The Engine of Consolidation: How The Fed and BlackRock Use Crisis to Engineer Our Obedience
The headlines are designed to enthrall you:
A schism at the highest levels of federal law enforcement. An FBI Deputy Director is reportedly at war with the Attorney General over the handling of the Epstein files. This spectacle is presented as a political drama, a constitutional crisis. It is not. It is a human resources dispute within the insulated ruling class, the palace intrigue of a collapsing court.
While the public is encouraged to analyze the political loyalties of the players, they are distracted from the fundamental truth: both are products of the same "revolving door" between Washington and the private sector [1]. Key economic posts in the current administration are held by BlackRock alumni, including the Director of the National Economic Council, Brian Deese, and the Deputy Secretary of the Treasury, Wally Adeyemo [1]. Their ultimate loyalty is to the stability of the Corporate State itself.
This report will dissect the true disease,
the deliberate, two-stage strategy used by an unaccountable financial elite to consolidate power:
First, a crisis—real or manufactured—is used to justify an unprecedented intervention by the Federal Reserve.
Second, the Fed deputizes its quasi-public partner, BlackRock, to manage a "bailout" that functions as the greatest upward transfer of wealth in modern history.
This is not incompetence.
It is a playbook.
The Playbook: Crisis Is Opportunity
The core strategy is known as the "shock doctrine": using the public's disorientation following massive collective shocks—wars, terrorist attacks, or natural disasters—to achieve control by imposing radical economic shock therapy [2]. This framework argues that pro-corporate reformers have perfected a strategy of waiting for a major crisis, then selling off pieces of the state to private players while citizens are still reeling [2].
In 2020, the World Economic Forum (WEF) launched its "Great Reset" initiative, explicitly packaging this strategy for the modern era. WEF Founder Klaus Schwab stated that "The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world" [3]. The goal, according to the WEF, is ambitious: "Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed" [3].
The Engine: Quantitative Easing as Wealth Transfer
The primary tool used to execute this "reset" is Quantitative Easing (QE). Presented to the public as a complex tool for economic stabilization, its function is brutally simple: it is an engine for wealth consolidation.
When a crisis hits, the Federal Reserve creates trillions of dollars to purchase financial assets, primarily government bonds. This action is designed to produce a "wealth effect" that will stimulate the economy [4]. However, because these financial assets are disproportionately held by the wealthiest individuals, QE directly boosts their fortunes [4]. Data indicates that the primary benefit of QE goes to "bankers, hedge fund managers, and other finance professionals," aggravating wealth inequality [4].
The Engineer: BlackRock, The State's Indispensable Partner
The Federal Reserve does not operate this engine alone. It requires an outside partner with the scale and expertise to manage these massive interventions. That indispensable partner is BlackRock.
This alliance was forged during the 2008 financial crisis. The Fed hired BlackRock to manage the toxic assets from the collapse of Bear Stearns and AIG [5]. This was despite the fact that BlackRock's CEO, Larry Fink, had been an "early and vigorous promoter" of the very mortgage-backed securities that caused the crisis in the first place [5].
By 2020, this partnership was fully institutionalized. As the COVID-19 pandemic triggered market panic, the Fed again retained BlackRock to manage its unprecedented corporate bond-buying programs [6]. This move effectively placed BlackRock in an overseer position for both the U.S. Treasury and the Federal Reserve, making it even more systemically important to the financial system [5].
The 2020 Heist: A Case Study in Self-Dealing
The execution of the 2020 bailout provides the most glaring proof of this corrupt symbiosis. For the first time in its history, the Federal Reserve began purchasing corporate bond Exchange-Traded Funds (ETFs) [6, 7]. The program, managed by BlackRock, immediately used public funds to purchase the flagship products of the firms that dominate the ETF market.
Between May 12 and May 19, 2020, the Fed purchased $1.58 billion in ETFs. Of that, 48% of the market value was in BlackRock's own iShares funds [6, 7]. The single biggest beneficiary was the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) [6, 7].
The conflict of interest is staggering. The Federal Reserve, a public institution, hired a private company, BlackRock, to administer a taxpayer-backed bailout that then used those public funds to purchase BlackRock's own products. It was a self-dealing heist executed in plain sight.
Conclusion: The Corporate State is Not a Theory
The evidence is overwhelming and on the public record. The system is not broken; it is functioning exactly as its architects designed it. The constant flow of high-level personnel between firms like BlackRock and the highest levels of the U.S. government creates the shared culture and ideology for this fusion [1]. The crisis provides the political cover to implement the agenda. The operational partnership between the Fed and BlackRock provides the mechanism to execute the wealth transfer.
This is the Corporate State. Its emergence is not a conspiracy theory; it is a documented, structural reality. The fundamental conflict of our time is not Left vs. Right. It is The People vs. The New East India Companies.
Sources:
[1] Little Sis, "The Asset Manager Power Structure and the Climate Crisis" [https://littlesis.org/news/the-asset-manager-power-structure-and-the-climate-crisis/]; Campaign for Accountability, "'Middle Class Joe' Biden Courts Wall Street Oligarch, BlackRock's Larry Fink" [https://campaignforaccountability.org/middle-class-joe-biden-courts-wall-street-oligarch-blackrocks-larry-fink/]
[2] Naomi Klein, "The Shock Doctrine" [https://naomiklein.org/the-shock-doctrine/]; Development Education Review, "The Shock Doctrine: The Rise of Disaster Capitalism" [https://www.developmenteducationreview.com/issue/issue-8/shock-doctrine-rise-disaster-capitalism]
[3] World Economic Forum, "Now is the time for a 'great reset'" [https://en.wikipedia.org/wiki/Great_Reset]; Hillsdale College, Imprimis, "What Is the Great Reset?" [https://imprimis.hillsdale.edu/what-is-the-great-reset/]
[4] Roger Williams University School of Law, "Wealth Inequality as Explained by Quantitative Easing and Law's Inertia" [https://docs.rwu.edu/context/law_fac_fs/article/1156/viewcontent/85UMKCLRev275.pdf]; Brookings Institution, "What’s the Fed doing in response to the COVID-19 crisis?" [https://www.brookings.edu/articles/whats-the-fed-doing-in-response-to-the-covid-19-crisis-what-more-could-it-do/]
[5] CounterPunch.org, "BlackRock Takes Command" [https://www.counterpunch.org/2020/04/08/blackrock-takes-command/]
[6] ETF Stream, "Federal Reserve selects BlackRock to execute bond purchases" [https://www.etfstream.com/articles/federal-reserve-selects-blackrock-to-execute-bond-purchases]
[7] Institutional Investor, "BlackRock Rakes in Big Portion of Fed's ETF Investments" [https://www.institutionalinvestor.com/article/2bsx5bb5rmxrzrx9tbhts/portfolio/blackrock-rakes-in-big-portion-of-feds-etf-investments]