Friday, December 2, 2016

Trump Met With Gold Advocate, But Picks Wall Street Insider

As things move along with the new Administration, we get a little more insight into what Donald Trump might be thinking. It is becoming pretty clear that while some of his campaign promises carry priority, others may not. In this case Business Insider reported that Trump met with a potential Treasury Secretary nominee who has advocated abolishing the Federal Reserve and returning to a gold standard in the past. 

However, Trump instead chose a Wall Street Insider not likely to be interested in either of those ideas. This suggests that not much major change is likely in terms of monetary system change and it is more likely Trump prefers to simply tweak the existing system. Other cabinet picks also are trending towards traditional insider types (Wilbur Ross and Elaine Chao). Below are excerpts from the Business Insider article.


"As President-elect's Donald Trump's transition rolls on, more and more attention is being paid to possible selections for a variety of high-ranking positions and meetings that might help decide these appointments.
On Monday, Trump will meet with John Allison, the former CEO of the bank BB&T and of the libertarian think tank the Cato Institute.
There have been reports that Allison is being considered for Treasury secretary.
Trump's has on the campaign trail questioned the future of the Federal Reserve's political independence, but Allison takes that rhetoric a step further. While running the the Cato Institute, Allison wrote a paper in support of abolishing the Fed."
. . . .
"Allison also suggested that the government's practice of insuring bank deposits up to $250,000 should be abolished and the US should go back to a banking system backed by "a market standard such as gold."
. . . .
"It is unclear if any of Allison's policy views will ultimately become a part of Trump's plan, but given the unconventional nature of his ideas, the meeting is notable."
My added comments: Perhaps the last sentence is the most significant part of this article. The fact that this meeting took place means Trump is aware of unconventional policies that would indeed be major monetary system change if adopted. It does not appear he intends to move in that direction, but it does raise an interesting question as to what he would do if the current system were to fail sometime during his term.

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