Ukraine Invades Russia, Treasury Accused Of 'Rigging' Election And Interest Rates | Steve Hanke

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Steve Hanke, Professor of Applied Economics, discusses the surprise invasion of Russia by Ukrainian forces and the economic impact, as well as the theory that the Treasury is rigging the election results by manipulating interest rates using debt issuances.

*This video was recorded on August 12, 2024

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0:00 - Intro
1:30 - Ukraine's incursion into Russia
18:25 - Is Treasury manipulating interest rates?
32:50 - National debt breakdown
39:19 - Fiscal deficit and money supply

#economy #ukrainewar #investing

[TheDavidLinReport]

What's next for the Ukraine war?

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Submit questions to us for the next episode!

[MichaelHunterSD]

I miss the days where smart people said “I don’t know”

[Angel-ifmo]

Proffesor "Tobarish Haenke"... It smell like rubles

[connietank]

My favorite Prof. Learning is lifelong ! Thank you David and I hope Mr. Hanke continues to be doing well.

[brianhall]

I dont think asking a Economics Prof to comment about Ukraine invading Russia is relevant to a show about economics or finance. Its also not his area of expertise. Prof Henke is outstanding, and really good at helping to explain the complex. Really enjoy the show.

[SoraRiver]

A correction to the professor: if general public buys freshly issued government debt, the money supply indeed goes down, since the money flows from the public (money holding sector) to the government, which is considered as money "neutral" sector. By the same logic, if the FED buys government debt, there is no change in the money supply, since the newly created government deposit is not included in the money supply (until distributed to the economy).

[RuthDouglas-hb]

A crash and bullish market provides equal high-yield potential, it's all about information and strategy application, I've seen folks make huge 7figure profit in a crashing market and pull it off much easily in a bull market Unequivocally the crash/recession is getting somebody somewhere rich.

[vshu]

I hear this before, on Russian tv 😱,

[CliftonHicksbanjo]

"The first land invasion of Russia since World War Two" doesn't sound so good.

[teacherkiat]

Always good to know you take care of your guests 🙏 even with simple respectful gestures, questions and interactions 🙏

[rickmantwill]

If the treasury department sells me a bond and I write a check out and give it to the government, how has the money supply shrunk? The government will just spend the money into the economy in a less efficient way than I would have - what am I missing?

[davewalker]

Professor Hanke is absolutely correct that the only way to restore fiscal sanity and sustainability is to adopt a Fiscal Responsibility Amendment to the Constitution through an Article V Convention of States, if necessary.

[Paul-dorsetuk]

Very good, enjoyable and instructive, thank you both!

[ThorRavnsborg]

Sorry professor, but I disagree with your view on the economy in Russia vs. Europe. Most countries in Europe are doing fine (some better than others obviously). Russia on the other hand has upward trending double digit inflation and their central bank has increased their interest rate to 18%. Their oil and gas revenues are decreasing (even though China and India buy a lot from them) and it seems to me that Russia will not be able to financially sustain a high intensity war effort for very long despite their vast natural ressources. Europe has the energy situation under control and can deal with the cut supply of cheap oil and gas from Russia (thanks to new LNG infrastructure and accelerated green energy transformation).

I'm not a military expert either but I think the level of support for Ukraine from likeminded, democratic nations in the west will largely determine the outcome of the war. Europe (with a few minor exceptions) has been ramping up and are determined for the long haul. I very much hope the same from our well equipped US friends but it seems like it will depend a lot on who wins the presidential election. That is also one of the main reasons why I'm rooting for Harris. Btw. I'm from Denmark which is currently the biggest donor of bilateral support to Ukraine by percentage of GDP. And this has very strong support from the voters. You can see how your country ranks in terms of support here:

[firehorse]

Considering balance sheet alone is as logically and economically unsound as considering interest rates alone.. It is ultimately the quantity of money chasing relatively scarce goods, services and assets that drive inflation. It is worrying when a professor of economics completely ignores one side or the other 😮

[b_tang]

He has a PhD in Economics. How about calling him DOCTOR Hanke?

[richardlamos]

Good to see the 2 of you! Ok let me hear what you say !

[brentjones]

David. Please have Prof. Steve Keen on. For a brief few seconds, Prof. Hanke was going down a very similar path as Keen does when speaking about balance sheet transfers (debits & credits) between entities - treasury accounts, central bank accounts, non-bank public accounts, commercial banks, etc.

[traveller]

It's about time that Ukraine was allowed to hit back at Russia who is the aggressor. Think that with the low morale of the Russian troops and lack of experienced soldiers this was not totally surprising. Although Henke thinks that Ukrainian soldiers are going into the 'meat grinder', it may be the opposite. Russia is still fighting with a WW2 mentality and tactics.
Ukraine has shown the world that it has a far more intelligent and capable military than Russia.

Who would have bet a nickel on Finland standing up to Russia when it was attacked on Nov 30, 1939 by 600, 000 soviet troops.
Although Finland was largely equipped with WW1 equipment when the war broke out, soon Russia 'donated' military equipment to Finland so they could fight more effectively.
It was not until the 90's that Boris Yeltsin admitted that the war was an act of Russian aggression.

[jackwalsh]

David, a question for Dr. Hanke, Do you have a "Hanke Panke Index" to use as a Barometer for the overall economic health ???