National Post (National Edition)

ALL EYES ON STEVE MNUCHIN AT FIRST G20 MEETING .

- JOE CHIDLEY

Why are the names of Donald Trump's cabinet secretarie­s so well known, when hardly anyone can remember who Barack Obama's were?

For instance, I had to look up the name of Obama's secretary of housing (Julian Castro), but I have no trouble picturing Dr. Ben Carson.

As well, I take no pride in knowing that former Texas governor Rick Perry, who famously couldn't remember the name of the department of energy, is now secretary of energy. Obama's latest choice for that role was some guy named Ernest Moniz, who never even governed a state (though he does have a PhD in theoretica­l physics).

Obama's secretary of commerce was Penny Pritzker, who at least is a billionair­e. But there end the similariti­es with Trump's Wilbur Ross, the billionair­e who's been dubbed “the bankruptcy king.” Who could compete with that?

Flashy nicknames aside, I suspect one reason we pay so much attention to these folks is that their boss tends to be so big on declarativ­es and so light on details. Whether in vague campaign promises (infrastruc­ture, tax cuts, deregulati­on) or tweets (Obama’s wiretappin­g, China’s dirty tricks, mean department stores), Trump often sows confusion rather than clarity. So as the rest of the world tries to figure out what he means, it naturally turns for answers to the people who, we assume, can decipher it all.

This week, Steve Mnuchin, Trump’s treasury secretary, will make his internatio­nal debut at the meeting of G20 finance ministers in Baden Baden, Germany on Friday and Saturday.

The world will be paying attention, and not just because Mnuchin has his own royal tag, “Foreclosur­e King,” for his time heading up a mortgage company that foreclosed on thousands of American homeowners. It’s also because the Trump administra­tion seems hell-bent on disrupting the financial world order that the G20 has worked so hard to create.

Its policies run plainly counter to the principles the G20 has agreed upon for years. Against the group’s free-trade pronouncem­ents about an open world economy, Trump has economic nationalis­m. Against its acknowledg­ment of the need to address global warming, he has a hoax perpetrate­d by the Chinese. Against its commitment to address global poverty — well, Trump has said nothing about internatio­nal developmen­t, though he will cut foreign aid dramatical­ly. And against its pledge for financial regulation that ensures stability, he has vowed to repeal Dodd-Frank.

Brittaney Warren, of the G20 Research Group at the University of Toronto, recently identified 20 policy priorities in Trump’s inaugural address, and then did a compatibil­ity check against the 213 commitment­s the G20 leaders made last September at their meeting in Hangzhou, China. Warren concluded that none of Trump’s policy positions fully matched up with the Hangzhou commitment­s; seven sort of did, and the remaining 13 did not match at all.

So Mnuchin might not be walking into the warmest of receptions. It won’t help that his boss has criticized, for one reason or another, many of the countries represente­d there — Mexico, China, Japan, Australia, France, even Sweden.

Now, Mnuchin seems a smart guy, and I bet he can handle any frostiness. But he might have a harder time if his G20 counterpar­ts ask him for clarity on American policy.

Consider the many questions surroundin­g the administra­tion’s stance on the currency.

Trump and Mnuchin might not see eye-to-eye. Back in January, the thenpresid­ent-elect told The Wall Street Journal that the greenback was “too strong.” That surprised foreign exchange markets, which saw a hint of the new administra­tion abandoning the commitment to a strong dollar, a pillar of U.S. economic policy for decades; the greenback sold off.

But during his confirmati­on hearing days later, Mnuchin backtracke­d on his boss’s statement, saying it “was not meant to be a longterm comment.”

The other fuzzy currency issue is manipulati­on. Trump keeps charging that China is depressing the yuan artificial­ly (it isn’t, but anyway), and has vowed to declare it a currency manipulato­r. Mnuchin has said his department will study the issue before it makes such a move. But others in the administra­tion have cast stones more widely, suggesting, for instance, that Germany and Japan gain unfair trade advantage through devalued currencies.

That stance, though, is at odds with what’s going on inside the U.S.

In becoming less accommodat­ive, its monetary policy is a global outlier, and is pushing the greenback higher.

Meanwhile, many of Trump’s policies — more spending, America First trade and procuremen­t, a border adjustment tax — would inflate the U.S. dollar against other currencies.

So it seems that the U.S. wants stronger foreign currencies, but doesn’t want a weaker dollar, but wants exports to be competitiv­e, but also wants policies that will make the dollar stronger. We’ll see if Trump’s treasury secretary clears any of this up at the G20. At the very least, he’s probably in for an interestin­g few days.

And oh, in case you’re wondering, Obama’s last treasury secretary was Jack Lew, whom The New York Times once described as “a low-profile steward for a low-profile time.”

Steve Mnuchin should be so lucky.

 ?? MANDEL NGAN / AFP / GETTY IMAGES FILES ?? Members of the Trump cabinet. Many in the new U.S. administra­tion have cast stones on trade and currency widely, suggesting, for instance, that Germany and Japan gain unfair trade advantage through devaluing their currencies.
MANDEL NGAN / AFP / GETTY IMAGES FILES Members of the Trump cabinet. Many in the new U.S. administra­tion have cast stones on trade and currency widely, suggesting, for instance, that Germany and Japan gain unfair trade advantage through devaluing their currencies.

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