Private Equity Giant BlackRock Proposes ‘Regime Change’ in Monetary Policy

Aug. 20, 2019 (EIRNS)—Former Swiss central banker Philipp Hildebrand, BlackRock Germany chief economist Elga Bartsch, former Fed vice-chairman Stanley Fischer and former deputy governor of the Bank of Canada Jean Boivin have signed a BlackRock paper calling for a “regime change” in monetary policy, involving the end of central bank “independence.” BlackRock is the largest private equity group in the world; their policy paper has been forwarded for the coming Jackson Hole, Wyoming meeting of central banks Aug. 22-24.

Since all instruments of monetary policy have failed, the four BlackRock officials propose what they call “going direct”: central banks and governments should sit together and decide to put money directly into the hands of public and private receivers.

In a Bloomberg interview, Hildebrand says: “We are going to see a regime change in monetary policy that’s as big a deal as the one we saw between pre-crisis and post-crisis, a blurring of fiscal and monetary activities and responsibilities.” The reference is to the introduction of the hyperinflationary policy of quantitative easing, in the aftermath of the 2008 financial crisis.

For those who might think this means money for investments, the BlackRock paper leaves no doubt that it is not: the “going direct” proposal aims at using what Ben Bernanke called “helicopter money” to generate just-enough inflation to supposedly achieve “price stability.” It involves establishing a permanent “standing emergency fiscal facility” that would only be used in extremis and in combination with monetary and fiscal policy becoming “jointly responsible for achieving the inflation target.”

In other words, we are facing a complete overturning of the concept of national banking. It is the institutionalized end of “independence” not of central banks from governments but of governments from central banks, i.e., the markets. The German liberal daily Die Welt calls it “The end of the financial world as we have known it.”

The so-called “inflation target” is in reality a cover to inject enough monetary values into the system to sustain the inflated global financial aggregates, which are now in the range of $1.5 quadrillion. At one point down the road, this will explode into hyperinflation. As Lyndon LaRouche used to reiterate, if they stubbornly refuse to go for a bankruptcy reorganization of the system, central banks have no other option than to supply the rope to hang themselves.