Nel's New Day

December 22, 2016

Trump’s Cabinet: Follow the Money

Remember when Donald Trump (DT) accused of Hillary Clinton being owned by Wall Street? When he told his audiences that he would stop control by special interests? The election is over, he’s won, and he can do whatever he wants. The populists who voted for him can now watch him fill his Cabinet with “gazillionaires,” and the money guys are all from Wall Street—mostly from the failed Goldman Sachs, the “architect” of George W. Bush’s recession. Goldman Sachs is taking over the White House with political czar Steve Bannon, transition advisor Anthony Scarmucci, Treasury Secretary Steve Mnuchin, and Gary Cohn.

Running against Ted Cruz, DT said, “I know the guys at Goldman Sachs. They have total, total control over (Cruz). Just like they have total control over Hillary Clinton.” A DT campaign ad showed images of Goldman Sachs CEO Lloyd Blankfein, and the narrator calls about “a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth and put that money into the pockets of a handful of large corporations and political entities.” As Sarah Palin said, DT is now surrounding himself with “crony capitalists,” whose goals are greater income inequality, poverty, offshoring, and—in the case of Ben Carson—homelessness.

Con man DT used his voters for marks so he can give the government to the top 0.01 percent, people born into wealth and privilege.

steve-mnuchinSteve Mnuchin’s self-serving policy priorities include more leniency for hedge funds through financial deregulation, greater tax cuts for the wealthiest people though tax reform, and reviews of trade agreements. He has no support for reinstating the Glass-Steagall Act of 1933, separating commercial banks from speculative investment banks, after the law’s repeal in the 1990s led to the Great Recession of George W. Bush. The nominee for Secretary of Treasury was known for his “foreclosure machine” specialized in dispossessing the elderly and people of color, including a 90-year-old woman over a 27-cent error.

Mnuchin’s company, OneWest, foreclosed on 36,000 homes using robo-signing, a process of employees’ signing foreclosure documents without reviewing them. After the bank became mired in lawsuits, Mnuchin sold it for $3.4 billion in August 2015.  He made another $50 million by resigning from a media company two months before it filed for bankruptcy and then getting preferential payouts. Another $3.2 million came from the Bernie Madoff Ponzi scheme; he avoided repaying victims because his lawyers convinced a judge that too much time had passed before he got caught.

Steve Mnuchin was chief fundraiser for DT, raising millions of dollars for his campaign.

Goldman Sachs COO Gary Cohn talks on the phone as he waits for the start of a meeting with President-elect Donald Trump at Trump Tower, Tuesday, Nov. 29, 2016, in New York. (AP Photo/Evan Vucci)

 (AP Photo/Evan Vucci)

Gary Cohn, Goldman Sachs president/COO and key architect of the 2008 financial crisis, has been named to head the National Economic Council which advises the president on economic policy. As the U.S. economy began to crash from mis-selling of banks’ risky assets and the excessive distribution of sub-prime mortgages leading to massive foreclosures, banks crashed because of consumer defaults. Cohn’s Goldman Sachs lost billions of dollars during the crisis that President Obama had to clean up, and the residential mortgage business, expanded by Gary Cohn, lost $1.2 billion of those losses. He apologized to Congress in 2010 for bad planning, but he personally earned over $60 million, not including shares, stock options, etc., between 2012 and 2015. DT has openly supported the housing crisis because he made money picking over the wreckage. Cohn laments the regulations created since 2008; this is his chance to give DT a gift of huge profits in a housing crisis that he could cause—again. Cohn’s position doesn’t require Congressional confirmation.

wilbur-rossWilbur Ross, another billionaire private equity investor, is DT’s nominee for Secretary of Commerce. He opposes regulations for businesses although 12 miners lost their lives in his coal mine after his company ignored repeated federal safety citations. When DT called his administration “the last shot for the miners,” he may have meant that literally.

Known as “the king of bankruptcy,” Ross specializes in flipping bankrupt companies for profit and selling them to overseas investors, often offshoring jobs and factories. After he purchased these companies, he moved $6.4 billion of their employee pension benefits to the rescue fund of the government’s Pension Benefit Guaranty Corporation so he could make company financials look better. He made $267 million for his involvement in the steel industry during the early 2000s; retired steelworkers lost their pensions and health care. In 2010, the China Investment Corporation, one of the country’s state-owned enterprises, put $500 million in Ross’ private equity fund. Ross’ part in foreclosures came from buying the second-largest servicer of subprime loans in the United States, American Home Mortgage Servicing.

mike-mulvaneyRep. Mick Mulvaney (SC), nominated as Secretary for the Office of Management and Budget, may be one of the scariest picks—and that’s saying a great deal! As the White House budget chief, the man who came to the House in the Tea Party wave of 2010 and helped create their Freedom Caucus, claims that the new administration will “restore budgetary and fiscal sanity back in Washington.”

Mulvaney’s definition of “sanity” is debatable. He helped lead the charge to close down the government in October 2013 and celebrated the event as “good policy.” Two years earlier, he championed the conservatives’ goal to push the nation into default during the debt-ceiling extortion. He argues that default and undermining the full faith and credit of the nation aren’t a problem. The next debt-ceiling crisis is March 2017, less than two months after DT’s inauguration and the same time as the budget deadline, postponed from last month. Congressional members seem to equate the two, but they are opposite: budgets are future spending whereas debts (including the raising the ceiling) means making payments on loans, not new spending. Mulvaney may not have read Section 4 of the 14th Amendment of the U.S. Constitution that reads that the “validity of the public debt of the United States . . . shall not be questioned.”

A strong supporter of a constitutional amendment that would force the federal government to maintain a balanced budget, Mulvaney’s priorities are defense first, followed by cuts in Social Security and Medicare. Mulvaney doesn’t believe in spending money for infrastructure or scientific research. That may be why DT has now said that he won’t enact his big plans for massive infrastructure projects “for a few years.” His excuse is that he didn’t know that the GOP is a party of small government.

In budget negotiations, Mulvaney makes the assumption that responsible Democrats want to protect people, and he’s doesn’t care about people. He said:

“I’ll play chicken with you every time. You think I am crazy, and I know you are not.”

His preference for currency is the bitcoin, digital currency easily erased and stolen, that is “not manipulatable by any government.” In a speech to the John Birch Society, he attacked the Federal Reserve because its actions have “effectively devalued the dollar” and “choke[d] off economic growth.” A reminder of the craziness of the John Birch Society is its claim that President Dwight Eisenhower was “a conscious agent of the communist conspiracy.” The Society believes that the Federal Reserve should be abolished because it’s unconstitutional and that “the only constitutional money is gold and silver coin.” For almost half a century, Republicans avoided the John Birch Society. Now it’s moving into the White House with the white supremacists.

ben-carsonBen Carson, nominated for Secretary of the Department of Housing and Urban Development, follows the policy of wiping out the mission of the agency he might head. Despite HUD’s goal of “affirmatively furthering fair housing” from the 1968 Fair Housing Act, Carson said that “government-engineered attempts to legislate racial equality create consequences that often make matters worse.” He compared the regulations to Communism and says that “poverty is a choice.” Public housing could be made unavailable to LGBTQ people because of Carson’s hatred for them. He blamed “mass killings” on same-gender marriage and compared same-gender couples to child molesters and people who practice bestiality.

Unlike his predecessors, Carson has no experience in housing or urban development and will resegregate neighborhoods. Despite proof that minorities are charged higher fees and rates than white borrowers with the same qualifications, Carson wants to weaken the Fair Housing Act because he considers it as “socialist experiments.” Carson’s confirmation would be a great financial boon to banks. What Carson could do to poor people with the help of a GOP Congress: put unfair requirements on assistance recipients; privatize public housing; abandon Obama’s anti-discrimination and housing integration efforts; slash spending; drop climate resiliency efforts; and neglect smart growth.

Businessman and investor Carl Icahn at a news conference where Lyft announced a partnership with the Chinese ride-hailing company Didi Kuaidi, in New York, Sept. 16, 2015. The partnership with China?s preeminent ride-hailing company will allow San-Francisco-based Lyft to operate in China for the first time. (Stephen Yang/The New York Times)

(Stephen Yang/The New York Times)

Carl Icahn, DT’s latest billionaire, will be acting in an “individual” capacity as “Special Advisor to the President on Regulatory Reform” instead of as a federal employee. That means Icahn has no reporting or confirmation requirements, answering only to Trump, and can keep all his money, achieving an unheard-of level of conflict of interest. Worth $20 billion, he can enhance his personal investments by picking the next chair for the Securities and Exchange Commission and help his oil refinery company by picking the next EPA administrator. Icahn has never seen a regulation that he didn’t want to get rid of, but he says that he has no conflict of interest because he won’t be “making any policy.”

DT’s picks for the Cabinet have already made billions by the loose regulation of the federal government. If confirmed, they will be able to enact more deregulation and enjoy far more private gain. After all, the GOP is a part of small government. Only the bottom 99.99 of people in the nation—60+ million of them DT voters—will suffer.

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1 Comment »

  1. Dear Nel,

    And look who’s draining the swamp.

    Happy Holidays, Gronda

    Like

    Comment by Gronda Morin — December 24, 2016 @ 4:32 PM | Reply


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