By F. William Engdahl Source: New Eastern Outlook A virtually unregulated investment firm today exercises more political and financial influence than the Federal Reserve and most governments on this planet. The firm, BlackRock Inc., the world’s largest asset manager, invests a staggering $9 trillion in client funds worldwide, a sum more than double the annual […]There is More to BlackRock Than You Might Imagine — Desultory Heroics
- Chairman and CEO of BlackRock
- Board of Directors/Trustees of:
- World Economic Forum
- Council on Foreign Relations
In my previous post, I covered the obvious roles of the World Economic Forum and Council on Foreign Relations in the Great Reset/Agenda 2030/17 SDGs, so I want to focus on Larry Fink and BlackRock.
From the website:
BlackRock is one of the world’s leading providers of investment, advisory and risk management solutions.
BlackRock offers a range of solutions — from rigorous fundamental and quantitative active management approaches aimed at maximizing outperformance to highly efficient indexing strategies designed to gain broad exposure to the world’s capital markets. Our clients can access our investment solutions through a variety of product structures, including individual and institutional separate accounts, mutual funds and other pooled investment vehicles, and the industry-leading iShares® ETFs.
The foundation of BlackRock’s business is our belief that our clients’ needs are of paramount importance. Our commitment to investment excellence is anchored in a shared culture that always places a client’s interests first, from individual investors to the world’s largest institutions. We act always as a fiduciary for our clients, never trading as a principal on our own behalf.
BlackRock’s investment approach is based on our conviction that we can combine our market insights, our global reach and scale, our proprietary technology, our culture of information sharing and our unwavering focus on risk management into an ability to deliver performance in all market environments. BlackRock is committed to providing a broad set of investment solutions for our clients, striving to achieve the best balance between risk and opportunity.
BlackRock is a truly global firm that combines the benefits of worldwide reach with local service and relationships. We manage assets for clients in North and South America, Europe, Asia, Australia, the Middle East and Africa. The firm employs approximately 13,000 talented professionals and maintains offices in more than 30 countries around the world. Our client base includes corporate, public, union and industry pension plans; governments; insurance companies; third-party mutual funds; endowments; foundations; charities; corporations; official institutions; sovereign wealth funds; banks; financial professionals; and individuals worldwide.
As of June 30, 2019, BlackRock’s assets under management total US$6.84 trillion across equity, fixed income, cash management, alternative investment, real estate and advisory strategies. Through BlackRock Solutions® — the natural evolution of our long-standing investment in developing sophisticated and highly integrated systems — we offer risk management, strategic advisory and enterprise investment system services to a broad base of clients.
Our firm’s ownership structure is designed to maintain the independence we believe is necessary to retain our commitments to client focus and investment excellence. BlackRock, Inc. (NYSE: BLK) has no single majority stockholder and has a majority of independent directors.
BlackRock – instituting a new methodology for the guidance of their investment products.
- Bank of Greece
- Her Majesty’s Treasury
- Central Bank of Ireland
- Federal Reserve Bank of NY
- Freddie Mac
- Merrill Lynch
- Morgan Stanley
Since the onset of the pandemic, a lot of BlackRock’s public releases include how they are crafting their business model for Sustainable Investing around this type of Cause/Effect scheme:
Shifting Economic Power
- The political sphere of influence could shift from Washington to Beijing
- Businesses could become more powerful than countries
- We’re all going to need to talk Mandarin
Climate Change and Resource Scarcity
- Western diets will become increasingly plant-based
- Renewable energy will fully replace fossil fuels
- Technological advancement will yield man-made materials
Demographics and Social Change
- Substantial healthcare spending will create huge opportunity in this sector
- Robots will replace people to plug the labour gap
- People will need more money to fund a lengthy retirement
- A whole new city infrastructure could be required
- Car ownership will become obsolete as autonomous, summon-able cars become mainstream
- The healthcare system will need to change to cope with demand
All as a result of:
- Traditional consumer goods produced by technology companies
- The global economy should grow as the world becomes more productive
- Technology will enable solutions to climate change and population problems
Muunyayo SPECULATION: The above five areas foreshadow the elements we see within the Great Reset, namely:
- China becoming the world’s economic center of power.
- Diets consisting of plant-based foods (and BUGS!)
- Phasing out fossil fuels (highly unrealistic).
- Automation decimating what’s left of the working class.
- The coming UN Smart Cities program.
- Again, the meme’ing together of climate change and population growth. That is, migration as a human right. This is embedded within the UN’s policies for the past decade.
Prior to the pandemic, BlackRock adapted “Sustainability” as their catechism for Investing.
February 2020 – Big Announcement:
“A framework for incorporating sustainable investing in portfolio construction”
“Sustainability effects and societal attitudes will impact all assets and therefore the whole portfolio. The direct impacts of climate change and the coming capital reallocation will reshape economic fundamentals, expected returns and assessments of risk.”
- Climate change is the unifier, combating climate change – as it has been appointed the boogeyman since Agenda 21 was first unveiled in 1992. Climate change/action is ubiquitous – it was on Biden’s platform, it is part of thousands of corporate MD&A disclosures in official SEC filings, the foundations, the think-tanks, public education, public health, local news, national news…it is safe to say that Climate Change is the underlying threat used by all entities entangled within the decision making capacity of the Great Reset which will ultimately drive the people of planet earth into the arms of Communitarianism and a One World Order.
- Reshape Economic Fundamentals – this is a generic term for the coming Stakeholder Capitalism that is baked into every facet of the Great Reset. BlackRock has $8.676 Trillion USD in Assets Under Management. They are a leader in the Exchange Traded Funds (ETF) realm. Larry Fink, Founder, Chairman and CEO, is on the Board of the World Economic Forum. Make no mistake – BlackRock is a crucial driving force behind the execution of the Great Reset.
Check out the fear porn:
May 2020 – Progress Report on the Valuation Metrics Considered in Sustainable Investments:
Key takeaway from the following document:
“The concept of sustainable investing can mean different things. Asset owners and asset managers often operate with multiple definitions, messages and motivations. BlackRock operates from a simple definition of sustainable investing: Combining traditional investing with environmental, social, and governance-related (ESG) insights to improve long-term outcomes for our clients. Our view: Companies with strong profiles on material sustainability issues have potential to outperform those with poor profiles. In particular, we believe companies managed with a focus on sustainability should be better positioned versus their less sustainable peers to weather adverse conditions while still benefiting from positive market environments.”
“In order to account for this heterogeneity by sectors, descriptors need to be weighted appropriately by their relative importance in each sector before they are summed up to form the final score under
our research framework. For example, the score of a company in the Financial sector – which would not be a comparatively significant carbon emitter or consumer – is weighed heavily in favor of social and governance issues, and marginally on environmental issues. Such a weighting scheme has been described by the Sustainability Accounting Standards Board (SASB) as a Materiality Map. Our
framework relies on the views expressed in the SASB Materiality Map® but also augments them by overlaying additional data.”
December 2020 – BlackRock ESG Integration Statement (updated from 2018)
Environmental, Social and Corporate Governance metrics (ESGs)
ESG– Environmental, Social, and Corporate Governance refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business.
Take a close look at the subject matter contained within the three metrics. The criteria ties directly to the 17 Sustainable Development Goals set forward by UN Agenda 2030 which has been launched by the World Economic Forum’s Great Reset – of which BlackRock is a major player.
In essence, the ESGs are the implementation of the SDGs in the sphere of industry, markets and commerce. Multinational corporations will carry out their ESGs which will concurrently create the structural changes called for in the Great Reset. BlackRock is at the heart of this.
Takeaway from the Document:
“BlackRock’s approach to ESG integration At BlackRock, we have always focused on helping our clients try to reach their long-term investment goals by providing resilient and well-constructed portfolios. Our investment conviction is that sustainability-and climate-integrated portfolios can provide better risk-adjusted returns to investors over the long-term, and that sustainability-related data provides an increasingly important set of tools to identify unpriced risks and opportunities within portfolios. BlackRock’s active investors are responsible for integrating material sustainability-related insights, consistent with their existing investment process, with the objective of improving long-term risk-adjusted returns. BlackRock’s firm-wide investment process is structured to identify ESG risks and opportunities alongside traditional measures within our active investment processes. ESG integration is part of both our active investment process and index investment processes and oversight. BlackRock has a consistent framework for ESG integration that also permits a diversity of approaches across different investment teams and strategies. ESG considerations that are material will vary by client objectives, investment style, sector, and market trends. Sustainability measures help inform the due diligence, portfolio construction, and monitoring processes of our active and alternatives platforms, as well as our approach to risk management. In our index investments business, we work with index providers to expand and improve the universe of sustainable indexes, and our investment stewardship processes encourage the companies in which our clients are invested to manage and disclose material sustainability risks effectively.”
MUUNYAYO’S ANALYSIS: I worked as a CPA for 20 years and audited companies within the same size and scope as BlackRock. This is all a load of horseshit….BlackRock’s fossil fuels investments look something like this:
For Fink and BlackRock, they benefit by participating in the rollout of the “The Great Reset” because for them, outside of their physical holdings in fossil fuels – Exchange-Traded Funds ARE a HUGE SCAM to use CLIMATE CHANGE ACTION as a method to erase the MASSIVE ENOURMOUS REAL FINANCIAL BLACK HOLE OF NOTHINGNESS THAT EXISTS IN THE WORLD OF ETFs.
There is more funk with Fink that we can get into another time. This man makes me sick. I am not a professional researcher, nor journalist, nor author, nor any of that shit. I just want to make blog posts that are informative. And give some insight into the people and entities that are making the Great Reset a reality.
In a very distant past…the fuckery that is the Globalist-Zionist-Supra-Technocratic Regime, a more bold response would be in high order….sword time…wolf time…..war time….
Original Article Here
BlackRock is a global financial giant with customers in 100 countries and its tentacles in major asset classes all over the world; and it now manages the spigots to trillions of bailout dollars from the Federal Reserve. The fate of a large portion of the country’s corporations has been put in the hands of a megalithic private entity with the private capitalist mandate to make as much money as possible for its owners and investors; and that is what it has proceeded to do.
To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial system,” “the most powerful company in the world” and the “secret power.” It is the world’s largest asset manager and “shadow bank,” larger than the world’s largest bank (which is in China), with over $7 trillion in assets under direct management and another $20 trillion managed through its Aladdin risk-monitoring software.
BlackRock has also been called “the fourth branch of government” and “almost a shadow government”, but no part of it actually belongs to the government. Despite its size and global power, BlackRock is not even regulated as a “Systemically Important Financial Institution” under the Dodd-Frank Act, thanks to pressure from its CEO Larry Fink, who has long had “cozy” relationships with government officials.
BlackRock’s strategic importance and political weight were evident when four BlackRock executives, led by former Swiss National Bank head Philipp Hildebrand, presented a proposal at the annual meeting of central bankers in Jackson Hole, Wyoming, in August 2019 for an economic reset that was actually put into effect in March 2020. Acknowledging that central bankers were running out of ammunition for controlling the money supply and the economy, the BlackRock group argued that it was time for the central bank to abandon its long-vaunted independence and join monetary policy (the usual province of the central bank) with fiscal policy (the usual province of the legislature). They proposed that the central bank maintain a “Standing Emergency Fiscal Facility” that would be activated when interest rate manipulation was no longer working to avoid deflation. The Facility would be deployed by an “independent expert” appointed by the central bank.
The COVID-19 crisis presented the perfect opportunity to execute this proposal in the US, with BlackRock itself appointed to administer it. In March 2020, it was awarded a no-bid contract under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to deploy a $454 billion slush fund established by the Treasury in partnership with the Federal Reserve. This fund in turn could be leveraged to provide over $4 trillion in Federal Reserve credit. While the public was distracted with protests, riots and lockdowns, BlackRock suddenly emerged from the shadows to become the “fourth branch of government,” managing the controls to the central bank’s print-on-demand fiat money. How did that happen and what are the implications?
Rising from the Shadows: BlackRock was founded in 1988 in partnership with the Blackstone Group, a multinational private equity management firm that would become notorious after the 2008-09 banking crisis for snatching up foreclosed homes at firesale prices and renting them at inflated prices. BlackRock first grew its balance sheet in the 1990s and 2000s by promoting the mortgage-backed securities (MBS) that brought down the economy in 2008. Knowing the MBS business from the inside, it was then put in charge of the Federal Reserve’s “Maiden Lane” facilities. Called “special purpose vehicles,” these were used to buy “toxic” assets (largely unmarketable MBS) from Bear Stearns and American Insurance Group (AIG), something the Fed was not legally allowed to do itself.BlackRock really made its fortunes, however, in “exchange traded funds” (ETFs). It gained trillions in investable assets after it acquired the iShares series of ETFs in a takeover of Barclays Global Investors in 2009. By 2020, the wildly successful iShares series included over 800 funds and $1.9 trillion in assets under management.Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of America’s largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader.
By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. BlackRock also owns major interests in nearly every mega-bank and in major media.
In March 2020, based on its expertise with the Maiden Lane facilities and its sophisticated Aladdin risk-monitoring software, BlackRock got the job of dispensing Federal Reserve funds through eleven “special purpose vehicles” authorized under the CARES Act. Like the Maiden Lane facilities, these vehicles were designed to allow the Fed, which is legally limited to purchasing safe federally-guaranteed assets, to finance the purchase of riskier assets in the market.Blackrock Bails Itself OutThe national lockdown left states, cities and local businesses in desperate need of federal government aid. But according to David Dayen in The American Prospect, as of May 30 (the Fed’s last monthly report), the only purchases made under the Fed’s new BlackRock-administered SPVs were ETFs, mainly owned by BlackRock itself. Between May 14 and May 20, about $1.58 billion in ETFs were bought through the Secondary Market Corporate Credit Facility (SMCCF), of which $746 million or about 47% came from BlackRock ETFs. The Fed continued to buy more ETFs after May 20, and investors piled in behind, resulting in huge inflows into BlackRock’s corporate bond ETFs.In fact, these ETFs needed a bailout; and BlackRock used its very favorable position with the government to get one. The complicated mechanisms and risks underlying ETFs are explained in an April 3 article by business law professor Ryan Clements, who begins his post:Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisis. Over forty percent of the trading volume during the mid-March selloff was in ETFs ….The ETFs were trading well below the value of their underlying bonds, which were dropping like a rock. Some ETFs were failing altogether. The problem was something critics had long warned of: while ETFs are very liquid, trading on demand like stocks, the assets that make up their portfolios are not. When the market drops and investors flee, the ETFs can have trouble coming up with the funds to settle up without trading at a deep discount; and that is what was happening in March.According to a May 3 article in The National, “The sector was ultimately saved by the US Federal Reserve’s pledge on March 23 to buy investment-grade credit and certain ETFs. This provided the liquidity needed to rescue bonds that had been floundering in a market with no buyers.”Prof. Clements states that if the Fed had not stepped in, “a ‘doom loop’ could have materialized where continued selling pressure in the ETF market exacerbated a fire-sale in the underlying [bonds], and again vice-versa, in a procyclical pile-on with devastating consequences.” He observes:
There’s an unsettling form of market alchemy that takes place when illiquid, over-the-counter bonds are transformed into instantly liquid ETFs. ETF “liquidity transformation” is now being supported by the government, just like liquidity transformation in mortgage backed securities and shadow banking was supported in 2008.
BlackRock got a bailout with no debate in Congress, no “penalty” interest rate of the sort imposed on states and cities borrowing in the Fed’s Municipal Liquidity Facility, no complicated paperwork or waiting in line for scarce Small Business Administration loans, no strings attached. It just quietly bailed itself out.It might be argued that this bailout was good and necessary, since the market was saved from a disastrous “doom loop,” and so were the pension funds and the savings of millions of investors. Although BlackRock has a controlling interest in all the major corporations in the S&P 500, it professes not to “own” the funds. It just acts as a kind of “custodian” for its investors — or so it claims. But BlackRock and the other Big 3 ETFs vote the corporations’ shares; so from the point of view of management, they are the owners. And as observed in a 2017 article from the University of Amsterdam titled “These Three Firms Own Corporate America,” they vote 90% of the time in favor of management. That means they tend to vote against shareholder initiatives, against labor, and against the public interest. BlackRock is not actually working for us, although we the American people have now become its largest client base.
In a 2018 review titled “Blackrock – The Company That Owns the World”, a multinational research group called Investigate Europe concluded that BlackRock “undermines competition through owning shares in competing companies, blurs boundaries between private capital and government affairs by working closely with regulators, and advocates for privatization of pension schemes in order to channel savings capital into its own funds.”Daniela Gabor, Professor of Macroeconomics at the University of Western England in Bristol, concluded after following a number of regulatory debates in Brussels that it was no longer the banks that wielded the financial power; it was the asset managers. She said:We are often told that a manager is there to invest our money for our old age. But it’s much more than that. In my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; in finance, but also in the nature of the social contract that unites the citizen and the state.
That these structural changes are planned and deliberate is evident in BlackRock’s August 2019 white paper laying out an economic reset that has now been implemented with BlackRock at the helm.Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds. That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.As Peter Ewart notes in a May 14 article on BlackRock titled “Foxes in the Henhouse,” today the economic system “is not classical capitalism but rather state monopoly capitalism, where giant enterprises are regularly backstopped with public funds and the boundaries between the state and the financial oligarchy are virtually non-existent.”