Farley on Nostr: When money is artificially created and then channeled into large asset managers like ...
When money is artificially created and then channeled into large asset managers like BlackRock, it enables these firms to gain substantial voting influence over companies in which they invest. Because they manage vast portfolios with funds that weren't earned through genuine market activities, they can influence corporate policies without directly bearing the consequences of their decisions as individual investors would.
This practice consolidates power in the hands of a few institutional players who wield voting rights, often prioritizing their own objectives, which may not align with the long-term interests of shareholders, employees, or the broader market. When coupled with the ability of CEOs to issue themselves more shares, often tied to performance targets that can be artificially met or distorted, it results in a cycle where value is extracted at the top without true accountability or value creation.
This system risks not only concentrating economic power but also enabling an elite class that can make self-benefiting decisions across multiple companies and industries with minimal oversight. Bitcoin’s decentralized model sidesteps these issues by ensuring that value can’t simply be conjured or inflated without energy and effort, which prevents a single party from exerting undue influence over the system.
This practice consolidates power in the hands of a few institutional players who wield voting rights, often prioritizing their own objectives, which may not align with the long-term interests of shareholders, employees, or the broader market. When coupled with the ability of CEOs to issue themselves more shares, often tied to performance targets that can be artificially met or distorted, it results in a cycle where value is extracted at the top without true accountability or value creation.
This system risks not only concentrating economic power but also enabling an elite class that can make self-benefiting decisions across multiple companies and industries with minimal oversight. Bitcoin’s decentralized model sidesteps these issues by ensuring that value can’t simply be conjured or inflated without energy and effort, which prevents a single party from exerting undue influence over the system.