Soros: Don't Let Faulty Euro Destroy Financial System
"Billionaire investor George Soros and 95 prominent politicians, business leaders and academics urged euro zone leaders to take swift action to resolve the crisis plaguing the region, calling for the creation of a euro zone treasury and stressing that the euro can only be saved if all 17 countries that share the currency act in unison.
In an open letter published in the Financial Times on Wednesday, the "concerned Europeans" conceded the euro was "far from perfect", but added euro zone leaders needed to "fix its faults rather than allowing it to undermine and perhaps destroy the global financial system" …
In the letter, Soros and the 95 others said they wanted euro zone governments to agree on the need for a legally binding agreement that would "establish a common treasury that can raise funds for the euro zone as a whole and ensure that member states adhere to fiscal discipline."
Most importantly, the euro zone crisis needs a European solution, they said. "The pursuit of national solutions can only lead to dissolution," the letter concluded."
To read the entire article: http://www.cnbc.com/id/44858128
What is most interesting about the Soros Solution is that he is essentially helping solve a problem that he seemingly had a hand in starting.
According to a February 26, 2010 article in The Wall Street Journal:
"Some heavyweight hedge funds have launched large bearish bets against the euro in moves that are reminiscent of the trading action at the height of the U.S. financial crisis. The big bets are emerging amid gatherings such as an exclusive "idea dinner" earlier this month that included hedge-fund titans SAC Capital Advisors LP and Soros Fund Management LLC."
Clearly, there were problems in Greece before Soros and other hedge funds got involved. But, no rational observer would deny that the use of Credit Default Swaps, naked short selling, high-frequency trading, derivatives, leveraged ETFs and other weapons of bear raids have made the matter infinitely worse and pushed the Euro to the point of breaking. We know this for three compelling reasons, one from Soros' own words:
1) European intelligence agencies have documented bear raids by speculators as the source of major problems. If not the cause, they have clearly been the exacerbation.
2) Many (including George Soros) have compared what is happening in Europe to what happened when Lehman failed in 2008. So what does Mr. Soros say was the cause of Lehman's collapse? Soros authored a 23 March 2009 Op-Ed in the Wall Street Journal (http://online.wsj.com/article/SB123785310594719693.html, One Way to Stop Bear Raids). His bottom-line conclusion was:
‘…it's clear that AIG, Bear Stearns, Lehman Brothers and others were destroyed by bear raids in which the shorting of stocks and buying CDS mutually amplified and reinforced each other. The unlimited shorting of stocks was made possible by the abolition of the uptick rule, which would have hindered bear raids by allowing short selling only when prices were rising. The unlimited shorting of bonds was facilitated by the CDS market. The two made a lethal combination.'"
3) After examining the facts, the Germans quickly tried to curb the use of financial tools by banning CDS and naked shorting. Unfortunately, the genie was out of the bottle by then and financial terrorists could short in other European markets.
So, bear raids have pushed Europe to the brink and Soros had a hand in starting the bear raids. Now, Soros wants the unification of Europe with a common Treasury. In other words, let me cause a problem and I will craft a solution?
The Chinese authors of Unrestricted Warfare made the following comment about George Soros:
"Soros's logic is ‘I entered the room to steal money because your door was not locked.' In this way, he does not have to be responsible for destroying the economies of other nations and throwing the political order of others into disarray."
These authors referenced Soros and his tactics a great deal and basically endorsed economic warfare as a legitimate use of power:
"‘Financial warfare (in which a country is subjected without a drop of blood being spilled)' means entering and subverting banking and stock markets and manipulating the value of a targeted currency."
All of this should give us pause with the recent revelations that George Soros is supporting the "Occupy Wall Street" movement. Here again, just as in Europe, bear raids have, at a minimum, amplified economic problems resulting in terrible economic dislocation. The dislocation has spawned a response with the Occupy Wall Street as one example, supported by Steven Lerner's desire of a stock market crash. The purpose of that is to remake the domestic economic order…the same pattern as seen in Europe. In many ways, this ia also similar to the Arab uprisings in the Spring.
There are certainly better ways to achieve positive change than financial terrorism, especially in the United States of America. The problem is that those behind the current attacks do not want positive change. In some cases, they want a global caliphate to be established under Shariah Law. Others want a "new world order," built on a socialist framework. Still others are promoting a communist revolution. Some (maybe even the majority) are simply wanting more economic opportunity. The problem is that once things get started they can get hijacked and spiral out of control quickly.
Sadly, our leadership has failed to understand these threats and essentially has left our door unlocked…..
All posts Copyright (c) 2011 Kevin Freeman, All Rights Reserved