Gordon Gekko: There will be even more doubts when he takes over the government and throws out the controversial definitions. He wouldn’t be Trump if he didn’t manufacture conflicts. It’s inevitable. He has it in his DNA. If you don’t lunge, if there’s no friction, you’re not doing your job thoroughly.
Q: Trump talked about tariffs throughout the campaign, with precise numbers and a lot of insistence. He also did so immediately after the electoral victory. As he went, he added more countries to the list. Thus, he promised a 100% tax on imports from the BRICs if they promoted an initiative that harmed the primacy of the dollar. In recent weeks, however, the issue has taken a backseat. His profile was lowered. Is it the sign of a rethink?
GG: It is one thing to attract attention and gather votes. That’s where exuberant advertisements serve. And not the sensible but lukewarm measures that do not move anyone. Another thing is to govern. In principle, the management promises news. Gone is Robert Lighthizer, who was the lead pundit and was very vocal in the campaign. The reins will be led by Scott Bessent, who has a broader view, and also participated in the campaign, but who was completely silent. Make no mistake, the trade issue was not shelved. It is a central issue. But that is being cooked in the back room.
Q.: Bessent advocated recovering the spirit of Alexander Hamilton, one of the founding fathers, and the first Secretary of the Treasury. For him (in the 18th century), tariffs were a key piece to promote national industry and favor economic independence.
GG: Tariffs are going to be in the foreground. From early. Trump will keep his promise, updated. Don’t worry about that. Bessent wants them sharp to negotiate their reduction later. Stephen Miran, who will go to the Council of Economic Advisers, shares the idea. He was not an active part of the campaign, he wrote a memo favorable to Bessent’s position, and, mind you, he ended up presiding over the Council.
Q: Miran can serve a dual purpose. He can also be an accurate sniper against Powell’s Fed.
GG: And wasn’t Bessent the one who proposed setting up a central bank in the shadows? As a parallel voice of monetary policy.
Q: You are right. There is more than one point of contact.
GG: Bessent later repented. He never mentioned the subject again. As I told you, the campaign has some rules, and government management is governed by others. If politics knows anything, it is carrying its contradictions on its back, without flinching. Incidentally, Trump also put aside his obsession with taking out Powell. The chairman has the ticket, but he will not leave before time.
Q: Hasn’t the same thing happened with tariffs? The Washington Post reports that there is a change of plans. And they will apply to all countries, but only on a selective set of goods and services. Trump denies it. Emphatically. “Fake news,” he bellowed. What do you believe?
GG: It is logical that different variants are studied, now in detail. They will be weighing the pros and cons. That the Trump rally has cooled down will not have been lost on them. How aggressive can the plan be? Biden was leaving a country that had a horizon of falling rates. For someone who comes from the real estate market, it is not a minor fact.
Q: And that horizon, with Trumponomics on the horizon, disappeared.
GG: The Fed, in a three-month blitzkreig, cut its rates a full point and has already warned that it is enough. He retired. Long rates, meanwhile, rise and rise. 110 basis points. They have already touched 4.70%.
Q: And the dollar is firm as a rock.
GG: He only relaxed with the version published by the Post.
Q: Do you think the markets will put a limit on the inaugural Trump?
GG: They will make you rebalance your schedule. Better adjust the mix of initiatives. It has to be bold and aggressive, it is its hallmark. That’s what outbursts are for. He already claimed Justin Trudeau’s head before taking office. Didn’t he say that he was going to apply a 25% tariff if he didn’t contain the flow of migrants? Neither one nor the other happened, much less that Canada is the 51st state, and Trudeau is now history. Just think that Trump won’t want to shoot himself in the foot either.
Q: Much ado about nothing. At least, few nuts in the United States.
GG: Did you talk about mass deportations? It will start with a tremendous, enormous, deliberately cruel show. So that there are no doubts. But who is going to measure them? As happened with the great wall to detain Mexicans. A section of wall is made, it is filmed and goes viral on social networks, and then we see. Labor is scarce. There’s no point in chasing her away. If Trump announces his plans and the ten-year rate shoots up to 5% and the stock market crashes, everything will be uphill for him. You don’t gain anything. Spectacularity does not have to unnerve interest rates. In that sense, wielding the spending chainsaw can be very useful. Above all, to convey the idea that Trump will be able to get his plans through Congress through the reconciliation process. You know, the one that allows its approval with a simple majority in the Senate. If he does not lower spending, he will not be able to convince the hardest Republican wing.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
