Larry Fink, CEO of $9 Trillion Asset Manager BlackRock, vows to no longer use the terrible acronym ESG to guide or describe their investment strategy. He never did anyway, as he described his fiduciary obligation to produce investment returns for his clients, regardless of where they come from.
In that same breath, Larry describes Bitcoin as an international asset. “The role of crypto is digitizing gold…..Instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any one country or the devalution of your currency.”
It is very troublesome when the world’s most powerful arbiter of innovation, applying its finance theory to determine what humanity can discover, decides to abandon ESG and adopt Bitcoin for all the wrong reasons. Larry will say anything to have more people park their money at BlackRock. ESG is an evolutionary false-positive, and Bitcoin is a meritocratic negative.
Larry’s stance proves finance cannot be the author of its own reinvention to produce evolutionary value for humanity. Larry’s statement should be the impetus for governments to lead and reshuffle the hierarchy of practices required to improve human adaptability to nature’s entropy.
Crypto is not like investing in gold. It is betting on the make-believe of greater-fools, not becoming more true because you can find more believers. Bitcoin is the cart before the horse. ESG is an evolutionary oxymoron since sustainability, upon which ESG hinges, does not exist anywhere in the universe and is incompatible with entropy. The theory of finance must be subjugated to nature’s first-principles, a set of principles defining human needs over human wants.
It is scary when the evolution of humanity is determined by financiers who know nothing about evolution. Nature has already punished humanity for its ignorance of nature’s rule. Continuing to write our own report card, the renewal of humanity predicated by the first-principles of nature, even in the most developed country in the world, is in severe danger.
When finance becomes irrational speculation, so becomes the survival of the human species.
