Wednesday, January 11, 2017

Trump's Trail of Broken Campaign Promises Favors The Status Quo Rather than Change

Many supported Trump because they believed he'd either prosecute Hillary, drain the swamp called Washington, or better yet, do both. Trump was quick to announce that Hillary won't be prosecuted. Dire hard supports shifted their beliefs that he would drain the swamp as promised. The appointment of Goldman Sachs's top lawyer to the council of economic advisors, however, suggests nothing will change.

The public's patience with Trump will fade as the global economy weakens and currencies move could be viewed as orchestrated trade events against the United States. I emphasis could because there's a small chance his council of economic advisors could explain the movement in currencies as the intentions of the invisible hand rather than indirect policy moves. The appointment of Gary Cohn suggests that the council is likely more interested in protecting the bankers than seeking economic truths. This guarantees a few things: (1) bankers will be protected - the swamp of influence will not be drained, (2) the public will be the bagholders of the next crisis, and (3) America will be made Great Again only after a crisis shakes the public's confidence that it will happen in their lifetime. This is the lesson from history.

Headline: Gary Cohn Is Leaving Goldman Sachs To Chair Donald Trump's National Economic Council

Goldman Sachs was the stick President-elect Donald Trump used to bludgeon political foes like Ted Cruz and Hillary Clinton on the campaign trail and win the White House. Now that he has been elected, Trump is leaning on former employees of the investment bank to play a major role in crafting his economic agenda.

On Monday, Trump announced Gary Cohn will be joining his cabinet as director of the National Economic Council and an assistant to the President for economic policy. Cohn's appointment means there will be a trifecta of former Goldmanites in the Trump administration. Former Goldman partner and mortgage trader Steven Mnuchin has been named Secretary of Treasury by Trump. Steve Bannon, a former Goldman banker, is his chief strategist.



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