Linguistic mastermind and famed intellectual Noam Chomsky just predicted that the Trump administration will cause another financial crash in the American economy.
“As soon as Trump was elected, and since, stock values in financial institutions escalated to the sky,” Chomsky told Alternet. Wall street investors are “delighted he’s going to eliminate regulations, let them make more profit. Of course, it’ll lead to another crash, but that’s somebody else’s problem. The taxpayers will take care of that.”
Stocks in such industries as pharmaceuticals, banks, and prisons have soared since Trump’s election in anticipation of his promises to take a wrecking ball to federal regulations and taxes for the wealthy. Trump has already reversed the Obama-era Fiduciary Rule, which would have required financial advisers to put the best interests of their clients first, and has ordered a review of the Dodd-Frank Act, a regulation put into place to prevent another financial crisis like the one that hit America in 2007-08.
Trump’s long-awaited healthcare bill will also cut $600 billion worth of taxes from the wealthiest 0.1% of Americans. He’s pledged to slash the corporation tax rate from 35% to 15%.
“We’re going to… lower the overall tax burden on American businesses big-league,” Trump said at a meeting with airline executives recently. “That’s coming along very well. We’re way ahead of schedule, I believe.”
Chomsky says that Trump’s reliance on establishment billionaires who largely contributed to America’s recent recession completely invalidates his attempt to brand himself as an anti-establishment president.
“Anti-establishment is kind of a joke,” Chomsky said. “Take a look at Trump and take a look at who’s appointed for the cabinet.”
Trump’s Treasury Secretary, Steve Mnuchin, “comes from Goldman Sachs, a major investment firm where he was for almost 20 years,” Chomsky said, adding “What’s anti-establishment? This [cabinet] is drawing from the billionaire class, largely financial institutions, and military and so on; in fact, take a look at the stock market, that tells you how anti-establishment he is.”
The financial crisis of 2007-08 was also preceded by explosive growth in the stock market, particularly in the improperly-regulated subprime mortgage markets. When the crash hit, major financial markets lost more than 30% of their value in the fall of 2008.
Chomsky’s predictions have been proven correct before. He predicted the rise of Trump way back in April of 2010:
“The United States is extremely lucky that no honest, charismatic figure has arisen… If somebody comes along who is charismatic and honest this country is in real trouble because of the frustration, disillusionment, the justified anger and the absence of any coherent response. What are people supposed to think if someone says ‘I have got an answer, we have an enemy’? There it was the Jews. Here it will be the illegal immigrants and the blacks. We will be told that white males are a persecuted minority. We will be told we have to defend ourselves and the honor of the nation. Military force will be exalted. People will be beaten up… I don’t think all this is very far away. If the polls are accurate it is not the Republicans but the right-wing Republicans, the crazed Republicans, who will sweep the next election.”
Nathan Wellman is a Los Angeles-based journalist, author, and playwright. His less-political Youtube channel can be found here. Follow him on Twitter: @LightningWOW