The Jay Martin Show “The U.S. Dollar is Dying” Shares Legendary Economist - and What Happens Next
11 snips
Jul 12, 2025 
Steve Hanke, a renowned Professor of Applied Economics at Johns Hopkins University and author of Making Money Work, dives deep into the issues confronting the U.S. economy. He reveals the hidden factors driving inflation and deflation, stressing the overlooked role of the money supply. Hanke analyzes China's economic challenges and critiques government interventions while reflecting on historical parallels to the Great Depression. His insights challenge mainstream narratives and urge listeners to reconsider the complexities of economic policies.
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Money Supply Drives Economy
- Money supply changes predict nominal GDP changes with a lag, impacting inflation and growth.
- Ignoring money supply leads to misreading economic conditions and inflation drivers.
Inflation Is Local
- Inflation is a local phenomenon, driven by each country's money supply growth rate.
- China's deflation is due to money supply growth below the Golden Rule rate, despite global monetary trends.
Deficit Financing Modes
- Deficits can be financed by taxes or inflation tax through money supply expansion.
- The pandemic deficit was mostly financed by the Fed buying bonds, causing a surge in money supply and inflation.
