I’ve heard it all about Trump. I agree with much of it. He is all the bad things you think he is. He is a whirlwind of incompetence. All true. Not in dispute on my end. And yes, we should be very vigilant and very involved, because what he seems to be doing, primarily, is making people very uneasy about the future. But enough of the hot-takes and put-downs and emperor-has-no-clothes memes. It is time to put away the childish things. All the rants, all the ridicule, all the facepalm… all of it. Even if it is just for a minute.
Try this: Think about Trumpworld like you were having it explained to you by a financial advisor. Maybe your financial advisor, if you have one. He/She is likely very serious, very focused, and not a political blowhard. He can chat about either party with equal ease. He knows that filtering out the political background noise is essential to making good financial decisions. What would the Trump administration look like if you filtered out the stadium-volume politics? That is what good financial advisors do. The good ones are good because they can look at a proposition without getting too wrapped up in the writ-large politics of it. Trump is not a politician. He has no political background, skills, or even firm political beliefs. What he has done with his life is amass a personal fortune, and a key part of amassing a fortune is learning to lay off risk. If you play with big numbers and you can get someone to reliably take more risk than you take, you will reliably amass wealth at their expense. That’s how a guy who couldn’t make a casino work; who rolled craps on bottled water, vodka, and steaks (I guess American’s couldn’t get on board with those things); a guy who has cratered and declared bankruptcy at least four times (plus other sell-offs and bail-outs); managed to become the President of The United States of America: Laying off risk on potential voters.
That’s not all of it, of course. The other part of the Trump mystique is getting people to ignore or minimize the risk he are asking them to take. To make this sleight-of-hand work you have to either misdirect them about the degree of the risk, or you have to get them very focused on some other risk. The mark has to be so focused on that other risk that they overlook the obvious risks they are being asked to take by Trump. That is how you get investors to buy in, and it extends executives, staff, regulators, and whole governments. Reading the room and having a feel for what token of misdirection will be most effective is probably the one thing Trump is really good at. He proved it during the 2016 campaign. He routinely clobbered people with better, or better-formed, political platforms because he could play an arena full of potential voters in a way they couldn’t dream of. Prairie Home Companion, meet Tony Montana fronting Led Zeppelin.
The last tie-in to Trump’s success in 2016 is evangelism. Not just Christian Evangelical evangelism, but also the idea of a true believer who is all-in. Apple was showing their understanding of the concept’s power when they added “Mac Evangelist” to their org chart. Trump is a Trump Evangelist. The Best. The Smartest. The King of Deals. And so on… And that nauseating passage aside, Trump is pulling from both flavors of the word, almost equally. In a religious setting the risk is always outside, facing in, threatening the audience. The unbeliever. The heavy metal music. The gangsta rap lyrics. The [insert your favorite secular pleasure here]. The reward the religious evangelist offers is the safety of being inside, away and apart from the external menacing force. Trump knows this play like he knows the buttons on his TV remote. All he had to do is sprinkle in the barest soupçon of old time religion and the audience understood. Inside Good. Outside, Bad. Prosperity Gospel Politics brought to the Presidency.
And yet again, there is a huge risk component in Religious Evangelism. [“Again with the risk?” you ask? Yes. Stick with me for a sec] Think about it like your somewhat boring and outwardly apolitical finance guy would. Guys like Joel Osteen are just laying off huge amounts of risk on their flocks, and the house always wins. Trump is doing the same thing, but in his case the flock absorbing the risk is 350 million US citizens who are now finding out that the risks are high, they are real, and there is no way to mitigate them.
You want an example of what kinds of risk I am thinking of? Here ya go: You have rank amateurs running the departments of Housing, Energy, and Education. How do you feel about those three things? Pretty strongly, I’d imagine. If there is a bedrock to western civilization it is housing, energy and education. So who were “the best people” to guide these bedrock agencies? You have a guy who initially refused the job because he admitted not having any pertinent experience (aside from having lived in a house, I shit you not), running Housing. You have a guy with an Ag degree [full stop] in charge of our nation’s nuclear weapons and fissionable materials over at DOE. And lastly you have a woman with no professional education or education policy background in charge of Education… but who’s brother (Eric Prince of Blackwater fame) made a cool billion(z) leveraging the US population’s concept of risk in Iraq and Afghanistan. And, oh yeah, this: did anyone notice that her husband is the founder of Amway. Amway is basically a peak-risk-distribution effort. The company always takes on less risk than their franchisees. Always. The house always wins. Always.
So stop thinking about what a braying jackass Trump is. He was one before all of this started. Nothing will change. He will always be a braying jackass. Get over it.
I am making the case that we start thinking about Trump as the guy who sees the entire US population as a risk-soak. His presidency is just like every other Trump deal: The less equity you have at buy-in, the more risk you gotta take. And over 95% of the US population does not have the required equity to hedge against Trump. We are faced with the prospects of backsliding on worker protections, civil rights, air and water quality, Social Security, healthcare, foreign relations, foreign economics, domestic economics, and the feeling that a world war is imminent. At the same time we are seeing Wall Street deregulated, energy corporations take over the EPA, and a massive increase in military posture and spending. The payoff is supposed to be a period of sustained economic resurgence. Last I checked the DOW was over 20,000. That was pre-Trump. At the end of eight years of G W Bush it was around 6,500. Talk about selling ice cubes to eskimos! There has been plenty of economic growth in the past 10 years, but it all stayed out in shareholder-land. The money was not used to create jobs, build factories, build coal-fired power plants, and club baby seals for fun and profit. It was used to pay the guys who had been exposed to the least risk in the first place. They are the people who bear the least risk of being without good housing, good healthcare, good education, clean water, affordable energy and good nutrition.
While the US Senate deliberates in secret over what version of Trumpcare can get 51 votes, think about the risk you are being asked to take on. Guys like Trump use risk as the basic measuring stick for every major decision. Maybe it’s time we all started doing the same.