Be Aware, When Soros comes Calling.

Today I got an eMail from following ID: George Soros, Open Society Foundations contact@opensocietyfoundations.org. The message contents hardly did credit to the famed Currency Marauder.
^^^
Dear Friends,
The crisis in Europe is of great concern to me. The human cost is immense and growing. People are having difficulty making ends meet, are losing their jobs and even their homes.
Those people who suffer the most played no role in the crisis. Despite these difficult times, I believe in the promise of Europe and hope that together we can show solidarity.
Today we are launching Solidarity Now.
Thank you for your support,
George Soros
Founder and Chairma

^^^
An unexceptionable message indeed, except the fact it came from George Soros [born Gyorgy Schwartz].
^^^

^^^

The Wikiquote.Org has many quotable quotes and the devil does deserve his dues.  What he said in 2004 exudes “rare candour”, ***Americans, sadly, are now victims who have turned into perpetrators. Indeed, since September 2001, the war on terror has claimed more innocent victims than those terrorist attacks. This fact is unrecognized at home because the victims of the war on terror are not Americans. But the rest of the world does not draw the same distinction, and world opinion has turned against America***. But what cogitates the mind now is what is the Unexpected he is betting on as the Euro zone is certainly in a state of great Uncertainty and Flux. Before one has a chance to decipher the astute mind, a look at his past actions.
  • George Soros makes US$ 1 billion betting against the yen. 14 February 2013: The yen lost nearly 20pc against the dollar between November and early February, picking up speed as Japan’s new government put pressure on the Bank of Japan to ease monetary policy more aggressively to defeat deflation. Did he anticipate that Shinzo Abe, who last autumn was campaigning for premiership as the head of Liberal Democratic Party, would win and then drive down the Yen? If he did, he definitely is one heck of a crystal ball gazer. Soros management fund had already shorted Yen before LDP came to power and decided to flood economy with Yen. Yoichi Shimatsu calls it Soros’ Abe-nomics: ***When it comes to stone-cold avarice, no merchant of Venice comes close to the blood-sucking thievery of Soros, who forced currency debasement on the post-Soviet Russian ruble and later triggered the Asian financial crisis with the fall of the Thai baht and Indonesian rupiah. In every past instance, “shock therapy” proved to be utterly disastrous and certainly no remedy for a faltering economy… The Hungarian financier never acts alone, of course, since he needs local mafia, corrupt politicians, terrorists, phony NGOs and lunatic-fringe “financial experts” to get away with the gang-rape of vulnerable economies. The results of his hostile takeovers are all-too predictable: pensioners losing their life savings, factory closures, nations deprived of their resources, countries stripped of their sovereignty and, more cruelly, tons of child-sex slaves and human organs for sale on the streets… The ongoing attack on the yen was planned well in advance since Soros and Goldman Sachs earlier made the preparatory move of setting up a holding company called Ishin Hotels, which purchases undervalued commercial property in Tokyo. The vulture capital operation is organized as a real estate investment trust. This sort of REIT promises private investors an easy profit once the renovated and re-branded hotels are sold off to Arab or Chinese tycoons, who might otherwise face insurmountable local opposition in trying to acquire land in prime locations… These sorts of proxy deals between “reputable” financiers and shady tycoons require licensing and tax benefits arranged by bribing Tokyo Metropolitan Government officials and LDP politicians. Probes by the Tokyo Police, the Finance Ministry or even investigative reporting by the Nihon Kezai financial newspaper are all unlikely to ever happen… These insider property transfers are sealed at expensive Japanese restaurants in the Akasaka district. Deep inside a ryotei, the president of a real estate company welcomes a key politician to sit down on the tatami floor. A corporate vice president then silently slides a suitcase under the low table and bows deeply, touching his forehead to the straw mat in gratitude. The politician grunts, polishes off his cup of sake and then leaves for the next payoff appointment. That’s exactly how the Soros fund, Goldman Sachs and Stanley Morgan do the dirty deed in Tokyo. And that’s how Shinzo Abe amassed the money to buy the parliament***.
  • Earlier in 1997, when the South East Asian meltdown happened the profits of Soros Fund doubled. Speculative attack on Thai Baht succeeded because Thai Central Bank chose to defend Dollar-Baht exchange rate by throwing mindlessly foreign exchange reserves at its command. A run on a currency when it is orchestrated by speculative funds with huge war chest that act in concert and when economic fundamentals dictate devaluation; almost invariably central banks can’t stop the inevitable. Currency markets dwarf all other markets by their sheer size and velocity of transactions. While Soros didn’t create the crisis [By pegging the baht to the dollar, Thai authorities encouraged banks and big corporates to borrow US dollars unhedged. The dollar was converted into baht for domestic lending, leading to a credit boom and an economic bubble. With an economic slowdown in Japan and a rising US dollar, trade and capital accounts in Thailand had deteriorated. The baht became unstable, eventually leading to the economic bubble bursting], he along with others precipitated it. He defends such speculative actions like lancing of a boil: ***But I would not have been able to speculate [against the baht] if the Thai economy or its financial system were not in such bad shape… If a trend is unsustainable, it is surely better if it is reversed sooner rather than later***. Thai Baht crisis brought out a contagion of collapse through out South East Asia: 02 July 1997 Thailand devalues Baht -it loses 20% of its value, 08 July 1997 Malaysian central bank is forced to defend Ringgit, 11 July 1997 Philippine devalues Peso and Indonesia widens its Rupiah trading band to discourage speculative activity, and 24 July 1997 Singapore Dollar begins decline and Malaysian Prime Minister Mahathir Mohamad accuses “rogue speculators” for Southeast Asia’s economic upheaval. He later singles out billionaire financier George Soros. This meltdown inflicted years of pain in this region. Malaysia bucked the trend when it refused IMF intervention and imposed strict currency controls -an anathema to IMF. The backlash continued till the end of the year hitting Hong Kong, South Korea, even Japan, and the world markets.
  • Soros had arrived on the currency speculation scene with a formidable reputation burnished by punting on the British Pound. In the period leading up to the crisis in 1992, Britain’s economy was marked by low interest rates and high inflation. Britain had joined the European Exchange Rate Mechanism [EERM] in 1990. EERM was to ensure stable and predictable exchange rates  that were to be held within a band of  6%. This required Britain to align its economic and monetary policy in such a way as to achieve EERM objective. ^^^From the beginning of the 1990s, high German interest rates, set by the Bundesbank to counteract inflationary effects related to excess expenditure on German reunification, caused significant stress across the whole of the ERM. The UK and Italy had additional difficulties with their double deficits, while the UK was also hurt by the rapid depreciation of the US Dollar – a currency in which many British exports were priced – that summer. Issues of national prestige and the commitment to a doctrine that the fixing of exchange rates within the ERM was a pathway to a single European currency inhibited the adjustment of exchange rates. In the wake of the rejection of the Maastricht Treaty by the Danish electorate in a referendum in the spring of 1992, and announcement that there would be a referendum in France as well, those ERM currencies that were trading close to the bottom of their ERM bands came under pressure from foreign exchange traders… The UK’s prime minister and cabinet members tried vehemently to prop up a sinking pound and withdrawal from the monetary system the country had joined two years prior was the last resort. John Major raised interest rates to 10 percent and authorised the spending of billions of pounds worth of foreign currency reserves to buy up the sterling being frantically sold on the currency markets but the measures failed to prevent the pound falling lower than its minimum level in the ERM.  The Treasury took the decision to defend Sterling’s position, believing that to devalue would be to promote inflation. On 16 September the British government announced a rise in the base interest rate from an already high 10 to 12 percent in order to tempt speculators to buy pounds. Despite this and a promise later the same day to raise base rates again to 15 percent, dealers kept selling pounds, convinced that the government would not stick with its promise^^^. Currency speculators proved right and British government blinked when on 16 September 1992 at 19:00 hours the Norman Lamont, Chancellor of Exchequer, announced that Britain was abandoning EERM. George Soros had shorted the British Pound massively to pocket a cool  profit of GBP 1 Billion.
A neo-con website, Human Events- Powerful Conservative Voices, lists Top Ten reasons why Soros is dangerous. These run from support to left wing causes, to influence on US elections [What is new in it?], to end of US sovereignty. Point 9 on the list prepared after a readership survey says, ***Currency manipulation:  A large part of Soros’ multibillion-dollar fortune has come from manipulating currencies.  During the 1997 Asian financial crisis, Malaysian Prime Minister Mahathir bin Mohamad accused him of bringing down the nation’s currency through his trading activities, and in Thailand he was called an “economic war criminal.”  Known as “The Man who Broke the Bank of England,” Soros initiated a British financial crisis by dumping 10 billion sterling, forcing the devaluation of the currency and gaining a billion-dollar profit***. Quite unexpectedly these findings get support across the Atlantic from Czech political analyst Honza Malina, who calls him a covert operative of the KGB, the infamous Soviet Era spy agency.
Yet, there is a much simpler and more plausible explanation. Soros is cleverly manufacturing dissent by funding organizations critical of runaway Capitalism, and thereby he is buying influence to keep them in check. Co-opting dissent is a more powerful technique of silencing opposition rather than overtly conflicting with it. How beautifully he manages it will become evident from a visit to Open Society Foundation website. It has Indian Prime Minister’s daughter, Amrita Singh, who just this year supposedly exposed CIA’s Global Secret Prisons. Supposedly, because even earlier tt was not a secret that CIA has had extra-legal prisons in client states for its *rendering program*, where it could carry out its tortures with impunity in blatant violations of international and national conventions. Open Society’s “expose” took it mainstream where leading media too discuss it openly. The objective was not to render CIA into oblivion, but to make its sinister wrongdoings more palatable by censure from establishment. Another person, Zeljko Jovanovic, who is director of the Roma [one of the most estranged and marginal communities in Europe through the centuries] Initiatives Office, was earlier with Organization for Security and Co-operation in Europe (OSCE). Nazia Hussain works on  minority rights in Europe and is directing research on policies and practices relating to integration in 11 EU cities, and the impact of various public policies on identity and belonging. She is also leading advocacy efforts arising from the findings. All these initiatives are well calibrated effort to embed dissent in the dominant philosophy of the establishment. To simple minds these efforts have a threatening revolutionary character that seeks to destabilise existing power structures and hierarchies, while they are actually providing safety vents to avoid explosive build up, which could really pave the way for an emancipating vision of society. Seen in this light, Soros’ latest offering is one more step in his carefully worked out larger agenda. He is afraid that if corrective measures are not taken the Euro zone crisis could blow in the face of global capitalism

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One Response to “Be Aware, When Soros comes Calling.”

  1. Sadanand Patwardhan Says:

    These two news items just came on Equity master's 5 Minute wrap up after I finished posting.=========In the US, if a family of four earns less than US$ 23,021 a year, it is termed as living in poverty. Currently, about 50 million Americans make it to this list. In other words, one-sixth of Americans are poor. Such levels of poverty have not been seen in the US since the mid-1960s. But the worst is yet to come. The US economy has been grappling with the worst economic crisis since the Great Depression of the 1930s. With the fiscal deficit getting out of hand, the government has little choice but to trim spending. As per an article in Money News, spending cuts worth US$ 85 bn started automatically on March 01, 2013. It is said that the poor will be worst hit by these cuts. Several services that help the poor improve their conditions will seize to function. The ultimate outcome of this will be even more income inequality. This is not something that should be ignored. Unemployment and rising rich-poor divides have often been the prelude to many socio-political crises across the globe.=========The new governor of the Bank of Japan has introduced a new phase of monetary easing. He plans to double the monetary base of the Bank of Japan. This would be done through aggressive purchases of government bonds and risk assets. The idea is that such an easing program would help take inflation rates to 2% over the next 2 years. The governor believes that this would help Japan's economy to embark on a phase of growth. Given the failures of the QE programs seen in US and Europe, we really wonder whether Japan would be better off. The thing is that monetary easing is nothing but flooding the market with cheap money. This is nothing but a short term fix. It yields very little value over the long term. For long term benefits, one needs to focus more on structural reforms and changes. Unfortunately policymakers in the developed world seem to think otherwise and are adopting a myopic view instead. =========Former has more in it to worry Soros beyond Euro Zone. The latter is continuing after he has made his pile.

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