The US Economic Meltdown Warning is now issued by renowned economist Steve Hanke. Market volatility, security risks, and regulatory uncertainty are creating what many experts describe as the perfect storm for the American economy today.
How market volatility, security risks and regulatory uncertainty will affect the US economy
Concerns about the US economic meltdown are attributed to several different factors that appear to be converging at the moment, as controversial tariff policies are at the forefront of these troubling issues.
Tariffs and market volatility
Economist Steve Hanke said this:
“According to my friend and former colleague David Stockman, the tariffs proposed by (President) Trump would increase the cost of input for American companies by $500 (billion).”
Hanke further stated:
“Tax = Economic Wrecking Ball.”
According to my friend and former colleague David Stockman, press. Trump’s proposed tariffs will increase the cost of input for American companies by $500 million.
Customs duty = economic wrecking ball. pic.twitter.com/rnss3i5bct
– Steve Hanke (@steve_hanke) April 27, 2025
Historical similarities and security risks
The volatility in today’s markets appears to reflect previous economic disasters, creating significant security risks for investors. The US economic meltdown scenario has some impressive similarities to historical events that many hoped would not repeat.
Hanke said:
“And that’s similar to what’s going on now, because what was the environment in 1930? The money supply was contracted, because it caused a slowdown at the start of Great Fear Presion.”
Regulatory uncertainty and investment concerns
Regulatory uncertainty, unfortunately, raises the risk of investment fraud as hopeless investors seek stability in these uncertain times. The US economic meltdown threatens both individual and institutional investors amid a somewhat uncertain policy direction.
Financial markets resemble the customs era of Smoot Holy in the 1930s.
I’ve seen this movie before.
If the market remains the same, we have a lot of problems.
Details of discussion with Professor Uchicago Tomas Philipson @Alarayy_e: pic.twitter.com/sduyyilkxb
– Steve Hanke (@steve_hanke) April 12, 2025
Hanke said:
“In addition, the Smoot Holy tariffs were announced in March and came into effect in July. The market crashed from the March 1930 announcement to June 1932.
Hanke warned:
“We’ve seen this film before, and it’s clear that people around Trump had no clue as to what was going on, and Trump acts like he’s getting a bit of a blip in a few days.
Hanke concluded:
“This is the stupidest thing I’ve ever seen. The United States is just making enemies.”
Signs pointing to US economic meltdowns are becoming increasingly difficult to ignore at this point, particularly due to market volatility, security risks, regulatory uncertainty and the rising investment scams in recent months.
