March 24, 2009    Yet another Soros ghost written piece on the world as he sees it was printed this week. This is not unlike Barack Hussein Obama's ghost written so called autobiographies, published through Soros with the motivation that Obama is a team member of Soros, which he is and has been for over 15 years. The so called toxic bank- which is not a bank anyway- "Geithner Plan" is of course the Soros plan for `toxic bank assets' and Geithner has plenty of paid contractors from Soros working hand in hand in his team at the Treasury Department in Washington, D.C.
 
One could argue that credit default bets do not need to exist. They are speculating bets and if they are so important or necessary, why not simply take out a real or easily defined insurance policy one might ask? But Soros is positioning himself in a high stakes gamble himself by having been present- and pushing hard- at the 1997-98 White House Group on derivatives and hedge funds with his demands that no hedge fund or derivatives bet be regulated or suffer oversight or registration with any U.S. governmental entity such as the US SEC unless it was "voluntary." Voluntary disclosure is like voluntary tax payments- it never works. And this in part set the stage for what we have today: a mess made by the free for all series of untaxed, unregulated speculations. Soros opines that -again- no regulation or laws are needed except that only the owners of bonds should be allowed to bet with derivatives.
 
Comes now Soros, the grandfather of derivatives- the founder of this feast- or one might say the perpetrator of these betting schemes, to say, "CDS came into existence as a way of providing insurance on bonds against default. Since they are tradable instruments, they became bear-market warrants for speculating on deteriorating conditions in a company or country. What makes them toxic is that such speculation can be self-validating." SELF VALIDATING speculation is.... a rigged pre set of conditions which bears fruit, in our opinion and is no justification at all for these ephemeral "tradable instruments" whose existence was never regulated, taxed or on any books per se. Self validating bets are indeed....a racket.
 
He writes, "Taking these three considerations together, it's clear that AIG, Bear Stearns, Lehman Brothers and others were destroyed by bear raids in which the shorting of stocks and buying CDS mutually amplified and reinforced each other. The unlimited shorting of stocks was made possible by the abolition of the uptick rule, which would have hindered bear raids by allowing short selling only when prices were rising. The unlimited shorting of bonds was facilitated by the CDS market. The two made a lethal combination. And AIG failed to understand this.

Many argue now that CDS ought to be traded on regulated exchanges. I believe that they are toxic and should only be allowed to be used by those who own the bonds, not by others who want to speculate against countries or companies. Under this rule -- which would require international agreement and federal legislation -- the buying pressure on CDS would greatly diminish, and all outstanding CDS would drop in price. As a collateral benefit, the U.S. Treasury would save a great deal of money on its exposure to AIG."
 
We are not so sure that all this must be as Soros dictates.... that  Credit Default Swaps "should only be allowed to be used by those who own the bonds, not by others who want to speculate against countries or companies. Under this rule -- which would require international agreement and federal legislation ...."
 
What we know is that Soros deflects his involvement in all this, his responsibility in all this by offering up a solution- partial of course, that credit defaults NOT be regulated or taxed but that only bond holders be permitted to run these bets and no one else.

Somehow this smacks of a prerigged circle of betters running bets that have no basis in benefitting anyone anyway. As usual, Soros seeks to make the best the enemy of the good. And Soros does a good job of calling AIG, Bear Sterns and Lehmans as incompetent boobs- chumps easily raided and ruined, set up patsies just ripe for being mowed over...by men like Soros. Because men like Soros did indeed run over and destroy those entities with their bets against them in a very toxic, dysfunctional relationship of sucking off the stupid bets of some while never ever trying to make those relationships healthy or whole or productive. Instead, the death spiral of job losses and monetary collapse is merely passed off on to the unsuspecting U.S. taxpayer- and other nations- as if it is Main Street's obligation to clean up after this orgy of betters who sucked off each other for good for some and for very bad ends for most, if one describes Soros-style profiteering as: good.
 
And what about Soros's hasty reference to those who bet "against" someone's country or company? What of this? Who bets against someone's nation and to what effects? Who thinks this is "diplomatic"? And what of the recent claims that many of these "hedge funds" run drug cartel and/or Iranian money as a way of money laundering?  And why do we keep hearing that even Chavez has been running oil derivatives bets? And to what ends? Soros glosses over this. And we still do not know what tax income would have been derived for many nations had these so called untaxed instruments....been taxed. But we do now pay for all this with our taxes because....we are ` the little people- the Main Street' and we are told to go and take a labor union hand out or join a labor union. Somehow these scripted solutions are not ours and do not satisfy us. We still do not know why the US taxpayers are obligated to buy these derivatives and hold them, placing Americans as derivatives owners for many years, in bets that they have been no party to ....to begin with. Why, we ask, do any Americans have to be a co owner of a high risk, untaxed, off the books derivatives bet- a so called contract that none will never ever see or have or hold- that was stupid to begin with?
 
These derivatives bets, unlike what Soros does not say, involve- intermarry or impact- many other legal financial instruments- stocks, bonds, real estate, real time currency, and real insurance policies and other wafty "securities." To our mind this is the problem: markets are falsely ginned up or down and raids, which are expensive to "Main Street" and are manipulated for ends or profits that just make no sense. Soros does not say. He does not answer the question of why these synthetic, surreal speculations are derived off the backs of real or registered or known investments. What we do know is that these bets can kill a company or kill or debase a currency or national financial picture. We also know that these speculations are rumored today to involve dirty money from dark places. This is not free trade. This is not what are called deregulated markets of the last 5 years. These are specific speculative tools which were pronounced, inexplicably as unregulated by dint of the 1997-98 White House Agreements on Hedge Funds and Derivatives. These are tools for profiteering by betting on the success or failure of a company or a nation or a thing.
 
There is no investment for anything in a CDS- only a bet that it will or will not live. CDS arbitrage is not investment banking and it is not Wall Street, which is nominally meant as the stock exchanges. CDS runners are global and move in the blink of an eye- you do not know who or what they are nor whose money they move.

Soros says he wants regulation but then he says he does not. In this case, he wants regulations to bar any other betters from his betting pool of bond holders, creating a cartel monopoly for derivatives. Soros not only deflects personal responsibility for his behaviors but he sells his global economic plans by using his own groups, the primary effort called Center for American Progress which is of course the comptroller of the Obama White House and John Podesta is the go between just as surely as U.S. Senator Dodd's own former Legislative Director is currently Obama's White House legislative director for maximum interconnectivity. And then Soros sets about to use his own so called non profit groups to sell his plans for global finance and global currencies.

We at ECrisis note that the hard left sets up this ploy to tell us that Obama and Geithner do not go far enough. They do not seriously believe this and their complaints are phony. But it is a tactic. To be sure, many communists believe that Obama has not yet gone far enough in socializing the USA and they will always complain because that is what they do for a living: complain.
 
And what more does this embracer of Chavez and Correa's drug king pin states want now? He wants to run a new currency out of the IMF under a permanent global economic directorate set by the United Nations and funded by global taxes. Of course this plan is the Soros plan which Barack Hussein Obama proposed as the only Senate legislation he proposed in his life as a pay back to Soros for all his monetary help. Obama will support the Soros plan again now that he is president and does not have the pesky Bush in his way to veto his only senatorial activity.
 
The Financial Times, itself a mouth organ propaganda newspaper for all things Soros-socializing prints about the call for council to replace G20, called by a UN panel…., almost as if to punch up their own complicity.

Ecuador may seem far away from the machinations of Soros and the UN. But understand this: Brazil's Lula and Chavez and Correa think this is a grand idea.

For his part, Lula is in. He tells us he speaks for Chavez and carries his vote, whatever that means.

We do not know this web site  but the writer seems to get it.  Read it here: Soros believes he is pulling The Puppet Resident's Strings, Do YOU?

The FINANCIAL TIMES, shows now that communist China wants to help Soros and Obama  with their new global currency.

And Soros says: Obama Will Listen to Me. Do you think...?

And more on this evil: Read this article here: "Buried alive..."

And if all this talk for new currency makes you nervous, know that Chavez and Correa have a new currency for Latin America just waiting for you. The drug king pins will be happy.

-Pedro Camargo for ECrisis