Vulture Capitalist George Soros

Vulture Capitalist  George Soros All that 'democracy promotion' is just investment in lining up the next political/economic/material carcass that American capitalists intend to dismember, to the detriment of the people of successive nations that they prey on while pretending to support noble ideals. See Gorgeous George's track record, below. The name of the capitalist game is exploiting ideals, like they exploit all else. Ideals are employed as exploitative tools/means of weakening foreign nation target states, by American snake oil salesmen. -------/\/\/  If you love something Set it free... ; -------/\/\/  World, time tell old George Soros to piss off, take his 'charitable' donations elsewhere — to the oppressed citizens of the American empire. Democratise the wealth of American capitalists ... set it free. The Soros Dossier Case of Malaysia "Up until the mid-1990s currency crisis, Malaysia was a staunch follower of globalisation, albeit taking significant steps toward development in the years following its independence.  Since the British deployment of George Soros into Southeast Asia to loot the currencies of these nations, Malaysia has changed its view." ... "In September 1998, Dr Mahathir shocked the world by declaring  sovereign currency controls on the Malaysian ringgit setting currency to a fixed exchange rate against the dollar, and thereby effectively ending the speculators' ability to loot the country through currency speculation.  Soros and the entire Western financial oligarchy went berserk, claiming that Dr Mahathir's actions against IMF ideology would bring damnation down upon his country.  In fact, as was later obvious to all, his defense of the nation's sovereignty saved the population from devastation suffered by every other nation that had been subjected to Soros' butcher knife." "Following Malaysia's break with globalisation, London launched an even nastier operation to create an internal crisis in Malaysia.  Anwar Ibrahim was the deputy prime minister and chosen heir to Mahathir; he became the target to carry out the Empire's brutal operation." "Anwar was later kicked out his his post as deputy prime minister because he "lacked the moral standards required to lead the nation.  Financed by Soros and his cronies through the Open Society Foundation, Anwar proceeded to launch a campaign to bring down the government of Malaysia.  He portrayed himself as a freedom fighter and champion of free market society, denouncing the new government's protectionist economic policies and accusing them of carrying out a conspiracy to destroy him.  Meanwhile, Soros' Human Rights and Open Society organisations played their part in labelling Mahathir as the "last of the old-line Asian authoritarians" and showed Anwar as the 'reformer' trying to free the people of Malaysia.  The Western media, including Wall Street Journal, continued to fuel the turmoil in Malaysia, saying:  "The sacking ... signalled the end of a battle for the soul of an important nation ..."" SOURCE http://www.larouchepub.com/eiw/public/2008/2008_20-29/2008-27/pdf/75-77_3526.pdf SOURCE http://www.americanthinker.com/articles/2008/02/george_soros_and_the_alchemy_o.html Archive:  http://archive.is/wQ2sd SUMMARY -- Soros spends $25 million on Presidential election -- his candidate John Kerry (2004) -- Soros sees 'difficult economic conditions' (ie crippling nations economically) -- as a means of manipulating regime change in the shortest way -- 1992:  Soros ripped off the British taxpayers - Black September currency speculation -- 1994:  proclaimed his machinations brought down the Soviet Union          Soros told New Republic interviewer to report that:  "the former Soviet Empire is now called the Soros Empire." -- 1997:  Soros accused by PM of Malaysia (Dr Mahathir bin Mohamad) of causing financial collapse by undermining South East Asian economies by destabilising their currencies -- 1997: Soros branded in Thailand as 'economic war criminal'               Soros branded in Thailand as bloodsucker of people -- 1998:  Soros describe as up to his neck in Russian ruble collapse -- 1998:  Soros:  buying up east European resources in at 'fire-sale' prices -- 1999:  Russia-gate Scandal       US investigation re $100 BILLION diverted out of Russia       -- forcing collapse of Russian currency; &       -- default on IMF enormous loans:       Soros admitted he had used INSIDER ACCESS        in deal BARRED to foreign investors       to acquire an enormous portion of:  SIDANKO OIL        -- Russia-gate scandal was quickly eclipsed in public attention -- by Clinton's Monica-gate 2006:  Soros caught & charged with ILLEGAL INSIDER TRADING           re:  attempted takeover - Societe Generale bank           -- Soros convicted (2 separate appeals upheld, last in June 2006)           -- let off wiht mere chickenfeed to multi-billionaire:              $2.9 million fine 2003:  Soros predicting downfall of US dollar amid a slump against euro SOURCE http://www.americanthinker.com/articles/2008/02/george_soros_and_the_alchemy_o.html -------/\/\/ 'Gorgeous George' update: Conviction Upheld - Oct 2011 "Soros Loses Case Against French Insider-Trading Conviction" "Soros has given away more than $8 billion in the last 30 years to promote democracy, foster free speech, improve education and fight poverty around the world" Bloomberg ---------------------- ---------------------- SOURCE http://www.americanthinker.com/articles/2008/02/george_soros_and_the_alchemy_o.html February 27, 2008 George Soros and the Alchemy of 'Regime Change' By Kyle-Anne Shiver What does a very aged multi-billionaire do after he spends $25 million dollars to force a presidential election his way, and still falls flat on his face?  Well, of course, he tries and tries again. When George Soros failed to obtain the election of his candidate, John Kerry, in 2004, he brooded for a while, even said he might get out of politics altogether, but he just couldn't stop himself.  He has stated publicly that he wishes to burst the "bubble of American supremacy," because he says our preeminence in the world is a detriment to global "equilibrium."  So far, he has failed, but he keeps on trying. And Mr. Soros has made no secret either of the fact that he sees the shortest way to effect political shake-ups, what he terms "regime changes," is through very difficult economic conditions. America has not yet felt the full force of Soros style economic shock treatment.  But others have. Soros made his first billion in 1992 by shorting the British pound with leveraged billions in financial bets, and became known as the man who broke the Bank of England.  He broke it on the backs of hard-working British citizens who immediately saw their homes severely devalued and their life savings cut drastically in comparative worth almost overnight. When the Asian Financial Crisis of 1997 threatened to spread globally, George Soros was right in the thick of it.  Soros was accused by the Malaysian Prime Minister of causing the collapse with his monetary machinations, and he was branded in Thailand as an "economic war criminal" who "sucks the blood from the people."  Right in the middle of this crisis, Soros dashed off his book, The Crisis of Global Capitalism, which demanded a "third way" toward economic stability. Coincidentally, or not, during the height of the fears of worldwide recession, then President Clinton told the New York Times that he was proposing a "third way" between capitalism and socialism.  Unfortunately for Soros, U.S. markets rebounded quickly, his predicted catastrophe was forestalled, and his brave new global economic plans receded for a bit. This may have been to Soros' own good, though, because he was by 1998 up to his neck in the collapse of the Russian ruble, and buying up valuable East European resources at fire-sale prices. And why not? He had already been widely proclaiming that it was his own machinations that brought down the Soviet Empire.  When asked about his sphere of influence in the Soviets' demise for a New Republic interview in 1994, Mr. Soros humbly replied that the author ought to report that "the former Soviet Empire is now called the Soros Empire." When our House Banking Committee investigated the Russia-gate scandal in 1999, trying to determine just how $100 billion had been diverted out of Russia, forcing the collapse of its currency and the default of its enormous loans from the International Monetary Fund, Soros was even called to testify.  He denied involvement of course, but finally admitted that he had used insider access in a deal that was barred to foreign investors to acquire a huge chunk of Sidanko Oil. The Russia scandal was labeled by Rep. Jim Leach, then head of the House Banking Committee to be "one of the greatest social robberies in human history." (Shadow Party; David Horowitz and Richard Poe; p. 96) Of course, Russia-gate was quickly hushed up and pushed aside in the public's lurid, and quite insatiable, interest in Monica-gate. Then, George Soros did some more shady economic fooling around in France.  And he actually got caught and charged with illegal insider trading in his attempt to takeover the Societe Generale bank.  He was convicted and the conviction was upheld in 2 separate appeals, the last in June of 2006.  They let him off, however, with a piddling $2.9 million fine. Mere chicken feed to a multi-billionaire. Of course, since George Soros is a naturalized American citizen, it is difficult to imagine just why he would intentionally want to bring about our own economic collapse. But from all appearances, that might be exactly what he has on his mind. By 2003, Soros was already predicting the downfall of the dollar.  In a CNBC interview, amid a slump in the dollar's value against the Euro, Soros added fuel to that fire by stating that he was already selling dollars.  His statement, in turn, caused a further decline in the international worth of the dollar. When George Soros speaks, hedge fund managers and world financiers listen. Unfortunately, he wasn't able to bring about the "October Surprise"  U.S. economic downturn in time for the 2004 election.  Our economy proved too resilient for him then. But he hasn't stopped predicting that yearned-for recession that would spoil things for his political foes, the Republicans. Just after he failed in 2004 to bring about Bush's demise, he went right on trying to force a conclusion to his self-fulfilling prophecy of doom for the U.S.  And this year, it appears as though he may have finally hit pay dirt in the sub-prime meltdown which threatens to actually bring on that long hoped-for recession. In Davos this year, at the World Economic Forum, Soros even went so far as to say that the current housing "bust" would signal the end of the dollar as the world's default currency.     "The current crisis is not only the bust that follows the housing boom," Soros said. "It's basically the end of a 60-year period of continuing credit expansion based on the dollar as the reserve currency." Being that Mr. Soros' stated goal for more than a decade has been to burst the "bubble of American supremacy," it stands to reason that the financial gloom he is predicting for us would be precisely his own little cup of tea. And if the economic picture is bleak in this election year, who stands to benefit?  Why, the Democrats, of course, the beneficiaries of Soros' 527 largesse. And Mr. Soros, along with his "progressive" friends may stand at the ready to issue in their vision of America by strategically re-writing the Constitution. In April 2005, Soros' Open Society Institute was the primary sponsor of a conference at Yale Law School, called, "The Constitution in 2020."  The conference's task was to produce "a progressive vision of what the Constitution ought to be." (Emphasis mine.)  When one sees references in progressive speak about the "evolutionary character of constitutional law," they are talking about changing the Constitution to formally enshrine their policy preferences so they can avoid the messy necessity of having to win elections. (Shadow Party; Horowitz and Poe; p. 71) It would seem, then, that progressives stand at the threshold of fulfilling their wildest dreams right here on American shores.  With a Republican Party in disarray, the economy seemingly poised on the brink of recession, one candidate with the charisma of a snake charmer and another master schemer as backup, and a new Constitution already being planned, what will stand in their way? These folks have designs not only on a reinvention of America, but on the whole world. Both Democrat candidates for the presidency have plans for an American cure for global poverty that make our current, quite generous, foreign aid look like a tiny Band-Aid. Hillary's utopian plan is of a global village, where the role of America is that of supreme benefactor, with herself as our beneficent queen.  Hillary's plans for the redistribution of American wealth extend benefits not just to other Americans, but to every other country in need. Obama, too, sees global poverty as the root cause of all evil in the world, including crime, war and terrorism.  His single piece of signature legislation in the Senate is a bill that would authorize an additional $845 billion from American tax payers to eradicate global poverty, and legislate a demand on future presidents to bring America in line with UN mandates on percentage of national GDP given to fight global poverty. These plans are in perfect sync with Soros' own support for the Tobin Tax, a global tax on currency transactions.  This taxation would be forced on sovereign nations by an international body, coercing capitalist economies into sharing their wealth with poor nations for the eradication of poverty and the myriad problems associated with it. So, that which we and our ancestors have sacrificed to build and maintain will be stolen from us and our offspring and given away by the new Robin Hoods, George Soros and the Democratic Party, who seem to envision global perfection at last, with every single soul living happily ever after in absolute peace and harmony, together singing kumbaya in the same language...the language of love. And only God knows what can save America from being the sacrificial fodder for their grand, megalomaniacal delusion. Saner heads prevailing, perhaps? Kyle-Anne Shiver is a frequent contributor to American Thinker.  She welcomes your comments at kyleanneshiver@yahoo.com. SOURCE http://www.americanthinker.com/articles/2008/02/george_soros_and_the_alchemy_o.html Archive:  http://archive.is/wQ2sd

George Soros & Hedge Fund Wolves: 1992 Black September Mugging of British Taxpayers

George Soros & Hedge Fund Wolves 1992 Black September Mugging of British Taxpayers  SOURCE Price Economics Rohin Dhar - May 15, 2014 http://priceonomics.com/the-trade-of-the-century-when-george-soros-broke/ SUMMARY TITLE:  'The Trade of the Century: When George Soros Broke the British Pound' May 15, 2014 ""I've learned many things from [George Soros], but perhaps the most significant is that it's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.”Stanley Druckenmiller, 1994" -- 1992 George Soros brings BANK OF ENGLAND to its knees -- Soros nets OVER 1 BILLION DOLLARS -- by DEMOLISHING THE MONETARY SYSTEM OF GREAT BRITAIN -- nation-shaking BET -- hedge funds -- RESTRICTIONS ON CAPITAL FLOWING ABROAD LIFTED -- 24-hour news cycle only in infancy -- SOROS MADE FORTUNE BETTING AGAINST BRITISH POUND -- exchange rates between countries -- equals macroeconomic tools of govt to stimulate economies -- Soros led GROUP OF TRADERS to -- BREAK ENTIRE FOREIGN CURRENCY SYSTEM OF BRITAIN -- to profit at BRITISH TAXPAYER expense Post WWII -- European countries to INTEGRATE ECONOMIES more tightly -- tighter economic relations aim reportedly:     -- to prevent wars every few decades     -- to create large pan-European market to compete with USA     -- culminated in EUROPEAN UNION (EU)     -- EU assumed single currency:  1999         -- 1979 precursor to single EU currency:         -- European Exchange Rate mechanism (ERM)     -- countries agree to FIX EXCHANGE RATES     -- versus FLOATING CURRENCY & letting CAPITAL MARKETS set rates         -- Germany had strongest economy in Europe     -- *comment: OCCUPIED GERMANY     -- so each European country set their currency's value in DEUTSCHMARKS     -- agreement to maintain exchange rate between NATIONAL CURRENCY     -- & Deutschmark (within acceptable margin of 6% plus or minus agreed rate)         -- however, fixed rates cannot just be set & 'forgotten'     -- currency is traded EVERY DAY     -- currency is exchanged to:         -- buy imports         -- sell exports     -- market 'applies pressure' based on what 'actual' rate 'ought to be'     -- based on SUPPLY & DEMAND for currency     -- to keep exchange rate FIXED     -- government must PARTICIPATE in MARKET & NUDGE currency in DIRECTION             1.  take reserves of foreign currency & BUY OWN CURRENCY on open market             -- causing CURRENCY TO APPRECIATE                 2.  set INTEREST RATES             -- ie raise rates to entice buyers of own currency             -- lend that money at higher rates of interest                         -- cut interest rates so capital shifts elsewhere in search of profit                 -- however, INTEREST RATES affect ENTIRE ECONOMY     -- plus affect govt spending         -- INTEREST RATES are main lever govt uses to adjust economy     -- eg. if economic recession, govt may cut interest rates to spur:         - investment         - spending      -- eg. if high inflation, govt may raise interest rates to shrink supply of money         -- there are consequences to maintaining FIXED EXCHANGE RATE     -- described as external forcing function, tying govt hands on monetary policy     -- which limits govt doing what it needs to do to keep domestic economy on track *comment:  isn't it only 'external' if it is done in agreement with others, eg the ERM?  Otherwise, couldn't a fixed exchange rate be done solo?    Britain -- 1990:     -- inflation high     -- productivity low     -- exports uncompetitive     -- prime minister:  Margaret Thatcher     -- Thatcher long opposed entering ERM, insisting price of pound be set by markets     -- Conservative party members, however, wanted to FIX exchange rates with Europe     -- John Major, Chancellor of the Exchequer (ie British head of treasury)     -- Major championed joining ERM     -- 1990 Britain enters ERM at rate:         -- 2.95 Deutschmark (DM) per British pound (GBP)                 *British limited to keeping rate b/w 2.78 DM to 3.13 DM         *by provisos of the ERM agreement     -- Major replaces Thatcher as PM shortly thereafter     -- ERM seen as British monetary policy on 'autopilot'     -- given hands tied by exchange rate agreement     -- 1990 - 1992:  inflation decreased, interest rates eased, unemployment low (by historical standards)         -- BUT 1992:  MASSIVE GLOBAL RECESSION     -- British unemployment spiked:  to 12.7%  (from 7.7% 2 years prior)     -- were Britain not subject to the ERM agreement     -- Britain could stimulate investment & spending by cutting interest rates in unemployment crisis     -- but was UNABLE to do so pursuant to ERM     -- as it would have PUSHED THE VALUE OF THE POUND BEYOND AGREED AMOUNT     -- Britain had to ride out recession with hands tied     New York City -- 1992:  George Soros 62 years old -- head of QUANTUM FUND, hedge fund he founded 1970 -- to BET on macroeconomic trends -- at time he was wealthy, but not as wealthy as today or as public -- in 1992, hedge funds weren't part of public consciousness Hedge Fund -- 'hedge' - investing capital to make a specific bet that something will happen -- use of market instruments to 'hedge' against other risks -- to isolate bet that hedge funds want to make eg.  AT&T mobile phone network -- say you consider it a poor performer -- opportunity to then 'short' the stock -- making money when the stock goes down -- but if the mobile phone market is booming -- AT&T may still be attracting customers & stock could go up -- in that case:  money could be lost shorting -- to 'hedge' against this risk:  buy some Verizon stock also -- if you think AT&T is crappy relative to Verizon -- if mobile phone stocks increase:     -- money made if Verizon goes up more than AT&T -- if mobile phone sector decrease:     -- money made if AT&T stock goes down faster than Verizon -- creation of this position = 'hedge' of general risks, making specific bet -- in this case AT&T poor prospect compared to Verizon -- if hedge funds are very sure of their bet -- they BORROW funds to put even more money behind bet -- using mostly borrowed monies they can buy a LOT OF SHARES -- without fronting much capital -- hedge fund managers typically invest other wealthy people's money -- hedge fund managers receive MANAGEMENT FEES to cover expenses, incl. salary -- standard is 2% of funds under management -- regardless of how fund performs, if you manage a large fund, you stand to make big bucks -- but not billionaire level -- hedge fund managers become billionaires placing successful bets -- hedge fund managers earn about 20% of returns created by fund -- summarising:  hedge funds make isolated bets using financial instruments -- & borrowing money to make potential rewards greater Britain 1992 -- Jonathan Portes, economist says: -- problem obvious -- interest rate in relation to weak demand = much lower than needed -- to maintain GBP position in ERM -- GBP overvalued -- large current account deficit (even in deep recession) -- Britain joined ERM at wrong rate / sterling overvalued & stuck with -- structural current account deficit -- market also knew pound overvalued -- pound trading at lower end of agreed band w. Deutschmark -- British govt guarantee to keep pound propped up, prevented pound from plummeting -- as long as Britain indefintely committed to buying pounds for 2.95 Deutschmarks -- status quo maintained “Markets can influence the events that they anticipate.” - George Soros         -- 1992 pound held its position -- until Germany throws Britain under bus -- German central bank officials made on & off-record comments     Reimut Jochimsen     Bundesbank Council member     -- issues statement saying:  potential for realignment within the ERM     -- GBP then weakened         Unnamed Bundesbank official official, quoted:     -- devaluation of serling inevitable & pound to fall     Prof Helmut Schlesinger     President     German Bundesbank     -- interviewed by:  WALL STREET JOURNAL interview + German newspaper     -- terms:  permission to quote involved first obtaining review by him of direct quote     -- BUT indirect quote / paraphrase, NO PERMISSION REQUIRED         -- newswire Sept. 1992 reports re Schlesinger indicating     -- not ruled out that even after realignment & cut in German interest rates     -- one or two currencies could 'come under pressure' ahead of referendum in France     -- Soros & entire financial markets see:  GBP could 'come under pressure' -- ie. could be devalued -- one paraphrased quote result:  market ceased to believe Britain could maintain currency exchange rate -- the belief in the pound was all that kept it from plummeting -- results:  brought devastation to Bank of England -- netted George Soros over billion dollars in profit “There is no point in being confident and having a small position.” - George Soros -- a month prior, Soros & Quantum Fund were building $1.5 billion betting position -- that pound would fall -- Stanley Druckenmiller saw importance of German Bundesbank president report -- Druckenmiller figured the Quantum gang should add to position (ie bet more) -- Soros strategy:  “Go for the jugular” -- plan was to use the Schlesigner quote as opportunity to devalue pound -- by short-selling sterling on unprecedented scale, to hasten plummet of pound -- to increase Quantum gang's profit LONG EXPLANATION OF SHORTING - in article *I find it hard to focus on this, so I am going to skip -- money is made if pound devalues -- by buying and selling or exchanging money, or something -- Soros was on a winner because everyone knew (b/c of Bundesbank statement) -- that British pound was going to tank -- so if pound to devalue, Soros & Quantum gang win -- were pound increase they would have lost, but they knew it was IMPOSSIBLE -- as the British pound was OVER-PRICED or overvalued re Deutschmark -- biggest risk Soros was taking was that pound could maintain value -- but, in that case, he & the Quantum gang wouldn't lose much money -- so there was not a massive risk factor, but there was a massive potential gain factor -- that morning, Soros & the Quantum gang -- increase their short position against pound -- from $1.5 billion to $10 billion -- the perfect bet:  mitigated down side & limitless up side -- described as like betting on coin flip:     -- heads:  pound devalues / make lots of money     -- tails:  pound rate remains fixed / lose small amount of money on LOAN INTEREST "... In fact, when Norman Lamont [the British finance minister] said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell." - George Soros, 1992 Black September 1992 -- as EUROPE SLEPT -- Soros borrowed pounds from anywhere he could -- Quantum gang position exceeded $10 billion shorting the pound -- other hedge funds:     -- got wind of brisk trade     -- got wind of report from Bundesbank     -- started to follow Quantum gang strategy, borrowing & selling British pounds -- by time British treasury began their day, BILLIONS of British pounds sold -- pound dangerously close to trading below levels mandated by ERM -- British treasury begins buying pounds in the billions at 8:40am -- but no effect on price of pound -- WHOLE WORLD WAS SELLING -- British govt did not have BUYING POWER to fight off worldwide sale -- British govt spent est.  £27 billion of RESERVES buying up pounds:  to no effect -- 9am:  Norman Lamont, finance minister under Major -- advises Major impossible to buy up enough pounds to keep currency propped -- only option for British govt to keep currency trading at 'right level' -- equals:  DRAMATIC INCREASE of INTEREST RATES to attract buyers of pound -- MAJOR REFUSED -- Britain in recession & INCREASE OF RATES would FURTHER SHRINK ECONOMY -- POLITICAL SUICIDE -- blood in the water -- GLOBAL CAPITAL kept betting against pound -- hour later, Norman Lamont pleads with John Major -- John Major relents -- 11am - British govt announces:  INCREASE interest rate from 10% to 12% -- nothing happened -- pound continues to plummet -- Norman Lamont consults to John Major:  rates increase - 12% to 15% -- no effect -- Soros, Druckenmiller & other currency speculators know victory is at hand -- market expected Britain to devalue currency -- no amount of interest rate or currency buying could change that -- market expectation that Britain would exit ERM & devalue currency -- described as 'self-fulfilling prophesy' -- comment:  how so?  isn't it currency speculator manifested? Black Wednesday - 16 Sept 1992 -- 7:30pm Norman Lamont announes Britain exiting ERM & floating currency on market -- Soros, the Quantum hedge fund gang & currency speculators won -- Britain floated its currency -- pound fell 15% against Deutschmark -- pound fell 25% against US dollar -- when pound floated, Soros Quantum gang hedge fund -- value increased instantly from $15 billion to $19 billion -- months later, same fund worth almost $22 billion -- Soros & partners in hedge fund made at least 20% - ie $1.4 billion -- nature of Wall Street trading -- to win big, someone else must lose big -- in case of Black Wednesday: ENORMOUS WEALTH TRANSFER FROM BRITISH TAXPAYERS TO GEORGE SOROS & OTHER HEDGE FUND MANAGERS -- In the lead up to devaluation, -- British taxpayer lost out again: -- treasury kept spending its foreign currency buying British pounds -- which pounds became LESS VALUABLE after treasury floated the exchange rate COST TO BRITISH TAXPAYERS ESTIMATED AT £3.3 billion *comment:  bet that doesn't factor in the cost of having shrunk the British economy (through interest rate raising), when the economy had to be stimulated, during an existing money-lender & speculator created 'financial crisis'. -- John Major, Conservatives -- centrepiece of monetary policy:     -- entering ERM     -- plan to bring austerity to Britain -- Black Wednesday destroyed his credibility -- party lost next election -- Thatcher was right, article concludes:  Britain had no business propping up currency artificially *comment:  I don't think that was the issue - the issue is that they were locked into agreement  in which the pound was OVER-VALUED to begin with & their hands tied re interest rates BLACK WEDNESDAY REAL PROBLEM *era when handful of private hedge fund speculators can assemble MORE CAPITAL IN FEW HOURS THAN BANK OF ENGLAND HAD AT DISPOSAL -- amount of money in 'GLOBAL MARKETS' so enormous it can bring British govt to knees in one day -- article concludes regulations are a problem, as they create unexpected loopholes *comment:  LACK OF REGULATION *IS* THE PROBLEM HERE - regulate better -- article says, event shows the power of the one-sided bet -- 1992 bet described:  "well-designed macroeconomic trade against fixed exchange rates" -- if Soros & his Quantum gang were wrong, down side was almost zero -- up-side was enormous -- article concludes: "Bets like that almost never come along, but when they do, enormous transfers of wealth take place from the sheep to the wolves." SOURCE Price Economics Rohin Dhar - May 15, 2014 http://priceonomics.com/the-trade-of-the-century-when-george-soros-broke/ ---------------------- ---------------------- COMMENT That was a good article. I don't really understand how money works and reading even this small explanation of how it works isn't my thing (had to skip some of the boring detail, because I don't readily understand even simple explanations, and I sort of don't care to torture myself trying to understand).   But I guess if you're going to gamble, why not gamble like this?  Surprised all those addicted gamblers don't put their money in currency buying and selling.  A casino system that rips off millions of taxpayers by clubbing together large enough funds to make bets at an opportune time sounds insane.