{"id":165688,"date":"2023-05-01T15:37:04","date_gmt":"2023-05-01T19:37:04","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=165688"},"modified":"2023-05-01T15:37:04","modified_gmt":"2023-05-01T19:37:04","slug":"is-even-blackrock-about-to-be-sacrificed-on-the-davos-altar-of-the-wef-implemented-new-world-order","status":"publish","type":"post","link":"http:\/\/stateofthenation.co\/?p=165688","title":{"rendered":"<h3><b><i>Is even BlackRock about to be sacrificed on the Davos altar of the WEF-implemented <i>New World Order<\/i>?! <\/i><\/b><\/h3>"},"content":{"rendered":"<h1>Tucker, Blackrock and the SIFI Two-Step<\/h1>\n<p><!--more-->Tom Luongo<br \/>\nGold Goats \u2018n Guns<\/p>\n<p>The big news this week was Tucker Carlson\u2019s unceremonious firing by Fox News. The reasons for Tucker\u2019s firing are still unclear. And even Tucker\u2019s emergence from his man cave on Tuesday for two minutes did nothing to quell the speculation.<\/p>\n<p>What it did do was underscore just how much real power he amassed during his time in the prime time slot anchoring Fox\u2019s entire evening.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"twitter-tweet\">\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/Tweet.html?creatorScreenName=tfl1728&amp;dnt=false&amp;embedId=twitter-widget-0&amp;features=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&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1651376097349578753&amp;lang=en&amp;origin=https%3A%2F%2Ftomluongo.me%2F2023%2F05%2F01%2Ftucker-blackrock-and-the-sifi-two-step%2F&amp;partner=tfwp&amp;sessionId=e664fd54d5337804b85212dc8fa0fdbb12dc076b&amp;siteScreenName=TFL1728&amp;theme=light&amp;widgetsVersion=aaf4084522e3a%3A1674595607486&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1651376097349578753\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p>I\u2019m not the first to point out to you just how many views this thing has gotten, dwarfing his Neilson Ratings.<\/p>\n<p>This was a serious needle scratch. \u00a0Something changed behind the scenes. \u00a0Within an hour Don Lemon was dumped by CNN. \u00a0Susan Rice left the Biden Administration that morning. Nate Silver was let go from ABC News.<\/p>\n<p>Both Carlson and Lemon had stories planted about them harboring \u2018toxic workplace environments\u2019 to set the scene.<\/p>\n<p>Nuts and Sluts is a time-tested method of invalidating a public figure.<\/p>\n<p>It doesn\u2019t have to be true, it just has to play. Even if only for a day or two *cough* Abby Grossman *cough*<\/p>\n<p>There is every theory imaginable about what happened here and all of them have a nugget of truth to them. \u00a0<a href=\"https:\/\/www.spreaker.com\/episode\/53672563\">Dexter White and I recorded a podcast\u00a0<\/a>covering what we think is the beginning of the Death of the Time Slot.<\/p>\n<p>And while the court politics of this are interesting, they almost feel like discussing 9\/11 or the Kennedy assassination at this point. Does it matter who was behind or why Carlson was ousted from Fox? Could we not see this coming the further he went off the reservation?<\/p>\n<p>In fact, I was amazed he was still on the air after all this time. I don\u2019t think this is a Tucker-as-Icarus proxy story no matter which way you cut it. It was always about something far bigger than Tucker Carlson.<\/p>\n<p>The confluence of major media and political figures leaving their posts, including now the head of the BBC Richard Sharp, over literal ancient conflict of interest issues that looks more like something taken off the shelf for the proverbial rainy day rather than some new, disturbing thing.<\/p>\n<p>It never just rains when its time to change the board state. And that\u2019s exactly what this feels like, an attempt to completely change the direction of information flow as we get ready for the next big psy-op\u2026<\/p>\n<p>\u2026 The remaking of the First Fungal President into the Next Garden Variety Wartime President.<\/p>\n<p>Because this is the best chance the DNC has at this point of retaking the presidency with any degree of credibility given their approval ratings. Even if you believe our elections aren\u2019t corrupt (sic) you at least have to admit to yourself that this is a plausibly deniable way to convince yourself of that \u2018fact.\u2019<\/p>\n<p>Of course, as I said above, do any of the other whys about these events even matter? Of course not, they are, like Wartime presidents don\u2019t lose, statistics which are simply chum for people to feed their confirmation biases and prevent any coming together of the center of the electorate to say no more.<\/p>\n<p>This was Tucker\u2019s real crime if any of us are being honest with ourselves.<\/p>\n<p>And, in fact, it is the least interesting part of the whole story. Because the given proximate cause spoon fed to the \u2018smart people\u2019 in alternative media is the entire Blackrock angle.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-16219 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=616%2C395&amp;ssl=1\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" srcset=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=1024%2C656&amp;ssl=1 1024w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=300%2C192&amp;ssl=1 300w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=150%2C96&amp;ssl=1 150w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=768%2C492&amp;ssl=1 768w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=1536%2C984&amp;ssl=1 1536w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=816%2C523&amp;ssl=1 816w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?resize=125%2C80&amp;ssl=1 125w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?w=2048&amp;ssl=1 2048w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?w=1232&amp;ssl=1 1232w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?w=1848&amp;ssl=1 1848w\" alt=\"\" width=\"616\" height=\"395\" data-attachment-id=\"16219\" data-permalink=\"https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/image-54\/\" data-orig-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?fit=2048%2C1312&amp;ssl=1\" data-orig-size=\"2048,1312\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?fit=300%2C192&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/image.png?fit=616%2C395&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/figure>\n<p>Of course, this isn\u2019t true but, again, it doesn\u2019t matter. That said, there is a Blackrock angle to this story but it isn\u2019t what people were led to believe for a couple of days.<\/p>\n<p>Blackrock\u00a0<a href=\"https:\/\/www.nasdaq.com\/articles\/blackrock-increases-position-in-fox-corporation-foxa\">increased their ownership in FOX just before these events<\/a>. This is symptomatic of Blackrock\u2019s use of proxy to get what they want.<\/p>\n<p>Larry Fink, BLK CEO, is notorious for his antics in forcing heads of state and CEO\u2019s to do his bidding while hiding behind the smokescreen of \u2018I\u2019m just a guy investing your hard-earned capital on your behalf for the good of humanity.\u2019<\/p>\n<p>Now, this is some prime Grade AA Bullshit.<\/p>\n<p>Blackrock is Davos\u2019 main arm-twisting subsidiary in the\u00a0<a href=\"https:\/\/www.investigate-europe.eu\/de\/2019\/blackrock-das-finanzungeheuer-das-europas-entscheidungen-beeinflusst\/\" target=\"_blank\" rel=\"noreferrer noopener\">C-Suites of the S&amp;P 500 as well as the Euro STOXXX 50<\/a>\u00a0(link will need translation from German). \u00a0He may as well change his first name to Don but there are some ethnic issues with this outside of Queens.<\/p>\n<p>As I\u2019ve discussed in previous\u00a0<a href=\"https:\/\/www.patreon.com\/GoldGoatsNGuns?filters[search_query]=blackrock\">Private Blog posts for my patrons<\/a>\u00a0and interviews Blackrock bet the farm on Obama\/Biden getting rid of Jerome Powell. They went all in on their CARES Act power to access the Fed\u2019s Discount window to procure zero-cost seed capital to buy US stocks and, by extension, real estate and everything else.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-16221 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=616%2C319&amp;ssl=1\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" srcset=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=1024%2C530&amp;ssl=1 1024w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=300%2C155&amp;ssl=1 300w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=150%2C78&amp;ssl=1 150w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=768%2C398&amp;ssl=1 768w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=816%2C423&amp;ssl=1 816w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?resize=154%2C80&amp;ssl=1 154w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?w=1220&amp;ssl=1 1220w\" alt=\"\" width=\"616\" height=\"319\" data-attachment-id=\"16221\" data-permalink=\"https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/blk-aum\/\" data-orig-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?fit=1220%2C632&amp;ssl=1\" data-orig-size=\"1220,632\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"BLK AUM\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?fit=300%2C155&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-AUM.png?fit=616%2C319&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/figure>\n<p>The company\u2019s growth was turbocharged during COVID by this but it was already growing by more than $1 trillion annually before that.<\/p>\n<p>Its AUM \u2014 Assets Under Management \u2014 fell in 2022 because the value of the underlying assets fell as Powell put the interest rate screws to a lot of Blackrock\u2019s \u2018investments.\u2019 \u00a0The headlines have been full of governors like Florida\u2019s Ron DeSantis going on an anti-Blackrock\/anti-ESG\/anti-Woke tirade which has helped see some outflow from Blackrock\u2019s funds.<\/p>\n<p>But that doesn\u2019t do a whole lot in the face of $10 trillion in AUM. \u00a0A few billion is literally a rounding error.<\/p>\n<p>No, the bigger effect came from taking the Fed Funds Rate from 0% to 5% in a year.<\/p>\n<p>In the late stages of the ZIRP years we saw really strong moves in the equity markets, especially coming out of COVID as the CARES Act money made its way into the economy. \u00a0 Normie FinTwit is always going on about the Fed subsidizing the \u2018wealth effect\u2019 as their main argument for why Powell is just \u2018one more meeting away from pivoting\u2019 off his \u2018higher rates for longer\u2019 schtick.<\/p>\n<p>The \u2018wealth effect\u2019 expands not only Blackrock\u2019s AUM but also it\u2019s political pull in the board room. \u00a0There is both coincidence and causality in my opinion, between things like\u00a0<a href=\"https:\/\/tomluongo.me\/2021\/04\/12\/woke-coke-goes-for-broke-destroying-its-brand\/\">Woke-a-Cola<\/a>\u00a0and genuflecting to every sicko with a gender fetish and the rise in Blackrock\u2019s AUM.<\/p>\n<p>So it\u2019s no wonder that the standard FinTwit commentary on the Fed is that QE and ZIRP goose equity prices (which it does) but also that that is what the Fed\u00a0<em>wants to do all the time!<\/em><\/p>\n<p>This is the part I disagree with and have been steadfast in my assessment as to why for nearly two years.<\/p>\n<p>Powell was trapped by both COVID and the CARES Act to go along with extending this madness for another two years. \u00a0And in the process handed Don Fink-liosi the keys to the whole rotten candy store to ensure what we\u2019re seeing today \u2014 maximal brand destruction that defies market logic \u2014 gets ramped up to 11.<\/p>\n<p>Buying a huge stake in Fox is just one more brick in the New Media Stonewall for the upcoming war.<\/p>\n<p>All they had to do to seal the deal was convince everyone the global economy was still suffering because of COVID and we needed even MOAR SPENDING!! at the zero bound to reflate the economy.<\/p>\n<p>Powell was supposed to be deposed and Lael Brainard installed to ensure continuity of policy with them having moved Janet Yellen back into a position of power as Treasury Secretary under \u201cBiden.\u201d<\/p>\n<p>That has failed. \u00a0Brainard is out at the Fed. She\u2019s prepping to replace Yellen in Biden\u2019s 2nd term.<\/p>\n<p>Biden\/Harris\u2019s soft launch of their re-election campaign, was times with Carlson\u2019s is ouster from Fox and warning shots fired at every major media outlet to toe the line like never before.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"jetpack-video-wrapper\"><span class=\"embed-youtube\"><iframe class=\"youtube-player\" src=\"https:\/\/www.youtube.com\/embed\/jbfxhdNpLFs?version=3&amp;rel=1&amp;showsearch=0&amp;showinfo=1&amp;iv_load_policy=1&amp;fs=1&amp;hl=en-US&amp;autohide=2&amp;wmode=transparent\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation\" allowfullscreen=\"allowfullscreen\" data-ratio=\"0.5633116883116883\" data-width=\"616\" data-height=\"347\" data-mce-fragment=\"1\"><\/iframe><\/span><\/div>\n<\/div>\n<\/figure>\n<p>So, now, let\u2019s really talk what\u2019s going on with Blackrock in light of this failure to replace Powell.<\/p>\n<p>For a few years now Janet Yellen and Elizabeth Warren have brought up the idea of expanding the definition of SIFI \u2013 Systemically Important Financial Institutions \u2014 to non-bank entities, like Blackrock.<\/p>\n<p>Blackrock has argued for years that it cannot be a SIFI because:<\/p>\n<blockquote class=\"wp-block-quote\"><p>\u201cThe British commissioner who took over from Barnier, Jonathan Hill, wanted the commission to work hand-in-hand with the financiers and every time a debate or a hearing was organised, BlackRock\u2019s people were there,\u201d recalls Daniela Gabor.<\/p>\n<p>\u201cThen I realised that it was no longer the banks that had the power but the asset managers. We are often told that a manager is there to invest our money for our old age. But it\u2019s much more than that,\u201d she says. \u201cIn my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; changes in finance, but also in the nature of the social contract that unites the citizen and the state.\u201d<\/p>\n<p>Daniela Gabor explains that the European Central Bank, which commissions BlackRock to audit banks, has no power over the company. \u201c<em><strong>BlackRock\u2019s argument is simple: we do not do leverage, we do not act like banks, so we do not need to be regulated as a systemic institution.\u201d {emphasis mine}<\/strong><\/em><\/p>\n<p>In fact, BlackRock slips under all radars. \u201cThey can be regulated for reasons known as micro-prudential, to protect their customers, but not as a financial institution tasked with ensuring overall financial stability,\u201d she says.<\/p>\n<p><cite><a href=\"https:\/\/www.investigate-europe.eu\/en\/2019\/blackrock-the-financial-leviathan-that-bears-down-on-europes-decisions\/\" rel=\"nofollow\">HTTPS:\/\/WWW.INVESTIGATE-EUROPE.EU\/EN\/2019\/BLACKROCK-THE-FINANCIAL-LEVIATHAN-THAT-BEARS-DOWN-ON-EUROPES-DECISIONS\/<\/a><\/cite><\/p><\/blockquote>\n<p>This \u2018conversation\u2019 has been going on since at least 2019. \u00a0It resurfaced again this week as Yellen brought this up. \u00a0Now why would she do that if, as I\u2019ve strenuously argued, she\u2019s\u00a0<em>Davos\u00a0<\/em>through and through.<\/p>\n<p>After all wouldn\u2019t she continue arguing for the opposite per Blackrock and Don Fink-liosi\u2019s instructions?<\/p>\n<p>It goes back to what I\u2019ve been saying about Blackrock for over a year now. \u00a0All of that AUM rests on<a href=\"https:\/\/www.investing.com\/equities\/blackrock,-inc.-c-balance-sheet\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0a very slim pile of shareholder equity<\/a>, $38.2 billion to be precise.<\/p>\n<p>As longtime Patrons know, when I do a balance sheet analysis of a company I strip out things like \u201cGoodwill\u201d and \u201cIntangible Assets\u201d from the asset side of the balance sheet. \u00a0These are simply piles of \u2018value\u2019 leftover from previous M&amp;A activity, brand equity, etc., that may or may not have any real value.<\/p>\n<p><strong>Stripping out the $33.6 billion BLK has in these two \u2018asset\u2019 classes that leaves Fink with less than $5 billion in shareholder equity.\u00a0<\/strong><\/p>\n<p>I\u2019m not saying there is no value there, but it\u2019s reasonable to think that the actual value of Blackrock\u2019s balance sheet is somewhere between these two numbers. I\u2019m even willing to entertain 100% valuation for argument\u2019s sake.<\/p>\n<p>It is also staring at more than $55 billion in \u201cOther liabilities\u201d which, is very likely derivative exposure that the company can play very fast and loose with since it was over $90 billion in 2021, and $120 billion in both 2019 and 2020.<\/p>\n<p>These are some pretty big black boxen.<\/p>\n<p>So I\u2019m asking the question no one really wants asked, \u201cDoes Blackrock actually have any equity today?\u201d Or is this all a big psy-op based on them voting our proxy for us?<\/p>\n<p>And when we look at the stock price I have to wonder if Wall St. isn\u2019t also asking that question with growing confidence?<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-16226 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=616%2C324&amp;ssl=1\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" srcset=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=1024%2C538&amp;ssl=1 1024w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=300%2C158&amp;ssl=1 300w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=150%2C79&amp;ssl=1 150w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=768%2C403&amp;ssl=1 768w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=816%2C429&amp;ssl=1 816w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?resize=152%2C80&amp;ssl=1 152w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?w=1203&amp;ssl=1 1203w\" alt=\"\" width=\"616\" height=\"324\" data-attachment-id=\"16226\" data-permalink=\"https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/blk-monthly-chart\/\" data-orig-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?fit=1203%2C632&amp;ssl=1\" data-orig-size=\"1203,632\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"BLK-Monthly-Chart\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?fit=300%2C158&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/BLK-Monthly-Chart.png?fit=616%2C324&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/figure>\n<p>I note on the chart the 2022 bottom in October. \u00a0What else bottomed in October 2022? \u00a0The Euro at $0.956 while the USDX made an important high. But look at that chart. \u00a0A two-bar reversal in Oct\/Nov, followed by a triple-top around $775 which turns into a one-bar reversal in February, when Powell finally turned the corner on convincing the market the Fed Put is dead.<\/p>\n<p>Now we\u2019re looking at this as a possible \u2018dead cat bounce\u2019 which needs a lot of help here to create a rally.<\/p>\n<p>So, if Blackrock is in real trouble here because of falling asset prices, ESG backlash, rising rates, and falling cash flow then that would necessitate a change in the rules to allow it to be bailed out.<\/p>\n<p>Remember, last year when the UK pension crisis developed which took out Prime Minister Liz Truss and forced the Bank of England to intervene, the one holding the bag on the failing assets there was none other than Blackrock.<\/p>\n<p>They were the ones in trouble who sold these leveraged CLOs \u2014 Collateralized Loan Obligations \u2014 to the UK state pensions which ran out of money to pay pensioners.<\/p>\n<p>Now, is Blackrock, which was built on the same premise as Silicon Valley Bank, using non-balance sheet activity to resist being regulated as a SIFI, is staring at a crisis if yields keep rising?<\/p>\n<p>Who is protected by the big inversion of the US yield curve we keep staring at? Who is<\/p>\n<p>So, in swoops Yellen to demand Blackrock should be a SIFI once the FUD surrounding it reaches a fever pitch. \u00a0Who is everyone afraid of now? Blackrock.<\/p>\n<p>Why? \u00a0Because they \u201cown the world.\u201d<\/p>\n<p>Why aren\u2019t they regulated like the big banks? \u00a0Because they sit at the High Table.<\/p>\n<p>Who gets screwed if they go tits up? \u00a0The little guy.<\/p>\n<p>Who\u2019s fault will it be if Blackrock went tits up? \u00a0The Fed.<\/p>\n<p>You can hear Elizabeth Warren setting the political stage for this now. We have to protect US workers from the evil Wall St. fat cats. \u00a0So, we\u2019ll bring them under the auspice of increased government regulation by labeling them as a SIFI.<\/p>\n<p>Who sits on the\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Financial_Stability_Oversight_Council\">Financial Services Oversight Council<\/a>\u00a0who will make this decision?<\/p>\n<p>And then we have\u00a0<a href=\"https:\/\/twitter.com\/digitalassetbuy\/status\/1650507249528320001\" target=\"_blank\" rel=\"noreferrer noopener\">Jim Rickards\u2019 Ice-9 scenario.<\/a>\u00a0\u00a0(Link to tweet with video).<\/p>\n<p>In short, Blackrock as a SIFI becomes a protectorate of the Treasury department and it circumvents a bankruptcy.<\/p>\n<p>Since Blackrock is just a pile of AUM on top of a relatively small balance sheet it can be carved up pretty easily. Its book of business can be bought by the rest of Wall St. licking their lips at the thought of all those asset management and consulting fees that generate the lion\u2019s share of the company\u2019s cash flow.<\/p>\n<p>So now, does Blackrock want to be regulated as a SIFI after having built itself into the monster it is by evading that designation?<\/p>\n<p>You can see the game here, Janet Yellen can force Jerome Powell to bail them out when their balance sheet implodes for real, holding the holes in the pension funds hostage as blackmail.<\/p>\n<p>Why would they do that? \u00a0Why would Fink do this? \u00a0Well, if you want to nationalize the US pension system and end the old US dollar system then you do that during a major crisis.<\/p>\n<p>How did they tie Powell\u2019s hands during COVID? \u00a0The CARES Act.<\/p>\n<p>How will they tie Powell\u2019s hands during the European Sovereign Debt Crisis? Making Blackrock a SIFI before it happens.<\/p>\n<p>What would you expect to happen between now and then? \u00a0Snuffing out any major selloff in US Treasuries by managing credit spreads between US and European debt. \u00a0This relieves the pressure on Blackrock\u2019s balance sheet and that of others.<\/p>\n<p>Now let\u2019s talk about the blowout in US Credit Default Swap Rates as well as the massive plunge in the 1-month T-Bill rate last week creating an historic 1 month\/2 month spread of over 160 basis points. \u00a0Yellen has been ramping up the rhetoric about the US defaulting once the Treasury General Account is empty.<\/p>\n<p>\u201cBiden\u201d and\u00a0<em>Davos\u00a0<\/em>are serious about trying to stop any kind of spending cuts, because they want to balloon the US deficit to the moon to save the EU. \u00a0Blackrock is more heavily exposed to Europe than the US pension systems, but still heavily exposed to both.<\/p>\n<p>What did Lagarde at the ECB put in place last July? \u00a0The TPI \u2013 Transmission Protection Instrument \u2014 designed to protect credit spreads within the EU, nominally, but also internationally.<\/p>\n<p>What\u2019s been happening during this major rally in the euro to $1.10 and Powell convinced the markets he\u2019s serious about not pivoting? A collapse of US\/European credit spreads indicating preferential capital movement into the US and out of Europe.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-16229 jetpack-lazy-image jetpack-lazy-image--handled\" src=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=616%2C274&amp;ssl=1\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" srcset=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?w=893&amp;ssl=1 893w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=300%2C133&amp;ssl=1 300w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=150%2C67&amp;ssl=1 150w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=768%2C341&amp;ssl=1 768w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=816%2C363&amp;ssl=1 816w, https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?resize=180%2C80&amp;ssl=1 180w\" alt=\"\" width=\"616\" height=\"274\" data-attachment-id=\"16229\" data-permalink=\"https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/us-german-yield-spreads-4-25-23-1\/\" data-orig-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?fit=893%2C397&amp;ssl=1\" data-orig-size=\"893,397\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"US-German-Yield-Spreads-4-25-23-1\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?fit=300%2C133&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/tomluongo.me\/wp-content\/uploads\/2023\/04\/US-German-Yield-Spreads-4-25-23-1.png?fit=616%2C274&amp;ssl=1\" data-recalc-dims=\"1\" data-lazy-loaded=\"1\" \/><\/figure>\n<p>In short, I think Blackrock\u2019s deteriorating balance sheet as well as Yellen\u2019s intention to stiff US bondholders to save pensioners is setting us up for the biggest Lucy with the Football moment in history. It is the biggest threat to Powell\u2019s \u201chigher for longer\u201d rate policy and the future of the US.<\/p>\n<p>And it comes down to playing hard ball over the debt ceiling without significant spending cuts. If that happens then Yellen is winning and Powell is checkmated. If McCarthy and the GOP hold the line then the US banking interests will tear Blackrock apart and take their business in bankruptcy.<\/p>\n<p>Making Blackrock a SIFI short-circuits this completely and puts the onus directly on the taxpayer, per Rickards\u2019 analysis.<\/p>\n<p>I can easily see Blackrock sacrificed on the alter of the Great Reset once it\u2019s control over corporate interests has been turned over to the Treasury and the ECB.<\/p>\n<p>In fact, it is the best play for them to nationalize all the assets they have. \u00a0$9 trillion in AUM is a lot of win for the commies.<\/p>\n<p>And Fink, as I said, already has his seat at The High Table.<\/p>\n<p>Which is why Tucker Carlson\u2019s firing is important but really the side show in all of this.<\/p>\n<p>___<br \/>\n<a href=\"https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/\">https:\/\/tomluongo.me\/2023\/05\/01\/tucker-blackrock-and-the-sifi-two-step\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tucker, Blackrock and the SIFI Two-Step<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-165688","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/165688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=165688"}],"version-history":[{"count":0,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/165688\/revisions"}],"wp:attachment":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=165688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=165688"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=165688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}