Hedgeye Investing Summit Spring 2026 | Steve Hanke, Prof. of Applied Economics

Persistent inflation and structural economic instability define the current U.S. financial landscape, driven primarily by excessive money supply growth rather than isolated commodity price shocks. Professor Steve Hanke argues that inflation remains a monetary phenomenon, citing historical precedents like Japan’s 1970s economic shifts to demonstrate that money supply management dictates long-term price trends. The U.S. government faces insolvency risks, with liabilities vastly outweighing assets, while protectionist policies and increased military interventions exacerbate economic fragility. Despite widespread speculation regarding de-dollarization, the U.S. dollar maintains its status as the global king, though geopolitical tensions—particularly the potential closure of the Strait of Hormuz—threaten to force a global economic contraction. Policymakers remain behind the curve, failing to address the fundamental monetary drivers that will likely keep inflation elevated well above historical targets in the coming years.