The David Lin Report ‘China Has All The Cards’: Economist Reveals Next Asset Explosion | Steve Hanke
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May 1, 2026 Steve Hanke, Johns Hopkins Professor of Applied Economics known for currency reform work, lays out why the Iran war has strengthened China’s hand and kicked off a commodities supercycle. He links munitions and rare-earth shortages to strategic dependence on China. He also discusses oil price dynamics, Fed policy shifts, and why hard commodities could outperform tech.
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Prepare For Money Printing And Higher Bond Yields
- Expect fiscal financing via money printing but also higher interest rates and inflation risk if the money supply grows too fast.
- Hanke warns printing beyond his recommended ~6% money growth undermines hitting 2% inflation targets and activates bond vigilantes demanding higher yields.
Munitions Shortages Depend On Chinese Materials
- The U.S. faces munitions shortages because critical raw materials for weapons are overwhelmingly sourced from China.
- Hanke and Jeffrey Wang highlight that over 95% of key rare earths and critical materials come from China, creating supply dependency when restocking.
Iran War Strengthens China’s Strategic Leverage
- The Iran conflict has materially strengthened China and Russia while leaving the U.S. a strategic loser.
- Steve Hanke argues control of choke points and China's dominance in critical materials gives Beijing leverage to force reliance on its supplies for munitions replenishment.
