Kan official Statement, no Statement from the future President, the Chosen one announced his nomination in itself: The former Goldman Sachs Banker Steven Mnuchin announced at the television station CNBC on Wednesday morning that he was provided by Donald Trump for the office of the Minister of Finance. And the 53-Year-old used the appearance to announce the same financial political program for the next four years. He plans nothing less than the biggest upheaval in decades.
“We can have three to four percent of sustainable economic growth,” he said. To achieve this goal – in this year, the U.S. economy adds only about 1.5 percent, a corporate tax reform Central. “It will be the biggest Reform since Ronald Reagan,” says Mnuchin. Specifically, the companies are to be reduced, taxes from the current 35 percent to 15 percent. This will create many new jobs, and this would increase the revenue from the income taxes.
in Addition, he plans, however, significant tax cuts for middle income. Nevertheless, he is confident that the bill rises. “Of course it works,” he said. He relies on the so-called “dynamic scoring” – the theory that lower taxes will lead to a different behavior of the people, what drives the economy and ultimately the tax revenue increases.
similarly, had justified US President Ronald Reagan at the beginning of the 80s, his drastic tax cuts. The concept, however, was risen never, since that time, the debt of the USA increased continuously, and in increasingly larger jumps.
Mnuchin heard of Wall Street
But Mnuchin is planning even more. So he wants to loosen the regulation of the financial sector. Since the financial crisis, various new rules were introduced, which should serve to tame the industry and to reduce the risks. Specifically, Mnuchin spoke to the so-called Volcker rule and the Dodd-Frank act. Chief Paul Volcker, who developed the former – named after the former Central Bank prohibits commercial banks to Speculate in the financial markets on its own account. Also, according to the initiators named the Dodd-Frank act intensified, especially the supervision of the financial sector. This, according to Mnuchin, lead, however, that banks are lending less.
However, this was exactly also an objective of the reforms. Since the financial crisis arose mainly because the banks of a rule had to give the right credit Bonanza. By Mnuchin want to loosen these restrictions again, after he gives in to the pressure from the financial industry that earned in the past years, significantly less and the Mnuchin himself heard over the years. Because he is a part of that Establishment Wall Street, the Trump was beaten in his election campaign with contempt. “Hillary will reform Wall Street, never,” he had written at the time, for example, on Twitter, “have you heard of Wall Street.” For Mnuchin, the is however all.
He was 17 years at Goldman Sachs, the Symbol of the Wall Street-capitalism par excellence, and not only that. His father Robert was a Partner at the investment Bank, and Steven’s brother, Alan, was also an investment banker, first at Bear Stearns, then Lehman Brothers – both houses went under in the financial crisis. The family is almost one with the Wall Street.
According to the “wall street Journal” and left Steven in 2002, at the age of 39 years, Goldman Sachs, with assets of approximately $ 46 million. He began to, first with hedge Fund managers to do together. A little later he hired the Super-speculator George Soros and founded by two former Goldman Sachs colleagues in the investment company Dune Capital. There, he financed initially mainly Hollywood movies. At the height of the financial crisis, Dune took over the previous bankrupt mortgage lenders, Indymac, along with George Soros and two other masters-the speculators, the hedge Fund managers John Paulson and Chris Flowers.
For years with Trump to a friend
Dune named Indymac in OneWest and made huge profits. This brought Mnuchin and his partners in the criticism, since you cancelled on the right rowdy type of mortgage and should be enforced. Protesters moved in at the height of the Occupy Wall Street movement also in front of his 25-million-Dollar estate in Los Angeles. Mnuchin was, later on, in connection with the swindler Bernie Madoff into the twilight. Victim accused him to have shortly before the Expose of the fraud of 3.2 million dollars from Madoff’s Fund and is deducted – money really belonged to in the to distribution the insolvency mass.
What of this is true, who is right, is not always exactly clear. It is certain, however, that Mnuchin, a shrewd financial professional, the feeling on Wall Street like a fish in water and has a large network. This is likely to be an important reason why Trump trusted him with the office of the Minister of Finance, because, ultimately, wants and the future President needs the support of the bankers, even if he sounded in the campaign.
But Mnuchin connects with Trump. They are already friends for years, even if you have, in the meantime, argued in business matters even to court. But possibly the two also have similar experiences with the Public welded together. Because Mnuchins fiancée, Louise Linton, published at the beginning of the year, the book “Congo’s Shadow” in self-publishing.
in it she told of her experiences as a young girl in Africa – and was criticised for it heavily. It was a kind of “jungle story” with the attitude of a superior white master race, were the Levy. She withdrew the book. Like Trump Mnuchin could feel so, and his fiancée treated unfairly.
No fear of a price bubble
But revenge does not seem to be Mnuchins most important driving force. Rather, he seems to have a clear picture of the financial world as a pivotal point for the success of the American economy. Also, the US Central Bank is clearly a Central player. And their Boss, Janet Yellen, he praised in the Interview with CNBC specifically. “She has done a good job,” he said.
This is amazing because Trump had accused before, to keep interest rates artificially low, to prevent the Bursting of a price bubble on Wall Street, and threatened not to nominate you for another term. This Mnuchin did not want to comment now. But he said that interest rates will remain for some more years is very low. Apparently, he has no fear of a price bubble.
Somehow, it looks like the return of those forces that once were the Basis for the Almost-laid-collapse of the world financial system nearly ten years ago. Whether history is repeated or this time a better finish, it will show.
For both variants there is, however, good metaphors. Because among the Hollywood strip, the funded Mnuchin at the time, on the one hand, “The Accountant” (accountant) with Ben Affleck. But on the other hand, the movie “Suicide Squad” that ran this summer in the cinemas, to be English: suicide squad. Ask yourself, which of the two films will ultimately be as an Omen for Mnuchins time as Minister of Finance.