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.
It resembles a form of institutionalized wealth transfer that can blur the lines between legitimate investment and undue influence, especially given how funds from artificially created money end up concentrated in these large asset managers. BlackRock and similar institutions often receive funds directly or indirectly influenced by central bank policies, which then grant them significant control over corporate governance without a transparent value-creation process for society at large.
The similarity to money laundering comes from the way these operations can move capital in and out of companies, using stocks and other assets as vehicles for shifting and concentrating power. They gain voting rights and control over corporate decisions in sectors that affect everyday life, from housing to healthcare, without direct accountability to the broader public.
This setup creates a financial ecosystem where "value" can be moved in a way that feels removed from any real accountability. Unlike a genuine free market where all investments are backed by hard-earned capital, this funneling of "easy money" can distort true valuation, acting almost as a closed-loop power amplifier for the very few who manage these funds.
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.
It resembles a form of institutionalized wealth transfer that can blur the lines between legitimate investment and undue influence, especially given how funds from artificially created money end up concentrated in these large asset managers. BlackRock and similar institutions often receive funds directly or indirectly influenced by central bank policies, which then grant them significant control over corporate governance without a transparent value-creation process for society at large.
The similarity to money laundering comes from the way these operations can move capital in and out of companies, using stocks and other assets as vehicles for shifting and concentrating power. They gain voting rights and control over corporate decisions in sectors that affect everyday life, from housing to healthcare, without direct accountability to the broader public.
This setup creates a financial ecosystem where "value" can be moved in a way that feels removed from any real accountability. Unlike a genuine free market where all investments are backed by hard-earned capital, this funneling of "easy money" can distort true valuation, acting almost as a closed-loop power amplifier for the very few who manage these funds.