[Firestarter]

Months before the corona “pandemic” was started, the biggest investment fund in the world, BlackRock where the Trump family invests their savings, authored a plan to go “direct” in the next crisis, blurring the lines between government fiscal policy and central bank monetary policy.
The plan was rolled out in August 2019 at the G7 summit of central bankers.

On 17 September 2019, the U.S. Federal Reserve would begin an emergency repo loan bailout program, loaning hundreds of billions of dollars a week by “going direct” (similar to the BlackRock plan).
Then because of the coronavirus crisis, for the first time in history, US Congress handed over $454 billion of taxpayers’ money to the Fed that will be leveraged into a $4.54 trillion bailout plan.
Nobody will argue that the crisis was caused by government policy instead of any coronavirus...

In the United States, some 85% of the stock market is owned by the richest 10% of Americans.
Buying stocks will effectively make the wealthy even richer, while income inequality is already at the highest levels since the 1920s.

The BlackRock plan also explains the fiscal stimulus of the CARES Act with “direct” $1200 checks and deposits to “poor” Americans and Paycheck Protection Program loans and grants to small businesses.

BlackRock plays an important role in implementing the plan that under the guide of the coronavirus pandemic. BlackRock has even been hired by the US Federal Reserve, the Bank of Canada, and Sweden’s central bank to implement parts of the plan.
The Federal Reserve hired BlackRock to “direct” buy $750 billion in corporate bonds and bond ETFs (Exchange Traded Funds). The BlackRock-run program will get $75 billion of this money to eat the losses on its corporate bond purchases, which will include its own Exchange Traded Funds (ETFs) of which BlackRock is one of the largest purveyors in the world.

Three of the 4 authors of the BlackRock plan have previously worked at the central banks in the U.S., Israel, Canada and Switzerland.
Stanley Fischer: in 2005 went from Vice Chairman of Citigroup to become Governor of the central bank of Israel. In 2014 he became a Governor and Vice Chairman of the U.S. Federal Reserve. After he resigned at the Fed in October 2017, he became a Senior Advisor at BlackRock in January 2019.
Philipp Hildebrand: was Chairman of the Governing Board of the Swiss National Bank from 2010 until 2012 (he abruptly resigned over a scandal in which his wife trades in currencies about which he had inside information). Hildebrand is now Vice Chairman of BlackRock and a member of its Global Executive Committee.
Jean Boivin: Deputy Governor of the Bank of Canada in 2010-2012, when he became Associate Deputy Minister at the Department of Finance of Canada. He joined BlackRock in 2014.
Elga Bartsch: has previously worked at Morgan Stanley in London: https://wallstreetonparade.com/2020/06/b...-the-plan/
(http://archive.is/8Y7p3)


See the following nuggets 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.

(...)

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.

https://www.blackrock.com/corporate/lite...t-2019.pdf
(http://archive.is/Numac)


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-cont...onal-2.pdf
(http://archive.is/mMBg3)


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


For more information on BlackRock and the (other) large investment funds (including Vanguard) that own/control the economy: http://www.ronpaulforums.com/showthread....own-the-US