Steve H. Hanke (@Steve_Hanke), professor of applied economics at Johns Hopkins University and the founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise, joins Julia La Roche on episode 81 for a wide-ranging conversation on the economy.

Two years ago, using the quantity theory of money — which links asset prices, economic activity and inflation to changes in the money supply—Professor Hanke accurately predicted that inflation would be persistent and rise to the highest levels in a generation between 6 to 9%. Inflation topped out at 9.1%. Hanke thinks the inflation story is over, and a recession is likely on the way.

Read “Did Lockdowns Work?” Here: https://iea.org.uk/wp-content/uploads/2023/06/Perspectives-_1_Did-lockdowns-work__June_web.pdf

The Hanke-Cofnas Gold Sentiment Score: https://thegoldsentimentreport.com/

0:00 Open

0:47 Money supply drives the economy

3:00 Inflation story is basically over

4:49 Economic picture around the world

5:25 Inflation is a local problem

7:02 The Fed has been a complete disaster

12:13 One-to-one linkage in change in money supply and inflation

13:00 Path to becoming a Monetarist

15:00 Why doesn’t the Fed pay attention to the quantity theory of money

18:24 Recession

20:47 Preparing for a recession

22:18 Long-term bullish on gold

27:29 Covid lockdowns biggest policy mistake in modern times

134 – Tom Curren & Maurice Cole: The Reverse V Project