Economist Steve Hanke suggests Netanyahu manipulated Trump with fabricated Iran assassination plot
"Where did that information come from? In Israel. So there he there he... if you believe all this stuff, you got to believe in the tooth fairy. They... But the clincher was the Mossad. Well, that that that would be a a likely scenario, a likely narrative, a likely story because remember he he he was so inflamed after he made a decision to to switch planes and receive the intelligence from the Mossad that he said, 'If they get me, wipe them off the face of the earth.'"
About this episode
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.
Key takeaways
- Steve Hanke accused Israeli intelligence of fabricating or exaggerating an Iranian assassination plot against Trump to manipulate U.S. foreign policy and prevent Middle East disengagement.
- Hanke characterized intelligence reports from Mossad about the Turkey assassination threat as the 'clincher' that inflamed Trump and dragged him back toward confrontation with Iran.
- The economist dismissed the assassination narrative as 'pishposh' comparable to believing in the tooth fairy, suggesting Netanyahu is successfully preventing Trump from extracting the U.S. from regional conflicts.
- U.S. money supply growth is currently accelerating beyond Hanke's 'golden growth rate,' fueling stock market bubbles and real economic activity while keeping unemployment low.
- Inflation stands at 4.2 percent, more than double the Federal Reserve's 2 percent target, confirming Hanke's prediction that accelerated money printing drives price increases with a 12-24 month lag.
- Hanke warned the apparently strong economy could deteriorate rapidly if a major Middle East war erupts and markets get 'mugged by reality.'
- The professor suggested current market participants are dismissing geopolitical risks by accepting Trump's messaging rather than confronting underlying tensions.