The last week’s Thursday morning was not only tense everywhere in the world, but according to witnesses there was a dense atmosphere even in the White House. US President Donald Trump has just announced a business war to virtually the world, when he raised duties of Europe, China and, and essentially to all enemies and close partners.
The stock indices fell as sharp as it was the last time after the outbreak of the Covid pandemic – from Asia to Europe to America.
And it was said to feel from a conversation with a man he entrusted his entire economic policy – a multimillionaire, the first open gay in government and former collaborator George Soros, the new American finance minister Scottom bessentom.
He was supposed to “make” Trump. He doesn’t know how
Trump apparently applied for up -to -date information about financial markets.
“I do not see anything extraordinary today,” the Minister of Finance answered, trying to calm the president with a mention of lower inflation, a decline in oil prices and a successful auction of government bonds. He also promised, “As far as duties are concerned, I will come to great certainty within 90 days.”
Bessent was supposed to be a man who would brake Trump in his “favorite topic”, as he had already expressed his duties’ policy in the election campaign.
But he seems to be not doing well. And from the Bessent’s economic program, which was praised by many experts before it took office, it is only a grasp of paper.
The result? US stock markets have been declining for several weeks. And the dollar weakens against the euro pace that he has not experienced years.
A career journey of an unusual minister
Today, 62-year-old Bessent has studied political science, but his professional career went wrong after an internship at investor Jim Rogers, business partner George Soros. In the 1990s he worked as a partner in Soros Fund Management, where he became famous for controversial interventions against the British pound, which brought the company a billion dollars.
Soros himself is also blamed for this period, both conspirators and people as Hungarian Prime Minister Viktor Orbán, once a scholarshipist of Soros Foundation, who financed his studies abroad.
After the period when Bessent led his own fund, he returned to Soros as his chief investment director in 2011.
In political circles, he gradually became an important donor of Republican and democratic candidates. According to available information, it donated approximately $ 15 million for political purposes, with almost all of these funds directed to the Republicans. He donated a million dollars to Trump’s inauguration in 2016.
But in the past, he also contributed to the Democrats, his support is known to Al Gore, who lost the presidential election extremely closely with the later President George W. Bush in 2000.
Although Bessent has not been part of the Trump’s political circle for a long time and was virtually invisible to the ordinary public, he has known the Trump family for decades and was a close friend of the late President’s brother Robert.
Maybe it also helped him to the career of a man who is responsible for US economic policy. He became the first senate to a confirmed member of the US administration, which is a republican nominee and openly proclaims homosexuality. He raises two children with his husband.
Economic vision for Trump’s administration
But Bessent has also introduced a plan to heal the US economy – and is not related to Trump’s duties. He gave it the name “3-3-3” and ambitious goals include: achievement of 3 % economic growth, reducing the budget deficit to 3 % GDP, increasing domestic oil production by 3 million barrels a day.
None of this is a reality yet, and this is approaching the first 100 days of Trump’s government.
But in a recent editorial, Bessent outlined his vision for the US economy during Trump’s second term. And he made sure it wasn’t just “legendary duties”.
It talks about the need to “restart the American growth engine, reduce inflationary pressures and address the debt burden caused by four years of unparalleled expenditure.” The specific measures it proposes include: revision of banking regulations, strengthening the position of the US dollar, reform of the Law on Reduction of Inflation and “Renaissance of American Investments in Energy”.
At the same time, however, he talks about the introduction of a “free and fair” trade, which indicates a divert from the controversial duties that Trump supported.
“Trump has a generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans,” Bessent said in his statement before the Senate Committee on Finance.
Paradoxical connection with Soros
Interestingly, Bessent’s connection with liberal billionaire George Soros is paradoxically positive for Trump. The President is allegedly fascinated by Soros’s financial achievements, and sometimes Bessenta asks for his experience from work for this investor, he says sources for his surroundings.
Well, Bessent has not been communicating with Soros for years. During his time in Soros’ structures, he did not hesitate to express his disagreement with some activities of the Soros Open Society Foundation. When the idea of limiting investment in Israel companies was created in 2014, Bessent threatened to withdraw, which eventually led to abandoning this intention.
According to investor Stanley Druckenmiller, who worked with Bessent in Soros Fund Management, the new Finance Minister has the ability to be “hard and convincing” despite his “conciliatory”, and has the right temperament to collaborate with a demanding boss like Donald Trump. “If someone can do it, it’s Scott,” Druckenmiller said with confidence in Bessent’s abilities.
So far, economists agree that it was an overly optimistic prediction in his case.
Meanwhile, Trump raised US products to import products from China to 124 percent and thus unleashed the trade war. It also refuses to retreat from 25 % duties imposed on Europe.
And Bessent’s vision about the growth of the US economy is at the moment only an illusion.
After the introduction of US duties, the chances of the US economy are now immersed in recession.
