On Monday, Steve Hanke, who is a professor of economics at Johns Hopkins University, said the Federal Reserve’s ongoing manipulation of the US money supply will result in a “whopper” of a recession in 2023.
His remarks came during an interview with CNBC, where he said a key indicator of money supply massively increased in 2020. The trend continued throughout 2021 and leveled off in 2022.
He said, “The bottom line is we’re going to have stagflation — we’re going to have the inflation because of this excess that’s now coming into the system. He went on to know how the Federal Reserve doesn’t seem to understand, that “inflation is always caused by excess growth in the money supply, turning the printing presses on.”
Hanke noted how sustained inflation is always linked to growth in the money supply. He went on to say, “That is why we are having inflation now and that’s why, by the way, we will continue to have inflation through 2023 going into probably 2024.”
