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  — 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':
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.
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:
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.
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!