By MN Gordon
Promises of Slop
“We have assembled a best-in-class team of policy advisors to drive President Trump’s bold plan for job creation and economic growth.”
– Gary Cohn, Chief Economic Advisor to President Trump
The art and science of spending other people’s money is not an occupation suited to just anyone. Rather, it’s a skill reserved for the professional world-improver. To be successful, one must act with a zealous devotion to uplifting the down and out, no matter the cost.
Donald Trump’s chief economic advisor Gary Cohn – as some observers have noted, he represents one of the factions in the wider circle of economic advisors (there are many advisors who are not members of an official body such as the Council of Economic Advisors, but reportedly have the president’s ear). This is considered problematic, or rather confusing, on the grounds that in some cases the views of these advisors appear to be diametrically opposed. The question is whose views will eventually prevail.
Photo credit: Kena Betancur / AFP / APA
Lawyers, bankers, economists, and government philosophers with fancy resumes, who attended fancy schools. These are the devoted fellows who comprise President Trump’s team of economic policy advisors. Moreover, these are the chosen associates who are charged with bringing Trump’s economic vision to fruition. Are they up to the task?
Only time will tell. But, already, it is quite evident that Trump’s economic policy advisors have their work cut out for them. During Trump’s speech to Congress on Tuesday night, he called for more jobs, more education, more military, and more affordable health insurance.
By all accounts the speech sounded delightful. Promises were made to spread the government’s slop far and wide. Trump pledged offerings that just about anyone and everyone – with the exception of grumpy face Bernie Sanders – could stand behind and applaud.
Indeed, articulating these plans is one thing. Using the force of government to execute them is another. This is where the advisors come in.
When government gets busy with infrastructure spending… this is without a doubt the best cartoon on the topic we have come across so far. We like its focus on the two essential problems of such spending: 1. the projects chosen by bureaucracies will often be unneeded and a self-evident waste of resources, and 2. bureaucracies are necessarily oblivious to the opportunity costs their spending incurs.
From Icarus to Humpty Dumpty
According to Wall Street, President Trump said all the right things. On Wednesday the Dow jumped up over 300 points to over 21,100. And despite Thursday’s pullback, the Dow ended the day above 21,000. What’s going on?
New York Fed President William Dudley says the market’s “animal spirits have been unleashed.” He also says “the case for monetary policy tightening has become a lot more compelling.” The case being, as noted by Dudley, “sturdy” jobs gains, inflation increases, and rising optimism for both consumers and business owners.
Hence, Dudley and the Fed may increase the price of credit at the next FOMC meeting later this month. In fact, …read more
Source:: Acting Man
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