It’s hard to imagine a better endorsement of Donald Trump’s economic policies – whatever they may be, whenever he finds the time to explain them – than the recent endorsement of Hillary Clinton by former Goldman Sachs CEO and U. S. Treasury Secretary Hank Paulson. As the man in charge of the biggest explosion of corporate welfare in world history – the ‘TARP’ bailouts, he defined himself as a sworn enemy of capitalism and a socialist when it comes to the capital markets. Socializing billions of dollars in investment bank, insurance company, and automobile industry losses with taxpayer dollars qualifies Paulson as deserving of the S-word label. As such, Hillary Clinton may well have found a new political and financial soulmate.
Paulson began his career and cut his political teeth with some of the sleaziest and most disastrous political hacks in American history – first as a Pentagon assistant to the secretary of defense from 1970-1972, then as a Nixon administration assistant to John Ehrlichman, the convicted Watergate felon. Such sterling credentials earned him a position at Goldman Sachs, where he presumably mastered the political dirty trick skills that he must have learned from Ehrlichman and the rest to eventually claw his way up to the CEO position.
Paulson and Hillary Clinton might as well be cloned twins when it comes to using their positions of political power to line the pockets of the wealthiest people in America in return for kickbacks and political support. As the chief corporate welfare czar during the Bush administration, a first order of business was the $180 billion bailout of the insurance company AIG, ninety percent of which was totally solvent, as documented by David Stockman in his book, The Great Deformation(p. 6). Rather than allowing a healthy free-market purge of AIG’s bad assets, Paulson showered the company with taxpayer dollars in a totally unnecessary bailout.
This post was published at Lew Rockwell on June 27, 2016.