English version of the article by VY. Katasonov «Джордж Сорос – капиталист катастроф»
George Soros is a well-known billionaire. He has recently started to take an active part in Ukrainian affairs. No, Mr. Soros does not play the role of peacekeeper, to the contrary, his activities are aimed at inciting a large-scale war against Russia…
/Caricature by V. Mochalov/
In early June, Cyber Berkut hacked the correspondence of Ukraine’s President Petro Poroshenko and Soros. The possessed materials show that Soros wants the United States to deliver up-to-date lethal weapons to Ukraine and provide training for Ukrainian soldiers. What does financier Soros need it for? George Soros is known throughout the whole world. Many people witnessed his deeds with their own eyes. According to Forbes, he is one of the thirty wealthiest people on the planet. His presence is visible or felt in many countries. He has a reputation of profiteer, businessman (owner of companies) and aphilanthropist — all at once. The multifaceted activities match well his distinctive way to behave and do things.
He stands out as master of financial speculations or the alchemy of finance. He did a masterly job of making British pound collapse in 1992. Even the Bank of England failed to stand up to Soros. In a wink of an eye he earned $1 billion. He contributed into the 1998 financial crisis in South-East Asia. Those days the currencies of about a dozen of countries collapsed. He had his finger in the pie when a default hit Russia in 1998.
Soros used the Quantum Fund which is part of Quantum Group of Funds, the privately owned hedge funds based in Curaçao (Netherlands Antilles) and Cayman Islands. The Group is currently advised by George Soros through his company Soros Fund Management. Currency speculations are the main source of his fortune (nearly $30 billion).
Contrary to what is generally believed, Soros is also involved in more «quite» and «decent» activities like buying companies shares. He pays with the money earned as a result of currency speculations. For this purpose he foundedSoros Fund Management, LLC, a privately owned firm investing in the capital of world leading corporations. Soros Fund Management, LLC maintains ownership of large share percentages in key corporations that benefit from investment in other countries. Soros owns over 5 million shares of the chemical giant Dow Chemicals. Another big investment is Monsanto. Soros owns half a million shares of the bio-tech firm. The two companies are known as chemicals producers with diversified products and services from industrial to agricultural applications, bio technology, food industry and other branches of economy.
The financier is also interested in energy. Soros owns nearly two million shares of Energen, a natural gas utility company. PDC Energy, with one million shares owned, is another big investment project. George Soros is involved in banking business. He owns significant stakes of Citigroup, one of Wall Street «Big Six banks». The second direction of his activities is not much talked about. He puts his «golden eggs» (assets) in many baskets (companies and banks) in different parts of the world.
The third sphere of activities he is involved in is charity. It is given special publicity to create a positive image of tycoon. The main instrument hisphilanthropy activities are based on is the Open Society Institute (OSI) or the George Soros Foundations. Formally it acts in line with fundamental principles of human rights dignity and law to help nations achieve positive changes. Putting turgid praises of Open Society aside, the Institute «resets» the public mentality with the help of different kinds of educational programs forming national elites to create the most favorable regime for Western transnational corporations and banks. Soros suffers no financial losses. The money he spends is an investment into human capital, it could even more profitable than investing into high tech companies and hedge funds. The only difference is that profits are to be made in 10 years, or may be more.
The Open Society Institute has branches in 27 countries of Asia and Europe, including Poland, Latvia, Estonia, Georgia, Armenia and Azerbaijan. According to Business Week, Soros has spent over $5 billion for charity programs with one billion invested in Russia. By the end of 2003 he left to put an end to charity operations in the country. In 2004 the Open Society Institute stopped giving grants. No matter that, some organizations founded by Soros continue their activities in the Russian Federation.
By and large, that’s what the Soros’s business model looks like:
1) Currency speculations bringing in billions «earned».
2) The profit is used for currency speculations, buying out shares of companies and other commercial organizations and funding charity activities.
3) The charity programs foster favorable investment climate in certain countries. The money is invested only after a thorough study of all aspects related to investment climate.
In case of Soros investment climate is something special. An ordinary businessman would say that favorable investment climate presupposes economic and political stability, positive trends on the market etc. It’s not the case when Soros makes his assessments. «Worse is better» is his guiding principle. He is called a disaster capitalist. Disaster capitalism is the term used to describe his currency speculations. He normally invests in companies and projects after an effective «artillery bombardment». It includes a political crisis often leading to regime change, revolutions, mass unrest and other social upheavals. A political crisis is inevitable followed by currency and economic collapse. It entails downfall of national currency and decline in market value of companies. With assets becoming cheaper, the time is right for investments. The results of artillery strikes initiated by Soros could be used by other capitalist sharks who are always in the loop. That’s what Soros needs charity for. The matter is that these programs are part of preparation for staging a political crisis. Besides, their implementation allows Soros to have some foreign politicians and officials dancing to his tune. It helps to avoid unneeded hindrances and guarantee access to the needed assets abroad.
Any business is tied to constant money flows. The model used by George Soros excludes status quo. Like in the theory of Marx, (described in his Capital) there is a general law of money circulation (money-commerce-commodity) and expanded production. In case of Soros it is added by political, social, currency and other crises. It boils down to the formula: Capital-Crisis-Value of Commodity. The value could be increased or reduced after the entire phase of circulation comes to an end. With no political crises to ensue, Soros, the master of alchemy, becomes uncompetitive turning into an ordinary businessman.
Experts note that Soros honed his business skills in many countries. For instance, in the African states of Nigeria, Uganda, Cameroon etc. Soros was behind social and political upheavals these countries had to go through. Then he set his eyes on Europe and the post-Soviet space. He was involved in the events in Serbia, Georgia, Ukraine and Macedonia. He is involved there now. A lot has been told and written about civil wars and social upheavals in the states mentioned above. It’s less known that George Soros has vested long-term economic interests in all of them. There are two main theories explaining his business achievements. One says he owes his success to foresight. The other says he uses insider information received from higher ups in the political and economic circles. The first theory is supported by Soros himself as he has written many books on the theory of reflexivity applied to stock and financial markets. He tries to make believe that the gift he possesses has scientific explanation. Having read his books, I got the impression that they differ little from the plethora of other «intellectual products» filling the shelves of book stores. The name of the author is the only thing that makes them stand out. He has ambitions to become a writer. I believe that the books he writes serve as a kind of cover of his nefarious activities related to the use of insider information. On quite a number of occasions he was caught red handed to get off easy with just paying fines. The second version looks trustworthy.
I would offer a third theory explaining his financial success. He has access to financial sources being close with those who we call money masters – the leading shareholders of US Federal Reserve System. They owe the printing press. In the 1970s the gold restraints were taken away. On 15 August 1971, the United States unilaterally terminated convertibility of the US dollar for gold, effectively bringing the Bretton Woods system (1944) to an end and rendering the dollar a flat currency.
The printing press can print as much money as needed. The core problem is to put the money to good use. That’s what money masters need assistants for. Soros is the one. Actually he is a money master himself. As I have already mentioned he has a block of Citigroup shares. The bank is one of Wall Street’s «Big Six». All these banks are co-owners of closed joint-stock company called the US Federal Reserve System. He may not be as important as the Rothschilds and the Rockefellers – the full-fledged money masters. Soros serves them. Experts believe he works for the Rothschilds, but that’s a horse of another color.
The main thing is that he has enough money to make national currencies of other countries collapse. To accomplish the mission he needs the sums comparable with the reserves of central banks. He collected $20 billion to break the British pound in 1992. Those days he was not rich enough to take the money out of his pocket. He had to get it from money masters. Some experts believe that the so-called Soros Foundation is a common fund with Soros appointed as general manager.
There is an important point to take into consideration. Money masters give Soros money for other purposes than increasing their wealth. They don’t need that. After all they have the printing press at their disposal. The printing press «production» is the means to achieve the goals. Soros is not their equal. He likes money. All his life was devoted to the goal of becoming wealthier. For this purpose he destabilized other countries. Real money masters also need destabilization to weaken states, dilute their national sovereignty and make true the dream they have cherished for centuries — to achieve global power. (1)
That’s what they need Soros for. He is the consummate master of organizing revolutions, coups and Maidan-type protests. That’s what made him a successful businessman. He is what they call a disaster capitalist. All told, it’s clear that Soros is chomping at the bit to make a big profit out of the events in Ukraine. To be more exact he works to make the country plunge into chaos according to the plans of money masters.
(1) More in detail. Valentin Katasonov. Capitalism. History and Ideology of «Monetary Civilization».Institute of Russian Civilization. 2015.