EIR Investigation Executive Intelligence Review (EIR), November 1, 1996
The dossier that follows is based upon a report released on Oct. 1 by EIR's
bureau in Wiesbaden, Germany, titled "A Profile of Mega-Speculator George
Soros." Research was contributed by Mark Burdman, Elisabeth Hellenbroich,
Paolo Raimondi, and Scott Thompson.
Time magazine has characterized financier George Soros as a "modern-day
Robin Hood," who robs from the rich to give to the poor countries of eastern
Europe and Russia. It claimed that Soros makes huge financial gains by speculating
against western central banks, in order to use his profits to help the emerging
post-communist economies of eastern Europe and former Soviet Union, to assist
them to create what he calls an "Open Society." The Time statement
is entirely accurate in the first part, and entirely inaccurate in the second.
He robs from rich western countries, and uses his profits to rob even more savagely
from the East, under the cloak of "philanthropy." His goal is to loot
wherever and however he can. Soros has been called the master manipulator of
As we shall see, what Soros means by "open," is a society that allows
him and his financial predator friends to loot the resources and precious assets
of former Warsaw Pact economies. By bringing people like Jeffrey Sachs or Sweden's
Anders Aslund and their economic shock therapy into these economies, Soros lays
the groundwork for buying up the assets of whole regions of the world at dirt-cheap
The man who broke the Bank of England?
An examination of Soros's secretive financial network is vital to understand
the true dimension of the "Soros problem" in eastern Europe and other
Following the crisis of the European Exchange Rate Mechanism of September 1992,
when the Bank of England was forced to abandon efforts to stabilize the pound
sterling, a little-known financial figure emerged from the shadows, to boast
that he had personally made over $1 billion in speculation against the British
pound. The speculator was the Hungarian-born George Soros, who spent the war
in Hungary under false papers working for the Nazi government, identifying and
expropriating the property of wealthy fellow Jews. Soros left Hungary after
the war, and established American citizenship after some years in London. Today,
Soros is based in New York, but that tells little, if anything, of who and what
Following his impressive claims to possession of a "Midas touch,"
Soros has let his name be publicly used in a blatant attempt to influence world
financial markets---an out-of-character act for most financial investors, who
prefer to take advantage of situations not yet discovered by rivals, and keep
them secret. Soros the financier is as much a political animal, as a financial
Soros proclaimed in March 1993, with great publicity, that the price of gold
was about to rise sharply; he said that he had just gotten "inside information"
that China was about to buy huge sums of gold for its booming economy. Soros
was able to trigger a rush into buying gold, which caused prices to rise more
than 20% over four months, to the highest level since 1991. Typically for Soros,
once the fools rushed in to push prices higher, Soros and his friend Sir James
Goldsmith secretly began selling their gold at a huge profit.
Then, in early June 1993, Soros proclaimed his intent to force a sell-off in
German government bonds in favor of the French, in an open letter to London
Times Financial Editor Anatole Kaletsky, in which Soros proclaimed, "Down
with the D-Mark!" Soros has at various times attacked the currencies of
Thailand, Malaysia, Indonesia, and Mexico, coming into newly opened financial
markets which have little experience with foreign investors, let alone ones
with large funds like Soros. Soros begins buying stocks or bonds in the local
market, leading others to naively suppose that he knows something they do not.
As with gold, when the smaller investors begin to follow Soros, driving prices
of stocks or whatever higher, Soros begins to sell to the eager new buyers,
cashing in his 40% or 100% profits, then exiting the market, and often, the
entire country, to seek another target for his speculation. This technique gave
rise to the term "hit and run." What Soros always leaves behind, is
a collapsed local market and financial ruin of national investors.
The secret of the Quantum Fund NV
Soros is the visible side of a vast and nasty secret network of private financial
interests, controlled by the leading aristocratic and royal families of Europe,
centered in the British House of Windsor. This network, called by its members
the Club of Isles, was built upon the wreckage of the British Empire after World
Rather than use the powers of the state to achieve their geopolitical goals,
a secret cross-linked holding of private financial interests, tied to the old
aristocratic oligarchy of western Europe, was developed. It was in many ways
modeled on the 17th-century British and Dutch East India Companies. The heart
of this Club of the Isles is the financial center of the old British Empire,
the City of London. Soros is one of what in medieval days were called Hofjuden,
the "Court Jews," who were deployed by the aristocratic families.
The most important of such "Jews who are not Jews," are the Rothschilds,
who launched Soros's career. They are members of the Club of the Isles and retainers
of the British royal family. This has been true since Amschel Rothschild sold
the British Hessian troops to fight against George Washington during the American
Soros is American only in his passport. He is a global financial operator,
who happens to be in New York, simply because "that's where the money is,"
as the bank robber Willy Sutton once quipped, when asked why he always robbed
banks. Soros speculates in world financial markets through his offshore company,
Quantum Fund NV, a private investment fund, or "hedge fund." His hedge
fund reportedly manages some $11-14 billion of funds on behalf of its clients,
or investors---one of the most prominent of whom is, according to Soros, Britain's
Queen Elizabeth, the wealthiest person in Europe.
The Quantum Fund is registered in the tax haven of the Netherlands Antilles,
in the Caribbean. This is to avoid paying taxes, as well as to hide the true
nature of his investors and what he does with their money.
In order to avoid U.S. government supervision of his financial activities,
something normal U.S.-based investment funds must by law agree to in order to
operate, Soros moved his legal headquarters to the Caribbean tax haven of Curacao.
The Netherlands Antilles has repeatedly been cited by the Task Force on Money
Laundering of the Organization for Economic Cooperation and Development (OECD)
as one of the world's most important centers for laundering illegal proceeds
of the Latin American cocaine and other drug traffic. It is a possession of
Soros has taken care that the none of the 99 individual investors who participate
in his various funds is an American national. By U.S. securities law, a hedge
fund is limited to no more than 99 highly wealthy individuals, so-called "sophisticated
investors." By structuring his investment company as an offshore hedge
fund, Soros avoids public scrutiny.
Soros himself is not even on the board of Quantum Fund. Instead, for legal
reasons, he serves the Quantum Fund as official "investment adviser,"
through another company, Soros Fund Management, of New York City. If any demand
were to be made of Soros to reveal the details of Quantum Fund's operations,
he is able to claim he is "merely its investment adviser." Any competent
police investigator looking at the complex legal structure of Soros's businesses
would conclude that there is prima facie evidence of either vast money laundering
of illicit funds, or massive illegal tax evasion. Both may be true.
To make it impossible for U.S. tax authorities or other officials to look into
the financial dealings of his web of businesses, the board of directors of Quantum
Fund NV also includes no American citizens. His directors are Swiss, Italian,
and British financiers.
George Soros is part of a tightly knit financial mafia---"mafia,"
in the sense of a closed masonic-like fraternity of families pursuing common
aims. Anyone who dares to criticize Soros or any of his associates, is immediately
hit with the charge of being "anti-Semitic"----a criticism which often
silences or intimidates genuine critics of Soros's unscrupulous operations.
The Anti-Defamation League of B'nai B'rith considers it a top priority to "protect"
Soros from the charges of "anti-Semites" in Hungary and elsewhere
in Central Europe, according to ADL National Director Abraham Foxman. The ADL's
record of service to the British oligarchy has been amply documented by EIR
(e.g. The Ugly Truth About the Anti-Defamation League [Washington, D.C., Executive
Intelligence Review: 1992]).
According to knowledgeable U.S. and European investigators, Soros's
circle includes indicted metals and commodity speculator and fugitive Marc Rich
of Zug, Switzerland and Tel Aviv; secretive Israeli arms and commodity dealer
Shaul Eisenberg, and "Dirty Rafi" Eytan, both linked to the financial
side of the Israeli Mossad; and, the family of Jacob Lord Rothschild.
Understandably, Soros and the Rothschild interests prefer to keep their connection
hidden far from public view, so as to obscure the well-connected friends Soros
enjoys in the City of London, the British Foreign Office, Israel, and the U.S.
financial establishment. The myth, therefore, has been created, that Soros is
a lone financial investment "genius" who, through his sheer personal
brilliance in detecting shifts in markets, has become one of the world's most
successful speculators. According to those who have done business with him,
Soros never makes a major investment move without sensitive insider information.
On the board of directors of Soros's Quantum Fund N.V. is Richard Katz,
a Rothschild man who is also on the board of the London N.M. Rothschild and
Sons merchant bank, and the head of Rothschild Italia S.p.A. of Milan. Another
Rothschild family link to Soros's Quantum Fund is Quantum board member Nils
O. Taube, the partner of the London investment group St. James Place Capital,
whose major partner is Lord Rothschild. London Times columnist Lord William
Rees-Mogg is also on the board of Rothschild's St. James Place Capital.
A frequent business partner of Soros in various speculative deals,
including in the 1993 gold manipulation, although not on the Quantum Fund directly,
is the Anglo-French speculator Sir James Goldsmith, a cousin of the Rothschild
>From the very first days when Soros created his own investment
fund in 1969, he owed his success to his relation to the Rothschild family banking
network. Soros worked in New York in the 1960s for a small private bank close
to the Rothschilds, Arnhold & S. Bleichroeder, Inc., a banking family which
represented Rothschild interests in Germany during Bismarck's time. To this
day, A. & S. Bleichroeder, Inc. remains the Principal Custodian, along with
Citibank, of funds of Soros's Quantum Fund. George C. Karlweiss, of Edmond de
Rothschild's Switzerland-based Banque Privee SA in Lugano, as well as of the
scandal-tainted Rothschild Bank AG of Zurich, gave Soros financial backing.
Karlweiss provided some of the vital initial capital and investors for Soros's
Union Banque Privee and the 'Swiss connection'
Another member of the board of Soros's Quantum Fund is the head of one of the
most controversial Swiss private banks, Edgar de Picciotto, who has been called
"one of the cleverest bankers in Geneva"---and is one of the most
scandal-tainted. De Picciotto, from an old Portuguese Jewish trading family,
who was born in Lebanon, is head of the Geneva private bank CBI-TDB Union Bancaire
Privee, a major player in the gold and offshore hedge funds business. Hedge
funds have been identified by international police agencies as the fastest-growing
outlet for illegal money laundering today.
De Picciotto is a longtime friend and business associate of banker Edmond Safra,
also born in Lebanon, whose family came from Aleppo, Syria, and who now controls
the Republic Bank of New York. Republic Bank has been identified in U.S. investigations
into Russian organized crime, as the bank involved in transferring billions
of U.S. Federal Reserve notes from New York to organized crime-controlled Moscow
banks, on behalf of Russian organized crime figures. Safra is under investigation
by U.S. and Swiss authorities for laundering Turkish and Columbian drug money.
In 1990, Safra's Trade Development Bank (TDB) of Geneva was merged with de Picciotto's
CBI to create the CBI-TDB Union Banque Privee. The details of the merger are
shrouded in secrecy to this day. As part of the deal, de Picciotto became a
board member of American Express Bank (Switzerland) SA of Geneva, and two American
Express Bank of New York executives sit on the board of de Picciotto's Union
Banque Privee. Safra had sold his Trade Development Bank to American Express,
Inc. in the 1980s. Henry Kissinger sits on the board of American Express, Inc.,
which has repeatedly been implicated in international money-laundering scandals.
De Picciotto's start as a Geneva banker came from Nicholas Baring of the London
Barings Bank, who tapped de Picciotto to run the bank's secret Swiss bank business.
Barings has for centuries been private banker to the British royal family, and
since the bank's collapse in March 1995, has been overhauled by the Dutch ING
Bank, which is reported to be a major money-laundering institution.
De Picciotto is also a longtime business partner of Venetian businessman Carlo
De Benedetti, who recently was forced to resign as head of Olivetti Corp. Both
persons sit on the board of the Societe Financiere de Geneve investment holding
company in Geneva. De Benedetti is under investigation in Italy for suspicion
of triggering the collapse of Italy's Banco Ambrosiano in the early 1980s.The
head of that bank, Roberto Calvi, was later found hanging from the London Blackfriar's
Bridge, in what police believe was a masonic ritual murder.
De Picciotto and his Union Banque Privee have been implicated in numerous drug
and illegal money-laundering operations. In November 1994, U.S. federal agents
arrested a senior official of de Picciotto's Geneva bank, Jean-Jacques Handali,
along with two other UBP officials, on charges of leading a multimillion-dollar
drug-money-laundering ring. According to the U.S. Attorney's Office in Miami,
Handali and Union Banque Privee were the "Swiss connection" in an
international drug-money-laundering ring tied to Colombian and Turkish cocaine
and heroin organizations. A close business and political associate of de Picciotto
is a mysterious arm dealer, Helmut Raiser, who is linked in business dealings
with reputed Russian organized crime kingpin Grigori Luchansky, who controls
the Russian and Swiss holding company Nordex Group.
Another director of Soros's Quantum Fund is Isodoro Albertini, owner of the
Milan stock brokerage firm Albertini and Co. Beat Notz of the Geneva Banque
Worms is another private banker on the board of Soros's Quantum Fund, as is
Alberto Foglia, who is chief of the Lugano, Switzerland Banca del Ceresio. Lugano,
just across the Swiss border from Milan, is notorious as the financial secret
bank haven for Italian organized crime families, including the heroin mafia
behind the 1980s "Pizza Connection" case. The Banca del Ceresio has
been one of the secret Swiss banks identified in the recent Italian political
corruption scandals as the repository of bribe funds of several Italian politicians
now in prison.
The sponsorship of the Rothschilds
Soros's relation to the Rothschild finance circle represents no ordinary
or casual banking connection. It goes a long way to explain the extraordinary
success of a mere private speculator, and Soros's uncanny ability to "gamble
right" so many times in such high-risk markets. Soros has access to the
"insider track" in some of the most important government and private
channels in the world.
Since World War II, the Rothschild family, at the heart of the financial
apparatus of the Club of the Isles, has gone to great lengths to create a public
myth about its own insignificance. The family has spent significant sums cultivating
a public image as a family of wealthy, but quiet, "gentlemen," some
of whom prefer to cultivate fine French wines, some of whom are devoted to charity.
Since British Foreign Secretary Arthur Balfour wrote his famous November
1917 letter to Lord Rothschild, expressing official British government backing
for establishment of a Palestinian national home for the Jewish people, the
Rothschilds were intimately involved in the creation of Israel. But behind their
public facade of a family donating money for projects such as planting trees
in the deserts of Israel, N.M. Rothschild of London is at the center of various
intelligence operations, and more than once has been linked to the more unsavory
elements of international organized crime. The family prefers to keep such links
at arm's length, and away from its London headquarters, via its lesser-known
outposts such as their Zurich Rothschild Bank AG and Rothschild Italia of Milan,
the bank of Soros partner Richard Katz.
N.M. Rothschild is considered by City of London sources to be one of
the most influential parts of the British intelligence establishment, tied to
the Thatcher "free market" wing of the Tory Party. Rothschild and
Sons made huge sums managing for Thatcher the privatization of billions of dollars
of British state industry holdings during the 1980s, and today, for John Major's
government. Rothschilds is also at the very heart of the world gold trade, being
the bank at which twice daily the London Gold Fix is struck by a group of the
five most influential gold trade banks. Gold constitutes a major part of the
economy of drug dealings globally.
N.M. Rothschild and Sons is also implicated in some of the filthiest
drugs-for-weapons secret intelligence operations. Because it is connected to
the highest levels of the British intelligence establishment, Rothschilds managed
to evade any prominent mention of its complicity in one of the more sordid black
covert intelligence networks, that of the Bank of Credit and Commerce International
(BCCI). Rothschilds was at the center of the international web of money-laundering
banks used during the 1970s and 1980s by Britain's MI-6 and the networks of
Col. Oliver North and George Bush, to finance such projects as the Nicaraguan
On June 8, 1993 the chairman of the U.S. House of Representatives'
Committee on Banking, Rep. Henry Gonzalez (D-Tex.), made a speech charging that
the U.S. government, under the previous Bush and Reagan administrations, had
systematically refused to prosecute the BCCI, and that the Department of Justice
had repeatedly refused to cooperate with Congressional investigations of both
the BCCI scandal and what Gonzalez claims is the closely related scandal of
the Atlanta, Georgia Banca Nationale del Lavoro, which was alleged to have secured
billions in loans from the Bush administration to Saddam Hussein, just prior
to the Gulf War of 1990-91.
Gonzalez charged that the Bush administration had "a Justice Department
that I say, and I repeat, has been the most corrupt, most unbelievably corrupt
justice system that I have seen in the 32 years I have been in the Congress."
The BCCI violated countless laws, including laundering drug money,
financing illegal arms traffic, and falsifying bank records. In July 1991, New
York District Attorney Robert Morgenthau announced a grand jury indictment against
BCCI, charging it with having committed "the largest bank fraud in world
financial history. BCCI operated as a corrupt criminal organization throughout
its entire 19-year history."
The BCCI had links directly into the Bush White House. Saudi Sheik
Kamal Adham, a BCCI director and former head of Saudi Arabian intelligence when
George Bush was head of the CIA, was one of the BCCI shareholders indicted in
the United States. Days after his indictment, former top Bush White House aide
Edward Rogers went to Saudi Arabia as a private citizen to sign a contract to
represent Sheikh Adham in the United States.
--- continued in part 2 --- --- continued from part 1 ---
But, what has never been identified in a single major Western press investigation,
was that the Rothschild group was at the heart of the vast illegal web of BCCI.
The key figure was Dr. Alfred Hartmann, the managing director of the BCCI Swiss
subsidiary, Banque de Commerce et de Placement SA; at the same time, he ran
the Zurich Rothschild Bank AG, and sat in London as a member of the board of
N.M. Rothschild and Sons, Hartmann was also a business partner of Helmut Raiser,
friend of de Picciotto, and linked to Nordex.
Hartmann was also chairman of the Swiss affiliate of the Italian BNL bank,
which was implicated in the Bush administration illegal transfers to Iraq prior
to the 1990 Iraqi invasion of Kuwait. The Atlanta branch of BNL, with the knowledge
of George Bush when he was vice president, conduited funds to Helmut Raiser's
Zug, Switzerland company, Consen, for development of the CondorII missile program
by Iraq, Egypt, and Argentina, during the Iran-Iraq War. Hartmann was vice-chairman
of another secretive private Geneva bank, the Bank of NY-Inter-Maritime Bank,
a bank whose chairman, Bruce Rappaport, was one of the illegal financial conduits
for Col. Oliver North's Contra drugs-for-weapons network during the late 1980.
North also used the BCCI as one of his preferred banks to hide his illegal funds.
Rich, Reichmann, and Soros's Israeli links
According to reports of former U.S. State Department intelligence officers
familiar with the Soros case, Soros's Quantum Fund amassed a war chest of well
over $10 billion, with the help of a powerful group of "silent" investors
who let Soros deploy the capital to demolish European monetary stability in
Among Soros's silent investors, these sources say, are the fugitive metals
and oil trader Marc Rich, based in Zug, Switzerland; and Shaul Eisenberg, a
decades-long member of Israeli Mossad intelligence, who functions as a major
arms merchant throughout Asia and the Near East. Eisenberg was recently banned
from doing business in Uzbekistan, where he had been accused by the government
of massive fraud and corruption. A third Soros partner is Israel's "Dirty
Rafi" Eytan, who served in London previously as Mossad liaison to British
Rich was one of the most active western traders in oil, aluminum, and other
commodities in the Soviet Union and Russia between 1989 and 1993. This, not
coincidentally, is just the period when Grigori Luchansky's Nordex Group became
a multibillion-dollar company selling Russian oil, aluminum, and other commodities.
Canadian real estate entrepreneur Paul Reichmann, formerly of Olympia and York
notoriety, a Hungarian-born Jew like Soros, is a business partner in Soros's
Quantum Realty, a $525-million real estate investment fund.
The Reichmann tie links Soros as well with Henry Kissinger and former
Tory Foreign Minister Lord Carrington (who is also a member of Kissinger Associates,
Inc. of New York). Reichmann sits with both Kissinger and Carrington on the
board of the influential British-Canadian publishing group, Hollinger, Inc.
Hollinger owns a large number of newspapers in Canada and the United States,
the London Daily Telegraph, and the largest English-language daily in Israel,
the Jerusalem Post. Hollinger has been attacking President Clinton and the Middle
East peace process ever since Clinton's election in November 1992.
Soros and geopolitics
Soros is little more than one of several significant vehicles for economic
and financial warfare by the Club of the Isles faction. Because his affiliations
to these interests have not previously been spotlighted, he serves extremely
useful functions for the oligarchy, as in 1992 and 1993, when he launched his
attack on the European Rate Mechanism.
Although Soros's speculation played a role in finally taking the British pound
out of the ERM currency group entirely, it would be a mistake to view that action
as "anti-British." Soros went for the first time to London, where
he studied under Karl Popper and Friedrich von Hayek at the London School of
Soros's business ties to Sir James Goldsmith and Lord Rothschild place him
in the inner circles of the Thatcher wing of the British establishment. By helping
the "anti-Europe" Thatcherites pull Britain out of the ERM in September
1992 (and making more than $1 billion in the process at British taxpayer expense),
Soros helped the long-term goal of the Thatcherites in weakening continental
Europe's economic stability. Since 1904 , it has been British geopolitical strategy
to prevent by all means any successful economic linkage between western continental
European economies, especially that of Germany, with Russia and the countries
of eastern Europe.
Soros's personal outlook is consonant with that of the Thatcher wing of the
Tory Party, those who three years ago launched the "Germany, the Fourth
Reich" hate campaign against unified Germany, comparing Chancellor Helmut
Kohl with Adolf Hitler. Soros is personally extremely anti-German. In his 191
autobiography, Underwriting Democracy, Soros warned that a reunited Germany
would "upset the balance of Europe .... It is easy to see how the interwar
scenario could be replayed. A united Germany becomes the strongest economic
power and develops Eastern Europe as its Lebensraum ... a potent witches' brew."
Soros's recent public attacks on the German economy and the deutsche mark are
fundamentally motivated by this geopolitical view.
Soros is quite close to the circles of George Bush in the U.S. intelligence
community and finance. His principal bank custodian, and reputed major lender
in the 1992 assault on Europe's ERM, is Citicorp NA, the nation's largest bank.
Citicorp is more than a lending institution; it is a core part of the American
liberal establishment. In 1989, as it became clear that German unification was
a real possibility, a senior official at Citicorp, a former adviser to Michael
Dukakis's Presidential campaign, told a European business associate that "German
unity will be a disaster for our interests; we must take measures to ensure
a sharp D-Mark collapse on the order of 30%, so that she will not have the capability
to reconstruct East Germany into the economic engine of a new Europe."
While Soros was calling on world investors to pull down the deutsche mark in
1993, he had been making a strong play in the French media, since late 1992,
to portray himself as a "friend of French interests." Soros is reported
to be close to senior figures of the French establishment, the Treasury, and
in particular, Bank of France head Jean-Claude Trichet. In effect, Soros is
echoing the old Entente Cordiale alliance against Germany, which helped precipitate
World War 1.
Soros admits that he survived in Nazi Hungary during the war, as a Jew, by
adopting what he calls a double personality. "I have lived with a double
personality practically all my life," Soros recently stated. "It started
at age fourteen in Hungary, when I assumed a false identity in order to escape
persecution as a Jew." Soros admitted in a radio interview that his father
gave him Nazi credentials in Hungary during the war, and he looted wealthy Jewish
estates. Further research showed that this operation was probably run by the
Soros did not leave the country until two years after the war. Though he and
his friends in the media are quick to attack any policy opponent of Soros, especially
in eastern Europe, as being "anti-Semitic," Soros's Jewish identity
apparently has only utilitarian value for him, rather than providing moral foundations.
In short, the young Soros was a cynical, ambitious person, the ideal recruit
for the British postwar intelligence network.
Soros savages eastern Europe
Soros has established no fewer than 19 "charitable" foundations across
eastern Europe and the former Soviet Union. He has sponsored "peace"
concerts in former Yugoslavia with such performers as Joan Baez. He is helping
send young east Europeans to Oxford University. A model citizen, is the image
The reality is something else. Soros has been personally responsible for introducing
shock therapy into the emerging economies of eastern Europe since 1989. He has
deliberately fostered on fragile new governments in the east the most draconian
economic madness, policies which have allowed Soros and his financial predator
friends, such as Marc Rich and Shaul Eisenberg, to loot the resources of large
parts of eastern Europe at dirt-cheap prices. Here are illustrative case histories
of Soros's eastern "charity":
Poland: In late 1989, Soros organized a secret meeting between the "reform"
communist government of Prime Minister Mieczyslaw Rakowski and the leaders of
the then-illegal Solidarnosc trade union organization. According to well-informed
Polish sources, at that 1989 meeting, Soros unveiled his "plan" for
Poland: The communists must let Solidarnosc take over the government, so as
to gain the confidence of the population. Then, said Soros, the state must act
to bankrupt its own industrial and agricultural enterprises, using astronomical
interest rates, withholding state credits, and burdening firms with unpayable
debt. Once thie were done, Soros promised that he would encourage his wealthy
international business friends to come into Poland, as prospective buyers of
the privatized state enterprises. A recent example of this privatization plan
is the case of the large steel facility Huta Warsawa. According to steel experts,
this modern complex would cost $3-4 billion for a western company to build new.
Several months ago, the Polish government agreed to assume the debts of Huta
Warsawa, and to sell the debt-free enterprise to a Milan company, Lucchini,
for $30 million!.
Soros recruited his friend, Harvard University economist Jeffery Sachs, who
had previously advised the Bolivian government in economic policy, leading to
the takeover of that nation's economy by the cocaine trade. To further his plan
in Poland, Soros set up one of his numerous foundations, the Stefan Batory Foundation,
the official sponsor of Sach's work in Poland in 1989-90.
Soros boasts, "I established close personal contact with Walesa's chief
adviser, Bronislaw Geremek. I was also received by [President Gen Wojciech]
Jaruzelski, the head of State, to obtain his blessing for my foundation."
He worked closely with the eminence gris of Polish shock therapy, Witold Trzeciakowski,
a shadow adviser to Finance Minister Leszek Balcerowicz. Soros also cultivated
relations with Balcerowicz, the man who would first impose Sach's shock therapy
on Poland. Soros says when Walesa was elected President, that "largely
because of western pressure, Walesa retained Balcerowicz as minister."
Balcerowicz imposed a freeze on wages while industry was to be bankrupted by
a cutoff of state credits. Industrial output fell by more than 30% over two
Soros admits he knew in advance that his shock therapy would cause huge unemployment,
closing of factories, and social unrest. For this reason, he insisted that Solidarnosc
be brought into the government, to help deal with the unrest. Through the Batory
Foundation, Soros coopted key media opinion makers such as Adam Michnik, and
through cooperation with the U.S. Embassy in Warsaw, imposed a media censorship
favorable to Soros's shock therapy, and hostile to all critics.
Russia and the Community of Independent States (CIS): Soros headed a delegation
to Russia, where he had worked together with Raisa Gorbachova since the late
1980s, to establish the Cultural Initiative Foundation. As with his other "charitable
foundations," this was a tax-free vehicle for Soros and his influential
Western friends to enter the top policymaking levels of the country, and for
tiny sums of scarce hard currency, but up important political and intellectual
figures. After a false start under Mikhail Gorbachov in 1988-91, Soros shifted
to the new Yeltsin circle. It was Soros who introduced Jeffery Sachs and shock
therapy into Russia, in late 1991. Soros describes his effort: "I started
mobilizing a group of economists to take to the Soviet Union (July 1990). Professor
Jeffery Sachs, with whom I had worked in Poland, was ready and eager to participate.
He suggested a number of other participants: Romano Prodi from Italy; David
Finch, a retired official from the IMF [International Monetary Fund]. I wanted
to include Stanley Fischer and Jacob Frenkel, heads of research of the World
Bank and IMF, respectively; Larry Summers from Harvard and Michael Bruno of
the Central Bank of Israel."
Since Jan. 2, 1992, shock therapy has introduced chaos and hyperinflation into
Russia. Irreplaceable groups from advanced scientific research institutes have
fled in pursuit of jobs in the West. Yegor Gaidar and the Yeltsin government
imposed draconian cuts in state spending to industry and agriculture, even though
the entire economy was state-owned. A goal of a zero deficit budget within three
months was announced. Credit to industry was ended, and enterprises piled up
astronomical debts, as inflation of the ruble went out of control.
The friends of Soros lost no time in capitalizing on this situation. Marc Rich
began buying Russian aluminum at absurdly cheap prices, with his hard currency.
Rich then dumped the aluminum onto western industrial markets last year, causing
a 30% collapse in the price of the metal, as western industry had no way to
compete. There was such an outflow of aluminum last year from Russia, that there
were shortages of aluminum for Russian fish canneries. At the same time, Rich
reportedly moved in to secure export control over the supply of most West Siberian
crude oil to western markets. Rich's companies have been under investigation
for fraud in Russia, according to a report in the Wall Street Journal of May
Another Soros silent partner who has moved in to exploit the chaos in the former
Soviet Union, is Shaul Eisenberg. Eisenberg, reportedly with a letter of introduction
from then-European Bank chief Jacques Attali, managed to secure an exclusive
concession for textiles and other trade in Uzbekistan. When Uzbek officials
confirmed defrauding of the government by Eisenberg, his concessions were summarily
abrogated. The incident has reportedly caused a major loss for Israeli Mossad
strategic interests throughout the Central Asian republics.
Soros has extensive influence in Hungary. When nationalist opposition parliamentarian
Istvan Csurka tried to protest what was being done to ruin the Hungarian economy,
under the policies of Soros and friends, Csurka was labeled an "anti-Semite,"
and in June 1993, he was forced out of the governing Democratic Forum, as a
result of pressure from Soros-linked circles in Hungary and abroad, including
Soros's close friend, U.S. Rep. Tom Lantos.
Lighting the Balkan Fuse
In early 1990, in what was then still Yugoslavia, Soros's intervention with
shock therapy, in cooperation with the IMF, helped light the economic fuse that
led to the outbreak of war in June 1991. Soros boasted at that time, "Yugoslavia
is a particularly interesting case. Even as national rivalries have brought
the country to the verge of a breakup, a radical monetary stabilization program,
which was introduced on the same date as in Poland---January 1, 1990-----has
begun to change the political landscape. The program is very much along the
Polish lines, and it had greater initial success. By the middle of the year,
people were beginning to think Yugoslav again."
Soros is friends with former Deputy Secretary of State Lawrence Eagleburger,
the former U.S. ambassador to Belgrade and the patron of Serbian Communist leader
Slobodan Milosevic. Eagleburger is a past president of Kissinger Associates,
on whose board sits Lord Carrington, whose Balkan mediations supported Serbian
aggression into Croatia and Bosnia.
Today, Soros has established his Foundation centers in Bosnia, Croatia, Slovenia,
and a Soros Yugoslavia Foundation in Belgrade, Serbia. In Croatia, he has tried
to use his foundation monies to woo influential journalists or to slander opponents
of his shock therapy, by labeling them variously "anti-Semitic" or
"neo-Nazi." The head of Soros's Open Society Fund---Croatia, Prof.
Zarko Puhovski, is a man who has reportedly made a recent dramatic conversion
from orthodox Marxism to Soros's radical free market. Only seven years ago,
according to one of his former students, as professor of philosophy at the University
of Zagreb, Puhovski attacked students trying to articulate a critique of communism,
by insisting, "It is unprincipled to criticize Marxism from a liberal standpoint."
His work for the Soros Foundation in Zagreb has promoted an anti-nationalist
"global culture," hiring a network of anti-Croatian journalists to
propagandize, in effect, for the Serbian cause.
These examples can be elaborated for each of the other 19 locations across
eastern Europe where George Soros operates. The political agenda of Soros and
this group of financial "globalists" will create the conditions for
a new outbreak of war, even world war, if it continues to be tolerated.