Second quarter real GDP in the U.S. grew at 6.5% on an annualized basis, lower than consensus estimates. Steve Hanke, professor of Applied Economics at Johns Hopkins University, told David Lin, anchor for Kitco News, that market participants are not accurately factoring in inflation growth.
0:00 - Q2 GDP10:24 - Real interest rates14:48 - Yield curve16:37 - Gold vs real interest rate20:48 - Gold sentiment index
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.