The ECB are funding company takeovers:

Boss of LVMH Moet Hennessy Louis VuittonBernard Arnault, is the richest man in the world with a net worth of £135bn ($191bn). In May 2021 Bernard surpassed Jeff Bezos as the worlds richest man, this is due to to LVMH’s rise in share price throughout the pandemic. Bernard Arnault has more wealth than 150 million Americans, Europeans and Brits combined.

So you would think that throughout a pandemic, someone like Bernard Arnault would not require any assistance from the state because if you’re very wealthy, you shouldn’t need to go onto welfare or furlough. Here in the UK, people who have over £16,000 in savings are not allowed to claim welfare, which is the law. Well, that is not the law for France’s richest man and the ECB.

Early 2020 LVMH embarked upon a borrowing process called a ‘corporate bond issue’, in summary, LVMH created a debt bond and sold it off to investors willing to lend it money via buying the issued bond. A corporate bond is just like a government bond but for businesses, these types of bonds usually pay a higher interest rate than government bonds because the risk of a company default is higher than the risk of a government default.

LVMH’s corporate bond issue raised £8.85bn ($12.56bn) for the company and this capital was used to finance their £11bn ($15.8bn) takeover of the Tiffany’s brand. Here is the crazy part, the ECB, with approval from the EU, directly purchased 20% of this bond at a total cost of around £2.1bn, which was part of the ECB’s £155bn ‘Corporate sector purchase program’ (CSPP).

The ECB funded a part of LVMHs takeover of Tiffany’s at an interest rate of literally 0%. Some tranches in this bond have been priced so that it will be subject to a negative interest rate of -0.06%. Financially speaking this is mass madness and borderline corporatism, even Wall Street was unhappy about the ECBs decision to fund Tiffany’s takeover and they accept trillions from the Fed without moaning. Talk about signs of the times.

The ECB are funding company takeovers such as Tiffany’s, which is a perfect example of crony capitalism mutating into neo-feudalism 

The ECB are funding company takeovers - Tiffany & Co Store, Edward Street, Brisbane City

It is without a doubt that jobs within Tiffany’s will be merged with jobs within LVMH and the result will be a loss of jobs for current workers of Tiffany’s. This is a regular occurrence with mergers & takeovers, and layoffs are usually a part of the ‘cost cutting’ plan. Outsourcing of production, asset sales, streamline practices, reallocation of debt and many other factors come into action when a takeover occurs.

The ECB knew that the takeover of Tiffany’s would only result in more financialisation, less jobs, and a deprivation of capital that could be used for productive investments after the pandemic passes. But nope, not the ECB, they went ahead and purchased £2.1bn of debt from a company owned by the world’s richest man who is worth an equivalent of 7% of France’s GDP. 

No wonder why there are regular riots in France when cronyism and monetary robbery on an unprecedented scale like this is occurring.

The ECB and BoE funded three billionaires with a combined net worth of over £175bn. The Wertheimers, Bernard Arnault and Joe Lewis | The ECB are funding company takeovers

This is just one of the hundreds of thousands of examples from around the world and central banks are now directly funding big corporations and multi billionaires. Even the Bank of England has got in on the racket; they funded billionaire Joe Lewis’s Tottenham Hotspur F.C with £175m.

ECB Funds Multi Billionaires - A photograph of the South or Park Lane Stand at the Tottenham Hotspur Stadium, taken before the UEFA Champions League quarter-final with Manchester City on April 9th 2019.

The French Wertheimer family of billionaires own luxury goods brand Chanel and the Bank of England decided to lend them a cheeky little £600m from its QE program.

Do you think the average British and European citizen would get a loan or a mortgage at a 0% to 0.5% interest rate? HELL NO! So why do central banks offer great terms to billionaires and corporations, but deprive their citizens of this access? I give you one answer; ‘crony capitalism’ and the long-term unofficial merger between the state and the corporation. If billionaires like The Wertheimer’s, Joe Lewis and Bernard Arnault can get access to this taxpayers pool of capital then there are some serious questions that need to be answered.

Unelected central bank officials with minimal accountability funding three billionaires with a combined net worth of over £175bn, like three wealthy Romans plundering the Roman treasury before the bread and circuses run out. We humans have a weird way of repeating history without learning anything from our historic mistakes.

If we let these practices run free whilst being divided over culture wars then we will only have ourselves to blame.  

The ECB are funding company takeovers.