Biden To Preside Over Another Financial Crisis

Being put in charge of the U.S. government’s finances in 2021 is a bit like being appointed captain of the Titanic in 1912.

More to the point, trying to avert a financial disaster ahead in the current environment is akin to trying to steer a doomed ship away from a deadly iceberg moments before impact.

By the time the Titanic’s crew had realized the impending danger in front of them, it was too late to change course. The massive ship’s momentum ensured a collision would occur.

President Joe Biden’s incoming U.S. Treasury Secretary will be virtually powerless to change the trajectory of government debt growth – a trajectory that history suggests will end in disaster.

Yellen Believed She’d Never Live to See Times Like These

On Monday, the U.S. Senate confirmed Janet Yellen to be President Joe Biden’s Treasury Secretary. All Democrats and most Republicans supported her nomination, with only 15 opposed.

Janet Yellen - Stock Market

Treasury Secretary was once a leftist professor at UC Berkeley.

When President Donald Trump’s pick for Treasury, Steven Mnuchin, went to the Senate in 2017, only one Democrat voted to confirm his nomination.

Later in 2017, then-Federal Reserve chair Janet Yellen stated she didn’t believe we would see another financial crisis “in our lifetimes."

"Would I say there will never, ever be another financial crisis? ... Probably that would be going too far. But I do think we're much safer, and I hope that it will not be in our lifetimes, and I don't believe it will be," she said during a conference in London.

Obviously, Yellen couldn’t have been expected to foresee the outbreak of a highly contagious novel coronavirus from China. But she shouldn’t have been so confident about central planners’ ability to steer the economy away from the next disaster.

The particular trigger points for financial crises are inherently unpredictable.

The next one could be kicked off by a natural disaster, a terrorist attack, a political upheaval, a bank failure, a debt default, a spike in interest rates, a surge in inflation, or something else entirely.

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