Collapsing Money Supply to Cause Recession in 2025 with Steve Hanke

07/31/24 • 37 min

Interview recorded - 24th of July, 2024
On this episode of the WTFinance podcast I had the pleasure of hosting Steve Hanke. Steve H. Hanke is a professor of applied economics and founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at the Johns Hopkins University.
During our conversation we spoke about Steve's economic outlook, the quantity theory of money, Hanke Golden Rule, US going into the recession, why FED's models are wrong, tariffs and more!
0:00 - Introduction
1:12 - Steve’s current outlook?
4:17 - What is causing the money supply shrinkage?
6:12 - What is the quantity theory of money?
10:12 - Why do central banks not look at money supply?
14:27 - Hanke Golden Rule
16:15 - Economic growth without money supply growth?
22:30 - US going into a recession?
23:52 - How bad could recession get?
25:38 - FED late to the party
26:44 - FED to change models?
27:36 - What economies is Steve positive about?
30:00 - Increasing tariffs impacts
32:20 - Impact of money supply on markets?
34:15 - One message to takeaway from conversation?
Steve H. Hanke is a Senior Fellow, Contributing Editor of The Independent Review, and a Member of the Board of Advisors at the Independent Institute. He is a Professor of Applied Economics and Founder and Co-Director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at The Johns Hopkins University in Baltimore. He is also a Senior Adviser at the Renmin University of China’s International Monetary Research Institute in Beijing, and a Special Counselor to the Center for Financial Stability in New York. Hanke is also a Contributing Editor at Central Banking in London and a Contributor at National Review. In addition, Hanke is a member of the Charter Council of the Society for Economic Measurement and a Distinguished Associate of the International Atlantic Economic Society. He is ranked as the world’s third-most influential economics influencer by FocusEconomics in Barcelona, Spain.
Steve Hanke:
X - https://x.com/steve_hanke
Bio - https://www.independent.org/aboutus/person_detail.asp?id=516
WTFinance -
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Spotify - https://open.spotify.com/show/67rpmjG92PNBW0doLyPvfn
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Previous Episode

Stagflation to Continue as the Economy Weakens with Bill Fleckenstein

Interview recorded - 24th of July, 2024
On this episode of the WTFinance podcast I had the pleasure of welcoming on Bill Fleckenstein. Bill is a professional money manager with over 30 years of experience. He writes a writes a daily column and is the author of “Greenspan’s bubbles: the age of ignorance at the federal reserve”.
0:00 - Introduction
1:07 - Economic and market outlook?
6:10 - Stagflation?
7:42 - GDP growth
10:02 - What has the FED had on the economy?
13:22 - QE & QT
15:42 - How can financial system be resolved?
18:48 - Where could inflation go?
21:13 - What could encourage asset appreciation?
25:38 - What is Bill watching to gauge markets?
26:42 - Long AI, Short Small cap
31:53 - What is driving dollar movements?
33:23 - Can Japan increase interest rates with debt level?
34:28 - How long does monetisation of debt last?
36:40 - One message to takeaway from our conversation?
Bill Fleckenstein is president of Fleckenstein Capital, a money management firm based in Seattle. He writes a daily Market Rap column for his website, Fleckensteincapital.com, as well as the popular column Contrarian Chronicles for MSN Money.
Bill Fleckenstein began writing a daily column on the Internet in 1996. Initially, the Market Rap was a daily recap of market events, with an added "Yes, but..." emphasis. "I quickly learned that the contrarian viewpoint was often misrepresented and under-reported. Since then, my daily column has always called it like I see it. I've tried to write the column in a way that even the novice investor can understand. I believe it's better to teach someone how to fish, rather than just give them an occasional fish."
Bill Fleckenstein -
Website: https://www.fleckensteincapital.com/
Twitter: https://x.com/fleckcap?lang=en
WTFinance -
Instagram -

Next Episode

40% Stock Market Crash is Here with Simon Hunt

Interview recorded - 26th of July, 2024
On this episode of the WTFinance podcast I had the pleasure of welcoming back Simon Hunt.
During our conversation we spoke about the risk of a market crash in 2024, BRIC's currency, Global Cold/Hot War, financial system crisis and more. I hope you enjoy.
0:00 - Introduction
1:52 - Market crash in 2024?
9:01 - Control over the heartland?
13:13 - BRIC’s currency
19:30 - Republicans to cut spending?
21:16 - South China Sea
27:18 - Cold vs hot world war?
31:24 - Financial system correction?
34:09 - One message to takeaway from our conversation?
Simon Hunt began his career in 1956 in Central Africa as a PA to the Chairman of Rhodesian Selection Trust, one of the two large copper companies in what was then Northern Rhodesia, now Zambia.
In 1961 he came back to London and joined Anglo American Corporation of South Africa as a PA to one of the Board Directors, followed by being part of a small sales and marketing team for copper. From there, he helped start up a new copper development organisation, CIDEC, financed by copper producers, which he then joined, focusing on conducting end-use studies of copper in Europe.
He then went into the City to gain financial experience and founded Brook Hunt in 1975. He was instrumental in setting up the company’s cost studies and end-use analyses. He appeared as material witness and consultant in two ITC anti-dumping cases in 1978 and 1984, winning both at the commission level.
He has spent 2-4 months every year in China since 1993 and until a few years ago would be visiting some 80 wire and cable and brass mill factories across the country every year. He now restricts these factory visits to a smaller number, all of which he has known for many years. He also spends many weeks each year traveling around Asia.
The focus of the company’s services is on the global economy, including the changing geopolitical and financial structures, China’s economy and its copper sector, and then the global copper industry as each part is interconnected.
Simon is the author of the “Frontline China Report Service,” which is marketed by the TIS Group. The Service provides regular reports on China’s economy, politics, and financial outlook.
Simon established this company in January 1996.
Simon Hunt -
Website - https://www.simon-hunt.com/
Email - [email protected]
WTFinance -
Spotify - https://open.spotify.com/show/67rpmjG92PNBW0doLyPvfn
iTunes -https://podcasts.apple.com/us/podcast/wtfinance/id1554934665?uo=4
LinkedIn - https://www.linkedin.com/in/anthony-fatseas-761066103/
Twitter - https://twitter.com/AnthonyFatseas