Cohn Resigns After Confrontation With Trump, His Replacement Will Be Chosen "Wisely"

Update: President Trump has announced he will make a decision soon on Gary Cohn's replacement:

The two frontrunners, now confirmed by administration officials, are White House Trade Council Advisor Peter 'Death By China' Navarro (seemingly the out of nowhere architect of Trump's trade war plan) and Conservative commentator Larry 'mothers milk of stocks' Kudlow (who was on CNBC today defending Cohn and talking down Trump's trade war plan).

Separately, Bloomberg reports that Trump confronted Cohn hours before the resignation, demanding his cooperation on tariffs in a meeting in the Oval Office Tuesday, and asking Cohn directly if he would support his decision to move forward with the plan. Cohn would not offer his support and just hours later, the White House announced Cohn’s resignation.

According to one source with knowledge of the exchange, Trump specifically asked Cohn: We’re all on the same team, right? He then asked if Cohn was going to support the president on the issue. Cohn didn’t answer.


For now the market is not happy... Dow -450

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As we detailed earlier, tThe great power shift we predicted  one week ago, was just confirmed by the NYT which reported that Gary Cohn, former Goldman president and COO and President Trump’s top economic adviser, is resigning, "the latest in a series of high-profile departures from the Trump administration, White House officials said on Tuesday."

President Trump has confirmed Cohn's departure: "Gary has been my chief economic advisor and did a superb job in driving our agenda, helping to deliver historic tax cuts and reforms and unleashing the American economy once again. He is a rare talent, and I thank him for his dedicated service to the American people."

Cohn also issued a statement: “It has been an honor to serve my country and enact pro-growth economic policies...I am grateful to the president for giving me this opportunity and wish him and the administration great success in the future."

According to the NYT, officials insisted "there was no single factor behind the departure of Mr. Cohn" but his decision to leave came after he seemed poised to lose an internal struggle amid a Wild West-style process over Mr. Trump’s plan to impose large tariffs on steel and aluminum imports.

This is the same "power struggle" we described with the following tweet:


Yet one which few predicted: as recently as 2 hours ago, the "will Cohn have a job on March 31" contract was trading at 80 cents: "Will Gary Cohn be Director of the National Economic Council on March 31?"

To be sure, there may have been more just disagreement on tariffs: according to CNBC's Eamon Javers, there was more than just the tariffs decision:

Cohn's former boss and current Goldman CEO, Blankfein said that he was disappointed to see Cohn leave: "Gary Cohn deserves credit for serving his country in a first class way.  I’m sure I join many others who are disappointed to see him leave."

Cohn is expected to leave in the coming weeks. He will join a string of recent departures by senior White House officials, including Trump’s communications director and a powerful staff secretary.

Also note that Trump is not stopping with Cohn: according to the NYT, "The resignation also followed conversations Mr. Cohn held with the president in recent weeks about the possibility of replacing John F. Kelly as White House chief of staff, said people who were briefed on the matter. The president never formally offered Mr. Cohn the job, those people insisted, but Mr. Trump had discussions with him about whether he would be interested."

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So who will replace Cohn? According to Citi, "Larry Kudlow, Jason Miller and David Urban are said to be on the shortlist."

It is likely that Cohn will still be allowed to keep the $284 million in tax-free proceeds  he unlocked by leaving Goldman and joining the Trump admin for just over a year.

One thing that is certain is that Cohn's departure confirms that a worldwide trade war is about to break out, and is a good enough reason to reread the following article from this morning: "What If Trump Does Not Back Down, And Why Is "$1 Trillion" Being Floated Around Washington?"

Confirming that, Axios reports that Trump has canceled the Thursday tariff meeting that Cohn had arranged with various anti-tariff CEOs.

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I kneejerk reaction, USDJPY and US equities have tumbled following news of the Cohn resignation.

And S&P 500 ETF is down 1%...


HopefulCynical Dindu Nuffins Wed, 03/07/2018 - 08:35 Permalink

Jews can't pass on an opportunity for more power.


I think a lot of the departures are people who simply assumed that once Trump won he would simply morph into BushHillBama 3.0. When they find out that no, he actually meant what he said, and aims to get as much of it done as he can, they take their (tiny) balls and go home.

And good fucking RIDDANCE.

In reply to by Dindu Nuffins

HopefulCynical JimmyJones Wed, 03/07/2018 - 08:39 Permalink

Oh, lots of goyim do try to go into those fields. The Self-Chosenite Mafia freezes them out every way it can.

The many, many laws, throughout the ages, forbidding Jews from holding key power positions in goyim countries, did not happen by accident. And they're not racism - rather, they're a RESPONSE to virulent, often violent, Jew racism that's woven into the foundation of their culture.

In reply to by JimmyJones

teolawki Oracle of Kypseli Tue, 03/06/2018 - 19:02 Permalink

Scorpions are scorpions and bankers are bankers. Same as it ever was. Makers and takers, producers and parasites, those who earn and those who thieve. Yet all things have their season. And when this brittle, corrupt system finally breaks, and break it most assuredly will, this season will draw to a close. And when that happens, those who have not the will, the fortitude and the ability to make their own way in this world will have a very difficult time indeed.

In reply to by Oracle of Kypseli

Baron von Bud bigkahuna Tue, 03/06/2018 - 18:31 Permalink

C'mon you guys! Cohen, formerly of Goldman Sachs, accomplished his mission. Huge tax cuts on the rich and ability to set up shells to avoid taxes permanently. No inheritance tax on their billions. Overseas corporate taxes are no longer taxable. Don't you see what they've done? Trump is a front man for the establishment. You all trust him because he isn't Hillary and he talked  good shit. So you're watching his right hand while his left is looting what's left. Think critically.

In reply to by bigkahuna