Markets Now In Danger Zone? Economist Reveals Next Asset To Break | Steve Hanke

Watch on YouTube ↗  |  June 02, 2026 at 17:11  |  47:51  |  The David Lin Report
Speakers
Steve Hanke — Professor of Applied Economics, Johns Hopkins University

Summary

Professor Steve Hanke discusses the US economy, the Iran war and Strait of Hormuz closure, rising commodity prices, persistent inflation, and the 10-year Treasury yield danger zone. He warns that the bond vigilantes could emerge if yields stay above 4.5% and predicts a commodity super cycle led by aluminum.

  • Hanke says the Strait of Hormuz closure is supercharging a commodity super cycle.
  • He highlights aluminum as the next commodity squeezed by the crisis.
  • The 10-year Treasury yield above 4.5% is a serious danger zone for bonds.
  • Inflation is elevated at 3.8% due to money supply growth and Fed policies.
  • Consumer credit deterioration and low savings rate indicate consumer stress.
  • Canada's economy is in a mild recession from trade conflict and poor policy.
  • Hanke advocates for a flat tax and constitutional debt brake.
  • He is skeptical of a quick resolution to the Iran war due to Israeli interests.
Trade Ideas
Steve Hanke Professor of Applied Economics, Johns Hopkins University 0:04
10-year yield above 4.5% dangerous.
If the 10-year Treasury yield stays above 4.5% on a sustained basis, the bond vigilantes will emerge. Yields are driven by elevated inflation and the negative feedback loop of rolling over short-term debt at higher rates, squeezing the budget.
IEF HIGH
Steve Hanke Professor of Applied Economics, Johns Hopkins University 5:22
Commodities in super cycle, all up.
The closure of the Strait of Hormuz due to the US-Israel war on Iran is supercharging the start of a commodity super cycle, with all commodity prices rising. Fertilizer shortages from the Gulf shutdown will reduce agricultural yields, further boosting food prices.
DBC HIGH
Steve Hanke Professor of Applied Economics, Johns Hopkins University 6:49
Aluminum squeezed by Hormuz crisis.
Aluminum is the next commodity to be squeezed by the Hormuz crisis because a significant amount of aluminum production occurs in Gulf nations, and the Strait closure disrupts supply at the margin.
Aluminum HIGH
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This The David Lin Report video, published June 02, 2026, features Steve Hanke discussing IEF, DBC, Aluminum. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Steve Hanke  · Tickers: IEF, DBC, Aluminum