Steve Hanke of Johns Hopkins University says U.S. Federal Reserve Chair Jerome Powell is “still going on about supply side glitches” and has “failed to tell us that inflation is always caused by excess growth and the money supply.”
Steve Hanke of Johns Hopkins University says U.S. Federal Reserve Chair Jerome Powell is “still going on about supply side glitches” and has “failed to tell us that inflation is always caused by excess growth and the money supply.”
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Money printer go brrr.. that’s the cause
5 trillion is only short-term lol
to understand the root cause you have to go back to 2008, when the western economy crashed and China came to rescue with super cheap products. Basically, china played the role of US after WWII. So FED and ECB printed money and China filled the market with cheap products. Now china doesn’t want to produce so cheaply anymore. They want more money. They want less tarifs. So US and EU should start producing again themselves or accept that they are poorer and can afford the luxury.
You mean big businesses getting to borrow money for free is not money grows either? Financial banks make their own money by loaning more than they have in reserves?
Agree, it’s correct from one angle.
I don’t know what bizarre world it is that they thought that stealing our lifetime of effort would be acceptable. Retired people will have to rejoin to workforce now that their life efforts have been stolen. Thanks for you lifetime of work. We need you to work until you are dead.
Love when they claim their model was bang on, but they likely didn’t include the invasion of Ukrainian and oil going above $100bbl in their parameters. Lol.
Good point
Not in this particular clip, however, Hanke is on record elsewhere explaining how supply shocks without changes in the total money supply lead to price changes around particular things such as energy, but the overall inflation isn’t evident throughout the entire economy without either the growth in money supply or in velocity of money.
the theorists are always the wisest, because their error costs nothing
If inflation in the U.S is the result of printing too much money, then how do you explain it world wide ? Are all those countries also printing money by the bucket loads ?
Yes, in fact they all are. Lol
Actually a lot of them have been unfortunately
if they print it does not effect US, if US print it effect everyone becaue the dollar is the reserve currency & medium of exchange since between banks,
Yes they are lol. China doesn’t have inflation because they didn’t print so much money.
You could’ve just stopped at “The chairman doesn’t understand”
Not much hope for America until Biden is gone.
The rich just prints more money for themselves when they don’t even need it.
Boomers have caused enough doom.
The only solution to this skyrocketing inflation is another devastating crash similar to 2008-2009. It’s the inevitable cycle.
This will the best thing for the long-term future and prosperity
Nope won’t happen
On the contrary everyone understands the causes, it just that no one can bring an effective solution that everyone can agree on
high inflatiion for next gneneration (25 yrs) because of the massive the debt and rates cant be raise enough to control hyper inflation since the interest of debt is too massive already. So fed is stuck and it is tipping point for congress to go on a spending diet. If you throw in the lost of dollar reserve status is reason why it will be 25 years or longer.
Finally, speaker points to Powell deficiency in economics, first course on money supply and inflation
Powell us a hedge fund man not a. Economist. The results are obvious
I agree 110%. Reverse the Quantitative Easing (increasing money supply) to the exact dollar amount (Quantitative tightening). It’s an exact science. Inflation will then go down to approximately the same level it was before Quantitative Easing. No guessing and wasting people’s time and money playing with interest rates.
CAN SOMEONE SHARE THE STOCK MARKET TRADING HISTORY FOR EACH OF THE TOP FEDERAL RESERVE MEMEBER, SENATORS AND THEIR FRIENDS AND FAMILIES???
WAGES 5% UP, MINIMUM WAGE 10-15% UP IN SOME STATES, ENERY STILL HIGHER THAN YEAR AGO, SO HOW DO MAKE IT EQUAL 2%? AT SCHOOL THEY TOUGHT ME 2+2 EQUALS 4 BUT FED THINKS 2+2=1
How we put a dude who has no background in Economics in charge of the Fed is mind boggling. He’s a lawyer who lacks basic understanding of macroeconomics. God help us all
bro wants more free QE.
$300 billion just on student loan cancellation, several billions here and several billions there. I don’t quite understand how you can accommodate such budget without printing.
CNBC gets only 69 comments about such a serious problem
FED is doing great job. Markets will rise like never before !! 📈💪✅
Hanke wears the same cloths in front of the same books every interview
Energy policy is driving by alot of it…….
Since they expanded the dollar money supply by 38% in 24 months how about just pulling it out of the economy and burning those greenbacks?
That’s absolutely right!!! Bingo! Just like Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
0:20 “excess growth in the money supply”
Powell does not say that money supply is the issue. And he may, or may not, understand it.
WHAT HE DOES UNDERSTAND is that saying this will put the blame squarely at the feet of the politicians who approved the expenditures. And that these same politicians can remove him from his powerful and cushy position.
I would not go as far as saying Powell doesn’t understand monetary theory… it may just be that it is not in his *personal best interest* to acknowledge it.
Never attribute to malice or stupidity what can be explained by greed. (Hanlon’s razor + “follow the money” )
How do so many dumb people get into office!?😒
Powell was hired to help launder trillions in drug money and covid money’s .that’s where he’s an expert .
he was just on street signs cnbc asia just moments ago again. i have to say this guy knows EXACTLY what’s going on
During Trump, despite “great economy”, billions were pumped into stock market every month. He was afraid of raising interest because of Trump.
Hanke the GOAT of infltion
I thought he had said 6% by 2024, why 5% now?