Janet Yellen is being floated as one of the top two potential Treasury Secretary nominations in a Biden administration. Recall she was Obama’s Fed chair. She would be only the second person in American history to have held both positions.
The other person to do it was William Miller of the Carter administration, one of the most disastrous periods in American economic history. Paul Volcker succeeded Miller, interest rates soared, the economy crashed, and then the convalescence began. Biden’s TreasureFed won’t be able to stave the crash off, though, and the healing is going to take a lot longer than it took forty years ago.
The Fed and the Treasury are supposed to be independent of one another. It is allegedly crucial the Fed be apolitical. That obviously cannot be when it is coordinating with the Treasury department. Under the Trump administration, though, any pretense of separation was thrown out the window. Mnuchin and Powell openly coordinated with one another.
Now we’re looking at someone with deep personal and professional connections at the very highest level of the Fed sitting atop the Treasury department. It’s the swamp’s ultimate revolving door.
This is a strong signal, as though one were needed, that the Biden administration intends to keep the monetary spigots wide open. Building back better means conjuring credit out of thin air and using it to purchase real things from foreigners in return for ever-expanding credit. And make no mistake about it–credit creation will continue in perpetuity because it has to. Anything else will lead to a market collapse unseen since the Great Depression, maybe worse than that. Fortunately, the financial wizards assure us something that can’t go on forever, will, so we have nothing to worry about!
Parenthetically, here are the opening paragraphs of an AP story on the impending nomination:
President-elect [disputed] Joe Biden said Thursday that he has decided whom to nominate as his secretary of the Treasury Department.
Biden said that the announcement will come just before or after Thanksgiving and that “you’ll find it is someone who I think will be accepted by all elements of the Democratic Party, progressives through the moderate coalition.”
The leading candidates are thought to be former Federal Reserve Chair Janet Yellen and Federal Reserve Governor Lael Brainard. Either would be the first woman to serve as treasury secretary. Yellen’s name has surfaced more frequently in recent days as the potential nominee. Yellen was also the first woman to chair the Fed, a position she held for four years.
The most important information for readers? We’re getting a woman! Is she an interest rate hawk or a dove? Does she believe in the dual mandate? Elizabeth Warren’s triple mandate? Pfft, none of that merits more than a passing remark (“[Brainard] has been a leading voice for lower interest rates at the Fed…”–who hasn’t?!) below the fold. The important thing is we’re going to get a woman!