Tag Archives: Gary Cohn

Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs

President Donald Trump usually do the things he promise to do. He had long talked about tariffs, and earlier this week he said; “I have no choice.” His economic advisor Gary Cohn didn`t like that and announced retirement.

Mr Trump shocked the market last week with his decision to impose 25 percent tariff on steel imports and 10 percent tariff on aluminium. Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs.

 

 

Gary Cohn is a former Goldman Sachs president and free trade advocate. He is the man who helped Mr Trump and his team at the White House to deliver historic tax cuts and reforms, but he clashed with Trump`s protectionist advisors on the issue of tariffs.

White House officially said that President Donald Trump will announce more details on the tariff proposal on Thursday this week.

In addition, there could be conversation this week around more trade actions.

European Union said they will target $3,5 billion of goods like motorcycles, T-shirts, whisky and jeans imported from the United States. European Commission President Jean-Claude Juncker said the trade bloc would “not sit idly” if Trump goes ahead with his tariffs.

President Trump warned the US would apply a tax on European cars if the bloc wants to increase tariffs on American companies. A statement the European automakers didn`t like at all.

The Volksvagen emissions scandal (Emissionsgate/dieselgate) began in September 2015, when the United States Environmental Protection Agency issued a notice of violation of the Clean Air Act to German automakers Volkswagen Group.

Volkswagen pleaded guilty to conspiracy and obstruction of justice charges in a brazen scheme to get around US pollution rules on nearly 600,000 diesel vehicles by using software to suppress emissions of nitrogen oxide during tests.

Assistant US attorney John Neal said it was a “calculated offence,” not a «monetary lapse of judgement».

In my recent articles, I have talked about Europe`s treatment of American companies. A bad treatment that has been going on for decades.

In 2001, the European Commission accused Microsoft of having illegally extended its dominans in operating systems for PC`s into adjacent markets, for tying Windows to programs that play music and videos.

The European Commission said Microsoft was too dominant in the market in 2001. They said the same about Google in 2016, claiming that Google was too dominant in the internet search market. Last year, they attacked the biggest company in the world: Apple.

Nucors CEO told CNBC last week that the presidents proposal was about treating Europe “exactly as they treat us.” So, who is the real elephant in the room?

President Trump has many times said that Europe are treating USA bad, and this has been going on for a long time now. It is clear to see that there has been a silent war going on, but Mr Trump is the one to do something with that.

The war between Europe and USA is not a secret anymore. This trade war is a zero sum game, and there is no winner. This is how the market was before the start of World War II. Now, the history seems to repeat itself. This can be very ugly.

In 2015, Russia marked 70 years since the victory over the Nazis with a spectacular parade in Moscow. Many Western leaders missed the event. USA is the one who stopped World War II.
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">Everybody in Greece are talking about Nazi-Europe. They know the history from WWII. Nazi Germany invaded Greece to assist its ally, Fascist Italy, which had been at war with Greece (Greco-Italien War) for about a year. </span></span></span></p>
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">The occupation ruined Greek economy. The Nazi occupation led to rampant inflation, and 200,000,000-drachma banknote were issued in 1944. They can
t do the same today, because they do not have its own currency. They have Euro.

What the Nazi`s did to Greece is a long list of crimes against humanity, and the truth cannot be hidden.

The Nazi`s burned down every house and dynamited the church in retaliation, but the Greeks were the first Europeans who won a victory against fascism.

The biggest party in Italy, The Five Star Movement, is Euroskeptic. So, are the Brexit voters. EU need to change its strategy very fast, because EU is very important but not the ugly part of it.

European Commisssion doubts justification for Trump tariffs. It is done under section 232, which refers to National security. European Commission cannot see how the allies is a threath to International Security in the United States.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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President Donald Trump is nearing a decision on whom to pick to lead the Federal Reserve

Fed Chair Janet Yellen`s job is coming to an end. She took over the job from Ben Bernanke who started to «print» money. Four years is over and President Donald Trump have a few but strong candidates on his table.

President Donald Trump had a meeting with Standford University economist John Taylor and according to a White House official, Mr Trump is nearing a decision on whom to pick to lead the Federal Reserve.

 

 

John Taylor is one of the candidates and Janet Yellen is the other one. Other candidates are Fed governor Kevin Warsh who is on Trumps shortlist. Current governor Jerome Powell and Trumps economic adviser Gary Cohn is also on the list.

Mr Trump has scheduled a meeting with Federal Reserve Chairwoman Janet Yellen on Thursday.

Ms Yellen`s four-year term as chairwoman expires on February next year and Mr Trump will meet her to discuss the possibility of nominating her for a second term as central-bank chief. Mr Trump is considering offering Yellen the chance to stay in the job, but will announce his nominee before leaving for a trip to Asia next month on November 3.

John Taylor said he agree with the Fed`s strategy to remove economic stimulus, and the Fed policy rate is now set at 1 percent to 1,25 percent. What the right thing to do about the rate is a matter of debate among economists, also among Taylor and his camp.

John Taylor is a Ph.D economist with a strong expertise in monetary policy and institutional leadership which is key attributes for the Fed Chair, and this is probably why Taylor is one of the biggest favorite for Mr Trump.

Donald Trump is planning to cut the taxes and monetary policy is therefore critical and important.

Former Fed Chair Ben Bernanke started the QE program after the financial crisis in 2008, and Fed governor Warsh was against further monetary stimulus in 2010 with unemployment above 9 percent and inflation decelerating.

Ben Bernanke is an expert on the stock market crash in 1929, and called Warch`s political and markets savvy «invaluable,» according to Bloomberg.

Central banks are often independent from other policy makers. This is the case with the Federal Reserve and Congress, reflecting the separation of monetary policy from fiscal policy and the latter refers to taxes and government borrowing and spending.

The Federal Reserve has what is commonly referred to as a «dual mandate»:

  • to achieve maximum employment (around 5 percent unemployment), and
  • stable prices (2-3 percent inflation).

In addition, it aims to keep long-term interest rates relatively low, and since 2009 has served as a bank regulator. Its core role is to be the lender of last resort, providing banks with liquidity in order to prevent the bank failure and panics.

The central bank of the United States is the Federal Reserve System, which Congress established with the 1913 Federal Reserve Act.

Central banks are inherently non-market-based or even anticompetitive institutions. Many central banks, including the Fed, are not government agencies, and so are often touted as being politically independent.

Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.

There are two types of monetary policy; expansionary and contractionary.

Expansionary monetary policy increases the money supply in order to lower unemployment, boost private-sector borrowing and consumer spending, and stimulate economic growth.

Contractionary monetary policy slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation, while sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.

An example would be the Fedral Reserves intervention in the early 1980s: in order to curb inflation of nearly 15 percent , the Fed raised its benchmark interest rate to 20 percent.

This hike resulted in a recession, but did keep spiraling inflation in check.

Mr Trump is planning to cut taxes and build more and better highways, and this is fiscal policy, which is trying to control inflation, stabilize business cycles and to improve unemployment rate. Sooner or later, we all know that the recession will come.

The tools will then be fiscal policy and the government will start to lower tax rates to try to fuel economic growth. If people are paying less in taxes, they have more money to spend or invest, and increased consumer spending or investment could improve economic growth.

On the other side; too much spending could increase inflation.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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