Did Prof. Steve Hanke pass this interview "exam"? Comment below! Don't forget to subscribe To submit questions to us for the next show, email: Steve Hanke: hanke@jhu.edu Me: David@thedavidlinreport.com Skip the waitlist and invest in blue-chip art for the very first time by signing up for Masterworks: www.masterworks.art/davidlin Purchase shares in great masterpieces from artists like Pablo Picasso, Banksy, Andy Warhol, and more. See important Masterworks disclosures: www.masterworks.com/cd
I love how he said brics or the global south. Like sure South Africa or Brazil is in the southern hemisphere, but India and Russia and China is in the northern hemisphere. The term global south to refer to brics never made logical sense to me.
I'm quite sure that All at Once is here. Spiritually, we were all put here at this unique time for a critical reason. When "it" smacks you in the face, please do the right thing. It's important...
What do you do with an asset you’re dumping? You transact it. This is like saying a stock is good because it has high volumes. Only time will tell if the people receiving the dollars got a bargain or a lemon.
As it should be ss the Fed hasn't finished. They would better not fight the Central Banks nor dumping the Treasury unless they're on something's evil which now we know they were. So good riddance Globalization we will take our country back. You're free to join BRICS jungle
Nolsie Perhaps cross border transactions that are non dollars doesn’t mean they’re dumping it. Do you know if non dollar denominated debt is increasing overall?
You don't need to be an expert to know when petroleum are now being allowed to be done is other currencies (before that only in USD and Gadaffi was killed for trying to change that and the whole world knows that), the demand for USD will slowly but surely diminish. Not only petroleum, countries are now having the options to trade with currency of its choice, unlike previously most choose to use USD because of SWIFT system monopolised by USA. USD won't collapse not immediate because there are still many loans made by world bank and IMF using USD but its strength will significantly weaken. It is good for all nations.
It's all bullsh*t. I want to believe that Gadaffi story too, but I think it's bullsh*t. The dollar has power because it buys things people/countries want, PERIOD. End of story. No conspircacy. No threats.
They are not speaking of money being transacted directly between countries, outside of swift. Ofc USD is absolutely domineering in swift transactions and it will be like that forever. Just that more and more countries will start using it less. China and Russia have come from transacting only in USD to not using it at all. China completely stopped paying for Saudi oil in USD. Those things are huge. This guy is talking of formalities that are very misleading. And he's consciously using data that's not all encompassing.
Didn't matter when 80% of China's external debts are in dollars. I never thought Xi is kind of nasty player, by integrating too deep too soon with Russia
Hanke never mentioned Saudi Arabia signed a 50 year agreement to supply oil to the $10,000,000,000 oil refinery Saudi Arabia is paying for in China! Is Saudi paying for and building a refinery in the USA? Did Saudi Arabia sign a 50 year agreement to supply oil to the USA ? No NO and NO so it appears they are moving East! None of these people ever bring up the fact that Saudi is paying for and agreeing to supply a massive refinery in China!
Then what the heck backs the dollar Mr. Hanke? And for the past 50 years? Foreign countries must buy petrodollars before they buy oil. Are we still using the North Atlantic Colonial dollars?
Hemke destroys his own credibility when he doubts the resolves of Russia n the Brics to dedollarize. Admittedly, every reserve has its time limit n BRICS so happens to be the catalyse. Have u not heard of the unwritten law or convention?😂
Yup, the SA had to arrange currency swap to Yuan. And backing it up with gold when they got not enough gold sounds like brilliant ideas. The Chinese will never allow countries to buy China mining gold. Sounds like a very peaceful alliance
@@curiositycloset2359 That is now, not necessarily tomorrow and BRICs isn't necessarily a complete dedollarization agreement, but an alternative dollar system away from US controls. In theory, the reserves of dollars in BRICs can be its own financial system. This limits the financial weaponization from the US by making it an intimidating factor to sanction a separate financial system that has a lot of dollar reserves. Mr. Hanke believes in his own delusions based in disinformation that China is dedollarizing which he has no evidence of being the motive.
There was never any petrodollar agreements? So, it's all been a myth then. What a news! The USD value and the sale of treasury should remained unchanged then.
The G7 industrial powerhouse for example the car market of the US plus EU is still larger than China. The Treasury market has been shrunk and now that China is out to align w the Gulf, the next pivot will be much clear cut without the friendnemies hijack.
wont happen, I live in a brics country, this is a hoax study the eurodollar market and you'll understand why the dollar will be the last currency to fall
As soon as rates go down in this cycle, money will flow from the dollar to other sources of equal or superior yield.....from sources of equal or superior economies. The dollar is the cart. The US economy is the horse. There is no economic support of the dollar. Only fiscal spending support. The horse is weakening. China, Switzerland, India, Brazil, is where money will flow. And the dollar will slowly fade. China produces goods and technology. The US produces debt.
there is no agreement to use us dollar. but if you don't use it, you will face the might of the us military force. it's great to be a hegemon. they don't even need to ask, the world just give ...
True, but he forgets that when people have more income, they will spend it. Also, many young people have useless degrees and now are forced to take those minimum jobs. Then, those fast food corporations are making huge profits and their managements' interest is only to raise their stock price which in turn increases only their incomes and the gap widens ever more. Also, had the private equity companies and most corporations not bought out companies and outsourced the good jobs to low income countries, our economies would be in better shape.
Bring this Professor on with Andy Schectman from Miles Franklin ! That would be the interview of the century ! Andy explains the BRETTON WOODS AGREEMENT and the 1971 decoupling of gold from the US dollar , and Kissinger to Saudi to have their King agree to sell all oil in US dollars for US military protection …
A.W. Phillips's paper, published in 1958, was "The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957." It didn't relate to consumer price inflation.
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
thats true VENTURING into the trading and investment world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...
Thank you Christen wilburn Despite all the financial struggles i and my family faced, everything is finally falling into place! $67,000 monthly profit and riches I'll always praise the Lord!!!
Wow. I'm a bit perplexed seeing her been mentioned here also Did not know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months sometimes lesser and now they are multi millionaires. I pray that anyone who reads this will be successful in life
The reason the Philips Curve became nonsense is because the money supply system changed in the 1970s. In 1972, Nixon took us off the gold standard. As unemployment increases, spending should contract which should lower inflation. This would have happened during the pandemic except the government unleashed a massive stimulus to pay people more than they otherwise would have received. Of course the government can spend unlimited amounts of money because there is no longer a pesky connection to gold. This guy always says it's the Money Supply and I guess that's the problem with Philips Curve now... It's the Money Supply.
Hanke is wrong about the Saudi/US petrodollar deal negotiated between Henry Kissinger and the Saudi King that specified that all Saudi crude sales would be denominated in US$ in return for US military protection of the Saudi Kingdom.
I’m LOST ! I would LOVE to see the good professor and Andy Schectman on this show ! This is contrary to ALL other guests who talk about how Nixon sent Kissinger to Saudi Arabia to cut a 50 year contract to sell oil ONLY in dollars for US military protection …
@@davidlim5 Agreed - but this discussion was about the good professor denying ANY such thing as a “ petrodollar “ deal at all … It’s common knowledge that Kissenger set up that deal of “ sell oil in US dollars ONLY - and the US military will protect the Royal family and Saudi Arabia “
BRICS are preparing a CBDC called mBridge for cross border payments. Currently Dollar reserves worldwide stand at 58%, a 25 year low.Once alternative financial systems are activated, the dollar will be toast and the US will face hyperinflation.
You're the only person who challenge the professor with stats of US$ - only 58% of the dollar worldwide. 😂👍👍 The prof quoted at 80%. The US$ value has been declining bcos more dollars are issued digitally everyday (they don't print more dollars now) causing rapid rising inflation in the domestic mkt. Practically everything is imported fr China. The US manufacturing is decimated. This cause the US national debt to rise at $1 trillion every 100 days! (mostly military overspending). Currently, the national debt is $35 trillion and rising. The US needs the war economy to survive and ensure global hegemony. That's why military spending will NEVER cut back. Petro dollar is designed to ensure US$ is used as the global currency in oil transactions, thus making the US$ as the defacto world's reserve currency. With this exorbitant privilege to issue the dollar without limit, the US weaponized the dollar to sanction other countries at will, together with the SWIFT banking system. Not only that, restrict technology export such as Chip semiconductor, impose tariffs, and weaponize trade wars. The last straw, frozen $280 billion of Russian sovereign funds and stole their fund, so far $50 billion. All these cause the BRICS and other countries to dedollarize and trade in their local currency or Chinese yuan (to buy imports fr China). So, the Petro Dollar agreement is real, not fictional. Saudi Arabia is reacting to the realities of geopolitics, thus ending mandatory oil transactions in dollar. SA needs to protect their economic interest. China does not want the Yuan to be the reserve currency or to replace the US$ as a reserve currency.Why? Bcos they want to ensure the global trade can continue to buy China's imports at low prices. If the yuan currency rose, it makes exports to other countries expensive. This leads to higher global inflation bcos China is the world's manufacturing hub, exporting to every country. Currently rising inflation is confined to the US and the inflation is exported by US to other countries as more dollars are issued and the Fed raises interest rate to curb rising inflation. Why? Bcos too much money chasing too few imported goods. That's why foreign currency becomes weaker against US$. And, it appears US$ is stronger. So, to counter this, dedolarization is happening slowly and systematically to reduce massive systemic global economic impacts and hard landings. To verify higher inflation in US, all you need to do is to check the consumer prices of Asian countries (especially China) against US domestic prices.
Most enjoyable listening to people who know what they're talking about! Trouble is, the politicians don't always take economists' advice. And yes, he passed!
10:08 i love the brexit example as the professor is so delusional with his mental gymnastics. uk left the eu (not usa) and it's use of euros fells and use of dollars jumped from 35% to 55%. which exactly proves the point. Saudi leaving usa, will lead to a dump in usa dollars and jump in other currencies.
Yep but its because this way governments choose winners and losers. For minimum wage the winners are the most efficient workers and the losers are inefficient workers. But everyone is worse off when full employment is not reached. Freakonomics had a podcast on minimum wage a few years ago.
My favorite part is how they leave out the fact that the min wage policy was originally intended to put racial minorities into poverty (out of work) and prevent immigration.
Thank you David. I just began learning about the financial system 2yrs ago because of bitcoin. You have taught me more about money and the system than anyone else and all I wanted to do was learn about bitcoin... Your diversity of guests and all the knowledge have enriched my life. Thank you so much
Dave: How about something like the "Lin Line" 1-10, six month market outlook. Every guest gives their "Lin Line" number at the end of the interview. Then you add their data point and show the bar graph.
So , the pound stopped being the reserve currency because colonialism collapsed? But isn't it what happened to the French before. And the Romans. And basically all empires in history. But it is different for the US? People use USD not because there are forced to? Not because there are military bases in all of the G7 countries?. In Israël ( by proxy ) and Japan? Nothing to do with the US in Irak now having morphed into conflicts with the Houthis? Sure, Sensei Hanke. Good night and sweet dreams.
😂😂😂😂👍👍👍 US$ is back up by nothing. Gold std back up was abolished in 1971 by Pres Nixon bcos of military over spending in Vietnam War. Then in1974, setup Petro Dollar with Saudi Arabia bcos there was nothing to backup US$. It is just a piece of paper based on trust fr US govt and Petro Dollar imposed. Then over 800 military bases established worldwide to enforce US$ hegemony and the war economy was in place since day one from WWII over 70 yrs. That's why the national debt is rising rapidly at $1 trillion ($1,000 billion) every 100 days from $34.75 trillion. Every day is an overspending.
This is the thing, Capitalism is a system where free market in the form of businesses decide by competition. That competition sets cultural standards of how much one business charges over the over which sets a fair price. Now Capitalism applies to consumers or people buying things. It doesn’t necessarily extend itself to employee wages being set the in similar way right? Because the problem is the employees don’t own a part of the business therefore they dont really have a say and are working for the need of working. That’s where things break down potential for the worse right? Capitalism also need guardrails as when their collusion, price fixing, then capitalism starts to fail or rather go off the rails. So point is in summary that I think there needs to be legislative regulation when it comes to employee pay but it should depend what class of business the employee works for such as an established corporate entity who is billions of dollars a year enterprise or a small village shop where the owners might not be able to handle a high minimum wage but there are other incentives to working for the village shop such as a mentorship and experience. Just doing some out-loud critical thinking.
El contrar, wages stayed pretty stagnant during the late 70s and 80s. The wages didn't start picking up in a big way until the 90s in my experience. There was a big mismatch between wages and the cost of living. Power too heavily weighted to business interest is also not good for everyone. There is a balance.
Problem with flat tax is that it only gets levied on 'income' and not 'assets' such as equities, options, business income held in trust, etc. Income earners pay tax. Rich people would not.
Sometimes, you have to listen to the negatives, lies, fake news, or propaganda to understand the positives or the truth. 😂 Example, you will understand how frauds occur only when the fraudsters demonstrate how they got away. 😂😂 That's why you set a thief to catch a thief.
I am not for additional taxes. I am not for additional laws and regulations if the regulators are unwilling to remove unneeded laws and regulations. I would consider paying off my share of the federal deficit if the federal government would consider not spending past its income. Part of freedom is not being over regulated, which includes taxes, inflation, and a lot more.
I disagree on UBI. I think start with $3,000 per year per person under age 65 (including children) paid by federal government deficit spending (money printing) just like how we pay for military/wars/medicare. Try it for 10 yrs and then decide if it was a good idea or not. Currently its not fair to younger people when age 65+ gets social security of $20,000+ per year when they only put a tiny fraction of that into the system compared to what they draw out in benefits over the 20+ yrs a 65 yr old has left on average. Also medicare should be for all ages, not just age 65+. The system is slanted to benefit the 65+ group.
Universal Basic Income will only have a temporary benefit. The lower portion that is getting the UBI will spend more, the people being taxed to pay for the UBI will work to avoid the tax, and will spend less. The overall effect will be neutral at best. The UBI will initially be a boost in spending, and be inflationary. The cost of products will adjust to be the same for the consumption. I would vote no!
Great info your guest has a wealth of knowledge. The state where I live in in Australia is going to introduce 50 cent bus fares a huge reduction from the current price. Basically so they can get reelected. Exactly what your guest was saying. Where will this money come from. They will have to increase taxes to make this happen.
In terms of Tarifs, one aspect you have in the USA is that as one of the biggest consumption based economies, you DO have that consumption power to be able to influence external nations. So Trump might be looking to use that as a means to persuade better behaviour towards the USA overall, while reducing personal tax burden on American citizens? It could backfire IF these external nations decide to take the trade hit and find other markets? It is not without risk, but the USA does have a strong hand here.
What does steve hanke think about the new texas stock exchange? Is it good to decentralize the exchanges? Is texas the new lone star wallstreet? Is this a good idea with the power grid issues in texas? Is this like extending an olive branch to a latina segment of potential investors in a regional area long overlooked?
Nothing is going to replace the US Dollar for the foreseeable future as a global reserve currency. It may happen but it won't happen for decades or longer.
The dollar will not go away, but its power over other nations will. The sooner, the better. Too many wars and lives lost/suffering just in our own lifetime alone, with the US empire in power.
There was no PETRODOLLAR AGREEMENT JUST LIKE A GUY WHO RIDES ON A TAXI. HE NEVER SIGNS FOR ANY THING ITS JUST IMPLIED. ANY CHANGES WITH THE WORD FROM MBS IS THE KEY TO KNOWING IT.
I think the US dollar will remain the reserve currency for sometime but BRICS is in and the acceleration of abandoning the dollar will increase leading to a change in world reserve currency.
Dollar arguments are a red herring. Treasury market is where people need to be looking. US finances its enormous fiscal and trade deficits by issuing debt (treasury market). All you need to do is look at the foreign holdings of t-bills, coupons, tips, frns as a percentage of US issuance (down significantly in the past 5+ years) to see where this is going. Just as an example, foreigners were buying 62% of the issuance of US frn, tips, and nominal coupons in 2008. That number is now down to 34%. So who is picking up the slack?
With all due respect it’s not socialism in California, it’s a anarchy. I grew up in socialism , you have to work hard in order to get anything . So please, don’t mix up anarchy and socialism. 17:06
I would like to add a perspective to the petro dollar/dollar collapse please. The other side I don't see being connected is the effect the treasury inverse yield curve and high US rates has on triffens dilemma. Add the loss of petro dollar (yes, I do disagree with his position) more countries dropping dollar means the effect of triffens on our allies is worsened, creating more problem for them holding dollar debt. Petro dollar imo is the lesser issue, but it's getting most of the focus.
petro doller was very much in vogue, now we have a chance to use local money for crude oil and there is no chance of sanctions by USA. Don't worry Mister , you live to see then you will see the doller will surely sink slowly but surely.
6:12 😂 it is the worst example. He made peace absolutely right that there’s always was a dominant currency and history shows that it’s occasionally being overthrown . That means the dollar is f@ckt😂😂
Eventually, advanced economies will have to implement universal basic income (UBI). Think of it as taxing the robots doing the work instead of taxing workers. Is that so bad? People can spend their time making extra money, studying whatever they like, etc. Of course there will be lazy people just hanging about, but there is now already. Think Paris Hilton. If people want to waste their lives, it's on them.
That's assuming that your taxing the rich but the reality is that the middle class is taxed at roughly 30% that doesn't include property taxes, average of two vehicles, insurance etc How much more can you tax to pay for subsidies?
if there is no agreement! can someone explain this on google? In 1973, the petrodollar system was created through a deal between the US and Saudi Arabia. The countries agreed to price and trade oil in US dollars. With oil standardized in terms of dollars, any country that purchased oil from Saudi Arabia would have to use dollars.
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Fail
I love how he said brics or the global south. Like sure South Africa or Brazil is in the southern hemisphere, but India and Russia and China is in the northern hemisphere. The term global south to refer to brics never made logical sense to me.
How will the USD collapse?
"Very slowly, then all at once"
In your dreams. We got YUGGEE storage of gold now Commie got to buy from G7😂
I'm quite sure that All at Once is here. Spiritually, we were all put here at this unique time for a critical reason. When "it" smacks you in the face, please do the right thing. It's important...
@@ssuwandi3240of course mined from Africa lol... for almost free
@@marklouieadame that's a secret, bud😊 Remember we are in Multipolar thanks to you and your Buddy wish..
The slow collapse has started.
This is way better than watching the presidential nonsense!
Ross Perot we need you
Hell is watching that debate on repeat forever
Of course...who watches the clown show full of lies of the Presidential SELECTION?
No he's a quitter @alicecooper9472
Reserve is misleading, the total cross border transaction by non-dollar has been skyrocketing.
What do you do with an asset you’re dumping? You transact it. This is like saying a stock is good because it has high volumes. Only time will tell if the people receiving the dollars got a bargain or a lemon.
As it should be ss the Fed hasn't finished. They would better not fight the Central Banks nor dumping the Treasury unless they're on something's evil which now we know they were. So good riddance Globalization we will take our country back. You're free to join BRICS jungle
The rise in volume wouldn't change the fundamentals that 80% of China external debts must be paid off in dollars
Nolsie
Perhaps cross border transactions that are non dollars doesn’t mean they’re dumping it. Do you know if non dollar denominated debt is increasing overall?
Sadam tried selling oil in Euro, and Gaddafi tried selling it in Gold, and we know what happened to both of them.
But times changes,powers are rising and falling all the time
@@yelenailina6475 ; As far as America is concerned nothing has changed and it wants to stick to the old world order
Because of the SA agreement. You still don't understand the triangle relationship. You're hooked w amateurs hearsay
@@ssuwandi3240: Can you elanorate yourc comment.
RIP Sadam & Gaddafi.
You don't need to be an expert to know when petroleum are now being allowed to be done is other currencies (before that only in USD and Gadaffi was killed for trying to change that and the whole world knows that), the demand for USD will slowly but surely diminish. Not only petroleum, countries are now having the options to trade with currency of its choice, unlike previously most choose to use USD because of SWIFT system monopolised by USA. USD won't collapse not immediate because there are still many loans made by world bank and IMF using USD but its strength will significantly weaken. It is good for all nations.
It's all bullsh*t.
I want to believe that Gadaffi story too, but I think it's bullsh*t.
The dollar has power because it buys things people/countries want, PERIOD. End of story.
No conspircacy.
No threats.
They are not speaking of money being transacted directly between countries, outside of swift.
Ofc USD is absolutely domineering in swift transactions and it will be like that forever. Just that more and more countries will start using it less.
China and Russia have come from transacting only in USD to not using it at all. China completely stopped paying for Saudi oil in USD. Those things are huge.
This guy is talking of formalities that are very misleading. And he's consciously using data that's not all encompassing.
Didn't matter when 80% of China's external debts are in dollars. I never thought Xi is kind of nasty player, by integrating too deep too soon with Russia
Hanke never mentioned Saudi Arabia signed a 50 year agreement to supply oil to the $10,000,000,000 oil refinery Saudi Arabia is paying for in China! Is Saudi paying for and building a refinery in the USA? Did Saudi Arabia sign a 50 year agreement to supply oil to the USA ? No NO and NO so it appears they are moving East!
None of these people ever bring up the fact that Saudi is paying for and agreeing to supply a massive refinery in China!
Then what the heck backs the dollar Mr. Hanke? And for the past 50 years? Foreign countries must buy petrodollars before they buy oil. Are we still using the North Atlantic Colonial dollars?
Is he still sleeping ???
Hemke destroys his own credibility when he doubts the resolves of Russia n the Brics to dedollarize. Admittedly, every reserve has its time limit n BRICS so happens to be the catalyse. Have u not heard of the unwritten law or convention?😂
It requires far more than resolve,, they do not possess the resources,, not even close.. nor does CCP,, what a joke
Point is, the only currency, in enough numbers, to be able to be used in so many transactions, is the dollar. Its the liquidity
Yup, the SA had to arrange currency swap to Yuan. And backing it up with gold when they got not enough gold sounds like brilliant ideas. The Chinese will never allow countries to buy China mining gold. Sounds like a very peaceful alliance
@@curiositycloset2359 That is now, not necessarily tomorrow and BRICs isn't necessarily a complete dedollarization agreement, but an alternative dollar system away from US controls. In theory, the reserves of dollars in BRICs can be its own financial system. This limits the financial weaponization from the US by making it an intimidating factor to sanction a separate financial system that has a lot of dollar reserves. Mr. Hanke believes in his own delusions based in disinformation that China is dedollarizing which he has no evidence of being the motive.
There was never any petrodollar agreements?
So, it's all been a myth then.
What a news! The USD value and the sale of treasury should remained unchanged then.
😂😂
The G7 industrial powerhouse for example the car market of the US plus EU is still larger than China. The Treasury market has been shrunk and now that China is out to align w the Gulf, the next pivot will be much clear cut without the friendnemies hijack.
Yeah bro we're sweet 👍🤪
“How did you go bankrupt? Two ways. Gradually, then suddenly.”
How it is possible? We are too big to fail. 😂
This guy will be slapped pretty hard when BRICS nations introduce their new gold backed currency
What is his salary? If it is the market that will decide his wage, I wonder if he can sit in his air conditioned chamber and talk eloquently!
Not going to happen in my life time or yours
hahaha. BS russian troll lives in fantasy world. There will never be such bricks (not BRICS) currency.
wont happen, I live in a brics country, this is a hoax
study the eurodollar market and you'll understand why the dollar will be the last currency to fall
Only Russia wants it because the ruble is in the toilet. I don’t see China ever agreeing to it and BRICS does nothing without China’s approval.
The Presidential Debates or Listening to David Lin and learning from Dr. Hanke.
Dr. Hanke and David win by a landslide. Cheers, Mate.
Hanke is one of the few non-sensationalists on UA-cam. Thanks David Lin!
As soon as rates go down in this cycle, money will flow from the dollar to other sources of equal or superior yield.....from sources of equal or superior economies. The dollar is the cart. The US economy is the horse.
There is no economic support of the dollar. Only fiscal spending support. The horse is weakening.
China, Switzerland, India, Brazil, is where money will flow. And the dollar will slowly fade.
China produces goods and technology. The US produces debt.
there is no agreement to use us dollar. but if you don't use it, you will face the might of the us military force.
it's great to be a hegemon. they don't even need to ask, the world just give ...
True, but he forgets that when people have more income, they will spend it. Also, many young people have useless degrees and now are forced to take those minimum jobs. Then, those fast food corporations are making huge profits and their managements' interest is only to raise their stock price which in turn increases only their incomes and the gap widens ever more. Also, had the private equity companies and most corporations not bought out companies and outsourced the good jobs to low income countries, our economies would be in better shape.
Bring this Professor on with Andy Schectman from Miles Franklin ! That would be the interview of the century ! Andy explains the BRETTON WOODS AGREEMENT and the 1971 decoupling of gold from the US dollar , and Kissinger to Saudi to have their King agree to sell all oil in US dollars for US military protection …
Always fun to hear scary stories from economists!
A.W. Phillips's paper, published in 1958, was "The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957." It didn't relate to consumer price inflation.
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
thats true VENTURING into the trading and investment world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...
Thank you Christen wilburn Despite all the financial struggles i and my family faced, everything is finally falling into place! $67,000 monthly profit and riches I'll always praise the Lord!!!
Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading
Wow. I'm a bit perplexed seeing her been mentioned here also Did not know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months sometimes lesser and now they are multi millionaires. I pray that anyone who reads this will be successful in life
The reason the Philips Curve became nonsense is because the money supply system changed in the 1970s. In 1972, Nixon took us off the gold standard. As unemployment increases, spending should contract which should lower inflation. This would have happened during the pandemic except the government unleashed a massive stimulus to pay people more than they otherwise would have received. Of course the government can spend unlimited amounts of money because there is no longer a pesky connection to gold. This guy always says it's the Money Supply and I guess that's the problem with Philips Curve now... It's the Money Supply.
Hanke is wrong about the Saudi/US petrodollar deal negotiated between Henry Kissinger and the Saudi King that specified that all Saudi crude sales would be denominated in US$ in return for US military protection of the Saudi Kingdom.
He's not wrong, he's lying. He's been reporting on petrodollar for decades.
I’m LOST ! I would LOVE to see the good professor and Andy Schectman on this show !
This is contrary to ALL other guests who talk about how Nixon sent Kissinger to Saudi Arabia to cut a 50 year contract to sell oil ONLY in dollars for US military protection …
he's lying. same way he's suddenly calling capitalist california socialist
@rudeawakening3833
Instead, the US weaponized the PetroDollar which SA had nothing to do with those cruel sanctions..
@@davidlim5
Agreed - but this discussion was about the good professor denying ANY such thing as a
“ petrodollar “ deal at all …
It’s common knowledge that Kissenger set up that deal of
“ sell oil in US dollars ONLY - and the US military will protect the Royal family and Saudi Arabia “
the end of the petrol dollar is the beginning of the next gold standard
BRICS are preparing a CBDC called mBridge for cross border payments. Currently Dollar reserves worldwide stand at 58%, a 25 year low.Once alternative financial systems are activated, the dollar will be toast and the US will face hyperinflation.
You're the only person who challenge the professor with stats of US$ - only 58% of the dollar worldwide. 😂👍👍 The prof quoted at 80%.
The US$ value has been declining bcos more dollars are issued digitally everyday (they don't print more dollars now) causing rapid rising inflation in the domestic mkt. Practically everything is imported fr China. The US manufacturing is decimated. This cause the US national debt to rise at $1 trillion every 100 days! (mostly military overspending). Currently, the national debt is $35 trillion and rising. The US needs the war economy to survive and ensure global hegemony. That's why military spending will NEVER cut back. Petro dollar is designed to ensure US$ is used as the global currency in oil transactions, thus making the US$ as the defacto world's reserve currency. With this exorbitant privilege to issue the dollar without limit, the US weaponized the dollar to sanction other countries at will, together with the SWIFT banking system. Not only that, restrict technology export such as Chip semiconductor, impose tariffs, and weaponize trade wars. The last straw, frozen $280 billion of Russian sovereign funds and stole their fund, so far $50 billion. All these cause the BRICS and other countries to dedollarize and trade in their local currency or Chinese yuan (to buy imports fr China). So, the Petro Dollar agreement is real, not fictional. Saudi Arabia is reacting to the realities of geopolitics, thus ending mandatory oil transactions in dollar. SA needs to protect their economic interest.
China does not want the Yuan to be the reserve currency or to replace the US$ as a reserve currency.Why? Bcos they want to ensure the global trade can continue to buy China's imports at low prices. If the yuan currency rose, it makes exports to other countries expensive. This leads to higher global inflation bcos China is the world's manufacturing hub, exporting to every country. Currently rising inflation is confined to the US and the inflation is exported by US to other countries as more dollars are issued and the Fed raises interest rate to curb rising inflation. Why? Bcos too much money chasing too few imported goods. That's why foreign currency becomes weaker against US$. And, it appears US$ is stronger. So, to counter this, dedolarization is happening slowly and systematically to reduce massive systemic global economic impacts and hard landings. To verify higher inflation in US, all you need to do is to check the consumer prices of Asian countries (especially China) against US domestic prices.
So glad you had him back!! Thank you...
Is very sad to all of us,using US dollars😢
Minimum wages wouldn't be necessary if inflation of a fiat currency system was functioning successfully. All fiat currencies go to zero. Got Gold?!
Most enjoyable listening to people who know what they're talking about! Trouble is, the politicians don't always take economists' advice. And yes, he passed!
This bloke is talking pure back the US dollar propaganda, he’s gone look like an egg sandwich he’ll have that much egg on his face. Bloody fool😂
The greatest enemy of the hegemon is always the hegemon itself.
if there was no petrodollar agreement then what ended on the 9th lol😂😂😂
You are right. Honeymoon is over too..
Thanks for having Hanke on again!!
Prof Hanke ROCKS!
Please arrange to call Steve Hanke after December and ask the same question about $$$
The best sugarconed horse stuff I have heard from the professor to date. Delulu at its finest...
GREED GREED GREED is the Seen and Unseen problem of Humans
Hanke episodes are my favorite
10:08 i love the brexit example as the professor is so delusional with his mental gymnastics.
uk left the eu (not usa) and it's use of euros fells and use of dollars jumped from 35% to 55%.
which exactly proves the point.
Saudi leaving usa, will lead to a dump in usa dollars and jump in other currencies.
Thanks David. You have the best financial channel. Always good to hear from the professor.
The market wage = the exploitation wage
Never been a petrodollar agreement, then why has he and all the mainstream media been reporting it for 50 years! Lol
Great David! No talking about foreign politics. Just talking about economics which is the thing this man knows about.
I can't believe after all these years of disproving minimum wage laws we're still having this conversation.
Yep but its because this way governments choose winners and losers. For minimum wage the winners are the most efficient workers and the losers are inefficient workers. But everyone is worse off when full employment is not reached. Freakonomics had a podcast on minimum wage a few years ago.
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They don't care that minimum wage is bad. They know that some people are willing to work for the minimum wage.
My favorite part is how they leave out the fact that the min wage policy was originally intended to put racial minorities into poverty (out of work) and prevent immigration.
@@TheSuitness you weird caucs say anything with no proof
Steve smiling more than normal today
Smiling without 'Smiley Face' . . . real substance
UBI... Have we not learned anything since the stimulus checks?! This is akin to a fish devouring itself at the tail.
CO2 is NOT pollution. It is essential for life. UBI is to keep people from having families. It’s all about depopulation.
Legend. Keep him coming back.
Cleanest Dirty Shirt is from Kris Kristofferson's Sunday Mornin Comin Down 1969.
Remember ?
Gold as a reserve of countries federal banks have increased significantly.
Thank you David. I just began learning about the financial system 2yrs ago because of bitcoin. You have taught me more about money and the system than anyone else and all I wanted to do was learn about bitcoin... Your diversity of guests and all the knowledge have enriched my life. Thank you so much
Minimum wage is against human rights.
David! You are a great interviewer and Professor Hanke is outstanding!
Dave: How about something like the "Lin Line" 1-10, six month market outlook. Every guest gives their "Lin Line" number at the end of the interview. Then you add their data point and show the bar graph.
The delusion is strong in this one.
I disagree with a number of Mr. Hanke’s points in the second half but still a fascinating interview and enjoyed hearing his views.
Stop interrupting him. Let him fucking finish his thought. You cutting him off every 30 seconds is paaaainful
But he's literally taking 5 minutes to get to the point. I couldn't listen till the end .
@@poleonpoleon706 Watch on 1.5 speed for those people.
They have UBI in Cuba but there's nothing to buy with the money and what is available cost more than the average person can afford
So , the pound stopped being the reserve currency because colonialism collapsed?
But isn't it what happened to the French before. And the Romans. And basically all empires in history.
But it is different for the US?
People use USD not because there are forced to?
Not because there are military bases in all of the G7 countries?. In Israël ( by proxy ) and Japan? Nothing to do with the US in Irak now having morphed into conflicts with the Houthis?
Sure, Sensei Hanke. Good night and sweet dreams.
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US$ is back up by nothing. Gold std back up was abolished in 1971 by Pres Nixon bcos of military over spending in Vietnam War. Then in1974, setup Petro Dollar with Saudi Arabia bcos there was nothing to backup US$. It is just a piece of paper based on trust fr US govt and Petro Dollar imposed. Then over 800 military bases established worldwide to enforce US$ hegemony and the war economy was in place since day one from WWII over 70 yrs. That's why the national debt is rising rapidly at $1 trillion ($1,000 billion) every 100 days from $34.75 trillion. Every day is an overspending.
thank you both for the great content
This is a great example of what’s called, gaslighting the public.
You two are priceless! 🙏🏼
This is the thing, Capitalism is a system where free market in the form of businesses decide by competition. That competition sets cultural standards of how much one business charges over the over which sets a fair price. Now Capitalism applies to consumers or people buying things. It doesn’t necessarily extend itself to employee wages being set the in similar way right? Because the problem is the employees don’t own a part of the business therefore they dont really have a say and are working for the need of working. That’s where things break down potential for the worse right? Capitalism also need guardrails as when their collusion, price fixing, then capitalism starts to fail or rather go off the rails. So point is in summary that I think there needs to be legislative regulation when it comes to employee pay but it should depend what class of business the employee works for such as an established corporate entity who is billions of dollars a year enterprise or a small village shop where the owners might not be able to handle a high minimum wage but there are other incentives to working for the village shop such as a mentorship and experience. Just doing some out-loud critical thinking.
El contrar, wages stayed pretty stagnant during the late 70s and 80s. The wages didn't start picking up in a big way until the 90s in my experience. There was a big mismatch between wages and the cost of living. Power too heavily weighted to business interest is also not good for everyone. There is a balance.
Problem with flat tax is that it only gets levied on 'income' and not 'assets' such as equities, options, business income held in trust, etc. Income earners pay tax. Rich people would not.
This was really great! Thanks a lot!
Steve Hanke is a legend
Tariffs are a great idea, and reducing the size of the government is an amazing idea.
I HAVE to listen to the professor to be informed on the economy and I still enjoy 45:32 listen to him if I didn’t have to.
Sometimes, you have to listen to the negatives, lies, fake news, or propaganda to understand the positives or the truth. 😂 Example, you will understand how frauds occur only when the fraudsters demonstrate how they got away. 😂😂 That's why you set a thief to catch a thief.
They need the homeless so they can have another way to fleece Californians out of their money.
Trump is right decreasing tax on rich,otherwise companies move oversees when taxes are much lower,16% in Ireland
So boaring,ah!!!😢
I am not for additional taxes. I am not for additional laws and regulations if the regulators are unwilling to remove unneeded laws and regulations. I would consider paying off my share of the federal deficit if the federal government would consider not spending past its income. Part of freedom is not being over regulated, which includes taxes, inflation, and a lot more.
I disagree on UBI. I think start with $3,000 per year per person under age 65 (including children) paid by federal government deficit spending (money printing) just like how we pay for military/wars/medicare. Try it for 10 yrs and then decide if it was a good idea or not. Currently its not fair to younger people when age 65+ gets social security of $20,000+ per year when they only put a tiny fraction of that into the system compared to what they draw out in benefits over the 20+ yrs a 65 yr old has left on average. Also medicare should be for all ages, not just age 65+. The system is slanted to benefit the 65+ group.
Thank you David, may I request you to interview David Malpass, I believe it would be an awesome interview with your insightful questions. Thanks again
Cheerleading dressed inappropriately…. “ USA USA USA 🇺🇸 “ 🤕 - what a trustworthy face ! - even David looks embarrassed by answers 😮
Your guest is out there and full of it 😂😂😂
When are you getting Dr.Ankit Shah on your show David? He was among the earliest to speak about de-dollarisation and BRICS currency
Universal Basic Income will only have a temporary benefit. The lower portion that is getting the UBI will spend more, the people being taxed to pay for the UBI will work to avoid the tax, and will spend less. The overall effect will be neutral at best. The UBI will initially be a boost in spending, and be inflationary. The cost of products will adjust to be the same for the consumption. I would vote no!
David was in shock to hear Hanke's 1930 take on minimum-wage and labor LOL What a dinosaur.
Great info your guest has a wealth of knowledge. The state where I live in in Australia is going to introduce 50 cent bus fares a huge reduction from the current price. Basically so they can get reelected. Exactly what your guest was saying. Where will this money come from. They will have to increase taxes to make this happen.
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Thanks, David. It seems the dollar is strong despite having this inflation .
will it not lead to less bond buying just when we have a ton to sell ... thus forcing up rates ... higher inflation ... higher interest service?
In terms of Tarifs, one aspect you have in the USA is that as one of the biggest consumption based economies, you DO have that consumption power to be able to influence external nations. So Trump might be looking to use that as a means to persuade better behaviour towards the USA overall, while reducing personal tax burden on American citizens? It could backfire IF these external nations decide to take the trade hit and find other markets? It is not without risk, but the USA does have a strong hand here.
Socialist Republicof California!!!!😅
Can DXY go down during the upcoming recession, as Jeff Gundlach suggests?
Massive money printing
Printing money is our growth.
What does steve hanke think about the new texas stock exchange? Is it good to decentralize the exchanges? Is texas the new lone star wallstreet?
Is this a good idea with the power grid issues in texas? Is this like extending an olive branch to a latina segment of potential investors in a regional area long overlooked?
Nothing is going to replace the US Dollar for the foreseeable future as a global reserve currency. It may happen but it won't happen for decades or longer.
The dollar will not go away, but its power over other nations will. The sooner, the better. Too many wars and lives lost/suffering just in our own lifetime alone, with the US empire in power.
No such thing as a free lunch.
There was no PETRODOLLAR AGREEMENT JUST LIKE A GUY WHO RIDES ON A TAXI. HE NEVER SIGNS FOR ANY THING ITS JUST IMPLIED. ANY CHANGES WITH THE WORD FROM MBS IS THE KEY TO KNOWING IT.
I think the US dollar will remain the reserve currency for sometime but BRICS is in and the acceleration of abandoning the dollar will increase leading to a change in world reserve currency.
34:00 Strongly agree on the flat-tax idea
Dollar arguments are a red herring. Treasury market is where people need to be looking. US finances its enormous fiscal and trade deficits by issuing debt (treasury market). All you need to do is look at the foreign holdings of t-bills, coupons, tips, frns as a percentage of US issuance (down significantly in the past 5+ years) to see where this is going. Just as an example, foreigners were buying 62% of the issuance of US frn, tips, and nominal coupons in 2008. That number is now down to 34%. So who is picking up the slack?
Agreed with Professor Hanke that tariffs are a bad idea.
With all due respect it’s not socialism in California, it’s a anarchy. I grew up in socialism , you have to work hard in order to get anything . So please, don’t mix up anarchy and socialism. 17:06
I would like to add a perspective to the petro dollar/dollar collapse please. The other side I don't see being connected is the effect the treasury inverse yield curve and high US rates has on triffens dilemma. Add the loss of petro dollar (yes, I do disagree with his position) more countries dropping dollar means the effect of triffens on our allies is worsened, creating more problem for them holding dollar debt. Petro dollar imo is the lesser issue, but it's getting most of the focus.
Your guest is definitely out there and full of it. 😂😂😂
petro doller was very much in vogue, now we have a chance to use local money for crude oil and there is no chance of sanctions by USA. Don't worry Mister , you live to see then you will see the doller will surely sink slowly but surely.
6:12 😂 it is the worst example. He made peace absolutely right that there’s always was a dominant currency and history shows that it’s occasionally being overthrown . That means the dollar is f@ckt😂😂
Eventually, advanced economies will have to implement universal basic income (UBI). Think of it as taxing the robots doing the work instead of taxing workers. Is that so bad? People can spend their time making extra money, studying whatever they like, etc. Of course there will be lazy people just hanging about, but there is now already. Think Paris Hilton. If people want to waste their lives, it's on them.
That's assuming that your taxing the rich but the reality is that the middle class is taxed at roughly 30% that doesn't include property taxes, average of two vehicles, insurance etc How much more can you tax to pay for subsidies?
if there is no agreement! can someone explain this on google? In 1973, the petrodollar system was created through a deal between the US and Saudi Arabia. The countries agreed to price and trade oil in US dollars. With oil standardized in terms of dollars, any country that purchased oil from Saudi Arabia would have to use dollars.