Goldman Sachs’ chief economist pessimistic about US economy under control of its own bankers

Goldman Sachs has said it is pessimistic about Donald Trump’s ability to boost the economy. And the Wall Street mega bank should know just how much the economy is set to deteriorate. Its alumni are set to fill most of the key Treasury and economic positions, and are shaping policies for a downturn, as this blog has argued.

Goldman Sachs bankers from Robert Rubin and Henry Paulson have occupied the key Treasury post for decades, and with disastrous results for the real economy in the USA.

In their latest report, Goldman Sachs says that Trump’s economy will end up in a worse state than the current state of depression and recession in the USA as predicted by this blog if Treasury pick Steven Mnuchin and the Fed carry out their plans of interest rate hikes on Fed Funds as well as stopping quantitative easing . This at a time when gigantic amounts of Treasury bonds are being dumped on the market by China and Japan and there is not much demand, guaranteeing the costs of refinancing will soar for US tax payers.

From Bloomberg

Add Goldman Sachs Group Inc.’s chief economist to the list of those concerned that President Donald Trump won’t jumpstart economic growth.

Indeed, when you put Goldman’s assumptions about Trump’s plans into the Federal Reserve’s economic forecasting model, the conclusion is that the policies will actually be a negative for growth relative to the status quo by the end of his term.

As the chart shows, the underperformance relative to the baseline forecast would only get larger from there as the positive effects of fiscal stimulus fade while the limits on labor force growth remain.

The investment bank’s increasing pessimism is striking considering (READ, BECAUSE OF)the plethora of Goldman alumni in the president’s inner circle, including Treasury Secretary nominee Steven Mnuchin, National Economic Council Chief Gary Cohn and Dina Powell, who is working on economic growth issues and empowering women.

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