Are You Funding a Corrupt ESG-Pushing Emperor?

    0
    68

    Elon Musk might be the most successful person on Earth; however, he's got many miles to go before he can catch up to Jakob “The Rich” Fugger–a powerful merchant banker who lived during the 1500s. (Fugger's name rhymes with the word “cougar”, not “bugger.” However, it was correctly pronounced “f***er” on occasion.)

    Fugger was born to a prominent family in the Free City of Augsburg, which is part of the Holy Roman Empire. However, he was able to take his family's fortune to unprecedented heights due to the fact that he was aware of a crucial concept: power. A majority of Fugger's rivals at the time, traders and financiers across Europe, focused on building wealth. Fugger concentrated on acquiring power. He regularly financed the victories of clergy and kings. In exchange, they were obligated to him. Fugger was also a good spokesman. He knew how to win a favor.

    In 1488, for instance, Fugger leveraged his influence over Archduke Sigismund in Austria to control the huge Schwaz silver mines, granting Fugger complete control over the trade in silver. Fugger then made use of his influence to control other industries, such as silk, copper, spices, citrus, weapons, and many more. Every time Fugger assumed control of a business, the price would rise dramatically. This led to incredibly high inflation that had never before been seen in Europe.

    Fugger employed his money to transform European society. He believed in a kind of capitalism in which large corporations could be protected by the state. He used his fortune to make his dream real. Fugger helped finance Charles V to become the Holy Roman Emperor, which basically placed the most powerful politician of Europe in his pockets. In fact, the Pope was a slave to Fugger, and he used his influence in the church to bypass the ecclesiastical restrictions on interest-bearing loans and alter the rules that govern commerce and trade. 

    At the height of his power and wealth, Fugger had amassed a fortune that exceeded two percent of the entire GDP of Europe that year. The current equivalent is around $500 billion, more than twice the amount Elon Musk is worth. Furthermore, Fugger's average annual return on investment was more than fifty PERCENT, making Fugger one of the most profitable investment managers of his time, second only to Nancy Pelosi. However, his most lasting impact was the way he revolutionized capitalism in fundamental ways through modernizing the perverse synergistic relationship between public and private monopolies. Today, we call this the “public-private partnership”. The best illustration of this in contemporary times is BlackRock and its chief executive, Larry Fink. Fink's net worth, when compared to Fugger, is just one billion dollars. However, his company, BlackRock, controls more than ten trillion dollars of assets.

    Amazingly, a large portion of this is made possible by the company's exchange-traded funds, such as the iShares Core S&P 500 ETF. This single fund has more than $300 billion in assets under management. Like Fugger, Fink has been trying to change the way capitalism is conducted as we know it. Fink's vision is “Stakeholder Capitalism” or “ESG Capitalism,” which is a reference to Environmental, Social, and Governance. The essence of Fink's vision is “woke capitalism,” where businesses place a high value on environmental justice and the agenda of progress over creating shareholder satisfaction and value.

    This is the type of absurdity that has large corporations scrambling to choose blind, pansexual, perigender Native Americans to their Boards of Directors or force the CEOs of their companies to speak up against proposed legislation that no one has had the chance to read. (Naturally, Chinese and Islamic businesses are not subject to ESG regulations, as we must be respectful of their cultures.)

    Fink is very close to Klaus Schwab of the World Economic Forum (WEF) and his publication, “The Great Reset,” which details the new lifestyle that Fink and associates have imagined for us all. It's the World Economic Forum, mind you, that believes we all should eat insects and weeds because it's beneficial for the environment. They are fond of COVID lockdowns and vaccine mandates, propaganda and censorship, as well as the power of authoritarian governments.

    This is an example of “the Tyranny of the Minority”–a few people who think they are entitled to decide how others should live.

    Unfortunately, Fink actually has the ability to pull it off. In fact, a large part of that is due to us. BlackRock's funds contain trillions of dollars worth of capital. However, it's not BlackRock’s money. It's yours. Your company's 401(k) could be part of BlackRock. Your personal investment portfolio may contain a few BlackRock ETFs.

    In essence, BlackRock has pooled everyone else's cash and brought the whole thing under its control. Then it invests the funds in bond and stock markets all over the world. BlackRock has a huge influence. The equity funds of BlackRock are usually among the top five shareholders of all major companies in the world. For instance, BlackRock is the second-largest shareholder of Apple, Google, Exxon-Mobil, JP Morgan, and other companies, meaning that Fink is able to effectively select the Boards of Directors.  In other words, serve Fink. Fink can make them accept his uncompromising ESG capitalism demands. If they do not, they will be dismissed. Reminder: Fink does not have this power due to his own money. He is able to exercise this power as he is in charge of OUR money. He's not scared to use it.

    Jakob “the Rich” Fugger became the ruler of Europe in a secretive manner. In contrast, the power of Fink has grown so large, that Charlie Munger (Warren Buffett's business partner at Berkshire Hathaway) called him an emperor: “We have a new bunch of emperors, and they're people who vote with the shares of their index funds… and I'm not sure I want [Fink] to be my emperor.”

    There's an easy solution to this problem: If you do not want Fink to become your king, stop donating the money you earn to massive Wall Street firms. You can find thousands of small index funds that are passive and low-cost from which to choose.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here