Couldn't
get worse: guess who has just been hired by the 'anti-establishment'
Donald Trump
Already
since March, we have repeatedly stated through this blog, that Donald
Trump is only a reserve of the establishment. It seems that Donald does everything he
can to justify this estimation, day after day. Forget the cruel
Far-Right members he has already picked. Forget that he met with Mitt
Romney and that he appointed Steven Mnuchin, a former Goldman Sachs
executive as Secretary of Treasury.
From Salon
: “President-elect Donald Trump announced Friday that the new
head of his White House National Economic Council will be another
Goldman Sachs executive. Gary Cohn, who is president and chief
operating officer at Goldman Sachs, joined the Wall Street firm in
1990 and has since served in leadership roles involving bond trading,
according to Reuters. He eventually become co-head of broader
securities at the company and was promoted to co-president in 2006.”
Gary Cohn?
Seriously?
We knew that
Hillary was taking money from Wall Street. We knew the degree of
corruption of the Clintonian dynasty. We knew how much the system is
rigged to serve the interests of the banking mafia, but this is
beyond imagination for a candidate that has been fully promoted as
'anti-establishment'.
Just take a
small taste of the man that has just been hired by the new US
president who will supposedly fight the corrupt elites. From NY
times :
“Even
as the crisis was nearing the flashpoint, banks were searching for
ways to help Greece forestall the day of reckoning. In early November
[2009] — three months before Athens became the epicenter of global
financial anxiety — a team from Goldman Sachs arrived in the
ancient city with a very modern proposition for a government
struggling to pay its bills, according to two people who were briefed
on the meeting. The bankers, led by Goldman’s president,
Gary D. Cohn, held out a financing instrument that would
have pushed debt from Greece’s health care system far into the
future, much as when strapped homeowners take out second mortgages to
pay off their credit cards.”
Guess what
happened to Greece when the country refused this 'proposition':
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While the
negotiations were in process, the stock price of National Bank of
Greece was rising in NY and Athens stock markets. At the same
time, the pressure on Greek bonds and CDS stopped. Eventually,
negotiations were not successful, as the Greek side rejected
Goldman's proposal for good.
Nearly
the next day of this rejection, massive stock selling of the
National Bank of Greece was recorded again in NY stock market, as
well as stocks of the big Greek banks Alpha and Eurobank, and
finally, stocks of the whole Greek banking sector. Prices of the
Greek bonds rapidly dropped while Greek CDS and loan interest were
rising rapidly, bringing Greece closer to default, as it was more
and more difficult to re-fund her debt.
On
December 12, Fitch downgrades Greece further, rating the country
with BBB+, while announced that further downgrades are possible.
S&P with Moodys followed, downgrading Greece during December.
The result was a massive selling of Greek bonds and skyrocketing
of country's lending cost.
This
means that, for at least 10 years there was no problem with
interest, despite that everyone knew the real deficit figure, but
the problem suddenly appeared in 2009 when, "accidentally",
the Greek government rejected Goldman Sachs' proposal for a new
"financial product". Within a short time, rating
agencies downgraded Greece skyrocketing her lending cost.
In other words, as long as Greece
was playing the game of Goldman Sachs, giving economic benefits
inside the Greek territory, there was no problem with lending.
When the new government stopped giving such benefits, probably
because no one knew where would lead in the future, international
banksters-speculators mobilized every mean that they had (rating
agencies, media etc.), in order to show who is the boss and that
there is no way for the country to avoid default, except of
playing with their rules.
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But it's
getting 'better'. While Trump declared war on foreign jobs and earned
votes from his crusade against foreign workers “Goldman has
grown sharply in India under Gary Cohn, [...] As president of the
bank for the past decade, Cohn regularly touted the benefits of
moving jobs from financial centers like New York to lower cost areas
like Bengaluru or Singapore, as well as Salt Lake City and Dallas.”,
as Quartz
reported. No surprise. That's how the neoliberal globalists of the
establishment think and act.
But the
article from Independent
is really spot on:
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Boom and
bust economic theory suggests that, however we regulate banks, we
should expect another financial crisis in the near future. With
Goldman Sachs president and COO as the new national economic
council director under Donald Trump, that theory might materialise
a lot quicker.
Besides
the anti-gay, anti-women, anti-Jewish, anti-Muslim men and women
that are already in the cabinet of hell, Mr Trump has just
appointed one of the most powerful men on Wall Street and a key
architect of the 2008 financial crisis.
Pinning
blame for the world’s financial crisis of 2008 on one man or one
bank would not be fair, but Gary Cohn and his entourage at Goldman
Sachs is a good place to start.
[...]
Mr Trump
said he wanted to "drain the swamp" of Washington DC. So
why did he hire someone who is second in command at one of the
biggest Wall Street banks and who is known for his "abrasive"
management style and his appetite for taking financial risks?
[...]
Cohn has
given numerous speeches to universities and has consistently
lobbied Congress, arguing that although banks are safer now than
pre-2008, they are not better. His logic is that banks being
hampered by regulations means that consumers suffer. Has he
conveniently forgotten how much we suffered without regulations
less than a decade ago? Forget the Dodd-Frank Act and large
capital buffers for banks. The era of less regulation, no
ring-fencing and big risk-taking will be back within a few months.
The
barefaced hypocrisy of Trump’s cabinet seemingly has no limits.
Thanks to an ignorant, narcissistic, self-entitled
president-elect, people all over the world will face the
consequences of a cabinet of yet more white, self-entitled,
self-serving hypocrites who will rub their hands with glee every
time they see a buying opportunity.
The golden rule in capital markets
is that for every seller, there is a buyer on the other end of
that trade, ready to take advantage. But Cohn and his generation
forget that when he takes a risk, the world takes a risk with him.
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Who could
ever imagine: the 'anti-establishment' Trump not only wouldn't do
anything to fight the corrupted establishment, but instead, he would
put it straight inside the White House!
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