s not just Americans will lose their job. One major issue is hypocrisy like US politicians making the EPA which then offshored tons of jobs to Asia like ship recycling. Americans now don’t recycle ships to save the environment but now in India ships are on the beach and asbestos falls onto the beach to go into the ocean for everyone to benefit.
Government debt not being balance may make it so people don’t save idk. But I do know with interest rates being so low for years and real inflation being higher you’re dumb if you save basically. Sure you can buy bonds let’s say but hypothetically if you get a yield that matches inflation so you preserve purchasing power you still then must pay taxes on the nominal increase or interest yield even though there’s no real increase just nominal
Not just a contraction in money supply, which obviously helped cut inflation, but despite the constraints on price increases (affecting voluntary behavior), we have the constraints on world shipping in the Panama and Suez canals, which have global impacts on inflation, and defy the attempts of central banks to keep that under control. It can break domestic budgets and will in that way contribute to financial instability.
I'm not necessarily pro large state interference in economy or else, but I do think that just advocating for happy deregulation and sit back and await for everything to fix itself is either naive or dogmatic or both.
The good professor forgot to mention what happened to the size of the national debt under Reagan, Bush 41, and Clinton. Cutting taxes on the rich and their corporations doesn’t increase tax revenues. It might accelerate the collection of tax revenues from future years, but doesn’t increase tax revenues in total. By the way, I voted for Reagan twice and Bush 41 twice.
Could the USA not eliminate its debt crisis by tapping the wealth of the top one percent of the top one percent? If you take 75% of those peoples' wealth, along with anything in excess of that number of dollars from those below them in the money sweepstakes, can we not have our economic stability restored? If yes, the justification for that is that even that top tier will agree that the US tax system is based on the principle of fairness, and that principle has been undermined by the ability of the financial elite to influence the political process to benefit themselves ('and if others are doing it, why shouldn't I?'). There has been a glacial shift in proportionality of incomes in favor of this elite, and it is a politically unhealthy trend. The bottom is left with a smaller and smaller pie to share. Past crises have been laid at the feet of average taxpayers in the form recession/depression, which leave the elite largely unscathed. Working people are not the main source of economic cirses, and should not pay for this one. If our country can be put back on a stable footing, we should all respect that and not abuse our good fortune which our free market economy affords.
For the U.S. to pay off its $34 trillion debt using only its gold reserves, the price of gold would need to rise from $2,750 to around $130,000 per ounce, an increase of $127,250 per ounce.
And reducing taxes to reduce the deficit? Good grief! U.S. deficits are not due to high taxes but to the incredible wastage of tax revenues, no matter how high or low: All-powerful lobbies, political greed, the military-industrial complex, campaign finance, rampant consumerism, etc.,. It is in the nature, the DNA, of Americans (and their governments) to be profligate.
If TMS is annualized the money supply growth has been 12% since 2009. That is twice the rate predicted by the Quantity Theory of Money in order to produce 2% inflation.
I don't have to tell you things are bad. Everybody knows things are bad. It's a depression. Everybody's out of work or scared of losing their job. The dollar buys a nickel's worth; banks are going bust; shopkeepers keep a gun under the counter; punks are running wild in the street, and there's nobody anywhere who seems to know what to do, and there's no end to it. We know the air is unfit to breathe and our food is unfit to eat. And we sit watching our TVs while some local newscaster tells us that today we had fifteen homicides and sixty-three violent crimes, as if that's the way it's supposed to be! We all know things are bad -- worse than bad -- they're crazy. It's like everything everywhere is going crazy, so we don't go out any more. We sit in the house, and slowly the world we're living in is getting smaller, and all we say is, "Please, at least leave us alone in our living rooms. Let me have my toaster and my TV and my steel-belted radials, and I won't say anything. Just leave us alone." Well, I'm not going to leave you alone. I want you to get mad! I don't want you to protest. I don't want you to riot. I don't want you to write to your Congressman, because I wouldn't know what to tell you to write. I don't know what to do about the depression and the inflation and the Russians and the crime in the street. All I know is that first, you've got to get mad. You've gotta say, "I'm a human being, goddammit! My life has value!" So, I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window, open it, and stick your head out and yell,
Not every business that fails is allowed to fail. If you’re a big bank or rich investor in SVC you’re made whole by the lobbyists in Washington when your bets go bad.
When we discuss the total debt, why is intergovernmental debt included in that total. Why include debt on the books of the FED and why include the interest payments made from the treasury to the FED? Essentially you just paying yourself , unless of course you believe the FED is an independent institution owned by ????? Thats another conversation.
Big secret for lower class workers: as prices go up, demand an equal raise. If they don’t give it to you in this job market, simply change jobs. Either way you will keep up or even beat inflation. No Excuses!
“Since 2009, the TMS money supply is now up by more than 185 percent. (M2 has grown by 145 percent in that period.) Out of the current money supply of $19 trillion, $4.6 trillion-or 24 percent-of that has been created since January 2020. Since 2009, more than $12 trillion of the current money supply has been created. In other words, nearly two-thirds of the total existing money supply have been created just in the past thirteen years.”
Professor Hanke application of Economic theory is simple and cut right at the problems. Why can't we have talented economist like him overseeing the economy? As a digression was wondering why despite of forecasted recessionfor this year and next qtr the economy had most companies reporting decent profits. Could it be that we are missing on something that had been generating higher M2 like the big deficit spendings which Prof Hanke didn't foresee?
“In spite of last year’s sizable drops in total money supply, the trend in money-supply remains well above what existed during the twenty-year period from 1989 to 2009. To return to this trend, the money supply would have to drop another $3 trillion or so-or 15 percent-down to a total below $15 trillion. Moreover, as of March, total money supply was still up more than 30 percent (or about $4.5 trillion) since January 2020.”
I think this "dude" have some good ideas. But I also think he is out of his mind when it comes to "letting house builders" determine the standards. NO, I want to some government, entity accountable to the public, doing that. Without going back and slicing and dicing millions years of examples. Just look at Boeing, the FAA agreed to let them be "the maker" (the who makes money selling) and "the judge", and the results are planes falling from the skies. Free market does not mean to let "corporations" get away with murder. This is utter nonsese.
Volker was appointed by Carter and the only thing he did differently under Reagan was lowering the interest rates back down from 20% after the policy stopped record high inflation. So... Carter-nomics?
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No timestamps this time, David?
He is missing the main point of tariffs! It has to be a free market. US products must be as uninhibited as foriegn products are in the US. The EU would be our best case and it is not a free market and does not have free speech.
David, why don’t yoy have a Eurodollarism vs. Monetarism debate, including Hanke?
It does matter who's in government, not so much in the short-term, but if Americans can consistently elect people who are financially responsible and not corrupt, then we can turn this trend around. It will take a long time and Americans aren't known for electing financially educated people into office so it's more likely America will simply collapse under the weight of the stupidity of its people while politicians launder all the money they can through pet projects and wars.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson.
I have learnt not to trust corporations, especially these banks. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor and it has been paying off. No major loss has ever been recorded since 2019 i started. I'm closer to having over a million dollars now than i ever was with the banks. I'm never going back to banks full time.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
‘’Annette Christine Conte’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@Dantursi1 I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point. It's tricky during election years.
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
Agreed, I once downplayed the role of financial experts until suffering 40% portfolio loss amid 2020 lockdown, at once I consulted a pro and my portfolio was revamped thankfully. As of today, I'm just about 10% shy of my $1m goal after 100s of thousands invested.
bravo! mind sharing details of your advisor please? my job doesn't permit me the time to analyze stocks myself
‘’Aileen Gertrude Tippy” is the licensed advisor I use. Just google the name and you’d find necessary details. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
such an eye-opener! cant wait to experience financial advisory at first hand... curiously inputted Aileen Gertrude Tippy” on the web and at once spotted her consulting page, she seems highly professional from her resumé
The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Recently, I have been exploring the possibility of consulting with advisors. As a mature individual, I am in need of guidance, but I am curious to know how truly impactful their services can be?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘Grace Adams Cook’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
An excellent economic lecture from Prof. Steve Hanke. Thank you.
Best interview I have ever watched! Outstanding Professor Hanke! If only govts took your advice
The professor has a short view on economic policy. I remember how Chinese dumping of furniture on to the American market destroyed the economy of North Carolina's peidmont. Once that industry was gone, they raised prices.
Funny how it's okay when we do it but not okay when they do it.
That's how the world works: you take advantage of competitors' weakness and corner the market. Isn't capitalism grand? @locolalo1364
Same with the shrimp industry
An even worst view on how to end a war. Should we have not responded to Japan's bombing of Hawaii? Just cut the defense funds and ignore Japan?
Please keep bringing back professor Hanke. Love your guys interviews together.
👍✌️
Money doesn’t trickle down. It trickles into stock buybacks and corporate bonuses.
And then what do the investors do with the money they get from selling their stock and their bonuses?
@servornon they can buy more yachts, more million dollars houses and stash the rest in off shore accounts.
@@jjs5191 Some dude in China making $2/day.
@@flyingv1215 Are not yachts taxed? Are there property taxes on those houses? And if the tax code is similar to those in Europe, of what value are off-shore accounts?
Just the way Republicans like it.
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Could you kindly elaborate on the advisor's background and qualifications?
'Sharon Ann Meny ' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Thanks David, for always bringing great guest and great interviews. You're really exceptional.
Steve is right. The problem is we have way more government agencies than are allowed as per the constitution. We don’t need a Con-con; we just need to follow the constitution as it is written.
Thanks!
David... Your channel is one of my favorites, sir. You are a superb interviewer.
Thank you!
My favorite duo. I admire prof Hanke knowledge of economy and finance.
Just the opposite for me. I find Hanke's "opinions" some of the most infantile and ridiculous to feature on Lin's show. He's an academic and as is common, academia knows nothing of the real world or realpolitik.
He thinks government spending could be cut to 10% of GDP? Show us one country where that has worked. Economic growth relies on strong and stable institutions, those institutions cost money. Try being an unassailable superpower without an army. Try having an economy without law and order. Try having law an order without a social safety net. It's absurd, his no tax utopian fantasy for the world. It's the opinions of a callow teenager.
He also thinks simply allowing Russia to eat Ukraine is fine. That they wouldn't simply carry on and eat more neighbours until they're a gargantuan behemoth that forces you fight it directly. Let them eat Ukraine, Georgia, Moldova, the Baltic states...because sanctions hurt us too? There's no cost to allowing Russia to grow ever bolder in its re-imperializing ambitions? Every interview he comes on and shills for Russia like they're some Dreamland and not a dystopian autocratic shithole.
He thinks tariffs should be dropped completely, even when another state actor is unfairly subsidizing it's industry. I mostly agree that tariffs are almost always a bad thing, but that doesn't meant they're not completely necessary at times to protect core industries that you'd like to have in the future.
The guy is an idiot. An arrogant one at that. Keep him coming on the show sure, but use him as a cautionary tale of arrogance and cynicism.
I don't, he's wrong on a lot of things he says.
@@MidnightSouls And your expertise and education is....? Or are you really Paul Krugman thinking he is a knight and yelling at windmills.
@@MidnightSouls I couldn't agree more. Apart of money supply there's nothing much valuable to hear from him. I completely agree with everything you said. I wonder what he thinks about an oil embargo against Japan prior to ww2. Secondly his country, USA, also fought bitterly for independence. His philosophical no tax society I won't even be mentioning. Can't he speak in practical terms? Academia, they think they know everything.
These two have the best chemistry in the Econ vid space!!
Let's consider a simple example of deadweight loss from tax collection costs:
Suppose the government wants to collect $100 in taxes from a small group of businesses. However, due to the complexity of the tax system, the government needs to spend $120 on administrative costs (such as salaries for tax collectors, processing paperwork, and compliance enforcement) just to collect this $100. This means that:
Total Collected Revenue: $100
Cost to Collect Tax: $120
In this situation, the government has essentially spent $120 to collect $100, resulting in a net loss of $20 to the economy.
Why This Creates Deadweight Loss (DWL)
The $120 could have been spent on more productive activities - like building infrastructure or funding education - but instead, it went into collecting the tax.
The $100 collected in tax might contribute to public goods, but because the collection cost exceeded the revenue, the tax created more harm than benefit to the overall economy.
In this example, the excess cost of $20 is the deadweight loss, representing inefficient use of resources. If this happens on a large scale across many tax policies, it can lead to a substantial DWL in the economy, where resources are diverted away from productive use.
As soon as I see that Hanke is on I actually laugh out loud and smile. I get to learn and laugh all at the same time.
I enjoy the dynamic, but I find Hanke's "opinions" some of the most infantile and ridiculous to feature on Lin's show. He's an academic and as is common, academia knows nothing of the real world or realpolitik.
He thinks government spending could be cut to 10% of GDP? Show us one country where that has worked. Economic growth relies on strong and stable institutions, those institutions cost money. Try being an unassailable superpower without an army. Try having an economy without law and order. Try having law an order without a social safety net. It's absurd, his no tax utopian fantasy for the world. It's the opinions of a callow teenager.
He also thinks simply allowing Russia to eat Ukraine is fine. That they wouldn't simply carry on and eat more neighbours until they're a gargantuan behemoth that forces you fight it directly. Let them eat Ukraine, Georgia, Moldova, the Baltic states...because sanctions hurt us too? There's no cost to allowing Russia to grow ever bolder in its re-imperializing ambitions? Every interview he comes on and shills for Russia like they're some Dreamland and not a dystopian autocratic shithole.
He thinks tariffs should be dropped completely, even when another state actor is unfairly subsidizing it's industry. I mostly agree that tariffs are almost always a bad thing, but that doesn't meant they're not completely necessary at times to protect core industries that you'd like to have in the future.
The guy is an idiot. An arrogant one at that. Keep him coming on the show sure, but use him as a cautionary tale of arrogance and cynicism.
@@MidnightSoulsBetter than that commie wolff
@@MidnightSouls While academic perspectives can sometimes seem disconnected from real-world complexities, many elements that may appear as mere opinions are, in fact, fundamental economic principles influencing the broader economy. For instance, the point made about the savings rate is crucial, as a higher savings rate can bolster economic stability by increasing capital reserves and fostering investment. Similarly, the economic value derived from tax revenues is essential; if government spending does not yield a value exceeding the tax revenue collected, it indicates inefficiencies and can contribute to an unhealthy economy."
Steve says that people are worried about the national debt. No way. The vast majority of people worry about their own finances and nothing more. Anything apart from that is meaningless. Of course, that will change when the debt causes them personal pain, which it will but then it will be too late. So sad that most people take a very short term view and just assume that everything will be fine long term.
The debt probably does affect the money supply and inflation and such. Hanke can explain it better, of course. Consequently, I would say that whether people realise it or not, the national debt directly affects people's finances.
People are clueless..that's why the majority of so called conservatives adore Trump. They didn't care about all the debt he pumped into the economy..then 6 months later they blamed all that inflation on Bid-enomics.. Trump's greatest accomplishment was losing
The debt at some point will make them even poorer. They better start caring.
@@stevenmccallan9202 the national debt is what the vast majority blamed Biden for the inflation 🤦🏼♂️. Those same people didn't care about the debt under Trump, even though Biden barely caught up to Trump's deficit spending
Thank you for a wonderful interview. A brilliant analysis from prof.👍
Invideo looks cool. Great show too. Always watch Hanke. Best guest ever
David I once commented that you looked laid back. Now vast improvement you remind me now of the best former BBC interviewers..impressive.
Thanks!
@@pawkie2 But his information is correct, unlike the b b c.
Everyday at my job I tell myself not much longer till none of this will work or matter anymore.
Same
So much work is process work that exists only to minimise risk of people not doing their job properly somewhere else in the first place. In most large organisations. 100 jobs can be replaced by 1 competent person (or reliable automation). But, many companies require government issued licenses to operate, these are often linked to the company's local employment numbers.
@@TrustNo1butMe That's such an insightful comment. I noticed years ago that I could do the work of 5 to 10 of my colleagues and was puzzled as to why companies could not figure that out. In most cases it was the ones that accomplished less work in quantity and quality that were rewarded.
That tells how much profit is in the system. It reminds me of this .... the US Military has a budget of 850 billion. They spend hundreds of dollars to buy 1 garbage bin.
Russia and China spend less than 10% of that amount and yet cannot be challenged. Russia spends 1 dollar on a garbage bin.
Money spent in the Western system has no connection to reality. This is everywhere in the system.
The Western system always needs to spend and take on debt or it collapses.
@@TrustNo1butMe Peredo Principal. 10 % of employees do 90% of work
The over/under on Hanke mentioning the money supply is 40 seconds after his opening comments are finished.
The under got it! As usual!
First of all: During the Volker-Years, the Fed tried to redefine what's money and what isn't over and over again. They finally gave up trying and went for an inflation target.
Second: The liquidity preference of the people can change. If the demand for liquidity increases, the Fed would make a huge mistake if it wouldn't provide more liquidity. If the demand for liquidity decreases, the fed can sell the assets they bought from the liquidity that the brought into circulation before. Ingo Sauer argued very convincingly, that as long as the creditworthyness of the assets that the Fed holds is given, there is no need to worry about accelerating inflation because of more liquidity in the market.
Besides: How does Steve Hanke explain, that for 12 years after the 2008-crisis money supply exploded, but we didn't see any accelerated inflation during this time? Monetarists have basically predicted the end of the world, when they saw the money supply explode after 2008. They had predicted inflation within 4 to 8 quarters (the time-lag of monetary policy), but we haven't seen this.
Hanke is behind the moon, when it comes to economic insight.
"If" the Fed buys the US debt? Professor, if the Fed doesn't "buy" the US debt no one will.
How about all the dealers and banks that have been buying the debt for years? Guess they don't count, huh.
@@pjmccauley5324not enough to offset the demand lost from the FED
"Keep the old professor coming back to your talk show! It's not just great entertainment; it's top-notch education in action. Every visit is like a crash course in dodging deadweight loss, optimizing savings, and actually understanding real returns after inflation. In a world of increasing noise, he’s the economic signal we all need - efficient, insightful, and infinitely more valuable than any index fund. Let’s keep the education flowing, one inflation-adjusted nugget of wisdom at a time!"
As soon as I see that Hanke is on I actually laugh out loud and smile. I get to learn and laugh all at the same time.
David, of all the guests that you've brought on your show Steve is by far the best. He's a realist and a true economist.
1. 38:25 Absolutely not true and diametrically opposed to what Hanke said on the Hedgeyechannel video released about the same day this one was,... where he agreed with what I believe,..
in saying that QE is not inflationary, as we saw in the period between 2010 and 2020 and also in Japan for the last few decades,...
Because the Fed pays for QE with reserves that are only accessible by banks in the banking system as base money to make loans. The real economy has no access to them.
Having reserves doesn't mean banks will lend or that entities are willing to borrow.
Just look at the excess reserves currently sitting at the Fed.
Deficit spending absolutely is printing and adds to the money supply,.. especially when the Fed is doing QT and the banks aren't lending.
When David Lin and Steve Hanke,.. not to mention all of those overseas who have excess reserves, buy treasuries,.. yeah it takes their cash,... but then injects it into the economy,.. so the maybe the local cash swap is a net zero,.. not so for Japan and all of the other foreign eurodollars,... but even more,..
the government never pays off its debt.
When a treasury matures,.. the government just issues another treasury.
So the money supply doesn't shrink as loans are paid off as it does when private sector bank loans are paid off.
If you need more evidence QE is not inflationary,.... just look at the period between 2010 and 2020 in the US and the last few decades in Japan.
2. But I do see Hanke has been reading my comments the last year or so and finally coming out and saying, what I've been saying for over a year,...that we could grow our way out of the current debt to GDP ratio by limiting deficit spending to the real growth in GDP.
Congrats to Hanke for that.
3. There are many countries with tariffs against the US. And here's an idea,. if you don't want tariffs,.. don't attack us or our allies.
4. Comrade Hanke goes off the deep end when he says we could just end the wars if we just quit funding them.
We had an agreement with Ukraine that if they gave up their nukes,.. we'd help defend them.
Hey comrade Hanke,.. tell that to russia who had no right to invade Ukraine, or Iran's proxies toattack Israel,.. or china to threaten Taiwan,..
what to do we do just roll over when these bad actors decide to attack? Didn't we do that in WW2???
Btw,.. russia's military has been devastated,.. they've lost about a half million troops,.. and why it has to beg for troops from North Korea to help.
5. As for his book on "waiting",.... this is kind of the reason DEFLATION is bad,... everyone puts off,.. "waits" to spend for a lower price.
How does "waiting" increase economic activity???
Trickle down economics does not work Sir.Unless you seek to widen wealth gap.
I’ve yet to see anything trickle up.
@@bullguy3287It all trickles up! A guy making $50K per year easily earns his company $100K+ per year.
It does trickle down but not enough to reach the people that really need it. They only need to trickle it down to the ones that are putting them in office and paying for their personal wealth uplift.
The problem I see is that everyone who says trickle down does not work never provides an alternative that does work. The democrat supported theory of "income re-distribution" through ever higher taxes is not viable and does not work; it results in lower economic growth...bottom line things you incentivize you will get more of; things you punish (higher taxes the more income you produce) you will get less of.
@@scott3202u can’t actually run the democrats version of the economy. Reagan ruined EVERYRHING with his tax cuts. The top marginal tax rate needs to be 70% or higher. It will NEVER get back there because “oMg ThAtS CoMmUnIsM”. Demand side economics works and it works better but because the American electorate can’t read, it will never happen.
Love professor hanke
Thank you Prof. and David for sharing your discussion
Thanks David. Another great conversation and wisdom from Prof. Hanke. Will love to read your new book. 👍
BEST NEWS CHANNEL ON ALL OF TH-cam!!!!
Prof Hanke is THE GREATEST David Lin guest of ALL TIME. Not even close!❤❤❤❤
Rick Rule is also right there too.
Great conversation and information again, thanks Steve H and David L
What should we invest in?
thank you for educating the public on the subject of economics. if we want a different political representation, we need to raise awareness among the people about economic matters
This is a great interview! David you are the best! I laugh along with you 😅😂😊
Man the professor is on every 2 weeks I'm not complaining about it.
You should. The majority of what he says is nonsense.
Thank you, David, for conducting the interview with Professor Steve Hanke. While I don’t entirely agree with his views on the Russia-Ukraine war, I always appreciate your channel for providing a different perspective from your guests.
Hi David - he forgot one thing talking about free trade with china. China has communism’s there is no free trade. The producers make no money (because the system don’t like profit - remember what happened with Jack Ma). If the car companies goes bankrupt they are bailed out …again. Many companies are run by the state. The government often support different industries behind the scene. The people works (almost) as slaves - extremely hours. If they complain they gets no “points” in the society or frown in jail. More than 60mio kids are not raised by the parents because they have to work. Good luck with competing with that system on fair condition….
There actually IS free trade in China. It's not like how you were told in the class room growing up. They let their markets correct themselves for example. Including real estate.
I don’t think he understands how Chinese companies can take estimates from competing American companies to the Chinese government to get the job. The worst part is the USA has tons of import distribution businesses that literally win jobs by telling their Chinese manufacturing partner companies what their competing American companies quote. There is no way to compete. The USA government issuing tariffs is essentially the same thing the Chinese government does except America is transparent.
@@user-xg6yc8ho3ware you telling me that a Chinese manufacturer can’t go to their government for assistance with beating the price an American manufacturer quotes?
How old are you?😅
Finally after so long you brought it a real economist to your show to tell you and the rest of us how things are in today's sleepy Joe's economy.
OUTSTANDING VIDEO!!!
And trickle down is bs. Love your channel, David! 🔥🔥🫡👏
I wish the Professor could advise the present Canadian politicians and economists who have lost their way.
They have not lost their way, they are only interested in personal wealth uplift. All your observations of their bad decisions are actually the right decisions for their personal wealth. The outcomes of their actions betrays their stupid talking heads. This is going on in the US on steroids just so you know and we are about to turn the tables on them with Trump and his X men.
Where are the best countries to raise our young people so they do not worry about economic decline, unjustified racial profiling, GreedFlation, cultural wars, climate change crisis, and corrupted governments?
Finland is the best. But they have big government and high taxes.
Russia
Mr. Hanke was spot on this time
This current market panic seems to be fueled by the upcoming Nov. elections and rumors of WorldWar3. I have a little over 250k that I intend to put in the markets but I don’t know if this is a good time when others are probably selling off
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a licensed advisor
The role of financial advisors can only be overlooked, but not denied. I used to handle investing myself, but faced some losses 2020 pandemic, hence consulted an advisor at once. As of today, I'm just about 10% shy of my $1m goal, after 100s of thousands invested.
@@M.Herlihy sounds good! mind sharing info of this professional guiding you please? how to put my money to work has been my daily thought, thus the search for a reputable advisor
She goes by ''Sophia Verdekal O'neal'' a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the web.
thanks for sharing, I must say Sophia appears to be quite knowledgeable... just inputted her full name on the web and at once came across her consulting page, she seems impeccable
Where's the link to Prof Hanke book?
Nordic countries are scoring high in overall standard of living and they have big government and high taxes.
Most likely because they are not totally beholden to corporate interests not least the military corporations.
@@turrafirmaguitarchannel I have heard this point a lot, but correlation does not equal causation, as they say. Perhaps if their governments were not big, they would be even better off?
It is because they practice their version of capitalism with a moral base superior to the USA. As we know, Americas moral base has been in decline for decades so the cancer is even in the society at large. It is no wonder it is in leadership as well. If you look closely, Americans are really being taxed perhaps at a greater rate overall and the outcomes are not even close to what the Nordic countries have achieved. Then again they only have like 20 million in each country to deal with and a homogeneous population.
Also have total populations lower than some states in the US..Oh and also military budgets subsidized by the US.
The rich get richer because American society has been involved in a coordinated game of asset-stripping for 20+ years. 20 years ago companies were making decisions that were bad for production, but good for the stock prices, like driving inventory around parking lots until the month’s books could be closed out. People’s entire retirement’s were moved into the stock market (because pensions were systematically stripped in buyouts), which fluffed stock prices and encouraged a whole culture of riskier investment and elaborate fee structures. Subprime home lending enriched (temporarily) builders and bankers, until the bubble couldn’t sustain itself anymore. Consolidation of healthcare, home construction, childcare, education, and elder care invites price-fixing at all stages of human existence. And yes, people have “wealth” on paper, and if you “time the market” right, you can get your wealth back out of your assets if you need to, say, buy a chicken for dinner-but as soon as too many people need money, not assets, that value turns out to be imaginary.
David is amazing
Except no profit/loss in private banking or what passes for it. Also, does Steve ever recommend abolishing the Funny Reserve system and return to gold?
Which stopped clock will be right this time?
Drive across America and visit the once flourishing small towns where now tattoo parlors are the idea of " business". The Big Box store s, selling Chinese manufactured products put " Made in America" out of business. Academics are not affected. 🌅🙄
pay day loan--planned parenthood--nail shops-ethnic foods.
Exactly. Free trade global markets sound good when you don't factor in a labor pool of billions that work for magnitudes less than American workers. It is our consumer market they want access to, while being able to out compete our manufacturing due to cheap labor. How did that NOT destroy our manufacturing and gut so much of our middle class? Now they just want open up our country to import all of that cheap labor, further f**k**g over Americans while we simultaneously are expected to pay for housing, food, transportation, healthcare and their children's eduction ffs. I have so had it with our political & elite class.
@kevinjoseph517 you forgot pizza & pot shopa
With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains though but, it's all on a brighter and splurging side for Gold and Silver, should I look that way?
Gold and Silver are often seen as a safe-haven asset that can protect against inflation and economic uncertainty. But like any investment, it carries risks. To determine if gold is the right investment option for you, an investment advisor can help you weigh the potential benefits and risks of investing in gold. They can also help you create a well-diversified portfolio that includes gold as part of a broader investment strategy. An investment advisor can help you decide how much of your portfolio should be allocated to gold and select other investments that can complement your gold holdings.
Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with a financial consultant regulated by the SEC, and started small, but eventually accumulated over $800,000.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Stacy Lynn Staples’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this tip. it was easy to find your coach. and I conducted thorough research on her credentials before scheduling a call with her. Based on her résumé, she appears to possess a high level of proficiency, and I am grateful for the opportunity to speak with her.
Thanks Professor!
What money supply do you see lower than 2020? I'm looking at M2 and its still well above 2020 now in 10-24, and been increasing the last few months?
TLT or NEM? Which one should outperform in 2025?
I had never hesrd of the “dead weight loss” concept. Thank you professor.
Professor Hanke; What is the market-based solution to the de-industrialization of countries like the United States?
Hanke is very pro-Russian. I love how in discussion about Russian economy he conveniently skipped the part RUB value has been dropping drastically.
I disagree sanctions are useless, it is more that those are not applied properly. Recently we found out many of German companies still export to Russia, some producing equipment that can be used for military. So, yeah.. it's one big show.
Hanke has said a depression or recession is coming every month for the last 17 months on various YT channels. He’s a boob.
War in Ukraine was not from a "border dispute", although a dictator can always create one.
Not initially, but it resulted in one. Ukraine doesn’t recognize the regions that declared independence. Russia is pushing out/ destroying Ukrainian forces out of those territories.
I think professor Hanke is naive to say the betting markets are fully "objective". I personally believe that people use the betting markets as a hedge. For example, maybe they bet a lot of money on Harris, even though they personally don't care if she wins or not, but they do it because they have a trade going on that would work out best if people "believe" its a close race.
There is a huge lag between when rate cuts are implemented and the effects are actually felt. Not only that, but rate cuts themselves always happen based on lagging indicators, such as unemployment (unemployment data always lags hiring data since businesses stop hiring before they start firing). This is why rate cuts have almost never successfully prevented a recession. We saw it in '08. The yield curve uninverted, the fed cut rates, the markets surged for a bit based on false hope and reality set in soon after as the bad unemployment data caught up to the bad hiring data and it was armageddon from there. Anyone feeling the impact of these economic shifts should consider Crypto long-term trading strategies to protect their assets. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 520k from day trading with Francine Duguay's in few weeks, this is one of the best medium to backup your assets incase it goes bearish..
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He asks why should the government get involved in cross border trade. Ask yourself why did Congress pass long ago the law to let the federal government manage interstate commerce? Why let the federal government manage trade or movement of goods between states? It’s basically the same thing as the government managing international trade.
Also I’d prefer the federal government do a tariff on imports to fund things and abolish the income tax system.
Also it’s not fair trade if you trade between two countries. It’s not just Americans will lose their job. One major issue is hypocrisy like US politicians making the EPA which then offshored tons of jobs to Asia like ship recycling. Americans now don’t recycle ships to save the environment but now in India ships are on the beach and asbestos falls onto the beach to go into the ocean for everyone to benefit.
Government debt not being balance may make it so people don’t save idk. But I do know with interest rates being so low for years and real inflation being higher you’re dumb if you save basically. Sure you can buy bonds let’s say but hypothetically if you get a yield that matches inflation so you preserve purchasing power you still then must pay taxes on the nominal increase or interest yield even though there’s no real increase just nominal
Hanke's sole good points were on the growing influence of the BRICS, and on the counterproductive effects of sanctions.
Not just a contraction in money supply, which obviously helped cut inflation, but despite the constraints on price increases (affecting voluntary behavior), we have the constraints on world shipping in the Panama and Suez canals, which have global impacts on inflation, and defy the attempts of central banks to keep that under control. It can break domestic budgets and will in that way contribute to financial instability.
I'm not necessarily pro large state interference in economy or else, but I do think that just advocating for happy deregulation and sit back and await for everything to fix itself is either naive or dogmatic or both.
Link in the descriiption does not work. It has extra characters on the end.
Great episode
The good professor forgot to mention what happened to the size of the national debt under Reagan, Bush 41, and Clinton. Cutting taxes on the rich and their corporations doesn’t increase tax revenues. It might accelerate the collection of tax revenues from future years, but doesn’t increase tax revenues in total. By the way, I voted for Reagan twice and Bush 41 twice.
It’s time… for… ‘Money Supply’ Bingo!
Could the USA not eliminate its debt crisis by tapping the wealth of the top one percent of the top one percent? If you take 75% of those peoples' wealth, along with anything in excess of that number of dollars from those below them in the money sweepstakes, can we not have our economic stability restored? If yes, the justification for that is that even that top tier will agree that the US tax system is based on the principle of fairness, and that principle has been undermined by the ability of the financial elite to influence the political process to benefit themselves ('and if others are doing it, why shouldn't I?'). There has been a glacial shift in proportionality of incomes in favor of this elite, and it is a politically unhealthy trend. The bottom is left with a smaller and smaller pie to share. Past crises have been laid at the feet of average taxpayers in the form recession/depression, which leave the elite largely unscathed. Working people are not the main source of economic cirses, and should not pay for this one. If our country can be put back on a stable footing, we should all respect that and not abuse our good fortune which our free market economy affords.
For the U.S. to pay off its $34 trillion debt using only its gold reserves, the price of gold would need to rise from $2,750 to around $130,000 per ounce, an increase of $127,250 per ounce.
And reducing taxes to reduce the deficit? Good grief! U.S. deficits are not due to high taxes but to the incredible wastage of tax revenues, no matter how high or low: All-powerful lobbies, political greed, the military-industrial complex, campaign finance, rampant consumerism, etc.,. It is in the nature, the DNA, of Americans (and their governments) to be profligate.
Trading with Chinese cars companies is not a private transaction between 2 parties. It’s between the consumer and the CCP.
Yes Steve Hanke, the 1 guest….🎉🎉🎉🎉
If TMS is annualized the money supply growth has been 12% since 2009. That is twice the rate predicted by the Quantity Theory of Money in order to produce 2% inflation.
I don't have to tell you things are bad. Everybody knows things are bad. It's a depression. Everybody's out of work or scared of losing their job. The dollar buys a nickel's worth; banks are going bust; shopkeepers keep a gun under the counter; punks are running wild in the street, and there's nobody anywhere who seems to know what to do, and there's no end to it.
We know the air is unfit to breathe and our food is unfit to eat. And we sit watching our TVs while some local newscaster tells us that today we had fifteen homicides and sixty-three violent crimes, as if that's the way it's supposed to be!
We all know things are bad -- worse than bad -- they're crazy.
It's like everything everywhere is going crazy, so we don't go out any more. We sit in the house, and slowly the world we're living in is getting smaller, and all we say is, "Please, at least leave us alone in our living rooms. Let me have my toaster and my TV and my steel-belted radials, and I won't say anything. Just leave us alone."
Well, I'm not going to leave you alone.
I want you to get mad!
I don't want you to protest. I don't want you to riot. I don't want you to write to your Congressman, because I wouldn't know what to tell you to write. I don't know what to do about the depression and the inflation and the Russians and the crime in the street.
All I know is that first, you've got to get mad.
You've gotta say, "I'm a human being, goddammit! My life has value!"
So, I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window, open it, and stick your head out and yell,
David is easily one of the best interviewers out there.
Not every business that fails is allowed to fail. If you’re a big bank or rich investor in SVC you’re made whole by the lobbyists in Washington when your bets go bad.
More good news from STEVE! YIKES.......................Yikes........................ plan, prepare, survive!
The ruling elite would never permit it.
Taxes were higher than Reagan era..so what is
When we discuss the total debt, why is intergovernmental debt included in that total. Why include debt on the books of the FED and why include the interest payments made from the treasury to the FED? Essentially you just paying yourself , unless of course you believe the FED is an independent institution owned by ????? Thats another conversation.
No timestamps this time, David?
Added!
@@TheDavidLinReport 👏🏻
Big secret for lower class workers: as prices go up, demand an equal raise. If they don’t give it to you in this job market, simply change jobs. Either way you will keep up or even beat inflation. No Excuses!
What's the warning? Did I miss it?
This guy is neither bullish nor bearish, just basic common sense by using data points. Make sure he continues to be back.
I mean, he’s pretty bearish lol
“Since 2009, the TMS money supply is now up by more than 185 percent. (M2 has grown by 145 percent in that period.) Out of the current money supply of $19 trillion, $4.6 trillion-or 24 percent-of that has been created since January 2020. Since 2009, more than $12 trillion of the current money supply has been created. In other words, nearly two-thirds of the total existing money supply have been created just in the past thirteen years.”
Professor Hanke application of Economic theory is simple and cut right at the problems. Why can't we have talented economist like him overseeing the economy?
As a digression was wondering why despite of forecasted recessionfor this year and next qtr the economy had most companies reporting decent profits. Could it be that we are missing on something that had been generating higher M2 like the big deficit spendings which Prof Hanke didn't foresee?
Which economy ? Wallstreet or man street? Wallstreet is doing very well but Main Street quality of life and important has fallen off.
Thanks, David.
I get the impression Steve doesn't understand how the Betting Companies change odds over time.
David you have some microphone problems. ❤️
“In spite of last year’s sizable drops in total money supply, the trend in money-supply remains well above what existed during the twenty-year period from 1989 to 2009. To return to this trend, the money supply would have to drop another $3 trillion or so-or 15 percent-down to a total below $15 trillion. Moreover, as of March, total money supply was still up more than 30 percent (or about $4.5 trillion) since January 2020.”
Hankey was totally WRONG on the 10 Year Yield. He said it would go down when they cut interest rates. It has gone UP!!!
He's wrong on everything. It won't stop him arrogantly asserting otherwise. Typical academic.
He is wrong this time too. He needs to retire
Give it more time. They JUST cut rates.
@@user-xg6yc8ho3w I'm 53 - I DON"T HAVE TIME!!!
Love hanke! 🎉
I think this "dude" have some good ideas. But I also think he is out of his mind when it comes to "letting house builders" determine the standards. NO, I want to some government, entity accountable to the public, doing that. Without going back and slicing and dicing millions years of examples. Just look at Boeing, the FAA agreed to let them be "the maker" (the who makes money selling) and "the judge", and the results are planes falling from the skies. Free market does not mean to let "corporations" get away with murder. This is utter nonsese.
Volker was appointed by Carter and the only thing he did differently under Reagan was lowering the interest rates back down from 20% after the policy stopped record high inflation.
So... Carter-nomics?