Steve Hanke: Inflation Will Hit Again Sooner Than Markets Expect

6 snips

Dec 1, 2025

Professor Steve Hanke, a monetary policy expert from Johns Hopkins University, joins the discussion on looming inflation risks. He highlights the resurgence of the money supply, driven by new bank regulations and political pressures. Hanke warns that the U.S. could face a second wave of inflation that will exacerbate market bubbles, particularly affecting the K-shaped recovery post-COVID. He recommends gold as a hedge against inflation while discussing the implications of AI investments and stresses the need for proactive wealth protection strategies.

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INSIGHT

Money Supply Drives Nominal GDP

Steve Hanke applies the quantity theory of money to forecast nominal GDP and inflation.
He notes M2 growth has resumed accelerating to about 4.5% after contracting through 2022.

INSIGHT

Four Forces That Could Reignite Inflation

Hanke lists four forces loosening monetary conditions: end of QT, bank-reg relief, deficit monetization, and political pressure to cut rates.
He warns these will accelerate money growth and, with a lag, rekindle inflation.

INSIGHT

K‑Shaped Economy From Monetary Policy

Hanke describes a K-shaped economy where asset owners (top) boom while most people's real incomes fall.
He attributes this divergence largely to post‑COVID monetary expansion that inflated asset prices.

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💡Worried about inflation returning and markets sitting in bubble territory? Get a free portfolio review with a Wealthion-endorsed financial advisor at https://bit.ly/4ooAhj7

Is the U.S. about to experience a second wave of inflation? According to Professor Steve Hanke, one of the world’s foremost experts on money supply and inflation, the answer is increasingly yes. In this explosive interview with Maggie Lake, Hanke warns that a powerful combination of forces, including the end of quantitative tightening, new bank regulations, political pressure to cut rates, and the monetization of massive deficits, is now accelerating the money supply again. And with it, the risk of renewed inflation and a dangerously over-inflated market bubble.

💡With inflation potentially returning, protect your wealth with real gold and silver through Hard Assets Alliance: https://www.hardassetsalliance.com/?aff=WTH

Chapters:

0:37 - Professor Hanke’s take on the Global Economy

2:17 - Is Inflation About to Rear Its Ugly Head Again?

2:35 - What Will the Fed Do Next and Where Are the Biggest Risks?

8:28 - Will Stronger Growth Come at the Cost of Higher Inflation?

12:18 - The K-Shaped Economy: What’s the Real Risk If It Persists?

15:22 - Will All This Liquidity Just Push Asset Prices Even Higher?

18:23 - What Role Will the Bond Market Play in the Next Phase of This Cycle?

22:02 - ⭐️Wealthion Golden Nugget: How Do You Protect Yourself Against Inflation?

25:03 - Is the AI Boom a Smarter Dot-Com or Another Bubble in the Making?

26:56 - Does All This Uncertainty Add Up to a Brewing Crisis?

30:21 - What Happens When the “Bottom of the K” Heads to the Ballot Box?

33:49 - Gold, Crypto, or Cash: What Really Hedges This New Regime?

35:15 - Can Stablecoins Backed by T-Bills Change How We Hold Money?

37:17 - Looking to 2026: What Should Investors Do with Their Portfolios Now?

39:38 -Do We Need to Rethink 60/40 and Hard Assets in This New Regime?

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