Trump's New Treasury Secretary Is a HOME RUN

Trump's New Treasury Secretary Is a HOME RUN. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
So we got ourselves a pretty impressive Treasury secretary. You
want to call him the anti Yellen, call him the
anti Yellen. Wise of the anti Yellen. Yellen Well never
had a real job in her life. When I'm saying
real job, all I know teaching is a real job.

(00:37):
She worked in some universities. She never worked in the
private sector. Janny Ellen's always been someone that is hovered
around academia and politics. Send the Fedder Reserve and Robin
Elbows with the Washington d C. Types. She looked up,

(01:01):
actually looked up Janet Yellen's academic contributions. What she actually did,
because she's an economist, Ryan is supposed to do studies, studies.
Hold on one second, here it is here. It is
Janet Yellen's academic studies. One of them was basically a

(01:25):
study that determined that if you pay kids kids rather
than paying the minimum wage, if you pay them a
little bit above the prevailing wage, they will actually be
more productive. Now again, she actually got paid, She got
research dollars to actually conduct this research. Any person with

(01:50):
half a brain that runs a business understands that concept completely.
You want to know what other study was. It had
to do with the fact that why there's so many
out of web but locked births in the country, why
has that changed? And gee, they came up with the
idea that it was technology, you know, type of technology,

(02:13):
more contraception and greater access to abortion. So that's Janet
Yellen's big contributions to economics and master the obvious crap.
But anyway, let's talk a little about Scott sent here.

Speaker 1 (02:29):
He is.

Speaker 2 (02:31):
He's a student of economic history, and one of the
things that he said that struck me is he adheres
and believes to the same type of risk management philosophy
that I have. He is an adherent to Nassam Nicholas

(02:53):
Talibs ideas when it comes to risk management and and
understanding that you know, if you know, things look like
they're all wonderful and great, and a trend is a
certain way and this is the way it was in
the past, it means absolutely nothing. Black Swans, things can

(03:17):
happen out of nowhere, and he's very very good when
it comes to risk management. Good I think as the
understatement that's out there, Talub's philosophy is quite frankly, I
don't know of any any better, and we adhere to them,
and obviously Scott does as well. He feels right now

(03:41):
that he wants to wants to step out. He wants
to grow, help grow the economy. He understands that budget
deficits are completely nonsensical. Our indebtedness is nonsensical. And one
of the ways that we can we can do this
is we can grow our way out of it, and

(04:01):
we can also cut costs, he said his first interview
following his selection. He wants to deliver on Trump's tax
cut pledges, even eliminating tax on tips, making the twenty
seventeen tax cuts, permanent social security benefits, no more taxes,

(04:23):
and overtime pet He also wants to talked about tariffs.
We'll get into that in a bit, but he also
talks about cutting spending. He also wants to maintain the
status of the US dollar as a world's reserve currency.
Actually foreign policy is going to help with that too.
We get out of this you know, constant sanctions, wars,

(04:45):
all this other stuff that'll be helpful. Also, his policy
calls three three, three and three arrows, basically including cutting
the budget deficit it to three percent of GDP. I
must do this by twenty twenty eight, spurring GDB growth

(05:07):
of three percent through deregulation and producing additional three million
barrels of oil or equivalent a day. Again getting government
spending out under control. He wants to basically freeze non
defense discretionary spending. Wants to get rid of all the

(05:29):
nonsensical subsidies for electric vehicles and other parts the Inflation
Reduction Act which are ridiculous. And again that's a start. Tariffs.
He likened tariffs to a loaded gun, tariff gun. If
you will, you want to keep the tariff gun loaded,

(05:50):
but you don't want to use it. And if you
do use it, you want to use it sparingly. Again,
even Howard Lutnik, who was also for TI Treasury Secretary,
talked about this. And now you know, take Donald Trump
seriously but not literally when it comes to tariffs. Uh,
there was a great debate this past year. It was

(06:11):
Steven Moore, No, who was it with I'm going to
forget it was at the whole form, and that was
Art Laugher, Art Laugher, and it was someone else on
the libertarian front, and Art Laugher made the same point,
says Listen. Trump was threatening tariffs. He's not going to
put all of these things through. He gave a speech

(06:34):
last month. It was titled make the International Economics System
Great Again, and he argued for increasing tariffs on national
security grounds and to induce other countries to lower trade
barriers with the United States. Again, something we've talked about
for some time. Trade deals should be on one page.
That's it. I don't know. I never understood why we

(06:56):
need thousands and thousands of pages in trade deals. I
won't put tariffs on your stuff, you don't put tariffs
on mine. I won't subsidize certain industries, you won't subsidize yours.
Let's go to work. Really that simple, not that difficult,
not that complicated. Quite frankly, he criticized trade policy with China,

(07:17):
that says again enriching Wall Street, weakening domestic industrial might,
and failing to lead to Chinese economic reform. Called for
tariffs resemble a Treasury Department sanctions program as a tool
to promote US interests abroad, and he actually was open
to removing tariffs from countries and undertake structural reforms and

(07:40):
voice support for a fair trade block for allies with
common security interests and reciprocal approaches to tariffs. Again, I
think that's great. I have no problem with that at all.
But again, it has to make sense. None of these
cloak and dagger type stuff agreements that you can't let
anybody look at they sit in a room. Remember the

(08:01):
TPP deal. You could even take a picture of it.
You couldn't photo copy it, you couldn't take notes when
you wanted to take a look at the deal. It's
a damn trade deal. For crying out loud, why not anyway? Again,
free trade is desirable. I again, I like his approach

(08:21):
to risk, pointing that out in the fact, you do
not let risk lead to ruin. Again, tackling tackling our
national debt and growing the economy is going to boom
be a boom draw it is if we can get
this done. I've talked about wasted talent often. Here we're

(08:43):
wasting it. We're wasting it because guess we're flushing money
down the toilet in ridiculous interest payments and it makes
no sense. It really doesn't. And it's something that we
can handle if you can work hand in hand with
vi veck in Elon. These are all ifs throwing them
out there. Okay, I'm being optimistic at this point in time.

(09:07):
Get these things done. I think many of us have
smile on our face moving forward. Watch Dog on Wall
Street dot com