Click here for Full Issue of EIR Volume 23, Number 44, November 1, 1996 �ITffiInvestigation The secret financial network behind \vizard' George Soros by William Engdahl The dossier that follows is based upon a report released on . Following the crisis of the European Exchange Rate Oct. 1 by EIR's bureau 'in Wiesbaden, Germany, titled "A Mechanism of September 1992, when the Bank of England Profile of Mega-Speculator George Soros." Research was was forced to abandon efforts to stabilize the pound sterling, contributed by Mark Burdman, Elisabeth Hellenbroich, a little-known financial figure emerged from the shadows, to Paolo Raimondi, and Scott Thompson. boast that he had personally made over $1 billion in specula­ tion against the British pound. The speculator was the Hun­ Time magazine has characterized financier George Soros as garian-born George Soros, who spent the war in Hungary a "modem day Robin Hood," who robs from the rich to give under false papers working for the pro-Nazi government, to the poor countries of easternEurope and Russia. It claimed identifying and expropriating the property of wealthy fellow that Soros makes huge financial gains by speculating against Jews. Soros left Hungary afterthe war, and established Amer­ western central banks, in order to use his profits to help the ican citizenship after some years in London. Today, Soros is emerging post-communist economies of eastern Europe and based in New York, but that tells little, if anything, of who former Soviet Union, to assist them to create what he calls an and what he is. "Open Society." The Time statement is entirely accurate in Following his impressive claims to possession of a "Mi­ the first part, and entirely inaccurate in the second. He robs das touch," Soros has let his name be publicly used in a blatant from rich western countries,and uses his profits to rob even attempt to influenceworld financialmarkets-an out-of-char­ more savagely from the East, under the cloak of "philan­ acter act for most financial investors, who prefer to take ad­ thropy." His goal is to loot wherever and however he can. vantage of situations not yet discovered by rivals, and keep Soros has been called the master manipulator of "hit-and­ them secret. Soros the financieris as much a political animal, run capitalism." as a financial speculator. As we shall see, what Soros means by "open," is a society Soros proclaimed in March 1993, with great publicity, that allows him and his financial predator friends to loot the that the price of gold was about to rise sharply; he said that he resources and precious assets of former Warsaw Pact econo­ had just gotten "inside information" that China was about to mies. By bringing people like Jeffrey Sachs or Sweden's An- . buy huge sums of gold for its booming economy. Soros was ders Aslund and their economic shock therapy into these able to trigger a rush into buying gold, which caused prices economies, Soros lays the groundwork for buying up the to rise more than 20% over four months, to the highest level assets of whole regions of the world at dirt-cheap prices. since 1991. Typically for Soros, once the fools rushed in to push prices higher, Soros and his friend Sir James Goldsmith The man who broke the Bank of England? secretly began selling their gold at a huge profit. An examination of Soros' s secretive financial network is Then, in early June 1993, Soros proclaimed his intent to vital to understand the true dimension of the "Soros problem" force a sell-off in German government bonds in favor of the in eastern Europeand o�her nations. French, in an open letter to London Times Financial Editor 54 Investigation EIR November 1, 1996 © 1996 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. George Soros speaks on "United Nations Reform" at the National Press Club on Aug. 19, 1996. Soros's concept of the "open society" means that everybody should open their pockets, so that he can take their money. Anatole Kaletsky, in which Soros proclaimed, "Down with elled on the 17th-century British and Dutch East India Com­ the D-Mark!" Soros has at various times attacked the curren­ panies. The heart of this Club of the Isles is the financialcenter cies of Thailand, Malaysia, Indonesia, and Mexico, coming of the old British Empire, the City of London. Soros is one of into newly opened financial markets which have little expe­ what in medieval days were called Hofjuden, the "Court rience with foreign investors, let alone ones with large funds Jews," who were deployed by the aristocratic families. like Soros. Soros begins buying stocks or bonds in the local The most important of such "Jews who are not Jews," market, leading others to naively suppose that he knows are the Rothschilds, who launcheo Soros's career. They are something they do not. As with gold, when the smaller invest­ members of the Club of the Isles and retainers of the British ors begin to follow Soros, driving prices of stocks or whatever royal family. This has been true since Amschel Rothschild higher, Soros begins to sell to the eager new buyers, cashing sold the British Hessian troops to fightagainst George Wash­ in his 40% or 100% profits,then �xiting the market, and often, ington during the American Revolution. ' the entire country, to seek another target for his speculation. Soros is American only in his passport·. He is a global This technique gave rise to the term "hit and run." What Soros financial operator, who happens to be in New York, simply always leaves behind, is a collapsed local market and financial because "that's where the money is," as the bank robber Willy ruin of national investors. Sutton once quipped, when asked why he always robbed banks. Soros speculates in world financial markets through The secret of the Quantum Fund NV his offshore company, Quantum Fund NY, a private invest­ Soros is the visible side of a vast and nasty secret network ment fund, or "hedge fund." His hedge fund reportedly man­ of private financial interests, controlledby the leading aristo­ ages some $11-14 billion of funds on behalf of its clients, or cratic and royal families of Europe, centered in the British· investors-one of the most prominent of whom is, according House of Windsor. This network, called by its members the to Soros, Britain's Queen Elizabeth II, the wealthiest person Club of the Isles, was built upon the wreckage of the British in Europe. Empire after World War II. The Quantum Fund is registered in the tax haven of the Rather than use the powers of the state to achieve their Netherlands Antilles, in the Caribbean. This is to avoid paying geopolitical goals, a secret cross-linked holding of private taxes, as well as to hide the true nature of his investors and financial interests, tied to the old aristocratic oligarchy of what he does with their money. western Europe, was developed. It was in many ways mod- In order to avoid U.S. government supervision of his fi- EIR November I, 1996 Investigation 55 nancial activities, something normal U.S.-based investment obscure the well-connected friends Soros enjoys in the City funds must by law agree to in order to operate, Soros moved of London, the �ritish Foreign Office, Israel, and the U.S. his legal headquarters to the Caribbean tax haven of Cura�ao. financial establishment. The myth, therefore, has been cre­ The Netherlands Antilles has repeatedly been cited by the ated, that Soros is a lone financial investment "genius" who, Task Force on Money Laundering of the Organization for through his sheer personal brilliance in detecting shifts in Economic Cooperation and Development (OECD) as one of markets, has become one of the world's most successful spec­ the world's most important centers for laundering illegal pro­ ulators. According to those who know him and who have ceeds of the Latin American cocaine and other drug traffic.It done business with him, Soros never make'S a major invest­ is a possession of the Netherlands. ment move without sensitive insider information. Soros has taken care that the none of the 99 individual On the board of directors of Soros' s Quantum Fund N.V. investors who participate in his various funds is an American is Richard Katz, a Rothschild man who is also on the board national. By U.S. securities law, a hedge fund is limited to no of the London N.M. Rothschild and Sons merchant bank, more than 99 highly wealthy individuals, so-called "sophisti­ and the head of Rothschild Italia S.p.A. of Milan. Another cated investors." By structuring his investment company as Rothschild family link to Soros's Quantum Fund is Quantum an offshore hedge fund, Soros avoids public scrutiny. board member Nils O. Taube, the partner of the London in­ Soros himself is not even on the board of Quantum Fund. vestment group St. James Place Capital, whose major partner Instead, for legal reasons, he serves the Quantum Fund as is Lord Rothschild. London Times columnist Lord William official "investment adviser," through another company, Rees-Mogg is also on the board of Rothschild's St. James Soros Fund Management, of New York City. If any demand Place Capital. were to be made of Soros to reveal the details of Quantum A frequent business partner of Soros in various specula­ Fund's operations, he is' able to claim he is "merely its invest­ tive deals, including in the 1993 gold manipulation, although ment adviser." Any competent police investigator looking not on the Quantum Fund directly, is the Anglo-French specu­ at the complex legal structure of Soros's businesses woufd lator Sir James Goldsmith, a cousin of the Rothschild family.