Larry Fink, CEO of BlackRock, Is the New ‘Green’ John Law
May 16, 2020 (EIRNS)—In 1720, at the height of the South Sea bubble, the King of France appointed the man who had helped create the bubble, John Law, as his Finance Minister. Law used his post to continuously inflate the bubble, even when he knew the bubble was bursting, by just creating one bubble after the other.
Today it seems the U.S. Federal Reserve and the trans-Atlantic central banks are doing the same: BlackRock, the inventor of mortgage-backed securities, was hired by the U.S. government in 2008 to help “manage” the bursting bubble, and it became the world’s largest asset manager thanks to that job. Today BlackRock manages $5.1 trillion in assets, and its platform, Aladdin, €15 trillion in assets for third-party customers.
The Fed has appointed BlackRock as manager of its new, unlimited bond purchase program. The European Commission has hired BlackRock to write new financial rules to build up the new Green Bubble. Last month, the European Commission said that BlackRock had beaten eight other bidders for a contract to study how the European Union could best integrate environmentalist, social, and governance factors into its banking supervision.
Like John Law, BlackRock will try to save the bursting bubble with a new one, the Green Bubble. With this method, John Law successfully drove the French state into bankruptcy, and BlackRock will do the same.
After all, BlackRock funder Larry Fink started with a $200 million bankruptcy at First Boston, the reason why he was kicked out. He then created the mortgage-backed security working at a Blackstone unit, what eventually became BlackRock. We know how the mortgage bubble ended. Nobody is so stupid to buy a car from the guy who sold you a piece of junk in the first place, but central banks do that repeatedly, it seems.
Why is everyone hiring BlackRock? Simple: BlackRock owns them. Among those who use BlackRock’s platform Aladdin, you find government institutions, pension funds, megabanks, and other private and public institutions. For instance, Aladdin manages €900 billion of Deutsche Bank’s portfolio.