2nd July 2026
In 2026, Kevin Warsh steps into the most powerful economic role on earth Federal Reserve Chairman inheriting America's staggering $39 trillion debt.
World-renowned economist Steve Keen, who famously predicted the 2008 global financial crisis, delivers a sobering warning: Warsh is "cut from the same cloth" as every Fed chair before him.
Trained in neoclassical economics a discipline Keen argues is built on fantasies that completely ignore money, banks, and private debt Warsh won't bring the radical change America desperately needs.
Meanwhile, Trump's military escalation in the Strait of Hormuz has triggered a supply shock that conventional economists are misdiagnosing as demand-driven inflation.
By raising interest rates to fight the wrong enemy, the Fed is accelerating bankruptcies, crushing the private sector, and destabilizing the very economy it claims to protect. Keen's verdict? 2026 is the year of chaos a financial crisis born not of market forces, but of human ignorance.
Why did Trump pick Kevin Warsh as the next Federal Reserve Chairman and what happens when Warsh inevitably disappoints him? How could a Strait of Hormuz blockade disrupt global fertilizer, helium, and sulfuric acid supplies and trigger a worldwide food crisis? Why does Steve Keen argue that raising interest rates during a supply shock actually causes more bankruptcies, not less inflation? What is neoclassical economics hiding and how do its "fantasy models" that ignore private debt make every financial crisis worse?
Will Trump turn on his own hand-picked Fed chair the same way he turned on Jerome Powell? What role will the biggest El Niño in history play in the economic collapse of 2026?
In this in-depth economic analysis, top economist Steve Keen breaks down why the new Federal Reserve Chairman Kevin Warsh cannot solve the United States' spiraling $39 trillion debt crisis. As the Iran war escalates and the Strait of Hormuz blockade threatens global oil prices and supply chains, conventional economic policy, driven by flawed neoclassical economics, continues raising interest rates despite clear evidence this is a supply shock, not demand-driven inflation.
Keen warns that Trump's Federal Reserve appointment will fail to prevent the coming global economic crisis, as private debt burdens crush American households and firms. With El Niño's economic impact compounding the destruction of productive capacity, 2026 is shaping up to be a year of unprecedented financial chaos.
00:00 — Kevin Warsh: The New Federal Reserve Chairman
01:15 — Meet Steve Keen: The Economist Who Predicted the 2008 GFC
02:30 — Why 2026 Is "The Year of Chaos"
03:30 — Neoclassical Economics: A Fantasy World That Ignores Money & Debt
04:30 — Why Warsh Is "Cut from the Same Cloth" as Every Fed Chair Before Him
05:30 — Supply Shock vs. Demand Shock: The Fed Is Fighting the Wrong War
06:30 — Strait of Hormuz: Fertilizer, Helium & Sulfuric Acid — The Hidden Supply Chain
07:30 — How Interest Rate Hikes Actually Cause More Bankruptcies
08:30 — Trump Will Turn on Warsh It's Only a Matter of Time
09:30 — 2026: A Financial Crisis Caused Purely by Human Ignorance