Before there was a crisis, BlackRock authored the bailout plan, now hired by 3 central banks to implement it

Pam Martens, Russ Martens
Wall Street on Parade
Fri, 05 Jun 2020 00:00 UTC

© Lev Dolgachov

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. They wrote: "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-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.

To read more of this article, go here.

Comment: A snippet from the article:

In the U.S., 30 nonprofits...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."

Too rigged to fail, the Fed is systematically skimming the top, scamming the system, bilking the country and the public. The actions, as described, bring new meaning to the concept of a 'cashless society'.