ITM Trading, Released on 1/9/25

“The stock market is in bubble territory… and that signals danger,” warns Steve Hanke, a renowned economist and professor of Applied Economics at Johns Hopkins University. In this episode of the 2025 Outlook Series, Hanke sits down with Daniela Cambone to discuss the global economy, trade policies, and the key risks shaping the year ahead. Prof. Hanke predicts a significant slowdown in the U.S. economy in 2025, citing the contraction of the money supply and the pace at which it grew as key factors. He also critiques President-elect Donald Trump’s mercantilist trade policies, arguing that viewing trade as a “zero-sum game” will ultimately harm the U.S. economy. “It’s immoral for the government to be interfering with you and I who are voluntarily agreeing to you sell,” he states. Turning his attention to Europe, Hanke highlights serious concerns about Germany’s faltering economy, calling it “in the tank big time” and cautioning about its potential to destabilize the broader European economy.

0:00 U.S. economic slowdown
6:42 Recession
9:39 Tariffs
15:05 Trump’s trade policy
18:10 Trudeau
18:40 Enhancing government efficiency
25:05 The issues in the EU
30:51 Italy’s SpaceX security deal
35:35 Red flags for 2025

Steve Hanke is an American applied economist at the Johns Hopkins University in Baltimore, Maryland. He is also a senior fellow and director of the Troubled Currencies Project at the libertarian Cato Institute in Washington, DC, and co-director of the Johns Hopkins University’s Institute for Applied Economics, Global Health, and the Study of Business Enterprise in Baltimore, Maryland. Hanke is known for his work as a currency reformer in emerging-market countries. He was a senior economist with President Ronald Reagan’s Council of Economic Advisers from 1981 to 1982, and has served as an adviser to heads of state in countries throughout Asia, South America, Europe, and the Middle East. He is also known for his work on currency boards, dollarization, hyperinflation, water pricing and demand, benefit-cost analysis, privatization, and other topics in applied economics. Hanke has written extensively as a columnist for Forbes magazine and other publications. He is also a currency and commodity trader.

  canada, economy, steve hanke, Trump