Bessent lays out the reforms needed in the global financial system

Speaking without notes he lays out a compelling case for the changes needed. The acrimony around tariffs have obscured many of the shortfalls in the World Bank and the IMF, Bessent maturely rips off the plaster. Easy to follow and educational, worthwhile listening.

https://www.youtube.com/watch?v=NsyNHd5Ce3c

It seems very biased. It is a bit like China giving a presentation about how they think the global rules should be. It also seems a way to blame America's problems on the rest of the world.

How can he talk about global standards, when he names the agenda to be America first.

China is certainly breaking WTO rules, but America wants to make global rules that only they are allowed to not follow. America are scared of China, and the undertone seems to be to punish China.

America complain about state subsidies because it is not part of the free trade system, but America subsidise their own industries. (Look no further than the tariff wars which are the opposite to free trade and a hall mark of protectionism).

America's problem is that they are increasingly a top heavy society causing the middle class to shrink, and put more economic pressure on the working class. America is run by the shareholders for the shareholders. They allow competitors to merge to increase profit for shareholders and reduce jobs and salary potential. Their politicians have a net worth of $50 million so their interests are aligned with stock profits.

They are the richest country, but the wealth is less distributed than it used to be - mostly because of the decline in competition. This allows jobs to be shipped overseas to India and China etc.

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Perplexity Opines:

Their is a special mention of Big Tech and reduced competition. These companies employ more people in India than in the US.

Why the Middle Class Is Shrinking in the US

Income Inequality and Stagnant Growth

1. The share of Americans in the middle class has declined from 61% in 1971 to about 51% in 202338. This shrinkage is closely tied to growing income inequality: while the middle class remains the largest group by population, its share of aggregate national income has dropped from 62% in 1970 to just 42% in 2021 247. Meanwhile, the upper-income group’s share of income has risen sharply 247.
2. Middle-class income growth has not kept pace with that of the upper-income tier, leading to a widening gap between the two34.

Economic and Social Factors

1. Inflation and Cost of Living: Surging inflation, especially in recent years, has eroded the purchasing power of middle-class incomes, pushing some families out of the middle class5.
2. Wage Stagnation: Wages for middle-income earners have grown slowly or stagnated, while those at the top have seen much larger gains68.
3. Education and Skills Gap: Workers with lower educational attainment are more likely to experience downward mobility and fall out of the middle class26.
4. Changing Business Models: The rise of "superstar firms" and sectors with near-zero marginal costs (like tech and finance) has concentrated wealth and income among a small group of highly profitable companies and their employees, further widening the income gap7.

Demographic Shifts

1. An aging population and changes in household composition (such as more single-earner or single-parent households) have also contributed to the shrinking middle class52.

Summary Table: Key Drivers of Middle-Class Decline

In summary: The American middle class is shrinking due to a combination of rising income inequality, slow wage growth, inflation, shifting business models favouring the wealthy, and demographic changes. These trends have reduced the economic security and upward mobility that once defined the middle class.

SB

So you kno mre about ecionomics than an expert like Bessent knows and more about economic problems that is undermining the preset USA econmy as well. Go and read up the background of B essent and how he became a billionaire,

Musk and Bessent are proof that the USA are sic at present with a stagnant GDP and coming out of a situation where a Presidency tried desperately to udermine he US Economy through maladministration and large scale corruption in the Federal Government, That is where the present situation in he USA orgonaed from and that accounts for the present rather painul problems. It is like treating cancer with a chemical therapy tratment - mostly making people feel bad during treatment sessions. In the case of he USA - if he reatment is not implemented he US economy and woth it the World economic system would ahve collapsed by 2030 with th edera Debt being double of the annual GDP,

Th is one reason why wars like the one in Ukraine -which created massive corruption in both Ukraine and in the USA must be ended asap. That is why the so-called Trde Wa with C hina is jut anoter emdia scam. There was a revised trade agreement agree to in 2019 - which Trump suspende imlementtion because President Zi ied to him about the Covid pandemic - which originated in the Wuhan Laboratory and was in fact funded by the USA Department of Health. The closing down of bio-labs in Ukraine funded and controlled by the USA Government will be stopped immediately and is part of the potential peace agreement. The Russians claim with jsutification that what was developed in Ukraine Bio-Labs were ten times more dangerous than Covid was, The latter is one aspect that the present USA Government wants peace in Ukraine as well.

The decle in he USA Middle and working class is what was dstroying the USA midde and working class and was part oand pracel of he chaotic Biden Administration. The Education levels in State Schools is a disastrous scerio where he problems really started as a human traedy. That is aprticularly abd in schooling in Sates controlled by the Demcorats where pupiis coming out are absically unfir to go into any worj situation and to Univesities and colleges for further education, The USA spent the highest cost per child in State schools in the world and per child prodice the 40th standard per pupil in the world.

The problem was further bedeviled by the Open Border Policy of Biden where the Government brougt in millions of laour type of migrants into the country - leading to replace USA workers with lowly paid migrants whose housing and living costs being subsidized by the USA Government.

Te growth of he billioare class in the USA is nohing new - it started its development iunder the Clinton Presidncy and each of the presidency since has added to that sickness, In the period 1993 to 2023 the billionaire clas in the main supported the Dempcrats - who found out that the Biden Administation depended on Gates and S oros to determine policies in crucials ector of the USA Economy and te federal budgets - witpolicies that would be isastrous for hem and r heir families in fuure, All of Musk, Zuckerman and Bezos left the Democrats and is now supporting the Trump Administration in what theya re doibng.

So keep on amazing us with your brillianmce in BS spreading.

Key Steps in Bessent’s Path to Wealth

Early Career and Soros Fund Management

1. After graduating from Yale in 1984, Bessent started his finance career at Brown Brothers Harriman and later worked at Kynikos Associates, a firm known for short-selling16.

1. In 1991, he joined Soros Fund Management (SFM), where he became a partner and later managed the London office. Bessent was a leading member of the team that famously shorted the British pound on Black Wednesday in 1992, a trade that earned Soros’s firm over $1 billion136.

1. He returned to SFM in 2011 as Chief Investment Officer (CIO), overseeing the Soros family fortune and executing other lucrative macro trades, including a profitable bet against the Japanese yen in 201336.

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So he is a Soros Protegee, and someone that made his wealth from short-selling. He is a long-time campaign donor to the Democratic party, and is see as an opportunist with allegations of concealed business interests and motivations.

It’s biased in the sense that he is asking these institutions to stick to their charters ….for example make sure energy is really available, rather than funding green projects with poor returns.

Attacking the man is standard tactics, but have you listened to the speech? I get the impression you are simply reproducing Main Stream media spin.

I actually did watch it. He switched back and forth between global cooperation and America First.

He did raise some valid concerns about China's ability to classify itself as a developing nation despite being the second-biggest economy in the world and about currency manipulation.

However, I still got the impression it was not a balanced perspective. While he talked about genuine issues, his motives appeared to be America First and protecting America's hegemony.

China has had the fastest-growing middle class ever seen. They must be doing things right, and their unfair trade practices are not the only factor.

It is the first successful non-Democratic country to have a large middle class. They are challenging accepted principles by mixing capitalism with state ownership. As competition in the West has declined, it is making people work for a minority of shareholders instead of reinvesting much of the profit back into the industries.

Perplexity Opines.... Pretty much what I said.

Summary Table

Bessent's reforms aim to restore the effectiveness of the IMF and World Bank, but the blueprint is closely aligned with U.S. interests, particularly in countering China, ensuring American leadership, and prioritizing economic outcomes over broader social or environmental goals12578.

The difference being for 80 years the US has been the easiest partner, while China bends the rules….Bessent explains, plus his point that it’s ludicrous to give China the benefits of a developing nation is absurd, as they gobble up the European car industry.

The point is things are not perfect, they weren’t perfect last year before Trump…..the system is out of balance and formerly great industrial powers are losing their franchise. An attempt to avoid the consequences of all this is actually not stupid, it’s essential.

SB

So A mrica First is not a priority in a world depending on the USA and the dollar for international rtrade and protection of the USA must count for nothing. The US economy ws self-destructing on a basis that B S projects adding nothing to the US economy waas implemented causing he USA F ederal debit - now at $36,5 Trillion to go up at a rate of $1 trillion every 100 days to fund current expenditure from. The present GDP of the USA is $26,5 trillion meaning that if this allowed to continue the US will be in a Zimbabwe style situation where the dollar will be worthless for international trade purpsoes,

In dealing with the World Trade situation Trump and his experts look at how the US economic decline must be stopped in the first instance instance and after dealing with that look at how international trade in the second instance can be improved to the benefit of all partners involved. If the US economy remain on the route of the past 4 years there will not be anthing left to be fixed by 2030 and international economies will also be down and out with total chaos in the world from both economi and democratic governance point of view,

Your commens of America First is what your type believe in - namely America Last. . ,

Comparing the old America with the new America is absurd. When I hear America first, I hear American billionaires first. MAGA are just the duped working class.

China looks after its own people better than what America does. How can America be trusted as global power, if they cant even take care of themselves - despite having a high GDP.

America is now an Oligarchy that serves the needs of a few, a sham Democracy with the richest politicians in the world, many with a net worth of hundreds of millions.

American politicians are owned by the Oligarchs, and rewarded with stock and shares. This has turned American politics into a parody reality show. It would not surprise me if a radical left wing party arises in America, once Trump's far right party fails. People could start to unite around the idea that the enemies are the billionaires that bribe the politicians, and their mainstream politicians (left and rights) are just puppets that enrich themselves at the expense of Democracy.

The dollar is in decline and may never recover. I don't think America is stable enough to be the reserve currency. The longer term outlook is no looking good, hence the drop in the bond market.

All countries have their time in the sun, it is starting to look like America has peaked.

Maybe they can turn things around, but it would mean getting new politicians, creating more competition to weaken the Oligarchs. I see the US courts are considering breaking up Facebook. It may be another sham reality TV show, but if it does go ahead, it would be a good step forward.

This is your usual rant against the guys whose ingenuity has changed the world. As for China looking better after its own people….nuts:

’No country in modern history has witnessed more unnatural deaths than the People’s Republic of China. Yet unlike other totalitarian regimes, China is unique in that deaths are not only caused by outright brutality, but also simply by the Chinese Communist Party’s stupefying incompetence and stupidity.

The majority of deaths, from Mao to Xi Jinping, have been the result of Communist utopian and hubristic aims combined with unfathomable ineptitude and bureaucratic callousness.

The most poignant example of this is Mao’s Great Leap Forward in the late 1950s, which, in an attempt to surpass the industrial output of leading imperialist countries in record time, caused the deaths of up to 45 million people, almost the total death toll from World War II.’

The country is still being run by the same people with many of the same beliefs in place. Look no further than Covid:

’The CCPs lunacy in its approach to COVID-19 has awakened the world and the Chinese people to the extreme danger of a totalitarian regime, that a government whose power is unchecked and whose ideology is unhinged is an ever-present menace to the world.

The only difference between Mao’s China and Xi’s China is that the latter is made all the more dangerous by technology and its actions are now intrinsically linked to the free world via massive economic and technological engagement. The CCP’s lunatic policies are no longer just a matter of Chinese domestic disaster but global catastrophe, and the rest of us share a global responsibility to contain the scourge that is the Chinese Communist Party’.

An outdated American narrative, the rest of the world does not believe this.

SB

Are you the rest of te worl? Any thinking people eally know what happened under Biden the control restrd on Soros and Gates to whom Cabinet member had to report on iddurd, As an example Soos wrote out the Migrant and Law and Order policies and Gates the Health, Agriculture, Energy and Global Warming policies of the Bden Regime and the Cabinet members reported to them about imprlementation// The problem started in 1993 and is still in practice in the minds of pwople like you.

Trump looked beyond politics to appoint people able tio ,manage the various Departmnts and since the situation was chaotic he could not use suspect people to manage the Departments, That is why Trump]s appoinymentd were not done throuugh political appointees - but from people proved to be good managers of major Corporations in the USA, So in Trump's case hew as looking in the main to proven managers and not really politicians,

The fact is most people realize hat continuing will ruin the USA and they got involve to ensure that the USA returns to best abd accountable leadership.

..

Chat’s summary of what is believed:

1. Policy: Mao Zedong launched a campaign to rapidly industrialize China and collectivize agriculture.
2. Result: Widespread famine, economic disruption, and social chaos.
3. Estimated deaths: Historians estimate between 20 million and 45 million people died, mostly from starvation, making it the deadliest famine in human history.

2. The Cultural Revolution (1966–1976)

1. Policy: Mao initiated a massive social-political movement to reinforce communist ideology by purging "counter-revolutionaries" and reasserting control.
2. Result: Widespread persecution, imprisonment, torture, and killings; the destruction of cultural and religious sites; societal upheaval.
3. Estimated deaths: Estimates range from hundreds of thousands to several million (commonly cited figures are between 1 million and 2 million deaths).

Other examples include:

1. Land Reform Campaigns (late 1940s–1950s): Mass executions of landlords and "class enemies" during the early years of CCP rule — estimates vary but often cite 1 to 2 million deaths.
2. Political campaigns like the Anti-Rightist Campaign (1957–1959) also led to the persecution, imprisonment, and deaths of intellectuals and perceived dissidents.

In short:

Yes, CCP policies — especially under Mao Zedong — caused tens of millions of deaths, primarily through famine, political violence, and purges.

DumbMike, what about Bessent being a protegee of Soros and being a Democratic campaign donor for much of his life, and making most of his money from short selling? Bessent plays the market, he is aligned to money not ideology. You choose which questions to answer.

Mao Zedong and Hitler are from another time and era. If we start talking about atrocities, what about Britain's colonisation that killed many indigenous races etc, etc, etc. However, that too is from ages ago.

America the richest country is proud to have a minimum wage of $7 dollars, and they want other Western countries to be the same (They consider any good laws a restriction to free trade).

No thanks, we don't want our own MAGA. I expect the end of MAGA by the time Trump's term ends, and a new radical left wing party that will campaign on crushing billionaire with high taxes.

Nothing has changed in China except their participation in trade….nor is the minimum wage relevant, it’s hardly ever activated and if it is by States which generally have higher minimum wages. All a myth.

And here from today’s WSJ is the answer to your tax the wealthy argument:

’All of this is why soaking the rich never raises as much revenue as predicted. In 2012 Republicans struck a deal with Barack Obama to extend the Bush middle-class tax rates but let the federal top rate revert to 39.6% from 35%. Yet income tax revenue fell $250 billion short of the Congressional Budget Office’s projections between 2013 and 2017.

Some Republicans want to raise rates to reduce the budget deficit, but there aren’t nearly enough rich to do so. Increasing the top rate to 39.6% is projected to raise only $20 billion to $40 billion a year, and will probably bring in far less revenue once the rich alter their behavior.

Others want to tax the rich more to redistribute income through the tax code, but that math also doesn’t add up. Exempting tips, Social Security benefits and overtime from taxes would cost $2 trillion over 10 years, and probably more once workers adjust behavior. Raising the child tax credit to $5,000 would cost another $2.4 trillion.

In any event, the tax code is already steeply progressive and the affluent pay more than their fair share. In 2022 (the last year this data is available), the top 1% paid 40.4% of federal income taxes and the next 4% of earners paid 20.6%. The top 10% paid 24 times more in tax than the bottom 50%. The share of taxes paid by the affluent is much higher than their share of income.

Many Americans are “rich” only for a year or two after decades of working or running a small business. Raising the top rate punishes labor and sweat equity. It will reduce investment since high earners invest more of their income. With Mr. Trump’s tariff-tax hitting growth, the economy needs a tax cut across the board, not another tax increase.’

…….

It must be comforting to believe China would be nicer than the bad Americans. And that you can solve the world’s problems by raising the minimum wage and taxing Tech titans at much higher rates.

None of those solutions will work.

I've seen Chinese workers on the job...no much better than slaves...I'll give it a pass and ban all Chines immigration....road to the Darkside it is....

SB

Where do you get your often twisted ideas from.based on conspirity theories from.

Trump realized that the US Feeral Government as in chaos and not functining. However he never realized how deep the rot actually was and started looking for private sector individuals expert in managing major corproations and bessent is just one of those,

That is why Trump made a number of appointments to find out what is really happening, hat was found was mindboggling beyond what was the ima ge in general of the US Federal dministration. Musk's appointment - irp hich he received no salary unearthed massive malaministration and corruption in the USA Public Servoce where no political control over the Administration was nn evidence, Misk was appointed for 18 months with the isntruction to find out wjhat was going on, The maladministration found and corruptin invovled are ported to the vasrious S ecretaries involved whose functions include cleaning up the disastrous ssituation.

Beore appointing them as Cabinet members he amde sure the appoitees had a clean record by getting their CV's and their activitie evaluated, The also had to submit their on vision on ho the U S should b save from a disastrous situation and vetted by Trump an the leadership of the Republican Party. The furute vision of evey candidate played a major eason why they were appointed,

Many people inclusive Zuckerman nd Bezos realize the country was moving to economic self-destruction and as a result their own "economic empires", In esense they want to save the US economy from self-destruction and that is why they were appointed, That is why they serve in te USA Cabinet without beng pai salaries and like Trump donate their salaries to welfare organization with real impact on ordinary people. That is hy your consptiacy theory is far-left conspiracy rhwoeiwa, The USA ecomy is mortally sick and a collapse the dollar ill resslt in total self=destruction of the wrld ecnomy and wrld instability.without any demoracy in the world. That is what is at stake in this case and that is why world governments are sending deputations to determine mutual trade agreements,

That is also why President Xi phoned Trump to reach a new trade deal beteen theUSA and China - which will also have an impact on countries trading with China. . .

DumbMike, do you know how to look at multiple sources?

Scott spent most of his working life working for Soros.

Scott Bessent worked for George Soros for approximately 24 years. He joined Soros Fund Management in 1991 and remained there until the end of 2015, serving in various roles including Chief Investment Officer from 2011 to 2015 1 56.

Bessent made his money from short selling. Short sellers are scum that bet against a market in the short-term by helping to crash economies with sell-offs.

Maybe he wants to crash the American economy so the richest can buy more shares, before removing the tariffs. Bessent is known as a short seller. Not really a skilled investor, but a parasite that bets against the market to make short term gains

Scott Bessent

U.S. Department of the Treasury (.gov)

https://home.treasury.gov › general-information › officials

28 Jan 2025 — From 1991 to 2000, he was managing partner of Soros Fund Management's London office. His family was also involved in the agriculture, publishing ...

Trump picked Scott Bessent for Treasury despite ties to ...

Fortune

https://fortune.com › scott-bessent-treasury-george-soros

27 Nov 2024 — Bessent did so with the help of Soros, who gave Bessent $2 billion to launch the fund. They spoke only a few times afterward—and a couple years ...

Scott Bessent Helped 'Break' the Bank of England. Now He' ...

The New York Times

https://www.nytimes.com › 2024/11/26 › business › sco...

26 Nov 2024 — Bessent, working for the financier George Soros, helped “break” the Bank of England with crushing trades against the British pound. He was on a ...

Soros appoints new CIO

Financial News London

https://www.fnlondon.com › articles › scott-bessent-cio-...

Bessent worked at the Soros firm from 1991 to 2000, running the firm's London office for eight years and serving as its head of global research and co-head of ...

You can almost picture ou Maaik's two functioning brain cells circling each other, finally colliding and coming to the conclusion that "iff it are not om Fox N3ws or Gateway Pundit, then it are knot kredible sauces,"

Rooidoos

Thanks or the complement by saying I have wo dunctioning brain cells. Coming from a brainwashed ididot whose one remaining brancell functtion at 10% it really is funny peculiar,

SB

Are you seriously tell me that people can change their minds on issues in 20 years, Even if Bessent was involved in the co;apse of Pounds he at elast knows what is wrong in the financial system and exploited it more than 26 years ago. He would ths know whatw as wrong in the Enlish goernment policies thast caaaused the collapse of Sterling and how the plague at present in the USA Government going to imminent disaster shpu;d be avoided. Just making deductions from ultra-left media is prove and indicates easy brainwashing ot a person with a closed mind and believing conspiracy theories.