Recently, Black Rockck CEO Larry Frink published
an article in the Financial Times titled, quote, “It’s time for the second draft of globalization.
It’s safe to say that it took the world by storm.” In that article, Larry acknowledged that
globalization has created multiple problems such as growing wealth inequality. But it goes
without saying that the solutions he has in mind could make things much worse. And that’s why
today we’re going to take a look at what exactly Black Rockck is planning, how this could affect
the markets, and what you can do to prepare. My name is Nick and you’re watching the Coin Bureau.
I’ll start by saying that nothing in this video is financial advice. It’s educational content
intended to inform you about BlackRock. If you appreciate this kind of education, then smash
that like button. And if you want to make sure let’s begin with a summary of that article. Larry
starts by revealing that he’s been traveling the world over the last few months meeting with the
leaders of countries. Naturally, they’ve all had the same question. What’s going to happen with
the tariffs? Larry apparently didn’t give a clear answer, but notes that the tariffs could result in
quote supply shocks, spiraling inflation, economic slowdown. If this sounds familiar, that’s because
Larry was one of the Wall Street executives telling the mainstream media that the US economy
was headed for a recession and could already be in one. And this was all back in April. To refresh
your memory, April was when Trump’s so-called Liberation Day tariffs were announced. Wall Street
execs were not happy and many, including JP Morgan CEO Jaime Diamond, were loudly speaking out.
Another thing that Larry said back then was that the markets could crash by another 20%. But here
we are, with stock indices hitting new all-time highs. Funnily enough, Larry doesn’t address this
in the article, at least not directly. All he says is that the effects of tariffs have been quote
priced in, speculated to death, endlessly churned through headlines. Even so, Larry says this is
just the shortterm story. The long-term story is where things get interesting. Larry rightfully
points out that Trump’s tariffs are fundamentally a response to the inequalities caused by
globalization over the last few decades. However, he argues that this kind of economic nationalism
is not the cure for the sickness of relentless globalism. Instead, he argues for a quote blend
open markets with national goals and workers in mind. In other words, Larry is worried about
economic nationalism because it’ll make it harder for asset managers like BlackRock to move their
money and influence around the world. And that’s a problem as far as they’re concerned, which is
why they’re framing the alternative as somehow being of benefit to us. Case in point, Larry goes
on to give a definition of globalization that’s a bit questionable. Quote, “Under globalization,
money often chase returns around the world without necessarily benefiting the people back home.”
And this is questionable because it’s not the flow of money that’s created issues per se. It’s
the fact that labor was outsourced to the lowest cost jurisdictions to maximize profits as much
as possible. With this questionable definition of globalization as his foundation, Larry then
argues that the solution to the problems of globalization is to quote channel citizens savings
into local businesses and infrastructure. If this sounds familiar, that’s because it’s what the
EU is trying to do, too. But uh that’s a topic for another time and we actually have a video
coming on that in the next few days. So make citizens into local businesses and infrastructure,
it’s the locals who will ultimately benefit. And this is also debatable as many countries and
global corporations have begun importing cheap labor to suppress wages. And the most egregious
example here being Canada, which is experiencing some of the lowest growth in GDP per capita as a
result, but that’s also a topic for another time. Rockck will convince citizens to channel their
savings into local businesses and infrastructure. As it so happens, Larry lays out a stepbystep
plan for us. Step one is to help more people become investors. And this is a bit odd because
60% of the people in the US and the EU are already investors. And chances are that this figure
won’t rise much higher. Whatever the case, Larry uses Japan as an example of how this can
be incentivized. He notes that recent changes to Japan’s tax laws incentivize more investment for
retirement. And this is extremely important to note because retirement accounts are often managed
by asset managers like Black Rockck. Logically, this suggests that it’s actually Black Rockck that
will be steering all of this capital as they see fit. Anyways, regarding Europe, Larry reiterates
the same thing that EU elites like Ursula Fundlean and Christine Lagard have, and that is that
Europeans save a lot more than Americans, but they’re not investing this money in Europe. Larry
blames this on a lack of unified capital markets. But even EU elites acknowledge that unified
capital markets aren’t necessarily the problem. Europeans simply consume less than Americans. But
Larry seems to insist that it’s just the lack of a unified capital market as he’s confident the
proposed savings and investment union will do the trick in tricking more capital to flow into
Black Rockck’s coffers. He even says, quote, “If I were an EU politician, that union would be my
top priority.” Since we’re already on the topic, we might as well give you a spoiler as to what’s
in our upcoming video about this union. In theory, the proposed savings and investment union
will just make it easier for Europeans, particularly retail investors, to invest in assets
across the EU. Uh, contrary to some viral claims, it will not force Europeans to invest in the
dystopian stuff that the EU wants. But as always, the devil is in the details. Maria Louise
Albuquerque, the architect of the EU’s proposed savings and investment union, revealed
in a presentation back in April that part of the proposal will include auto enrollment in pension
funds across the EU. What this means is that all working Europeans will contribute to pension funds
by default. In case you forgot, these pension funds are usually managed by asset managers like
uh Black Rockck. And in case you didn’t know, Black Rockck is on board with dystopian
technologies such as a digital ID, which the EU is heavily pushing and needs investment for. In
practice, then the proposed savings and investment union will make it possible for the EU to subtly
siphon money from working Europeans and allocate it to dystopian infrastructure projects it wants
to fund, all with the help of Black Rockck and Co. The good news is that if the EU’s savings and
investment union is approved, then it’s likely to lead to a huge speculative wave as EU politicians
are explicitly looking to funnel retail capital into startups. And this is a recipe for rampant
speculation, which could prove to be insanely profitable to those who get in early. The bad news
is that Black Rockck seems to want to deter this kind of speculation since Larry explicitly warns
that quote unchecked financialization can fuel inequality. Perhaps we are reading too much into
this, but it sounds like Larry doesn’t want retail investors to get too involved in these startups
because it could create lots of volatility and wealth inequality as early investors reap most of
the rewards. Now, by this point, you’re probably wondering what exactly Larry and Black Rockck’s
second draft of globalization really looks like. Besides getting more people to become investors
and tweaking regulations to incentivize more domestic investment, Larry doesn’t give much info,
at least not in his article. To be blunt, it’s not exactly that compelling or encouraging, especially
when you recall that a lot of the global corporations and governments are bringing in cheap
labor to do most of the infrastructure development that’s expected to be funded with the savings of
the citizens of the countries it’s happening in. In this sense, the second draft of globalization
looks almost exactly like the first, but the geography is different. Instead of outsourcing
labor to where it can be done for the lowest cost, the lowest cost labor is now being imported.
And this could very well be a consequence of the fact that labor costs are starting to rise
in jurisdictions like China and even India, which were historically the destinations for outsourced
labor. And this begs an even bigger question though, and that’s why there’s so much of a focus
on infrastructure development in the first place. And if you watched our video about Larry’s letter
to Black Rockck’s investors earlier this year, you’ll probably already know the answer. Neither
corporations nor governments have the capacity to provide the $68 trillion Black Rockck estimates
will be needed to be spent on infrastructure in the coming years. And this has corporations
and governments looking at the savings of their consumers and citizens with dollar signs
in their eyes. To put things into perspective, there are over $25 trillion of savings sitting in
banks and money market funds in the US and around $13 trillion of savings of this kind in the EU.
So when Larry says we need to get more people invested in the markets, what he actually means
is that all the people who are saving their money need to start giving it to BlackRock so that
it can allocate it in accordance with the ESG agenda and the UN’s sustainable development goals
or SDGs which every country is supposed to hit in the coming decades. And FYI, the purpose of ESG
is to meet the SDGs. And this isn’t some kind of conspiracy theory either. Raj Raalo, the president
and CEO of Global Infrastructure Partners or GIP, revealed in a recent interview that the first
priority for infrastructure investment is the quote decarbonization of the global economy. And
to bring you up to speed, BlackRock acquired GIP last year as part of its push to start investing
in infrastructure globally. And if you watched our affforementioned video about Larry’s letter to
Black Rockck’s investors, you’ll remember that Black Rockck and GIP are acquiring everything from
airports to ports around the world. News flash, but they are literally in the process of
privatizing the entire world’s infrastructure, which is truly scary. That’s scary. Yeah. The
only thing scarier than that are the even more dystopian ambitions of the jurisdictions
like the EU, which do in fact want to use some of these passive flows they’ll get from the
savings and investment union to militarize Europe in the coming years and decades. They also want
everything to be green and digitally surveiled. So, it looks like we’ll have solar powered tanks
patrolling the streets of Europe in no time. Jokes aside, the key takeaway is that asset
managers like Black Rockck and jurisdictions like the EU are not only aligned, but actively
working together to introduce investment schemes that basically trick people into investing into
ideological projects that don’t benefit them and could actually be harmful. And this begs the
biggest question of all, and that’s whether Black Rockck and Cole will succeed in implementing their
second draft of globalization. Believe it or not, but the answer seems to be no. And that’s
just because most of the tens of trillions of dollars of savings that asset managers and
governments have their eyes on aren’t merely sitting in bank accounts. They’re invested
in other assets, typically government bonds. You see, many wealthy people around the world are
keep their savings in government bonds because they’re essentially the safest place they can keep
their money. Deposit insurance in most countries only goes up to a few hundred,000, which puts
any additional savings at risk. By contrast, you can rest assure that a government will pay
back its bond holders. The only risk here is currency devaluation. And this is where things
get truly fascinating. For those unfamiliar, bond yields are determined by bond prices, which
are determined by supply and demand, just like any other asset. The lower the bond price, the higher
the bond yield, and vice versa. Notably, bonds are always paid back in full when they mature. Hence
why the only risk is currency devaluation, in case you didn’t already know. So, what happens if the
tens of trillions of dollars currently invested in government bonds start to move into other assets?
Obviously, bond yields will rise and in turn, this will cause interest rates in the economy
to rise. To be clear, we’re not calling for a titanic sell-off of bonds. So, that’s extremely
unlikely. Instead, we’re describing a scenario where there’s a gradually less demand for bonds
due to less savings. In this scenario, there would be two paradoxical effects. The first is that
the rise in bond yield would make bonds even more attractive as a savings vehicle. And when given
the choice between investing in a speculative green energy startup with zero cash flows and a
bond yielding 7%, most savers would likely choose to stick to the bond. And this is guaranteed if
the yield is substantially higher than inflation. The second paradoxical effect is that the rising
bond yields would suppress economic activity and this would lower the amount of savings as people
start getting laid off and spending down their savings to survive. It will also result in many
people selling out of all the infrastructure projects they were allocating to. And that reminds
me, many of the things that Black Rockck wants to spend people’s savings on are illquid assets, like
bridges, for example, many of which won’t be made for years. Aside from the fact that privatization
of previously public services would be the only way to make these investments profitable, the
capital invested would be locked for years. So, people wouldn’t be able to sell if they needed
extra cash. And this is presumably the primary reason why there’s tens of trillions of dollars
sitting in various forms of lowyield savings accounts. After the inflationary shock of the
pandemic, it’s safe to assume that everyone is aware of how quickly their purchasing power is
disappearing. And this means there’s only one reason why they would continue to keep their money
in savings because it’s there when they need it. The inherent illquidity of the assets Black Rockck
wants people to invest their savings into could be the Achilles heel to the second draft of
globalization rather than its effects on the bond markets. Nobody in their right mind will
agree to lock up their money for years when the world is becoming more uncertain and volatile by
the day. And that’s why Black Rockck and Co must sneak it through the back door with auto pension
enrollment. But for the sake of entertainment, let’s say that Black Rockck and Co. succeed in
rolling out their second draft of globalization. What would that mean for you and for the markets?
I’ll start by saying that this process is already underway. Larry revealed in a recent interview
with Forbes that the reason why he’s been traveling around the world in recent months is
to meet with leaders to implement Black Rockck’s plan. And this is precisely why we’re starting to
see countries like the UK make tweaks around the margins that either incentivize people to save
less or invest more. And it’s also why we’re starting to see countries like Italy introduce
expanded work and immigration programs to bring in hundreds of thousands of laborers from lowincome
countries in the coming years. And this will also have two paradoxical effects. The first is that it
will suppress wages in the industries where wages should be rising the fastest. And the second is
that it will cause services related inflation to rise, namely housing. If you stop and think, you
realize that globalization 2.0 is truly the same as globalization 1.0 with workers getting the
short end of the stick except this time they’re getting a front row seat, so to speak. There
is a silver lining though and that’s that the corporations on the receiving end of these capital
and labor flows will be extremely profitable. Not only will they receive large sums of money
from the savers being incentivized to invest in them directly via Black Rockck, but they will
also receive huge subsidies and incentives from governments. In case you missed the memo, the free
market died a long time ago. In all seriousness, the fact of the matter is that the corporations
that perform the best will no longer be those that provide the best products and services, but those
that have the closest connections to institutions like Black Rockck and the EU. You may not agree
with their ideologies, but as the saying goes, do you want to be right or do you want to make money?
In a revamped version of globalization, where you’re now competing directly with foreigners for
jobs in your area, the only way to get ahead is to play the game by its rules. And this means doing
your best to work for the corporations with the closest connections to the elites and investing
in the most radical and ideological ones. Ideally, you’ll do this without losing yourself in the
process. That will be the hard part. As grim as this all sounds, there is one ironic fact that
will prevent this from lasting for long, and that’s that it’s unsustainable. If wages continue
to be suppressed while inflation continues to rise, a change in leadership is inevitable, be
it via a democratic process or by force. Contrary to Black Rockck’s claims, corporations are not
short on cash either. They also have trillions of dollars on their balance sheets. In the end,
they will probably be the ones that have to pay for all of this infrastructure development, and it
will come in the form of higher wages to domestic labor in each country. With luck, these wage
increases will be large enough to encourage more family formation and reverse the population
declines we’re now seeing in every country around the world. But uh that is yet another topic for
another time. And by the way, you should know
