I suspect that this is just the tip of the iceberg, given how closely the minions of the administrative state work with bigwigs in the finance industry, but this is bad enough.
An administrative employee at the Bureau of Labor Statistics corresponded with a secret list of “Superusers”–hedge funds, traders, and the huge financial firms like Blackrock and Vanguard–giving them information about the BLS’ data and analyses that are used to establish inflation statistics.
BREAKING🚨: Is this not insider trading?
Blackrock and JP Morgan were leaked insider inflation data from the Bureau of Labor Statistics, giving their traders an edge on their bets
They along with other Hedge Funds were on a special email list called “Super Users” pic.twitter.com/q5QvhXek0O
— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) April 10, 2024
This is extraordinarily valuable information, especially if your business is highly sensitive to financial data. Think of the inflation numbers that came out yesterday and the massive impact they had on market movements. Tens or hundreds of billions of dollars flow based on these government statistics.
The Bureau of Labor Statistics shared more information about inflation with Wall Street “super users” than previously disclosed, emails from the agency show. The revelation is likely to prompt further scrutiny of the way the government shares economic data at a time when such information keenly interests investors.
An economist at the agency set off a firestorm in February when he sent an email to a group of data users explaining how a methodological tweak could have contributed to an unexpected jump in housing costs in the Consumer Price Index the previous month. The email, addressed to “Super Users,” circulated rapidly around Wall Street, where every detail of inflation data can affect the bond market.
As far as we know the actual numbers weren’t leaked, although this is a developing story, and the BLS is being very closed-lip about the extent of the collaboration with the big Wall Street firms. They had successfully downplayed what was happening until a FOIA request was fulfilled, reigniting the outrage.
At the time, the Bureau of Labor Statistics said the email had been an isolated “mistake” and denied that it maintained a list of users who received special access to information.
But emails obtained through a Freedom of Information Act request show that the agency — or at least the economist who sent the original email, a longtime but relatively low-ranking employee — was in regular communication with data users in the finance industry, apparently including analysts at major hedge funds. And they suggest that there was a list of super users, contrary to the agency’s denials.
A government agency lied about its malfeasance? I am shocked beyond words. Who would have thought it could happen?
So far all we are being told is that a lower-level but longtime BLS employee created an email list in which he spilled the beans on some BLS insider information, including nonpublic and therefore very valuable data. What we have not been told is to what extent that information directly informed investment decisions, and how much advantage the information provided to these big financial players.
Was it just some employee who wanted to play with the cool kids, or was there a wink and a nod to help out allies of the administration or the upper-level management of the agency? Having worked in and with the government, I can tell you that either is plausible.
In either case, this reinforces what we already suspect: the system is rigged to help out the big players in the economy. No matter where you are that is the case, but in free market economies the system only works well where the transparency level is very high. It will never be perfect, but it should be very very close to it.
We live in a world where the government identifies “systemically important” financial institutions and gives them a leg up, and bails them out when things go wrong. This is grotesque and increases risk, and in the world of ESG investing gives the government the power to mess with the economy through Wall Street cooperation.
Blackrock anyone?
CEO OF BLACK ROCK LARRY FINK
*WE ARE GOING TO HAVE TO FORCE CHANGE, GENDER OR RACE*:“Behaviors are going to have to change, this is one thing we are asking companies. You have to force behavior & at BlackRock we are forcing behaviors.
“54% of the incoming class are women we… pic.twitter.com/lmZKsWDaG8
— RAN_DUMB_LIBS (@Ran_Dumb_Libs) April 1, 2024
How many other cozy relationships are there? Clearly, the symbiotic relationship between the FDA and the Pharmaceutical companies has distorted our medical care for decades. Billions of taxpayer dollars are poured into activist groups whose main purpose is to lobby legislators for some cause or another. Government officials funnel money to corporations so they can go through the revolving door and score big bucks.
Some of this is just the ordinary graft that you find whenever big money is at play. Lots of it is politically advantageous. And all of it helps keep the uniparty glued together.
It’s gross, and it harms all of us.