Itffiinvestigation the Secret Financial Network Behind
Total Page:16
File Type:pdf, Size:1020Kb
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. 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. conclude that there is prima facie evidence of either vast From the very first days when Soros created his own in money laundering of illicit funds, or massive illegal tax eva vestment fund in 1969, he owed his success to his relation to sion. Both may be true. the Rothschild family banking network. Soros worked in New To make it impossible for U.S. tax authorities or other' York in the 1960s for a small private bank close to the Roth officials to look into the financialdealings of his web of busi schilds, Arnhold & S. Bleichroeder, Inc., a banking family nesses, the board of directors of Quantum Fund N.V. also which represented Rothschild interests in Germany during includes no American citizens. His directors are Swiss, Ital Bismarck's time. To this day, A. & S. Bleichroeder, Inc. re ian, and British financiers. mains the Principal Custodian, along with Citibank, of funds George Soros is part of a tightly knit financial mafia of Soros's Quantum Fund. George C. Karlweis, of Edmond "mafia," in the sense .of a closed masonic-like fraternity of de Rothschild's Switzerland-based Banque Privee SA iIiLu families pursuing common aims. Anyone who dares to criti gano, as well as of the scandal-tainted Rothschild Bank AG cize Soros or any of his associates, is immediately hit with of Zurich, gave Soros financial backing. Karlweis provided the charge of being "anti-Semitic"-a criticism which often . some of the vital initial capital and investors for Soros' s Quan silences or intimidates genuine critics of Soros's unscrupu tum Fund. lous operations. The Anti-Defamation League of B'nai B'rith considers it a top priority to "protect" Soros from the charges Union Banque Privee and of "anti-Semites" in Hungary and elsewhere in Central Eu the 'Swiss connection' rope, according to ADL National Director Abraham Foxman. Another member of the board of Soros's Quantum Fund The ADL's record of service to the British oligarchy has been is the head of one of the most controversial Swiss private amply documented by EIR (e.g., The Ugly Truth About the banks, Edgar de Picciotto, who has been called "one of Anti-Defamation League [Washington, D.C., Executive In the cleverest bankers in Geneva"-and is one of the most telligence Review: 1992]). scandal-tainted. De Picciotto, froman old Portuguese Jewish According to knowledgeable U.S. and European investi trading family, who was born in Lebanon, is head of the gators, Soros' s circle includes indicted metals and commodity Geneva private bank CBI-TDB Uniotl Bancaire Privee, a speculator and fugitive Marc Rich of Zug, Switzerland and major player in the gold and offshore hedge funds business. Tel Aviv; secretive Israeli arms and commodity dealer Shaul Hedge funds have been identified by international police Eisenberg, and "Dirty Rafi"Eytan, both linked to the financial agencies as the fastest-growing outlet for illegal money laun side of the Israeli Mossad;and, the family of Jacob Lord Roth dering today. schild. De Picciotto is a longtime friend and business associate Understandably, Soros and the Rothschild interests prefer of banker Edmond Safra, also bornin Lebanon, whose family to keep their connection hidden far from public view, so as to came from Aleppo, Syria, and who now controls the Repub- 56 Investigation EIR November 1, 1996 lic Bank of New York.