Trump Begins Rollback of Obama’s Signature Marxist Legislation

As president, Donald Trump has been running at breakneck speed to keep his campaign promises and he continued that today by signing an Executive Order that begins the process of gutting the Dodd–Frank Wall Street Reform and Consumer Protection Act.

Commonly known as Dodd-Frank, the legislation was rammed through by Democrats when they had veto-proof control of both houses of congress following the financial meltdown that paved the way for their rise to power. 

Dodd-Frank so hamstrung lenders that borrowers access to funding was effectively stopped by the government with the result that for the first time in our nation’s history we now have more small business closures than we have start-ups. 

Large-cap companies escaped the same fate because the Fed embarked on a zero-interest rate lending policy for them, secure in the knowledge that competition from those pesky smaller companies had been effectively neutered.    

This led to the consolidation of wealth into a significantly smaller number of mega-corporations and that in turn provided the government with a level of control over an untenable percentage of the nation’s economy.  Predictably, economic growth ground to a crawl just like it always has in the past when socialist regimes imposed its will over the economy.

Today, Donald Trump signed an Executive Order that will begin the process of gutting Dodd-Frank that has left 95,000,000 working age Americans unemployed and has led to lower wages and shrinking buyer power among those who have managed to find or keep a job.

The Executive Order directs the Treasury Department, under the leadership of Trump’s Treasury Secretary Steve Mnuchin to present President Trump with a detailed assessment of the changes to Dodd-Frank that must be changed or deleted to get the economy growing again.  The plan must be completed within 120 days.

Expect Trump to free regional banks from the onerous regulations that made lending nearly impossible which in turn prevented the growth of small to medium sized businesses, forced others to close their doors altogether, and denied the opportunity for others to even get off the ground.

Trump’s focus will be on increasing liquidity to free up the money for small and medium sized businesses so they can grow as well as providing the funding for start-ups.  Historically, America’s small businesses provide 75% of all new jobs.

The increased liquidity will make the Fed’s destructive zero interest rate policy unnecessary.  As interest rates increase people will have the incentive to save again. 

The return to this free market approach will allow the relationship between lenders and borrowers, and investors and savers to reach the natural equilibrium that best serves all parties.   

Jack Welch said it best after spending the morning at a business leaders roundtable with the president.  Welch characterized the meeting with the president as “by far” the most significant one he’d been at since first being invited to participate in these events in 1980.

Welch also stated that the president’s engagement with everyone present and his depth of knowledge on every issue was something he’d never experienced from a political leader before.

The Executive Order that President Trump signed today may only get the ball rolling for now but we can rest easy knowing that by June the axe will fall on Obama’s Marxist dream and the United States will begin returning to being the greatest economic engine the world has ever seen.