Steve Hanke: The Fed is Behind the Curve - Recession is Inevitable

James Connor welcomes Professor Steve Hanke for a thought-provoking conversation exploring why we’re headed for recession and its implications for an overheated stock market, while also suggesting a safe asset investors should consider under this scenario. The renowned professor of applied economics at Johns Hopkins University issues a stark warning about the U.S. economy, stating that we’re “running on fumes” as the money supply contracts, making an economic downturn inevitable this year or early next!

Timestamps:
01:30 - The Money Supply Contraction Means Recession Is Coming
07:49 - The Stock Market Is Overpriced
13:29 - The Health Of The US Consumer?
22:02 - US Monetary Policy: The Fed Is Behind The Curve Here
33:00 - How Should Investors Position Themselves Under Steve's Recession Outlook?
36:42 - Steve's Outlook For Gold?
38:48 - Steve's Book Recommendations

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#Wealth #Finance #Money #SteveHanke #Economics #Recession #StockMarket #Investing #MoneySupply #FederalReserve #Inflation #EconomicOutlook #SafeInvestments #Macro #MarketAnalysis #EconomicDownturn #Wealthion

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[PhoenixVille-hn]

Be more attentive around this time! Its just inevitable that there's going to be peaks and troughs in the graph of economic growth or prosperity, there's never going to be one underlying cause that connects them all, embrace the opportunity, make interest, cashing up on dips.

[ScottStraw]

Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm now thinking of ways to protect my portfolio worth of $800k from this bloodbath.

[Biggerstaff]

The Fed's talk of interest rate cut leaves me pondering what stocks to buy now and when do I sell? I'm unsure how to properly allocate $500K to achieve an optimal portfolio considering the uncertainty of stock prices and the economy, my goal is $3m for retirement.

[PMackenzie-vwwb]

As recession mount on Wall Street and inflation remains well above the Fed's 2% target, some economics sounded off on just how bad this downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.

[GillerHeston]

I see 2-3yrs recession. Fed will raise interests soon if inflation doesn't peak. Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund which has been sitting duck since forever with zero to no gains.

[SHARONSHORTOrchidsandGarden]

Money supply is ignored because printing loads of it is the bandaid until something seriously BREAKS.

[Mandy-lgle]

I’m a big fan of Steve Hanks’s no nonsense approach to economics. As an Australian 🇦🇺 I recognise that we have an obsession in real estate in Australia. My question is; Do we need an inflation goal? What would happen if there was 0% inflation? Would economic growth slow down if prices were kept steady? Would people spend less if their houses weren’t increasing in value? Would this decrease the speculative investing in real estate and make houses more affordable to the younger generation? Japan had deflation in past years, but could they have achieved a better economy with flat prices?

[gustavodiaz]

I been hearing about this recession for over 2 years

[manishdoshi]

Last year Prof. Hanke was confident about recession much earlier!! It's very hard to predict one, I get it.

[mjbucar]

The Market predictions about the FED lowering of interest have been so WRONG so MANY times = USELESS !!

[adamtatusko]

His name is pronounced HANK-ee (rhymes with Yankee), not HANK-ay, as you said in your intro and outro.

[issenvan]

How about the brief un-inversion in the 2-yr. & the 10-yr.?

[SlentzStrength]

if you have him on again, can you ask him if he thinks the response to a recession will be more money printing to keep the economy afloat? Because whether they do and to what degree will massively impact asset prices and the timeline of things

[dw]

Only a fool wouldn’t genuinely appreciate a smart person educating people, for FREE

[issenvan]

What happens to gold & gold miners towards & during the receasion?

[issenvan]

Any TP for gold? & it’s going up until about when? How about gold mining equities, w/ gold going up & oil going down perhaps?..

[issenvan]

So w/ CPI & Treasury yields going down, gold should go up simultaneously, right?

[issenvan]

How does Hanke time recession this time around? Why Q1 2025?

[issenvan]

When will his goldsentimentindex’s i-Phone app become available?

[issenvan]

When a car gets shipped to a dealer from a factory, it appears as a sale, right? As such, is GDP even lower than the figures we are FED with?