Episode summary
In a wide-ranging interview, economist Steve Hanke challenged the credibility of recent intelligence reports claiming Iran plotted to assassinate President Trump during his visit to Turkey. Hanke suggested Israeli Prime Minister Netanyahu and Mossad fabricated or exaggerated the threat to manipulate Trump into maintaining aggressive Middle East policies and prevent U.S. disengagement from regional conflicts. The professor pointed to Trump's emotional response to the Mossad intelligence, including his statement to 'wipe them off the face of the earth' if targeted, as evidence of successful manipulation. Hanke characterized the assassination plot narrative as 'pishposh' and likened believing it to believing in the tooth fairy, arguing that Netanyahu represents one of the key forces preventing Trump from extricating himself from Middle East entanglements. On the U.S. economy, Hanke provided his analysis of current conditions, noting that accelerating money supply growth is fueling both stock market bubbles and real economic activity while keeping unemployment low. However, he warned that inflation currently stands at 4.2 percent, more than double the Federal Reserve's 2 percent target, consistent with his monetary theory predictions. Hanke suggested the economy's apparently strong performance is artificially sustained by excessive money printing and could deteriorate rapidly if a major regional war erupts in the Middle East, potentially forcing markets to confront geopolitical realities currently being dismissed by participants buying into what he called Trump's 'pishposh' messaging.
