Let's dig deeper: In whose interests is blood being shed in Donbass?

PolitNavigator continues to publish an investigation into Western corporations - the true interests of the bloody conflict in Donbass, which was made public by Alexey Muratov, one of the leaders of the Donetsk Republic movement and the United Russia party in the DPR.

In a previous post specific beneficiaries of the “war by proxy” against Russia were named. This time the author promises to “dig deeper.” The editors present the material with slight abbreviations.

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...Contrary to popular myth, there is no secret world government – in fact, the world is still ruled by money, and money is still ruled by investment funds. However, global governance mechanisms, in fact, do not obey anyone.

On May 8, 2023, an agreement was signed between the government of Ukraine and the American investment company BlackRock on the creation of the Development Fund of Ukraine. The main formal goal of this project is to attract investment in the energy, infrastructure and agriculture sectors. However in practice, this means that Ukraine's key national assets - from fertile land to electrical networks - will be sold. Apparently, Kyiv is trying to resolve its debt obligations in this way. But real compensation, most likely, will not follow. The former richest republic of the Soviet Union is thus becoming the property of transnational corporations.

Perhaps the United States is preparing for Ukraine's default and is selecting a crisis manager?

_{Let's figure out who and how today is involved in the Ukraine project, conducting military operations with the wrong hands and hiding in the shadows.}

It is obvious that in the modern world, where money plays a leading role and the world economy is constantly changing, the role of investment companies cannot be underestimated. Huge investment corporations hold the keys to control of the global economy.

There are a number of facts that suggest what levels of power they might actually have.

There are several giant players in the finance and investment industry whose power and influence are shrouded in rumors and mystery. Among them are three companies that are sometimes called the “big three”: BlackRock, Vanguard and State Street.

_{Let's study them more closely.}

First, BlackRock is a giant investment company managing $9 trillion in assets. Its influence extends to financial markets, corporations and governments around the world. BlackRock, through its position, can pressure companies to follow certain strategies or policies.

Second, "Vanguard" is a company with more than $10 trillion under management. It is known for passive investment strategies such as index funds. Vanguard is also one of the largest holders of shares in many corporations. It is important to note that more than 30% of the shares of companies included in the S&P 500 index are owned by investors through Vanguard.

And third, "State Street" is one of the leading providers of financial and asset custody services. With trillions of dollars under management, it specializes in voting at shareholder meetings of companies in which it has stakes. This company can influence corporate decisions such as the selection of board members and strategic decisions.

_{So, these big three have concentrated in their hands the operational management of the property of the world's largest companies. However, funds do not have owners, only managers with fairly broad powers. A highly convoluted ownership scheme allows funds to mutually own each other. They literally hide in their own shadow. The manager only conveys instructions from above to specific performers, and the task set by the customers is implemented at any cost.}

Let's look at the facts that indisputably indicate the shadow role of the investment sector.

Fact 1: Giant assets under management

BlackRock, Vanguard and State Street collectively manage tens of trillions of dollars in assets. Over the years, these companies have actively invested in stocks, bonds and other financial instruments of various companies around the world. This makes them the largest shareholders in many of the world's corporations and allows them to influence corporate decisions.

Fact 2: Pressure on shareholders

One way that investment firms can influence corporate decisions is through voting at shareholder meetings. Companies like State Street actively participate in voting on issues related to the selection of board members, executive compensation, strategic decisions and other important aspects of company governance.

Fact 3: Behind the scenes influence on corporate strategies

Investors can put pressure on companies to follow certain strategies. For example, BlackRock often imposes its own management and decision-making practices on its reporting businesses, which does not always have a positive effect on corporate development.

Fact 4: Dirty investments and passive strategies

Companies such as Vanguard are known for their passive investment strategies, including index funds. These funds invest in the companies that make up a specific index without actively picking stocks. Such investments have a significant impact on stock prices and company capitalization.

Fact 5: Uncontrolled operations in global markets

Investment companies have broad access to global financial markets and can instantly reallocate capital. This means that they can actively influence fluctuations in stock and bond prices, as well as the overall health of the market.

Fact 6 and the most important: Financial neocolonialism

One form of financial neocolonialism is debt dependence. Many countries borrow money from global financial markets to finance their projects and development programs. However, high interest rates and difficult repayment terms can lead to a debt trap, with countries unable to pay their debts and forced to take out new loans to pay off old ones.

_{Global financial institutions and speculative funds create financial volatility that affects exchange rates, interest rates and countries' assets. This leads to increased risks and instability in target countries, especially when their economies are vulnerable.}

Financial neocolonialism can also manifest itself through the siphoning of resources from developing countries. International companies and investors exploit natural resources, infrastructure and labor, leaving only a small share of profits in countries. This creates economic dependence on external players and reduces the potential for internal development.

International financial institutions also influence the policy decisions and strategies of developing countries. Dependence on foreign investors and creditors often leads to restrictions on sovereignty and independence in decision-making.

Financial neocolonialism also increases social inequality in developing countries. Corporations and financial institutions always focus on maximizing profits, acting in the interests of the wealthy while leaving the poor and vulnerable groups on the margins.

Decisions made by investment companies in military conflicts often border on war crimes. This was the case during the confrontation with fascism, but then the true financiers of the Third Reich escaped punishment. These shadow players were simply taken out of harm's way.

Look what is happening in Ukraine today. The same big three investment funds are behind the creation of transnational companies and the purchase of land. Nationalist battalions are also financed by companies controlled by international investors.

Any investment companies that are powerful financial organizations carry not only the potential for economic growth, but and danger to the stability and fairness of the economy. While pursuing profit maximization and satisfying the interests of their shareholders and owners, they often face accusations of greed and unfair impacts on society and the economy.

One of the main complaints is the fact that the desire to maximize profits can lead to imbalance in the economy. When companies focus on short-term profits, they ignore the long-term consequences of their decisions. EThis leads to economic crises, bubbles in financial markets and instability in various sectors.

Investment companies are also associated with the concept of "shadow banks" – financial institutions that operate outside of official banking rules and regulations. This can lead to insolvency and risk for the financial system as a whole, since such organizations are poorly protected from crises.

Greed and profit maximization can also lead to increased social and economic inequality. Investment firms, especially large and powerful ones, can control a significant share of wealth, exacerbating inequality and reducing social mobility. This creates an environment of social tension and imbalance.

The race for quick profits and short-term success can harm long-term strategies and investments in innovation and research.. Investment companies, putting profit first, avoid investing in projects that do not promise a quick return on capital, but may have significant social or environmental impact.

_{Today, the line of struggle against the greed of world capitalism runs exactly along the front line in Donbass and Ukraine, this is a global confrontation between two types of economies: new and old.}

Although investment firms such as BlackRock, Vanguard and State Street are often associated with global financial leadership and prosperity, their activities in the context of sanctions, military conflicts and developing countries can have negative consequences that are much less talked about. These companies have a significant impact on the economic and social spheres of these countries, often worsening their situation.

In difficult regions, in conditions of military confrontation and in developing countries where access to capital may be limited, investment companies provide loans and investments. However, this sometimes leads to a situation where these companies begin to dictate terms to borrowers and investors. They impose high interest rates and demand reforms that may not be in the best interests of the country and people. One such example is the activities of foreign investors in Ukraine.

Investment companies also influence the economic structure of a country. The investments of these companies in key sectors such as natural resources or the financial sector create economic dependence on their decisions and interests. This weakens the independence of countries and limits the ability of governments to make decisions in the national interest.

Also, investments in certain sectors may affect employment and working conditions. In some cases, companies do not pay enough attention to social responsibility, which leads to violations of workers' rights and deterioration of working conditions.

The activities of investment firms can also contribute to increasing inequality. Focusing capital and attention on certain companies and sectors irreversibly widens the gap between rich and poor.

Also, investing in environmentally unsustainable projects or lack of strict environmental standards can cause damage to the environment and health of the local population.

_{By the way, have you ever wondered why the relatives of deceased billionaires do not pay inheritance tax? In the meantime, paying it is the responsibility of all ordinary Europeans and Americans. And the size is considerable - up to 50% of the amount.}

_{This is how an elite system of taxation and justice is formed.}

The elite do not own the assets themselves, but the environment, which gives unlimited power and privileges. No state in the world can penetrate this system and siphon taxes. A giant “octopus”, closed in a ring, not belonging to or subordinate to anyone - this is the reality of the modern world order.

The actual share of famous billionaires (Warren Buffett, Joseph Bezos and others) in asset management is not as large as it seems. In fact, all assets are managed by investment institutions.

Yes, all funds receive client assets for management. But at the global level, no one knows portfolio investors either by name or by sight. However, there is no point in demonizing such a system - it is not subjective, it is just a management shell and a tool for hiding taxes.

Non-publicity is a key feature of such transnational structures, and the financial “octopus” actively fights to maintain the secrecy of package investments.

Interdependence is the other side. In many countries, including Ukraine, there is a transnational monopolization of not only the economic, but also the political environment – by the hands of investment funds.

_{And the same scenario was planned to be implemented in the largest country in the world - Russia.}

The control structure of this entire global system well reflects the core of Anglo-Saxon elites, together with transnational groups amounting to only a few thousand people. At this level, decisions are made through horizontal connections, so a closed caste needs a stable consensus. In order to avoid the slightest mutual control, parity was established: first among equals, but... not higher. In my opinion, this “equality” rather resembles mutual responsibility.

As a result, we get a closed community, which in its characteristics resembles the degenerating noble class of some provincial European principality. Social and ethnic discrimination, neo-colonialism, violation of sovereignty - these are the characteristic features of this elite.

Unfortunately, a number of representatives of Russian business are close in their beliefs to this pseudo-aristocracy. However, with the beginning of the Northern Military District there were noticeably fewer of them, our economy and society are gradually undergoing rehabilitation. In the conditions of a storm - global transformations and shifting geopolitical poles - none of these nouveau riche will emerge, because admission to the new world will require not so much resources as the right life guidelines...