SOROS BEARISH ON THE US

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George Soros appears to be putting his considerable money eggs in the Asian basket.  Why?As I have mentioned, frequently, I know very little about economics, other than if you don’t pay your Bloomies account on time you can’t buy more shoes.  Thus said, one of the things I’ve learned watching recent history and the rise and fall of markets is the fact that if you smell a rat, George Soros is often behind it.  I’m going to provide some excerpts from very recent  interviews with Soros.  It is all too apparent, he detests the US, our form of Capitalism, the GOP, and would do what he could to hasten our economic fall.


Is he trying to crash Morgan-Stanley?

Why is he being called to testify before Congress next week?
Is he planning an “October Surprise“?

In an interview with Bloomberg, Soros commented,

“…“…“We had a good bottom,” Soros told Bloomberg News, referring to Wall Street’s rally following JPMorgan Chase’s deal to buy beleaguered Bear Stearns.

“This will probably not prove to be the final bottom,” he predicted, adding the rebound may last anywhere from six weeks to three months as the US moves closer to a recession….He also said banks must control their own borrowing and curtail lending to clients such as hedge funds by demanding greater collateral and margin requirements on loans.

His words re-state the warning he gave in January, in an article in the Financial Times.

Then, he said that although the financial crisis resembles other crises since the end of the Second World War, “There is a profound difference: the current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency.

“The periodic crises were part of a larger boom-bust process. The current crisis is the culmination of a super-boom that has lasted for more than 60 years.”

He criticized the tendency of authorities to intervene in the economy and markets – as the US Fed did during the market turmoil earlier this year. This “moral hazard” encouraged more borrowing and expansion and led to widespread belief in “market fundamentalism” in the Eighties – “regulations have been progressively relaxed until they have practically disappeared”….”

It is obvious he doesn’t approve of the US economic status in the world and will do what he can to destroy it.  If this is, indeed the case, and Soros is a huge Obama supporter, Obama should not be elected.

“…”Globalization, America as the center of the globalized financial markets, was sucking up the savings of the world,” Soros said in a CNN interview. “This is now over. The game is out. It does mean a very serious adjustment for America,” added Soros, a staunch backer of the Democratic Party. As world leaders rushed to help banks weather the crisis that has sent stocks into steep decline, Soros blamed the turmoil on the faith in market forces that began under President Ronald Reagan and British Prime Minister Margaret Thatcher a generation ago.
The notion that markets are self-correcting led to a massive expansion of debt financing that culminated in the sub-prime mortgages that epitomized the easy-money mentality at the root of the disaster, he said. “This belief became the dominant creed. And this, then, led to the globalization of markets, the deregulation of markets and the increased use of leverage and all the financial engineering,” Soros said.
“This whole enormous construct is built on false conceptions,” he added. “You can go a very long way. But in the end, reality rears its ugly head and that’s what happened now.” Jeffrey Sachs, special adviser to U.N. Secretary-General Ban Ki-moon and director of the Earth Institute at New York’s Columbia University, appeared to agree with Soros. “The age of Reaganism is over,” Sachs said in a separate CNN interview. “The no-regulation, low-taxes (philosophy) has broken the back of our economy. We now have to get serious about reconstructing normal government that pays its way and a normal financial sector that’s properly regulated.“…”

In a Huff Post interview:

“…Soros: The outlines are clear. There are five major elements. 
– First, the government needs to recapitalize the banking system by buying equity stakes in banks. 
– Second, interbank lending needs to be restarted with guarantees and bringing LIBOR (London Interbank Offered Rate) in line with Fed funds. This is in the works. It is going to happen. 
– Third, we must reform the mortgage system in the U.S., minimizing foreclosures and renegotiating loans so that mortgages are not worth more than houses. Stemming foreclosures will cushion the fall of housing prices.
– Fourth, Europe has to fix a weakness of the Euro by creating a safety net for its banks. While initially resisting this, they have now found religion and done it at their meeting in Paris on Sunday.
– Fifth, the IMF must deal with the vulnerability of countries at the periphery of the global financial system by providing a financial safety net. This is also in the works. The Japanese have already offered $200 billion for this purpose.
These five steps will start the healing process. If we implement these measures effectively, we will have passed through the worst of the financial crisis.

But then, I’m afraid, there is the fallout in the real economy, which is now gathering momentum. At this point, repairing the financial system will not stop a severe worldwide recession. Since, under this circumstance the U.S. consumer can no longer serve as the motor of the world economy, the U.S. government must stimulate demand. Because we face the menacing challenges of global warming and energy dependence, the next administration should direct any stimulus plan toward energy savings, developing alternative energy sources and building green infrastructure. This stimulus can be the new motor for the world economy.

Gardels: At the end of the day, won’t we be looking at a vastly different global financial landscape? The U.S. will decline as the top power. It will have, along with parts of Europe, socialized banks and loads of debt. Communist China will be the new financial power globally, flush with capital and a major investor in the West….Soros: U.S. influence will wane. It has already declined. For the past 25 years, we have been running a constant current account deficit. The Chinese and the oil-producing countries have been running a surplus. We have consumed more than we produced. While we have run up debt, they have acquired wealth with their savings. Increasingly, the Chinese will own a lot more of the world because they will be converting their dollar reserves and U.S. government bonds into real assets. That changes the power relations. The powershift toward Asia is a consequence of the sins of the last 25 years on the part of the United States….”

MAJOR UPDATE:
I was going to dump this article until I noticed something on LGF today.  More Soros-Obama connections.  There is a link to Jamie Wearing Fool, with the news that a Soros flunkie is running Obama’s Transition Team.  Yes, Virginia, he’s already planning his transition.  Is there an economy connection?  Just remember – until the “market crashed” McCain was ahead by about 6 points.  George Soros is a socialist as long as his money isn’t the money spread around.  Soros hates America and will do anything to destroy it.  If Barack Obama is his baby, then if it quacks like a duck, waddles like a duck, lays golden eggs like a duck, and swims like a duck – well it just might be Sa duck.

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