Business
BlackRock’s woke capitalist vision is failing: here’s why
Thos Robinson/Getty Images for The New York Times
From LifeSiteNews
By Frank Wright
Corbett shows how public outrage at the unelected political power of asset managers has led to an investor backlash, with politicians and legislators taking steps against the “forcing of behaviors” which BlackRock CEO Larry Fink once trumpeted as his mission
The always engaging James Corbett has produced some of the most informative guides to the power of BlackRock – who together with second-placed Vanguard Group own a combined 15 trillion U.S. dollars of assets under management.
In this report I relate how Corbett argues for a fightback against BlackRock and the asset management giants like them, who use their power to shape the world regardless of public consent. His views are more than corroborated by the news which followed the release of his video.
Corbett’s September 21 presentation, “How to Defeat BlackRock,” followed up by his excellent, “How BlackRock Conquered the World,” begins with some very encouraging news about the fortunes of the global investment giants – and what can be done to stop them. Happily, this process is already underway.
Corbett shows how public outrage at the unelected political power of asset managers has led to an investor backlash, with politicians and legislators taking steps against the “forcing of behaviors” which BlackRock CEO Larry Fink once trumpeted as his mission.
According to Corbett, and a growing number of other sources, this pressure looks likely to force asset management giants like BlackRock out of the behavior business altogether.
READ: How Vanguard and BlackRock took control of the global economy
A faltering global agenda
The first piece of good news is that the brand of ESG (environmental, social and governance) is so toxic that not even BlackRock’s CEO wants to use it any more.
BlackRock, under the leadership of Larry Fink, has used its immense wealth for years to compel companies to adopt the ESG agenda, becoming the driving force of “woke” capitalism. Yet leveraging financial power to force social and political change in this way has led to a backlash – from the general public, from lawmakers – and from the financial sector itself.
Last December, the North Carolina State Treasurer Dale R. Folwell called for Fink’s resignation, threatening to withdraw over $14 billion in state funds from the investment firm. As The Daily Mail reported, Folwell said:
Fink is in ‘pursuit of a political agenda… A focus on ESG is not a focus on returns and potentially could force us to violate our own fiduciary duty.’
Six months later, in June 2023, Fink said he was “ashamed” of ESG which he said had become “politically weaponized.”
Though his company, BlackRock, has continued to rate businesses on the same criteria, it has removed almost every mention of the term from its communications.
Speaking in Aspen, Colorado, Fink admitted that the decision of Florida Governor Ron DeSantis to withdraw $2 billion in state assets managed by BlackRock had hurt the company. The ESG agenda advanced by BlackRock is so beleaguered, even its former champion will not speak its name.
The power of public opinion
What this shows, as Corbett argues, is a further piece of good news: that public opinion still matters. It is public knowledge of the unelected political meddling of BlackRock and others which has led to outrage – and to action.
As a result of extensive coverage – mainly from independent media – of the nefarious influence of his company, Larry Fink has faced sustained criticism for over a year. This in turn has led to the kind of legal and financial consequences which have made people like Fink think again.
READ: How Larry Fink uses ESG and AI to control the world’s money
This also shows why so much money is invested in propaganda, censorship and “narrative control.” Governments and corporations are afraid of a well-informed public, because such a public is very likely to demand they are held to account.
The case of BlackRock not only shows that what is in your mind can indeed matter, but also that the goliaths of globalism do not always win.
This is one reason for the ongoing information war, and the growing censorship-industrial complex. An informed citizenry has the power to hold the powerful to account. Taken together, public outrage can also move markets – and the money men who watch them.
I investigated some of the claims Corbett made about the financial world’s mounting unease with the involvement of BlackRock, Vanguard and other firms in pushing unelected political and social change. I found more cause for celebration than even Corbett himself would admit at the time.
Passive investments, legal actions
In further good news, mounting legal troubles have accompanied the practice of companies like BlackRock, Vanguard and State Street to leverage their enormous asset piles into social and political compliance engineering.
According to a June 2023 report from RIAbiz, an online journal for registered investment advisers (RIAs), BlackRock and Vanguard’s “fooling around” with ESG targets has left them exposed to prosecution.
The business of managing many assets is supposed to be “passive” – a legal term which means that companies such as BlackRock are prohibited from “exercising control” of the companies whose funds they manage.
Federal exemptions had been granted to these asset management giants, but their habit of forcing behaviors on issues such as carbon “net zero” and “diversity” has placed their capacity to do business in jeopardy.
In May of this year, BlackRock and Vanguard saw a legal challenge emerge, and one which not only deters investors, but may also lead to their being broken up.
As Oisin Breen reported on June 1:
Seventeen AGs moved on May 10 against BlackRock on the grounds that its climate-based activism and its pro-ethical, governance and social (ESG) stance make it an active investor, in breach of a FERC antitrust agreement.
The Federal Energy Regulatory Commission (FERC) is involved due to BlackRock’s – and Vanguard’s – holdings in domestic energy utilities. Breen continues:
Separately, 13 AGs filed a motion to block Vanguard from renewing its FERC exemption. They represent mostly energy-producing states like Texas, as do the 17 now pressing to have BlackRock’s exemption revoked.
Though Breen concluded that both firms had “won a reprieve” from immediate legal censure, the message appears to have been received.
Three months later, Fortune magazine reported:
Finance giants BlackRock and Vanguard – once ESG’s biggest proponents – seem to be reversing course.
Hitting the bottom line
The global business publication noted the legal complications of mixing finance with social, environmental and governance policies, saying:
It appears these strategic shifts are being driven by a combination of public backlash and a focus on their bottom lines.
Then, on October 23, leading U.S. insurance brokerage WTW reported that BlackRock, Vanguard and State Street had all seen significant drops in their total amounts of assets under management (AUM). BlackRock’s alone fell from over 10 trillion dollars to just over 8 trillion.
By October 31, Fortune returned with the verdict that BlackRock, Vanguard and State Street had all “turned against environment and social proposals… in a clear sign of backlash.”
Their report noted a “precipitous” fall in the support of all three asset giants’ commitment to these agendas – with BlackRock’s funding of “ESG” measures falling by over 30 percent from 2021.
Real world consequences
This is the delayed result of a reality which BlackRock themselves acknowledged – and one which drove much of the public disapproval – that the ESG agenda was an economic and social wrecking ball.
Remarkably, BlackRock itself admitted that its promotion of ESG, in the aggressive pursuit of net zero and diversity policies, had actually contributed to a severe economic downturn.
In its “2023 Outlook,” the asset giant said these initiatives had been a major factor in ending the decades-long period of prosperity in the West known as the Great Moderation.
READ: The End of Prosperity? How BlackRock manipulates the West’s economic downturn
Buycotts – not boycotts
In his video Corbett is frank about the limitations of individual consumer power. You cannot “access BlackRock directly,” as it is a management firm. You can, of course, withdraw support from the companies in which it and its fellow behemoths Vanguard and State Street have holdings.
Yet Corbett moves from boycotts of individual corporations to the intriguing concept of “buycotts.” What he means by this is “taking your money from the corporations and using it to build things you want to see.”
How realistic is this solution? Already, businesses are emerging to capitalize on growing public discontent with what is done with their money – without their consent or approval.
Changing our behaviors – for good
The investment platform Reverberate, for example, allows users to “Rate companies highly (over 2.5 stars) if they make your life better, or lower if they make your life worse.”
What is more, user feedback from the public will determine which shares it buys:
Our publicly-traded investment fund buys shares of companies whose average ratings are high and/or rising, and sells shares of those whose average ratings are low and/or falling.
On their website, Reverberate says:
This is our way of trying to align capital allocation with the interests of the general public, as estimated by us in a relatively unbiased, wide-reaching way.
The decline of the asset managers’ ESG agenda is a happy corrective to the damaging belief that nothing can be done about anything.
It shows how well-informed public opinion can lead to genuine change, and with some of Corbett’s insights, how we can move from complaint to constructive action in making a better world.
You can see Corbett’s entertaining case for countering the woke asset management giants here.
Business
CBC’s business model is trapped in a very dark place
I Testified Before a Senate Committee About the CBC
I recently testified before the Senate Committee for Transport and Communications. You can view that session here. Even though the official topic was CBC’s local programming in Ontario, everyone quickly shifted the discussion to CBC’s big-picture problems and how their existential struggles were urgent and immediate. The idea that deep and fundamental changes within the corporation were unavoidable seemed to enjoy complete agreement.
I’ll use this post as background to some of the points I raised during the hearing.
You might recall how my recent post on CBC funding described a corporation shedding audience share like dandruff while spending hundreds of millions of dollars producing drama and comedy programming few Canadians consume. There are so few viewers left that I suspect they’re now identified by first name rather than as a percentage of the population.
Since then I’ve learned a lot more about CBC performance and about the broadcast industry in general.
For instance, it’ll surprise exactly no one to learn that fewer Canadians get their audio from traditional radio broadcasters. But how steep is the decline? According to the CRTC’s Annual Highlights of the Broadcasting Sector 2022-2023, since 2015, “hours spent listening to traditional broadcasting has decreased at a CAGR of 4.8 percent”. CAGR, by the way, stands for compound annual growth rate.
Dropping 4.8 percent each year means audience numbers aren’t just “falling”; they’re not even “falling off the edge of a cliff”; they’re already close enough to the bottom of the cliff to smell the trees. Looking for context? Between English and French-language radio, the CBC spends around $240 million each year.
Those listeners aren’t just disappearing without a trace. the CRTC also tells us that Canadians are increasingly migrating to Digital Media Broadcasting Units (DMBUs) – with numbers growing by more than nine percent annually since 2015.
The CBC’s problem here is that they’re not a serious player in the DMBU world, so they’re simply losing digital listeners. For example, of the top 200 Spotify podcasts ranked by popularity in Canada, only four are from the CBC.
Another interesting data point I ran into related to that billion dollar plus annual parliamentary allocation CBC enjoys. It turns out that that’s not the whole story. You may recall how the government added another $42 million in their most recent budget.
But wait! That’s not all! Between CBC and SRC, the Canada Media Fund (CMF) ponied up another $97 million for fiscal 2023-2024 to cover specific programming production budgets.
Technically, Canada Media Fund grants target individual projects planned by independent production companies. But those projects are usually associated with the “envelope” of one of the big broadcasters – of which CBC is by far the largest. 2023-2024 CMF funding totaled $786 million, and CBC’s take was nearly double that of their nearest competitor (Bell).
But there’s more! Back in 2016, the federal budget included an extra $150 million each year as a “new investment in Canadian arts and culture”. It’s entirely possible that no one turned off the tap and that extra government cheque is still showing up each year in the CBC’s mailbox. There was also a $93 million item for infrastructure and technological upgrades back in the 2017-2018 fiscal year. Who knows whether that one wasn’t also carried over.
So CBC’s share of government funding keeps growing while its share of Canadian media consumers shrinks. How do you suppose that’ll end?
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ESG
Can’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!
Watch Canada’s Prime Minister tell an anti-poverty group, your ability to buy “groceries for my kids” is less important than sacrificing to pay his carbon tax.
In case you still thought there might be even the tiniest chance Justin Trudeau might come around.. well this settles it. He is as they say, ‘beyond the pale’.
Sure we’ve pieced this together over the last number of years, but it’s still SHOCKING to see him say it directly, proclaim it proudly. This week Trudeau received applause from an audience of the intellectually suffering at something called the “Global Citizen Now” panel discussion on the sidelines of the G20 Leaders’ Summit in Rio.
Much appreciation for the first short video below to Opposition Leader Pierre Poilievre who shared his ferocious reaction to Trudeau’s anti-human comments, challenging the current PM to call an immediate election.
Or course there will be no quick election call. To Justin, it’s more important to cling to the undercarriage of a taxpayer funded jet so he can fly the globe stunning audiences unfortunately already stunned by their utter terror of losing the planet.
In their horror at their inability to turn the switch off and let us all freeze/starve to death this winter, they applaud lovingly for their intellectual leader/sock model as he describes how hard it is to convince angry, hungry people they really need to suck it up.
If only he read a history book.. any history book.. apologies, any book at all. Truly even spending some time with the literary version of an Al Gore video rant would at lest keep JT occupied so he couldn’t speak for a few moments. I’m pretty sure every time he opens his mouth, the temperature in Canada rises as millions of frustrated hotheads (hello there) explode, spewing steam high up into the upper atmosphere where water particles do much more damage to our planet than the final exhaling of a non grocery-eating-planet-loving-Canadian.
Watch Pierre Poilievre’s video and assuage the ensuing headache by mapping out your route to a polling booth. If this doesn’t sell a couple of those ‘Axe the Tax’ shirts for the Poilievre team, well.. enjoy your stroll to the foodbank.
Here’s a link to his entire discussion. If you have a strong stomach and 20 minutes of your life to donate to a higher cause… No silly, not the intended cause of the anti-poverty group… But to the intellectual cause of understanding just how twisted the logic has become for those who fly around the world to wine and dine, only to break long enough to tell us they think it’s perfectly fine if we can’t buy groceries for our kids.
By the way, please save a bit of your shock and disappointment for the hapless host of the ‘anti-poverty’ Global Citizen. This was apparently on the sidelines of a G20 Summit. I would expect this drivel to be called out at a respectable middle school debate. Apparently the ‘anti-poverty’ Global Citizen people aren’t overly concerned with poverty. Do we need to say that not being able to afford groceries is in fact THE definition of poverty? Or course not. It would be much easier for them to change their name to Former Global Citizens.
You were warned.
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