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Thread: BlackRock Authored the Bailout Plan Before There Was a Crisis

  1. #1

    BlackRock Authored the Bailout Plan Before There Was a Crisis

    BlackRock Authored the Bailout Plan Before There Was a Crisis – Now It’s Been Hired by three Central Banks to Implement the Plan

    By Pam Martens and Russ Martens: June 5, 2020 ~

    It’s called “Going Direct.” That’s the financial bailout plan designed and authored by former central bankers now on the payroll at BlackRock, an investment manager of $7 trillion in stock and bond funds. The plan was rolled out in August 2019 at the G7 summit of central bankers in Jackson Hole, Wyoming – months before the public was aware of any financial crisis. One month later, on September 17, 2019, the U.S. Federal Reserve would begin an emergency repo loan bailout program, making hundreds of billions of dollars a week in loans by “going direct” to the trading houses on Wall Street.

    The BlackRock plan calls for blurring the lines between government fiscal policy and central bank monetary policy – exactly what the U.S. Treasury and the Federal Reserve are doing today in the United States. BlackRock has now been hired by the Federal Reserve, the Bank of Canada, and Sweden’s central bank, Riksbank, to implement key features of the plan. Three of the authors of the BlackRock plan previously worked as central bankers in the U.S., Canada and Switzerland, respectively.

    The authors wrote in the white paper that “in a downturn the only solution is for a more formal – and historically unusual – coordination of monetary and fiscal policy to provide effective stimulus.”

    We now understand why, for the first time in history, the U.S. Congress handed over $454 billion of taxpayers’ money to the Fed, without any meaningful debate, to eat losses on toxic assets produced by the Wall Street banks it supervises. The Fed plans to leverage the $454 billion into a $4.54 trillion bailout plan, “going direct” with bailouts to the commercial paper market, money market funds, and a host of other markets.

    The BlackRock plan further explains why, for the first time in history, the Fed has hired BlackRock to “go direct” and buy up $750 billion in both primary and secondary corporate bonds and bond ETFs (Exchange Traded Funds), a product of which BlackRock is one of the largest purveyors in the world. Adding further outrage, the BlackRock-run program will get $75 billion of the $454 billion in taxpayers’ money to eat the losses on its corporate bond purchases, which will include its own ETFs, which the Fed is allowing it to buy in the program.

    Helicopter money is also spelled out in the BlackRock plan, which explains why simultaneously with the $454 billion Congress carved out for the Fed under the CARES Act, fiscal stimulus was also “going direct” with $1200 checks and direct deposits to the little people of America and Paycheck Protection Program loans and grants “going direct” to small businesses.

    One feature of the BlackRock plan that is certain to get wide public pushback in the U.S. is the proposal for central banks to buy stocks (equities). The authors write this:

    “Any additional measures to stimulate economic growth will have to go beyond the interest rate channel and ‘go direct’ – [with] a central bank crediting private or public sector accounts directly with money. One way or another, this will mean subsidizing spending – and such a measure would be fiscal rather than monetary by design. This can be done directly through fiscal policy or by expanding the monetary policy toolkit with an instrument that will be fiscal in nature, such as credit easing by way of buying equities. This implies that an effective stimulus would require coordination between monetary and fiscal policy –be it implicitly or explicitly.”

    In the United States, approximately 85 percent of the stock market is owned by the richest 10 percent of Americans. Buying stocks would simply expand and accelerate the wealth and income inequality which is already at the highest levels since the 1920s – a time when Wall Street also owned large deposit-taking banks.

    The Swiss National Bank, the central bank of Switzerland, where one of the BlackRock authors previously worked, already has massive holdings of individual stocks, including $94 billion in publicly traded stocks in the U.S. according to its March 31, 2020 report that was filed with the Securities and Exchange Commission.

    The BlackRock authors of the “Going Direct” plan are the following:

    Stanley Fischer: Fischer was Vice Chairman of Citigroup from 2002 to 2005. Citigroup received the largest bailout in global banking history, getting $2.5 trillion cumulatively in revolving loans from the Fed and billions more from taxpayers in the financial crisis of 2007 to 2010. Fischer went from Citigroup to serve as Governor of the central bank of Israel (Bank of Israel) from 2005 to 2013. (He holds dual citizenship in Israel and the U.S.) One year later, Fischer became a Governor on the U.S. Federal Reserve Board, advancing to Vice Chairman on June 16, 2014. He resigned his position at the Fed October 13, 2017 and joined BlackRock as a Senior Advisor in January 2019.

    Philipp Hildebrand: Hildebrand was Chairman of the Governing Board of the Swiss National Bank from 2010 until he abruptly resigned in early 2012. (There was a scandal over his wife, a former hedge fund trader, making trades in currencies while he had inside information on interest rates.) Hildebrand is now Vice Chairman of BlackRock and a member of the firm’s Global Executive Committee.

    Jean Boivin: Boivin is the Head of the BlackRock Investment Institute. He joined BlackRock in 2014. Prior to joining BlackRock, Boivin was appointed Deputy Governor of the Bank of Canada in March 2010 where he served for two years. Boivin left the Bank of Canada in October 2012 to become Associate Deputy Minister at the Department of Finance, and to serve as Canada’s Finance Deputy at the G-7, G-20 and the Financial Stability Board.

    Elga Bartsch: Bartsch heads up economic and markets research at the Blackrock Investment Institute. Prior to joining BlackRock, Bartsch was Global Co-Head of Economics and Chief European Economist at Morgan Stanley in London. According to the government audit of the Fed’s bailout programs during the 2007-2010 financial crisis, Morgan Stanley was the second largest recipient of the Fed’s bailout programs, behind Citigroup, receiving $2.04 trillion cumulatively in revolving, below-market rate loans.

    On May 15, the central bank of Sweden, the Riksbank, announced that it would be using BlackRock to conduct “an analysis of the Swedish corporate bonds market and an assessment of possible design options for a potential corporate bonds asset purchase programme.”

    The Bank of Canada announced in April that BlackRock has been hired as an adviser for its commercial paper, provincial bond, and corporate bond buying programs.

    The Federal Reserve has given a no-bid contract to BlackRock to manage all of its corporate bond programs.

    Peter Ewart, a writer based in Prince George, British Columbia, wrote the following in the Prince George Daily News about BlackRock’s role in herding central bank actions:

    “The situation also shows how the economic system in both Canada and the U.S. 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.”

    In the U.S., 30 nonprofits, including Friends of the Earth, U.S. Greenpeace, Public Citizen, Rainforest Action Network, the Sierra Club and Take On Wall Street, wrote a letter to Fed Chairman Jerome Powell on March 27 regarding BlackRock’s role in the bailout. The groups called out the Fed on the following:

    “By giving BlackRock full control of this debt buyout program, the Fed is further entwining the roles of government and private actors. In doing so, it makes BlackRock even more systemically important to the financial system. Yet BlackRock is not subject to the regulatory scrutiny of even smaller systemically important financial institutions.”

    The groups also assailed the Fed for its “no strings attached” oversight of how BlackRock was spending the money, writing:

    “As far as is known publicly, there are no conditions or restrictions on what debt is purchased or what companies must do to qualify for debt purchases outside of their credit rating. This could mean that those companies could engage in stock buybacks or provide enormous CEO compensation packages, despite these practices exacerbating imbalances in corporate balance sheets and being a significant reason why these companies are so susceptible to the current crisis. This also means that industries that actively harm the climate – and by extension the financial system – could get unconditional support…”

    BlackRock is not only a major marketer of corporate bond products. Its iShares brand includes a giant roster of stock-based ETFs. The Chairman and CEO of BlackRock is Laurence (Larry) Fink. Reuters reported last July that Fink was lecturing the European Central bank that it “will need to purchase equities to stimulate Europe’s economy, and that leaders should find ways to have investors embrace an ‘equity culture’ there.”
    https://wallstreetonparade.com/2020/...ment-the-plan/
    "People constantly speak of 'the government'
    doing this or that, as they might speak of God doing it.
    But the government is really nothing but a group of men,
    and usually they are very inferior men."
    -- H. L. Mencken

    “Discipline must come through liberty... We do not consider an individual disciplined when he has been rendered as artificially silent as a mute and as immovable as a paralytic. He is an individual annihilated, not disciplined.” -- Maria Montessori



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  3. #2
    Move along, nothing to see here. Black lives matter! COVID is coming! White people are all systemically racist!
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul
    They are what they hate.” - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  4. #3
    See the following nugget from the white paper...
    A practical way of “going direct” would need to deliver the following: 1) defining the unusual circumstances that would call for such unusual coordination; 2) in those circumstances, an explicit inflation objective that fiscal and monetary authorities are jointly held accountable for achieving; 3) a mechanism that enables nimble deployment of productive fiscal policy, and; 4) a clear exit strategy. Such a mechanism could take the form of a standing emergency fiscal facility. It would be a permanent set-up but would be only activated when monetary policy is tapped out and inflation is expected to systematically undershoot its target over the policy horizon.
    https://www.blackrock.com/corporate/...ugust-2019.pdf
    (http://archive.is/Numac)


    A scheme like this has sometimes been refererred to as “helicopter money”, a term coined by Milton Friedman: https://en.wikipedia.org/wiki/Helicopter_money


    Maybe it’s implausible that in such a fine example as a democracy as the USA, presidents would abuse their position for material gain.
    Some “conspiracy theorists” might conclude that it it looks like a conflict of interest that President Donald has awarded this contract to the same BlackRock where he and his family have invested their savings.

    Quote Originally Posted by Firestarter View Post
    In March 2016, Reuters reported that 18 of the 21 the hedge funds in which Donald Trump had invested had been losing money since 2015, an average loss of 8.5% in 2015. In the first 2 months of 2016 Trump's funds lost another 2.9%.


    Compared to stock market and hedge fund industry benchmarks that broke even or came close to it in 2015, Donald’s investments didn’t fare well.
    Most investments by Trump were made in BlackRock's Obsidian fund, followed by Paulson & Co (of John Paulson) and Baron Capital (of Ron Baron).
    Trump's funds that fell in 2015 have done better in the years before 2015. BlackRock's Obsidian fund for example, has averaged annual returns of 3.39% percent from 2011-2015: https://uk.reuters.com/article/uk-us...-idUKKCN0WQ0WI

    In contrast to 2015, Donald Trump reported impressive profits on his investments in stock and funds in July 2015. I don’t know when he invested first (so don’t know over what period he made these profits).
    A profit of $27 million on $67.3 million invested in stocks (40% gains).
    A profit of $22.4 million on $68.2 million invested in funds (23% gains): https://www.washingtonpost.com/wp-st...ly-15-2015.pdf

    Ivanka Trump also invested BlackRock’s Obsidian hedge fund.
    Donald Trump has claimed that he doesn’t need to divest his assets in BlackRock, as the conflict-of-interest rules don’t apply to him:
    http://www.ronpaulforums.com/showthr...=1#post6562954
    Last edited by Firestarter; 06-13-2020 at 09:30 AM.
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  5. #4
    Quote Originally Posted by Firestarter View Post
    See the following nugget from the white paper...
    https://www.blackrock.com/corporate/...ugust-2019.pdf
    (http://archive.is/Numac)

    A scheme like this has sometimes been refererred to as “helicopter money”, a term coined by Milton Friedman: https://en.wikipedia.org/wiki/Helicopter_money

    Maybe it’s implausible that in such a fine example as a democracy as the USA, presidents would abuse their position for material gain.
    Some “conspiracy theorists” might conclude that it it looks like a conflict of interest that President Donald has awarded this contract to the same BlackRock where he and his family have invested their savings.

    http://www.ronpaulforums.com/showthr...=1#post6562954
    In other words, deflation will not be tolerated anywhere, with one notable exception: your cash and savings account. Hyperinflation is not a concern to them.
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul
    They are what they hate.” - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  6. #5
    bump
    When life itself seems lunatic, who knows where madness lies? - Miguel de Cervantes, (Don Quixote)

    Quote Originally Posted by Voluntarist View Post
    The tree of liberty must be refreshed from time to time with the Federal Reserve Notes of patriotic central banks
    Quote Originally Posted by jon4liberty View Post
    You "guys" have the market cornered on transexual satan worshipping anarchists

    "Our Enemy, The State" by Albert Nock. https://famguardian.org/Publications...bertJKnock.pdf

  7. #6
    Quote Originally Posted by Brian4Liberty View Post
    In other words, deflation will not be tolerated anywhere, with one notable exception: your cash and savings account. Hyperinflation is not a concern to them.
    My cash and savings account are the victim of inflation, while I get an effective 0.01% (or something like that) interest rates on my savings that become worth less and less.
    The ING Bank (largest bank in the Netherlands) where I do my banking, informed its clients that it now has a negative interest rate for savings over 1 million Euro (unfortunately I don't have enough for the negative rates)...

    At the same time the stock markets are heavily supported, in support of the wealthy stock owners.
    While the large corporations are supported by this "direct, helicopter" cash. The smal companies are bankrupted.

    I've been investigating BlackRock and Vanguard for some time, but it remains difficult (or impossible) to figure how these are controlled and by who...

    With only the large corporations remaining that are owned, controlled by the huge investment funds of which BlackRock and Vanguard are by far the largest: http://www.ronpaulforums.com/showthr...=1#post6562954
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  8. #7
    From the Netherlands, a similar policy was proposed in March for Europe; calling for the European Central Bank (ECB) to “go direct” in the next crisis.
    Chapter 7 details a policy for the Eurozone that’s very similar to what BlackRock proposed in August 2019...
    The ECB is reaching the limits of its monetary policy space, with negative interest rates and the limits of the sovereign bond buying programme in sight. This should induce fiscal policy makers to play a more active role in stimulating the economy were a new economic downturn to strike. However, it seems prudent for the ECB to also explore new options for monetary policy that could support such fiscal efforts to counter deflationary pressures. Following fiscal action, monetary policy space could be created using new instruments that have a more direct effect on the economy.
    They refer to the “policy framework” of the BlackRock paper.
    The effectiveness of such a policy framework would depend on it being implemented well in advance of the next downturn. A clear and credible stimulus strategy helps investors to understand what will happen and may thus reduce the amount of stimulus needed.
    https://sustainablefinancelab.nl/wp-...entional-2.pdf
    (http://archive.is/mMBg3)
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  9. #8
    + rep.
    When life itself seems lunatic, who knows where madness lies? - Miguel de Cervantes, (Don Quixote)

    Quote Originally Posted by Voluntarist View Post
    The tree of liberty must be refreshed from time to time with the Federal Reserve Notes of patriotic central banks
    Quote Originally Posted by jon4liberty View Post
    You "guys" have the market cornered on transexual satan worshipping anarchists

    "Our Enemy, The State" by Albert Nock. https://famguardian.org/Publications...bertJKnock.pdf



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  11. #9
    In one of those strange concidences, BlackRock CEO Larry Fink is also a trustee of the World Economic Forum: https://www.blackrock.com/corporate/...hip/larry-fink


    I think that as a distraction from this “real” bombshell, the WEF published the “great reset” plan (that appears to get more publicity than this “going direct” in the next crisis plan): http://www.ronpaulforums.com/showthr...EAT-RESET-quot
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  12. #10
    Founder and chairman of the World Economic Forum Klaus Schwab together with his associate Thierry Malleret recently published their book “Covid-19: The Great Reset” to implement the “Great reset” (and/or BlackRock’s “going direct” plan).
    The 5 aspects of the Great Reset are covered in detail – economic, societal, geopolitical, environmental and technological.

    They describe that before the COVID-19 “pandemic”, a “broken sense of normalcy prevailed”, while the “pandemic” “marks a fundamental inflection point in our global trajectory”, which in a short time “magnified the fault lines that beset our economies and societies”.

    Maybe the most interesting is the description of the future of the world in “The Post Pandemic Era”, in which the authors confirm the United Nations’ Agenda 2030 Sustainable Development programme is intertwined with the Great Reset.
    Important topics in the plan are pushing forth new technology (so that Big Brother knows and controls everything) and the “green” agenda (which will of course accelerate the destruction of nature).

    According to Schwab, Covid-19 offers the opportunity to “embed greater societal equality and sustainability into the recovery”, which would “accelerate rather than delay progress towards 2030 Sustainable Development Goals”.
    They also describe how this “pandemic” can accelerate implantation of the surveillance state, which “may compel us to act faster by replacing failed institutions, processes and rules with new ones that are better suited to current and future needs”.

    They describe 2 possible scenarios:
    1 - In which everybody bows down and accepts the rule of tyranny;
    2 – In which people refuse, which could lead to the horrors of anarchy.

    The second scenario will be averted though “imposed by violent shocks like conflicts and even revolutions” (like false flag attacks, unexpected deaths of not cooperating presidents and orchestrated “colour” coups?).

    In an accompanying article with the book, Schwab and Malleret write: “We will be dealing with its fallout for years, and many things will change forever. It has wrought (and will continue to do so) economic disruption of monumental proportions”.
    They even admit that COVID-19 is “one of the least deadly pandemics in the last 2000 years” and “the consequences of the virus will be mild compared to previous pandemics”.

    That’s almost like Schwab and Malleret admit that the “pandemic” isn’t caused by any coronavirus but by measures imposed that have caused widespread economic destruction: https://stevenguinness2.wordpress.co...erry-malleret/
    (https://archive.is/5eYVf)


    The World Bank already plans to keep the COVID-19 Program going until 31 March 2025.
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  13. #11
    On the campaign trail, Donald Trump promised to get rid of the US national debt (in 8 years). Even before the coronavirus “pandemic” was started the US debt continued to balloon; since then it has literally skyrocketed.
    If you think things are bad now, just wait until the bubble of everything explodes!

    In 1980, US public debt was $863 billion. It took 192 years and 39 presidents to get there…
    According to the US Debt Clock, today the US national debt exceeds $27 trillion.


    From 2007 to 2010, the Fed funnelled $29 trillion in “secret bailouts”…
    In 2020, the Fed handed out over $9 trillion to fund BlackRock’s bailout plan.

    Reagan budget director David Stockman described the BlackRock and Vanguard owned and controlled Federal Reserve as:
    a rogue institution that comprises a clear and present danger to the future of prosperity and liberty in America.
    Wall Street speculators and US politicians don’t grasp the danger of “the most egregiously inflated financial bubble ever.
    (W)e’re on the cusp of a economic crisis that could eclipse anything we’ve seen before. And most people won’t be prepared for what’s coming.
    https://www.globalresearch.ca/us-gre...olding/5726677
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  14. #12

  15. #13
    Quote Originally Posted by enhanced_deficit View Post
    Wall Street is hard to understand.

    Probably unconnected but strange exponential jump in market value for a car company at a time when whole world was locked inside and not driving.
    Naturally BlackRock is amongst the major shareholders in Tesla…
    29 June 2020 is the last reported date of major owners in Tesla.

    At that time Blackrock Inc. owned 4.2%, but even more was owned by.
    Vanguard Group, Inc. – 10.0%
    Baillie Gifford and Company – 6.4%
    Capital World Investors – 5.8%

    Tesla CEO Elon Musk even owns a 21% stake in Tesla (around 38.7 million shares): https://finance.yahoo.com/quote/TSLA/holders/


    On 14 August 2020 it was disclosed that BlackRock Inc. had acquired another half a million Tesla shares, going from 7,213,587 to 7,719,768 shares of Tesla Motors, Inc. (valued at $8,335,881,000).
    BlackRock holds another 200 call options (valued at $30,000): https://fintel.io/so/us/tsla/blackrock
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60

  16. #14
    As the result of implementation of BlackRock’s August 2019 “going direct” bailout plan, BlackRock’s assets under management have increased with 12% in only a year to a whopping $7.8 trillion.

    BlackRock‘s shares rose another 3% after this news was published. BlackRock's stock has surged more than 25% in 2020 thanks to the coronavirus bailout plan: https://edition.cnn.com/2020/10/13/i...ngs/index.html
    Do NOT ever read my posts. Google and Yahoo wouldn’t block them without a very good reason: http://www.ronpaulforums.com/showthr...he-world/page3

    Donald Trump, another puppet controlled by the international elite: https://www.lawfulpath.com/forum/vie...=1038&start=60



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