Going Direct Strategy (2019-2020)
mechanismMoney & Finance · Darknet & Cyber
A private Wall Street firm wrote the government's bailout plan, got hired to run it, and bought its own products with the public's money.
Who they are
The 'Going Direct' strategy, a plan to inject money straight into the economy, tied to BlackRock and the Federal Reserve.
What they do
It proposed that central banks skip the banking system and put money directly into spenders' hands, and it was fully used during the COVID crash.
How it works
BlackRock executives pitched the idea at Jackson Hole in August 2019; the Fed started emergency lending that September and rolled out the full plan in March 2020, hiring BlackRock with no-bid contracts to manage a $750B corporate bond program and letting it buy its own investment funds with Fed money, while Fed chair Powell held over $25M in BlackRock products; the Fed's balance sheet ballooned from $4.1T to $8.8T and the stock market fully recovered by September 2020 through these injections.
Why it matters
It shows a private company writing public policy, executing it, and profiting from it at the scale of a whole nation's money supply — described in the engine as an arsonist also acting as the firefighter.
The engine's record — word for word
Aug 2019: BlackRock Investment Institute (Fischer/Hildebrand/Boivin) presented at Jackson Hole: central banks should go direct — bypass banking system, put money directly in hands of spenders. Sept 2019: Fed emergency repo bailout began (hundreds of billions/week). Mar 2020: Fed implemented full Going Direct during COVID. BlackRock hired via no-bid contracts to manage $750B corporate bond facility. Authorized to buy its own iShares ETFs with Fed money. Powell held $25M+ in BlackRock products while authorizing contracts. Private asset manager authored monetary policy, hired to execute it, purchased its own products with sovereign funds. Arsonist-firefighter at sovereign scale. [2026-05-06 COVID Wealth Transfer Audit extension] Bauer & Swanson 2023 FOMC event-study (FRBSF Working Paper 2025-30) confirms statistically anomalous fraction of total 2020-2021 asset-price gain concentrated EXCLUSIVELY in high-frequency FOMC announcement windows (March 3 / March 15 / March 23 / April 9 2020 + ongoing $120B/month Treasury+MBS purchases through 2021). S&P 500 dropped 34% in early 2020, fully recovered to all-time highs by September 2020 via mechanical primary-dealer-network injection bypassing real economy. Total Fed balance sheet expanded $4.7T (March 2020-Dec 2021): $4.1T → $8.8T. **Architectural arc**: 2019 Jackson Hole paper → 2020 SMCCF execution (`fed_smccf_blackrock_no_bid_2020`) → 2023 BTFP second-order friction-absorption (`btfp_march_2023_second_order_fed_liquidity`) → 2024 GIP active-operator pivot (`blackrock_gip_2024_acquisition`) → 2026 AIP coordination-architecture (`aip_consortium_2024`). The going-direct architecture is system default-programming, not discrete-crisis-response — it generates downstream-consequence requirements for successive liquidity-provision events. 2032 algorithmic-liquidity-crisis prediction will likely produce third-order intervention under same pattern. [Report #114 — Caste Ladder] [web-checked Jun 18 2026] Caste-Ladder apex monetary substrate (Report #114): the BlackRock Investment Institute Aug 2019 Jackson Hole paper 'Dealing with the next downturn' coined 'going direct' (central-bank money straight to spenders, blurring fiscal/monetary). 'Foreshadowed 2020' is commentary, not BlackRock's own claim.
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