Steve Hanke's Dire Warning: Recession Inevitable as Money Supply Contracts

Wealthion - Be Financially Resilient

Professor Steve Hanke reveals why he believes a recession will strike the second half of 2024 and how you can protect your portfolio.

In this episode of Wealthion, host Andrew Brill welcomes back Steve Hanke, Professor of Applied Economics at Johns Hopkins University and former advisor to President Reagan.

Professor Hanke provides his in-depth analysis of the current economic landscape, breaks down the contraction of the money supply, rising unemployment, and the likelihood of an impending recession. Hanke critiques the Federal Reserve's recent actions, describing them as significant monetary blunders that have set the stage for an inevitable downturn. He explains how the Fed's overreaction to early 2020 events led to an unprecedented growth in the money supply, followed by a severe contraction, signaling a challenging period ahead. The conversation also dives into the rising national debt, currently at $35 trillion and increasing, and its potential consequences for future generations.

TIMESTAMPS:

00:00 - Introduction

01:26 - Economic slowdown

03:22 - Fed's monetary policy

06:23 - Interest rates & inflation

07:29 - Government stimulus

08:40 - Market perception

09:45 - Golden growth rate

12:57 - Banks & money supply

18:01 - Historical recessions

20:43 - Unemployment rise

22:54 - Market exuberance

26:36 - Pricing & wage growth

30:22 - National debt

33:13 - Inflation tax

35:04 - Debt crisis solutions

37:42 - Budget process issues

38:35 - Fiscal responsibility

39:50 - De-dollarization myths

41:57 - Gold hoarding

43:56 - Conclusion