A world in economic crisis

Is George Soros behind a plot to cause Euro crisis?

Posted in European Union by Aussie on May 22, 2010

Is ‘man who broke the Bank of England’ George Soros at centre of hedge funds betting against crisis-hit euro? | Mail Online

This is an old story from Mail Online, but right now is a good time to review the story, especially in light of what might be the inevitable crash of the Euro. Is it really possible that George Soros, in his greed, has set out to cause this much havoc in the world? I am no conspiracy theorist but the more I hear about George Soros, the more I shudder….

The article refers to a meeting back in February 2010 at which the Soros Hedge Fund was represented. It is not hard to imagine that there is a plot in place to see the Euro fail. It seems that these hedge fund managers stand to reap billions if this happens.  This is what was reported on February 24 when it was first apparent that Greece was in real trouble, and that this was putting pressure on the Euro:

The single currency has been under enormous pressure because of Greece’s debt crisis, plus financial worries in Portugal, Italy, Spain and Ireland.

But, it has also struggled because hedge funds have been placing huge bets on the currency’s decline, which could make the speculators hundreds of millions of pounds.

The euro traded at $1.51 in December, but has since fallen to $1.34. Details of the secretive dinner emerged days after Mr Soros, chairman of Soros

Fund Management, warned in a newspaper article that the euro could ‘fall apart’ even if the European Union can agree a deal to shore up support for stricken Greece.

Mr Soros, who made more than $1billion by currency speculation when the pound was ejected from the Exchange Rate Mechanism on Black Wednesday in 1992, believes the structure of the euro is ‘patently flawed’.

He said: ‘Makeshift assistance should be enough for Greece, but that leaves Spain, Italy, Portugal and Ireland.

‘Together they constitute too large a portion of euroland to be helped in this way.’

He believes that unless the European Commission is given sweeping powers over taxation and spending, the single currency will always be vulnerable to financial turbulence in individual states.

Read more: http://www.dailymail.co.uk/news/worldnews/article-1253791/Is-man-broke-Bank-England-George-Soros-centre-hedge-funds-betting-crisis-hit-euro.html#ixzz0ocqaYSY8

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  1. YTZ4Me said, on May 24, 2010 at 2:33 pm

    I would not put anything past Soros. For him, it is no longer an issue of money, it is an issue of power, and for quite some time, he has lusted after remaking, literally, the World in an image he desires. It is beyond frightening. The currency manipulation he has taken part in is fraudulent, yet no one seems to want to challenge him.

    It was my understanding in the very brief survey course I took in Economics that the Keynesian approach/philosophy was to inject government spending into the economy to smooth out the “peaks and valleys” of the economic cycle. Ostensibly, that was the reason for the establishment of the Fed as well. Since this approach has clearly failed (although, most of the government spending was a rude corruption of Keynesian theory at best), how is Bernake going to sell yet more “stimulus” to the American populace, and the World markets? No one has been showing up at the Bond auctions in any meaningful numbers.

    Much has been written about the eras of hyperinflation — Weimer Republic being the one most often quoted — but what happens in the post-hyperinflation period, when a new system of currency has to be put into place? This is essentially what we would be looking at, if the Euro and the US Dollar collapse concurrently.

  2. ozzieaussie said, on May 29, 2010 at 11:41 am

    I am in contact with an economics professor. I tend to agree with him that we are not heading towards hyperinflation but we are hitting another period of stagflation.

    Keynes is one economist who had studied the period surrounding the German hyperinflation. It truly was very bad. In fact I have some stamps that have been over-printed and it gives a good idea of how serious the situation was in Germany. The Government was printing money like it was going out of fashion.

    It seems like Obummer is trying to recreate that scenario, but it is not in fact happening like that… instead we are hitting stagflation again. The reason is that the Keynesian theory itself was flawed, and the flaw was due to the fact that when G expands it soaks up money available to the private sector.

    As I get back into my research I will be attempting to look more closely at the first period of stagflation – the 1970s. This is the period when I was studying economics at university, and I first heard about stagflation. It was recognized at that point that Keynesian theory had in fact failed.

  3. YTZ4Me said, on June 2, 2010 at 11:54 am

    Thanks Ozzie, I look forward to your analysis. There does seem to be conflicting points of view on hyperinflation vs stagflation. I think the Fed is counting on Inflation to get rid of debt. Stagflation would not achieve this objective.


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