Coffee and a Mike Dave Collum and Steve Hanke #1273
Dec 20, 2025
In this lively discussion, Steve H. Hanke, a renowned applied economics professor, and Dave Collum, an outspoken organic chemistry professor, explore the dynamics between New York and the City of London in global markets. They dive into dollarization trends in Venezuela, the implications of real estate on the economy, and critique long-term financial policies. With insights into inflation, market forces, and energy challenges in Europe, they warn of looming financial risks and share unique investment perspectives, particularly on gold and platinum.
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New York Runs Global Capital Markets
- New York, not the City of London, dominates global capital markets and exerts primary financial influence today.
- Steve H. Hanke argues the U.S. dollar and New York market network effects keep them firmly on top.
Dollar's Network Effect Is Hard To Break
- The U.S. dollar remains the de facto international currency with strong network effects that resist displacement.
- Post-2022 sanctions spurred talk of de-dollarization but actual dollar transaction share rose slightly.
Gold Buying Rose After 2022 Sanctions
- After 2022, global central banks increased gold purchases as a hedge against sanctions and dollar risks.
- Hanke links sanctions-era dynamics to rising central bank gold demand and talk of reserve diversification.