Who is George Soros?
As his $26 billion investment asset behemoth arrives on the cryptocurrency scene, it is prudent to take a critical look at his past and present. He is reputed to have a profound effect on markets that he taps into and this one will be no different than the others. As investors we need to anticipate these inevitable effects to aid the timing of our own speculation. George Soros’ colorful past offers many lessons for us to learn from. Let’s begin.
The Man Who Broke the Bank of England
Despite his global influence and seemingly infinite reach, he has managed to remain relatively veiled. As a Jew who survived the Nazi reign of terror by betraying his own disguised as a Christian, it has likely become habitual at this point. He chooses his appearances carefully, though he scarcely misses an opportunity to use his renown to influence a market he is invested in. In August 1998 for example, during the height of the Russian economic crisis, Soros petitioned Russian economic leaders to devalue their own currency and replace it with another currency pegged to the US dollar. In an article published in British Financial Times, he floated the idea of a 15-20% devaluation. His own $2.5 billion investment in Russian business may have stood to gain from such drastic legislation…
Even more infamous, however, was his involvement in the collapse of the British pound 6 years earlier. At the time, the pound was regulated by an instrument called the European Exchange Rate Mechanism (ERM), designed to deliver reliable exchange rates between EU countries, ultimately paving the way for the Euro. The ERM limited exchange rate fluctuation of each currency to within specified ranges, and if any currency traded near the lower limit of its range at any time, government would intercede to preserve the system. This action would inevitably spook the exchange market, incurring heavy losses to those holding long positions in the currency while presenting a windfall opportunity to anyone shorting it. The system was designed to operate under normal levels of economic stress, but Soros foresaw the chaos that would ensue under extreme stress.
Leading up to the event, Soros’ Quantum Fund began accumulating a massive short position in the British pound with intent to capitalize on this weakness. Having entered into the agreement under unfavorable terms from its inception, Britain’s pound sterling began to edge lower against its counterparts. As it neared the lower band of its permissioned trading window, the UK government attempted to prop up its value through monetary policy. Prime Minister John Major raised interest rates to 10% to entice investment in the currency and buoy its value. The measure was unsuccessful, and the pound sterling continued to fall.
On 15 September 1992, Soros began to dump pounds. All sell offers were required to be met by ERM regulation, and the system began to implode. The Bank of England intervened, buying up pounds in rounds of 300 million to reduce the supply, but it was not enough. Soros was selling pounds quicker than the national bank could buy them.
In the aftermath, the UK’s failed disaster prevention amounted to over £6 billion in liabilities, assessed ultimately to the taxpayers. Soros pocketed £1 billion. Having outsmarted and outplayed the Bank of England, he has henceforth been crowned “the man who broke the Bank of England.”
Is any market safe from this monster?
Soros’ dastardly deeds are not limited to Russia and the UK.
As a precursor to Russian Black Thursday, Soros dabbled in Thailand’s affairs in 1997. Having identified its government as essentially bankrupt, he helped himself to another round of speculation that culminated in the collapse of the Thai baht (official currency of Thailand). Indonesia, South Korea, and Malaysia were hit particularly hard as a result of financial contagion. An estimated 10,400 people in the Asian community alone committed suicide in direct repercussion. Developing countries experienced economic slowdowns across the globe. An oil glut occurred in 1998 as a result, during which record low oil prices around $11 per barrel were seen.
Do you see a trend developing? Soros enters the scene, makes a billion or so, and walks off into the sunset leaving years of misery in his wake. Rinse and repeat.
Now, many fear that he has set his sights on the United States. In his 2006 book, “The Age of Fallibility” Soros made this bold statement:
The main obstacle to a stable and just world order is the United States.
He followed up, saying:
Changing the attitude and policies of the United States remains my top priority.
Furthermore, keeping in line with his seemingly go-to devaluation tactic, he believes that “an orderly decline of the US dollar is actually desirable.”
And what kind of change have we seen since 2006 when he made these statements? We have higher imprisonment rates, higher suicide rates, lower savings rates, a record national deficit, more riots, more shootings, and a complete lack of unity among US citizens. Sure, it is difficult to tie any of these statistics directly to George Soros, but the point remains: we are seeing change…and it isn’t good.
So where does the change stem from?
George Soros – The Philanthopist
Despite all of these questionable antics, Soros has earned himself a reputation of being one of the most generous philanthropists in the world. No doubt about it, George Soros has given billions to charitable organizations around the globe. Estimates show $18 billion of his personal funds migrating to his Open Society Foundation near the end of last year, representing the majority of his fortune. From there the funds will filter to roughly 200 different organizations to shape the world the way he sees fit. But what exactly do these organizations do? Let’s take a look.
All of Us or None – This organization is charged with reforming voting laws over time. Specifically, they believe inmates, parolees, and ex-inmates deserve the right to vote in political elections and are working toward making that a reality.
Alliance for Justice – A hyper-left activist group reputed for labeling Republican judicial nominees as racists, sexists, extremists, and ‘alt-right.’ Their mission statement is to “ensure that the federal judiciary advances core constitutional values, preserves human rights and unfettered access to the courts, and adheres to the even-handed administration of justice for all Americans.” Conspicuously enough, they achieve this by defaming Republicans and promoting leftist theology.
America Coming Together – Employed convicted felons to organize pro-Democrat voter mobilization programs.
American Civil Liberties Union – Under the mission statement “defend the individual rights and liberties guaranteed by the Constitution and laws of the United States,” the ACLU has made tremendous progress in the opposite direction. Remember the tearing down of crosses at war memorials and removal/relocation of Civil war memorials? That was the ACLU, under the guise of ‘protecting religious freedom’ and ‘fighting white supremacy.’ With similar intent they fought to force abortion and euthanasia on the masses and impose racial quotas through affirmative action (respectively). Wreaks of George Soros and the New World Order (who seeks to maintain a world population equilibrium near 500 million) doesn’t it?
American Immigration Council – “Strengthen America by honoring our immigrant history and shaping how Americans think and act towards immigration now and in the future.” Played an instrumental role in providing safe haven for Syrian refugees in the States.
Bill of Rights Defense Committee – This one may actually have some merit. Founded in 2001 to repeal the Patriot Act, this group maintains the stance that the act violates the civil liberties of Americans. Indeed, the Patriot Act massively expanded government’s ability to spy on its own citizens. Sections 213-218 distort the Fourth Amendment, enabling records searches, secret searches, intelligence searches, and trap and trace searches at will. Admittedly, the ACLU has made a positive contribution to the fight here as well. The BRDC has made some questionable calls, however, such as lending defense to lawyer Lynne Stewart, convicted of abetting terrorist Sheik Omar Abdel-Rahman.
Brookings Institution – This organization promotes many international programs, many of which center around establishing a UN-dominated world government.
Campaign for America’s Future – Seeks tax hikes to fund a massive expansion of social welfare programs in the US.
Center for American Progress – A cesspool of far left figureheads, this group headed by former Chief of Staff John Podesta and counterpart Hillary Clinton seeks to “play a critical role in shaping a pragmatic, progressive policy agenda.” They work closely with Campus Progress to begin the ‘reshaping process’ with our youth.
Center for Responsible Lending – Known for ironically taking the responsibility out of lending, this group has been blamed in part for the 2007-2009 subprime mortgage crisis. CRL spent obscene amounts of money lobbying banks to make loans to unqualified borrowers. Ultimately they operated as a high-risk loan funnel, channeling questionable loans from financial institutions across the country into the hands of Fannie Mae.
I’lam – Group intent on destroying Israel, one of the United States’ key allies. Mission statement: “To develop and empower the Arab media and to give voice to Palestinian issues.”
Institute for New Economic Thinking – Views capitalism as a broken system, and looks to move the world beyond it.
National Abortion Federation – Intent on spreading abortion-on-demand availability to all developing and third world countries.
Planned Parenthood – Largest abortion provider in the US.
The list goes on and on, but for the most part they have two things in common: attractive names and dangerous functions. The political and social turmoil in the United States is no coincidence. It is a direct consequence of the agendas of these organizations. While it may seem far-fetched to attribute so much change to them, I would caution you not to underestimate them — or their financier. In recent years they have gained more strength and momentum, thanks to one particular half-baked law: the Bipartisan Campaign Reform Act.
More commonly referred to as the McCain-Feingold Act, this law was expected to reduce the effects of soft money (campaign money raised by exploiting gray areas in legislation or used for purposes other than it is appropriated for) in political campaigns. While it did achieve a degree of victory in this, it introduced a new problem altogether: proliferation of powerful 501(c)(3) groups. The BCRA targeted corporate funding by prohibiting issue advocacy ads paid for by a corporation. Non-corporate groups without defined political affiliation were left untouched for fear that infringing on their rights equally would be viewed as unconstitutional. In doing so, a massive transfer of power occurred from the corporate giants to the 501(c)(3) groups, most of which are controlled and funded by George Soros. Do you see now the ulterior motive behind the philanthropy?
George Soros’ Cryptocurrency Involvement
Now the time has come for George Soros to delve into cryptocurrency. In January his Quantum Fund revealed a $100 million investment in Overstock.com. $20 million of that will directly fund the blockchain property rights venture, with the rest indirectly impacting it by bolstering overstock’s existing product line and services. At the time, Quantum Fund management was careful to detail that none of the funding would be used to purchase tokens issued in the tZERO ICO planned for December, nor would it be used to purchase any cryptocurrency, period. Soros has repeatedly called Bitcoin a bubble (as many have) and expressed no interest in direct investment.
More recently that tune has changed, however. Approval has been granted to Adam Fisher, head of the Soros Fund’s macro investment operation, to begin trading cryptocurrencies. Perhaps in his opinion the worst is over for the crypto market, and his stance has changed. Or this could reflect a strategy shift as Soros passes on the torch to new leadership. After all, he is 87 years old.
Everything Soros has done and is doing is focused on one thing: his Marshall Plan. This plan, published in 1990 by politician Al Gore has undergone many changes since then, and Soros has now become its most prominent figurehead. All of his 200+ organizations are subordinate to the Global Marshall Plan which claims to be a platform for a “world in balance.” The question now is: Where does blockchain play into the plan?
Part of the Marshall Plan initiative is to achieve “fair taxation on global value added processes.” It is hard to decipher that intentionally vague statement, but generally ‘fair taxation’ just means ‘broad taxation.’ Assume that you will be the target of opportunity along with everyone else. This entails rolling out what is called a Financial Transactions Tax (FTT), eventually on a global scale. This tax does not target consumption, but rather speculation. It may be be carefully imposed on certain transactions (i.e. FOREX, commodities, or automated payment transactions) so as to discourage making them. During times of economic stress, nations could impose such a tax short term to prevent speculators from driving their currencies into the ground (to an extent). Because it can be imposed in such a manner as to prevent evasion/loopholes, however, it could be extended to cover all transactions, in theory. And what better mechanism than blockchain!
With blockchain, an immutable ledger provides the method of tracking an infinite amount of transactions. As the technology improves, we are seeing nimbler coins emerge capable of handling more and more transactions per second. It isn’t too lofty to imagine a world where all financial transactions occur on a blockchain. The final step would be engineering a smart contract to implement the tax, and poof! Unavoidable global taxation.
Keep in mind this is merely a theory, but the FTT outlined in the organization’s vision is the easiest connection that can logically be made. Another lofty theory is that the International Monetary Fund (IMF) could introduce a cryptographically secured token to replace its current XDR (Special Drawing Rights), a supplemental international reserve asset. XDR settlements typically take several days to complete, and crypto would speed that process up substantially. What if — yeah, let’s get wild here for a moment — what if xRapid (XRP) is to replace XDR? It already serves a similar purpose, boasts 1500 transaction/second capability with nearly free transactions, and was designed with seamless international settlements in mind. Possible, but unlikely.
Any of the above scenarios would undoubtedly attract the attention of Soros and his agenda.
Knowing what we now know about Soros’ past, do you think his entrance will be a positive or negative catalyst? That remains to be seen. For all we know, the Quantum Fund could be hellbent on shorting coins and tokens only, seeing no future in the market. Based on headlines I’ve read, however, most are anticipating the opposite, and I am inclined to agree. In 1995 he predicted that the internet would revolutionize the way we do business and conduct our lives, leaving no person or industry untouched. He was correct, and I believe he sees blockchain in a similar light. We’re still in the middle of one of the most spectacular market corrections we’ve ever witnessed. With coins/tokens trading at a ~70% discount to their highs, value has once again returned to the market, and investors who were uninterested in entering the market near $20,000 BTC could be more inclined to buy in around $7,000. Hopefully this new institutional investment will help buoy the market out of its current slump.
Latest posts by Creighton Piper (see all)
- Will “The Man Who Broke the Bank of England” Have a Different Effect on Cryptocurrencies? - April 9, 2018
- SegWit Simplified: How Coinbase Deployment Will Impact Bitcoin and the Market - February 16, 2018
- Quick, Check Your Coinbase! If You Exchanged Fiat–>Crypto Recently You Could Be Missing Funds - February 16, 2018