Is Hyperinflation Coming? Stanford's John Cochrane On Recession, Inflation Outlook

John Cochrane, Senior Fellow at The Hoover Institution at Stanford University, discusses the outlook for inflation, economic growth, and government policies needed to prevent inflation from getting out of control.

*This video was recorded on August 16, 2024

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*This video is not financial advice. The channel is not responsible for the performance of sponsors and affiliates.

0:00 - Intro
1:00 - Price gouging
6:30 - How to control inflation
7:30 - Ideal inflation rate
10:20 - Debt, deficit, and inflation
13:23 - Phillips Curve
15:00 - Deflation
18:00 - Gold Standard
20:10 - Hyperinflation
22:00 - Yen carry trade and stock market
25:00 - Economic growth outlook
27:00 - What causes recessions?

#inflation #economy #investing

[TheDavidLinReport]

What's your outlook on inflation?


FOLLOW JOHN COCHRANE:

[Yvettebecker]

My husband and I sold our house in Florida to move to Texas. I invested some of the money from the sale in the stock market. The portfolio is up 300k this month alone, while everybody I know is watching stock news. I guess he knows the investment is making profit, but we've never really spoken openly about it. It's one of the best choices I made.

[donovantobs]

I foresee a recession lasting a while, and if inflation continues to surge, the Federal Reserve will likely raise interest rates again. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate and market crash, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300, 000, yielding almost no gains for quite some time.

[leanvigo]

The US economy is already in recession. Any rate cut will not ignite inflation. The banks will tighten even more, all consumer and corporate credit lending. This is the beginning of a deflationary period for your assets. Stocks markets will decline, and stock values disappear in a blink of the eye. Businesses will begin layoffs in earnest which will soon be reflected in the unemployment rate and unemployment claims, to further solidify the recession. In fact, when the FED cut rates in Sept, it will signify that the Titanic is going under, and it will suck everything down. Retail and housing sales will truly decline as consumer hold off their purchases. The inverted yield curve will then turn positive, but remember, certain assets like stocks and Crypto’s acts as a hedge. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Sandy Barclays, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[yadagiriyadagiri]

What a statement, damn. So its said that XAI800T is just about to launch and I think that will really change a lot of what was happening in the previous years, 2024 will shine yay

[randyosborne]

Congress is for sale. On the take. BOTH PARTIES. And Congress mandates the Federal Reserve. What could go wrong?

[olasellers]

They didn't hand out money to people, but to big pharma, banks and military Industrial complex .

[Tomkinsbc]

Look carefully at the early 1970's the USA and Canada had price and wage controls, , because they printed too much money. Their controls never worked as you had a dollar worth 10 cents everyone wants 10 X more money for pay, so the costs of everything goes up and then you have inflation. I was told by someone who was connected with politics and I will not reveal his name, but he said politicians were not that stupid, they knew price and wage controls have never worked and would not work then, The problem was that they did not know what to do, so they rather do something they knew would not work and it was better to have the people say, " at least they are trying something.". Politics is all about having the people believe one thing while you fool them and do something different. Then you have 6 months to have all the people forget all about what just happened and then they will vote for you all over again. Who is smart and who is foolish?

[srshwa]

I just got to Argentina this weekend. Holy hell - inflation can take out ANY nation state .

Thinking politicians will be able to control is a fable for average-education, everyday peasants (with all due respect )

[RayCharound]

pro tip: if a youtube video has a question in the title or thumbnail, the answer is no

[Elina_H]

Our economy struggling with uncertainties, housing issues, foreclosures, 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.

[a.jrostirolla]

FFS the she is the VP !what is she doing about it NOW ?

[dr.ulyssesswlabr]

It's true that higher prices only hurt when wages remain stagnant, but greedflation is real (as is shrinkflation). When the official compound effect of inflation the last 4 years is around 20% and a McDonald's hamburger has gone up over 100%, that's greedflation.

[JohnReynolds-nilv]

He doesn’t know what he’s talking about relative to the gold standard. Of course there’s enough gold. It all depends upon what percentage is backing the currency. The lack of a gold standard is precisely how we got here. Disappointing interview.

[kivenka]

Definitely Obama speech and cadence. Promise everything with nothing done

[jeffee]

“Really bad inflation comes no matter what the central bank does”. The central bank / fed is LITERALLY the reason monetary inflation exists.

[Stockavelli]

Thank you for the sane take on inflation

[PJBlack]

oh shoot its Bill Nye the Science guy!

[squarewheel]

Seems like they should be able to return to a gold standard if they revalued gold high enough, but of course the politicians would never want to do it.

[joannSCOTT]

How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards