Business

Soros: The EU Crisis Has ‘Taken a Turn For The Worse’

Soros: The EU Crisis Has Taken a Turn For The Worse“Far from abating, the euro crisis has recently taken a turn for the worse,” billionaire currency speculator George Soros writes in a new Financial Times op-ed.

“The European Central Bank relieved an incipient credit crunch through its longer-term refinancing operations. The resulting rally in financial markets hid an underlying deterioration; but that is unlikely to last much longer,” he adds.

What’s the thrust of his argument? Simply put, that the EU crisis is a political issue that shouldn’t be decided by the Bundesbank (Germany’s federal bank) but by European authorities.

“The fundamental problems have not been resolved; indeed, the gap between creditor and debtor countries continues to widen,” Soros writes. “The crisis has entered what may be a less volatile but more lethal phase.”

He goes on to point out that when the crisis first began, “the eurozone’s break-up was inconceivable” because all of the countries’ finances were tied together at that point.

However, because of long-term refinancing operations and the fact that most of the EU countries stay away from international bonds, the billionaire philanthropist believes that within “a few more years, a eurozone break-up would become possible without a meltdown – but would leave creditor countries’ central banks holding big claims that would be hard to enforce against debtor countries’ central banks.”

Well, okay, now that he’s located the problem, does he propose any solutions?

“First, the rules governing the eurozone have failed and need radical revision. Defending a status quo that is unworkable only makes matters worse,” Soros writes.

“Second, the current situation is highly anomalous, and exceptional measures are needed to restore normality. Finally, new rules must allow for financial markets’ inherent instability,” he adds.

He continues:

To be realistic, the fiscal compact must be the starting point, although some obvious defects will need to be modified. Should a country violate the fiscal compact, it would be obliged to pay interest on all or part of the debt owned by the SPV. That would surely impose tough fiscal discipline.
…
By rewarding good behaviour, the fiscal compact would no longer constitute a deflationary debt trap. The outlook would radically improve. In addition, to narrow the competitiveness gap, all members should be able to refinance existing debt at the same interest rate. But that would require greater fiscal integration. It would have to be phased in gradually.

Soros concludes the article by reiterating that the fate of the EU shouldn’t be decided by the Bundesbank but by a collective of European authorities.

Read Soros’ entire piece at FT.com.

(H/T: BI)

Comments (100)

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  • IndyGuy
    Posted on April 12, 2012 at 5:27pm

    Soros: The EU Crisis Has ‘Taken a Turn For The Worse’……..Because I planned it that way…

    Report Post » IndyGuy  
    • TH30PH1LUS
      Posted on April 12, 2012 at 7:58pm

      George Soros key words: “radical revision”, “highly anomalous”, and “exceptional measures”.

      Will Europe embrace a dough-y King George?

      Report Post » TH30PH1LUS  
    • TRUMPETCALL
      Posted on April 12, 2012 at 10:36pm

      If Soros (not his real name) says it “has taken a turn for the worse” shouldn‘t that really mean that it’s “good”?? The world being upside-down, like it is….

      We’re in Backwards Land now, Gumby!

      Report Post »  
    • lukerw
      Posted on April 13, 2012 at 3:39am

      Germany is Proping Up the EU… so it needs to be attacked!

      Report Post » lukerw  
    • Tresse
      Posted on April 13, 2012 at 8:32pm

      Trumpet, did you notice his name is the same spelled backwards?

      Report Post »  
  • grandmaof5
    Posted on April 12, 2012 at 5:26pm

    He said gleefully while clapping his hands and calculating how much he stands to make off the crisis.

    Report Post »  
    • Itsjusttim
      Posted on April 12, 2012 at 5:31pm

      If only one person thinks something is valuable, then international trade between millions can hardly be based on it.

      Report Post » Itsjusttim  
  • thegreatcarnac
    Posted on April 12, 2012 at 5:22pm

    If soros would do us all a favor and fall off a cliff….the world’s economy would straighten up overnight.

    Report Post »  
    • CatB
      Posted on April 12, 2012 at 6:34pm

      Needs to take his heirs with him! This must have just made his day … evil b-tard.

      Report Post »  
  • welovetheUSA
    Posted on April 12, 2012 at 5:14pm

    And we are so sure your helping all you can to make it fall………………communist

    Report Post » welovetheUSA  
  • Itsjusttim
    Posted on April 12, 2012 at 5:14pm

    I look at it this way: refinancing stretches the pain out even longer, and besides it is getting refinanced with debt that has been refinanced which has been refinanced. And if they start to dismantle populations of people, all the billions in money the richest of the rich have will be worthless because it only remains valuable as long as there are millions upon millions of people who see it as valuable, and therefore if they destroy their populations of people then the billionaire’s wealth will gradually become worthless.

    Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 5:23pm

      Now since the fore-mentioned isn’t going to work, I’m certain the plan also is to put a strangle-hold on the energy in the world, and hold nations hostage for energy. But that isn‘t going to work either because people just simply won’t be able to pay, and they will become poorer and more people increasingly will become homeless and then won’t even care about energy, not to mention living. And again it will quickly travel in a short circled whip-lash effect that will snap the wealth away from billionaires. But good try.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 5:28pm

      It’s gonna be like “Hunger Games” world-wide.

      Report Post » Itsjusttim  
  • South Philly Boy
    Posted on April 12, 2012 at 5:10pm

    SoreAss should be in JAIL

    Report Post » South Philly Boy  
    • Delaware Patriot
      Posted on April 12, 2012 at 5:26pm

      I second that!

      Report Post »  
    • devildogger
      Posted on April 12, 2012 at 9:40pm

      I’m thinking that is a little too easy for lil gyorgy. I think hard labor for the rest of his days would be more apropos.

      Report Post »  
  • sawbuck
    Posted on April 12, 2012 at 5:04pm

    And away we go…!
    Is anyone else concerned that someone might get the bright idea , to try and cure this whole movement , with a healthy dose of lead poisoning…?
    Man I hope not.

    Report Post » sawbuck  
  • Itsjusttim
    Posted on April 12, 2012 at 5:01pm

    Hey George Soros, I wonder if your own children are going to spit on your grave when even your children lose all their wealth?

    Report Post » Itsjusttim  
  • Itsjusttim
    Posted on April 12, 2012 at 4:59pm

    Truth be told, George Soros doesn’t know what to do, because he is a destroyer not a builder.

    Report Post » Itsjusttim  
  • MrKnowItAll
    Posted on April 12, 2012 at 4:59pm

    Not hard to figure our why Gold is up $16.00 Today. Bye George! You let the cat out of the Bag. how’s that Young Girl of yours doing? That is all I’d like to hear from you.

    Report Post » MrKnowItAll  
    • Nobummer
      Posted on April 12, 2012 at 7:07pm

      @mrknowitall
      Gold is up because he literally bought tons of it. He probably is shorting the Euro too. He opens his trap and the minions move from Euro to gold. He wins on both ends. This jerk always has a motive. He might be Satan’s spawn, but he isn’t stupid. Whenever he talks, check your wallet.

      BTW…didn’t little Timmy G. say we would suffer if the Euro collapsed? Everything is according to plan.

      Report Post »  
  • Owt_Raged
    Posted on April 12, 2012 at 4:58pm

    I wonder if he behind or ahead on his schedule to ruin the European monetary system?

    Report Post » Owt_Raged  
  • carpee
    Posted on April 12, 2012 at 4:39pm

    why doesn’t he just come out and say it:

    the ONLY way is a one world government and currency.
    it’s what he wants, what they all want.

    Report Post »  
    • Paul
      Posted on April 12, 2012 at 4:48pm

      That’s not evils “MO.”

      Report Post » Paul  
    • Itsjusttim
      Posted on April 12, 2012 at 4:48pm

      They think they are going to replace the 100′s of trillions with digital money across the board, but it won’t work, digital is worthless.

      Report Post » Itsjusttim  
  • USAMEDIC3008
    Posted on April 12, 2012 at 4:36pm

    Acording to plan…

    Report Post » USAMEDIC3008  
  • Itsjusttim
    Posted on April 12, 2012 at 4:36pm

    Say did anyone see this? It reminds me of what I saw oh about ten years ago, but what I saw was much larger than a whale.
    http://www.rep-am.com/articles/2012/04/11/news/local/634388.txt

    Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 4:44pm

      Now if I was a betting man, I’d say that for some of us our ride has arrived.

      Report Post » Itsjusttim  
  • Mark0331
    Posted on April 12, 2012 at 4:35pm

    The funny thing is, I walk past this monsters’ gym everyday…how I wish to go in there, get a membership and attack him with a dumbbell…but I won’t, unlike him, I respect the law and I am civilized and not a barbaric robber baron.

    Report Post » Mark0331  
    • cessna152
      Posted on April 12, 2012 at 4:40pm

      I often wonder if I went back in time and saw Hitler at 12 years old swinging peacefully on the swing set would I be a murderer or hero if I “took him out”?

      Report Post » cessna152  
  • Moozmom
    Posted on April 12, 2012 at 4:35pm

    And Soros is very happy-he bet on the losers and Soros wins very, very big.

    Report Post »  
  • Itsjusttim
    Posted on April 12, 2012 at 4:33pm

    Well I told you that Europe won‘t be leaving it’s financial crisis.

    Report Post » Itsjusttim  
  • Snowleopard {gallery of cat folks}
    Posted on April 12, 2012 at 4:33pm

    When Spooky Dude speaks with such confidence, you can be assured the inevitable has all but been arranged by him and his cohorts to happen. The EU is doomed for sure now; and with it will go the US unless we can sever the links when the inevitable happens…which under Obama will be all but impossible, as he wants the US to collapse.

    Report Post » Snowleopard {gallery of cat folks}  
  • JOE
    Posted on April 12, 2012 at 4:30pm

    What currency is he betting on to make money It is his WORLD!!!!!!!!!!!!!!! to do this he isnt hooked at hip with anyone but himself i wonder if OBAMA pardon him from paying TAXES!!!!!

    Report Post » JOE  
  • abbygirl1994
    Posted on April 12, 2012 at 4:29pm

    And isn’t that exactly what you wanted Georgie!! You are a evil man! I wonder just how much money you will make!!

    Report Post » abbygirl1994  
  • NOBALONEY
    Posted on April 12, 2012 at 4:26pm

    Dr. Spooky has spoken.

    Report Post » NOBALONEY  
  • soybomb315
    Posted on April 12, 2012 at 4:25pm

    better pick a republican candidate who wont fall for the global bank bailout trap

    crap, too late

    Report Post » soybomb315  
    • Mutiny
      Posted on April 12, 2012 at 4:48pm

      The country is lost. We have a country full of headline readers who dont bother to read the article. If Bill Oreilly says something his sheep follow blindly with zero research. Either way, I have prepared my household and family for the coming war/economic collapse/civil unrest.

      Report Post » Mutiny  
  • TSUNAMI-22
    Posted on April 12, 2012 at 4:20pm

    Something, something, something, something……..dark-side.

    Something, something, something, something…complete.

    Report Post »  
  • Inlightofthings
    Posted on April 12, 2012 at 4:18pm

    Must break his heart. Another currency becomes worthless…

    Report Post »  
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