#064 What Actually Happens During A Student Loan Forgiveness Program? Further Every Day
First off, I think we can all agree that no one, other than the banks, universities, politicians, and certain investment firms, actually wants to see students in debt the way we see some American students today. The crippling debt that was pawned off on these 17-18 year old kids who are now broke without the job promised them by the degree, has left a long lasting sting. But what if I told you that the “forgiveness” program was the greatest slap in the face imaginable for those who are still in debt, not to mention those who paid their debts, and those who never went into debt.
Much ado has been made over the injustice of thousands of dollars of tax being effectively imposed on Americans, by the way, those taxes apply to the students getting their debt “forgiven” as well. Much also has been made of the inflation concern. Articles in the Atlantic and Vox claim that the “forgiveness” will be a deflationary force. (By definition, printing more IOUs when you don't have enough hard assets to back your IOUs reduces the value of the note, ie more cash without gold or other assets = less valuable cash in the hands of the taxpayer.) These things are both true and actually hurt the recipients of the “forgiveness” about as much as those who are not receiving the money. Let me explain, first off, the “forgiveness”, let's just call it what it is, a heist, only gives you ultimately 80% on average of what was promised as they will raise everyone's taxes to get it. Add to this that some experts warn that these measures are taxable in many jurisdictions. This means that some people will be bumped into a higher tax bracket by this foolishness and pay even more of the money back to Uncle Sam. Secondly, the inflation issue is incredibly urgent. With Biden's reign racking up 8.5 percent inflation in 12 months (actually a very conservative estimate, it may be much higher due to the change in measurement standards made by the Biden Administration during its tenure.), the value of people's retirement and savings has decreased about 10%. This means that if you had $100 in the bank before Biden, the IOUs, money, can now only buy $90 worth of food or other goods. This is how nations fall. We don't need to be printing more money, and especially not to inflate the checking accounts of the people to whom this dough is ultimately destined.
That brings us to the next point. Who really benefits? Have you heard of Blackrock or Vanguard? Investment firms like Blackrock and Vanguard, Blackrock currently being the largest such firm at roughly 9 Trillion dollars in value, have their fingers in all sorts of pies. They have also been under the increased scrutiny by those like Senator Warren, who wish the Financial Stability Oversight Council (FSOC) to “regulate” such organizations as FSOC does with banks. Warren claims that Blackrock is “too big to fail”. Does that sound familiar? This is the same sort of thinking that paid the people who crashed the economy in 2008 for our trouble. History is repeating itself a decade later and no one seems to care! Instead of reevaluating government subsidies, which raise school costs, and allowing the schools to fail as loans become impossible for schools to green light with banking institutions and investment firms, we are paying all of the above and leaving the students still holding debt and the rest of us who didn't have a debt holding the bag.
Blackrock and Vanguard own much of the stock in the banks and institutions who hold the majority of the student loan debt. It is hard to track exactly who holds how many percent because of the many shell corporations and share interests, but I'll give you three who we were able to track down for this episode. Blackrock is #3 shareholder in Discover Financial Services while Vanguard is #1. DFS is responsible more numerous student loans and they offer their services on their site, link below. Sally Mae is a commonly known lending institution where again Blackrock holds 3rd place as top shareholder and Vanguard holds 1st. In SoftBank, Blackrock is positioned as the 4th largest stockholder.
This may not make sense to you, but to whom is this money being paid, hot off the printing press? Not the students, but to these financial institutions that people like Liz Warren want to name as “too big to fail” so that they can be bailed out in style if necessary. For now, the bail out is being laundered through American students in loan forgiveness. Wake up people, this is criminal behavior and no one outside of the banking circle benefits, not even the students if you look at the long term!
With that said, all of the immoral nonsense above is also posed as a bribe coming into the 2022 midterms. Do not fall for it. Even if you benefit from the “forgiveness”, printing money to give to the very people who put you in the college debt situation, please don't be misled to take the bribe.
As a Church, we need to be informed on this so that we can articulate this to those who are on the fence. Just remember, this isn't forgiveness, almost half of the $10,000 could well be eaten up in taxes for many individuals. Instead, what is really happening is that the current administration and people like Liz Warren are laundering freshly printed money to their friends, investors, and investment funds through this student “fauxgiveness” program. Do so winsomely and be aware.
https://www.newsweek.com/fact-check-has-inflation-gone-every-month-joe-bidens-presidency-1712159
https://fintel.io/so/us/dfs/blackrock
https://www.discover.com/student-loans/undergraduate.html
https://www.nicolletinvest.com/navigator/the-ties-that-bind-blackrock-and-biden
https://journals.sagepub.com/doi/abs/10.1177/10957960221089920?journalCode=nlfa
https://www.nytimes.com/2021/06/24/business/economy/fed-blackrock-pandemic-crisis.html