America’s Bad Dream
This morning’s headlines provided me with another jolting reality check.
For example, there is no country in the world that has benefited more from free trade, but even though we have just had an election, the best defense of free trade I have heard in the last several years comes from no other than the leader of communist China. He gave the type of full- throated defense of open markets that Democratic candidates are only willing to give behind closed doors, speaking to Goldman Sachs Executives, and Republicans have forgotten as they continue to suffer from Trump induced ideological amnesia.
Speaking in Davos, Switzerland yesterday, Chinese President Xi explained “Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend”. Somebody pinch me. Is it true that advocates of free trade must now rely on China to provide the world a much needed dose of common sense?
Closer to home, democrats are continuing to warn President Elect Trump against firing CFPB Director, Richard Cordray. As I explain in this blog for CU Insight (shameless plug), this defense underscores, just how out of control the regulatory state has become. Simply put, the executive powers outlined in the Constitution have been twisted beyond recognition, when elected officials defend the right of unelected Executive Officers to stay in office presumably to promulgate policies inconsistent with the views of the President.
As a very wise President once said “elections have consequences.” President Trump won and he made it quite clear in the election that he was against much of what the CFPB stood for.
Speaking of President Trump, according to CNN, only 40% of Americans approve of Trumps job performance so far, which is quite the accomplishment for Trump considering he hasn’t taken office yet. For a slightly better poll result, WSJ reports 48% of the American public view him in a negative light. That’s right, about half of Americans disapprove of the man they chose to be President. This confirms, yet again, just how much people disliked Hilary Clinton, and how desperate people are to see change in America, no matter what form that change takes.
This last bit of news is by no means strange, just a little odd. Governor Cuomo released his budget proposal last evening. He trampled on tradition yet again; first he turned the State of the State Address in to a traveling road show, then he released his budget overview at 7:30 P.M. before legislators at the Governor’s mansion. I missed the web broadcast. I will be spending part of my day performing an adult version of Where’s Waldo. Specifically, Michael and I will be looking over the budget to see what impact it may have on credit unions. I will tell you what we find.
You may be wondering if any of these issued impact you. For economies to function well they need a stable political system. There are more questions about what America stands for and what policies it will pursue than at any time since the end of WWI. This continued uncertainty is sure to impact all of us. Financial institutions are, after all, Canaries in the Economic Coalmine.
Thanks for listening! Have a nice day!