In several of my recent posts, I have described various concerns that I have, with how Donald Trump might effect our National Economy, among many other things. And so far, for a President-Elect who has neither an in-depth understanding of the various policy issues, nor the curiosity to learn them in detail, Trump appears to be in over his head. Rather than appoint experienced advisors to Cabinet Posts and other key positions, at least so far, he has nominated inexperienced ideologues, whose only redeeming value is that they share his often ignorant points of view.
Right now, 19 days following the Presidential Election, Trump has not nominated any of the Big Three—State, Defense or Treasury Secretaries. Rumor has it that anyone with valid credentials is afraid to go near him. Perhaps that’s the cause for delay! But, I certainly wouldn’t mind even a former deputy to a Colin Powell, Robert Gates or Henry Paulson; but, so far, we are still wondering who lurks behind Door #3!
My concern is because the Financial System touches literally every part of the Government: employees throughout it need to be paid and receive benefits; an adequate amount of supplies need to be maintained; buildings and equipment should be updated and maintained; there is research to fund; teachers must be constantly focused on teaching the job skills of the future, etc. If any of the other departments closed, the nation would probably move backward, but it would still be moving. The Economy, however, is the Nation’s lifeblood, and it flows through the Financial System.
In September of 2008, President George W. Bush advised the Nation that we were looking down into a “Financial Abyss”, and that he had directed Treasury Secretary Henry Paulson to immediately transfer tens of billions of dollars to the eleven largest banks. That was just weeks before the Presidential Election and, shortly afterward, in-coming President Barack Obama announced that Timothy Geithner, President of the Federal Reserve Bank of New York would replace Paulson as Treasury Secretary, and (then) Chairman Bernanke would remain at the Fed, as usual. The transition went quite smoothly.
Soon after President Obama took office in January, he asked Congress to fund a large Stimulus Package—to pump money into rebuilding our Nation’s Infrastructure, thus creating jobs and jump starting the economy. Although it was approved, Congress significantly reduced the amount funded.
That Financial Stimulus, did initiate a Recovery; however, a majority of economists have suggested that it would have been more robust, if it had been fully funded. Trump’s recently announced “Infrastructure” Plan, perhaps which might be the harbinger of things to come, is literally an outpouring scam!
Donald Trump has already vowed to repeal the Dodd-Frank Act, which was intended to prevent a financial crisis, similar to one in 2008. That promise, plus the protectionist tariffs, which he also intends to pursue, could very well lead the Nation back to the edge of that Abyss. That’s exactly where his ignorant ideological “leadership” could take us.
Given Donald Trump’s apparent preference for inexperienced loyalists, who share his views, I am most definitely concerned about Who he will nominate as Treasury Secretary. Will he provide the that Secretary with sufficient leeway to join with current Chairman Janet Yellen, at the Fed, to keep America on the right path of Financial Stability. Trump sorely needs a Secretary who will stand up to him, offer opposing views and be capable of managing the large bureaucracy. I hope that Donald Trump does the right thing?