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George Soros

George Soros (born August 12, 1930) is a Hungarian-born American businessman. He is famous as a currency speculator and a philanthropist. Currently, he is the chairman of Soros Fund Management and the Open Society Institute and is also director of the Council on Foreign Relations. He is known around the world for the role he played in Georgia's Rose Revolution. In the United States he is known for donating large sums of money to organizations seeking to unseat US President George W. Bush in the 2004 United States Presidential election.

Contents

Family

He is married to his second wife, Susan Weber Soros, and has five children.

Early Life

George Soros is the son of the Esperanto writer Tivadar Soros. Soros was born in Hungary and lived there until 1946, when he escaped the Soviet occupation by participating in an Esperanto youth congress in the West. (Soros was taught to speak the language from birth.) As a young man, Soros traded currencies in the black market during the Nazi occupation of Hungary. Soros was fourteen when the Nazis invaded Hungary and he avoided the fate of many Jews as the grandson of a Hungarian official overseeing the confiscation of Jewish properties, who was assisted by his son-in-law, Tivadar Soros.

Soros emigrated to England in 1947 and graduated from the London School of Economics in 1952. In 1956 he moved to the United States. He has stated that his intent was to earn enough money on Wall Street to support himself as an author and philosopher. His net worth reached an estimated $11 Billion.

Business

He's the founder of Soros Fund Management. In 1970 he co-founded the Quantum Fund with Jim Rogers. It returned more than 4000% during the next ten years, and created the bulk of the Soros fortune.

1992

On Black Wednesday (September 16, 1992), Soros became instantly famous when, believing the Pound Sterling was overvalued, sold short more than $10bn worth of pounds. The Bank of England was forced to withdraw the currency out of the European Exchange Rate Mechanism, and Soros earned an estimated US$ 1.1 billion in the process. He was dubbed "the man who broke the Bank of England."

The Times October 26, 1992, Monday: "Our total position by Black Wednesday had to be worth almost $10 billion. We planned to sell more than that. In fact, when Norman Lamont said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell."

1997

In 1997, under similar circumstances during the Asian financial crisis, then Malaysian Prime Minister Mahathir bin Mohamad accused Soros of bringing down the Malaysian currency, the ringgit.

Litigation

"But it was in France that Soros got into trouble with the authorities. In 1988, he was asked to join a takeover attempt of a French bank. He declined, but he did buy the bank's stock. In 2002, a French court ruled that was insider trading." "Soros denies any wrongdoing and says news of the takeover was public knowledge. Nevertheless, he was fined more than $2 million…roughly the amount French authorities say he made from the trades." Bill Moyers PBS http://www.pbs.org/now/transcript/transcript_soros.html

Critics

Critics point out that Soros plays the currency markets through Quantum Fund, his privately-owned investment fund registered in Curaçao, Netherlands Antilles, a Caribbean tax haven which has repeatedly been cited by the International Task Force on Money Laundering of the OECD as one of the world's most important centers for laundering the illegal proceeds of the Latin American drug trade. By operating from Curaçao, Soros not only avoids paying taxes but also hides the nature of his investors and what he does with their money.

Soros has critics from all over the political spectrum: American conservatives dislike his dump-Bush campaign, and supporters of Israel dislike his rhetoric with inflammatory comparisons to Nazi Germany and Yasser Arafat.

Former National Review contributor and ex-House Republican staffer Phil Brennan called Soros a "socialist billionaire".[1] http://newsmax.com/archives/articles/2003/12/2/203605.shtml Lowell Ponte of David Horowitz's Frontpage called Soros a "Billionaire for the Left".

Socialists, anarchists and other leftists, such as punk band Propagandhi, criticize Soros by pointing out the irony of using capitalism, a system of exploitation in their eyes, to help people or with the intent to do good.

A host of a Soros October 19, 2004 speech to Harrisburg's Tuesday Club, State Representative Mark B. Cohen of Philadelphia, said that this criticism is off-base: "Soros is a political pragmatist using his economic resources to expand democracy and peaceful intercourse among nations. His generous contributions and potential to make further contributions give him a voice, and he is ambitious to use it for his public purposes."

Scott Shore of IntellectualConservative.com called him a "Soft Money Marxist" ([2] http://www.intellectualconservative.com/article2915.html ) ( [3] http://www.frontpagemag.com/articles/ReadArticle.asp?ID=10781 ). He has also been called a self-hating Jewish anti-Semite.

At a Jewish forum in New York City, Soros reportedly attributed a recent resurgence of anti-Semitism to the policies of Israel and the United States, and to successful Jews such as himself:

"There is a resurgence of anti-Semitism in Europe. The policies of the Bush administration and the Sharon administration contribute to that," Soros said. "It's not specifically anti-Semitism, but it does manifest itself in anti-Semitism as well. I'm critical of those policies."
"If we change that direction, then anti-Semitism also will diminish," he said. "I can't see how one could confront it directly." ...
"I'm also very concerned about my own role because the new anti-Semitism holds that the Jews rule the world," said Soros ... "As an unintended consequence of my actions," he said, "I also contribute to that image."[4] http://www.jta.org/page_view_story.asp?intarticleid=13428&intcategoryid=4

It should be noted that this could be a result of Soros's Popperian tendency toward self-criticism.

Philanthropy

Soros has been active as a philanthropist since 1979, when he began providing funds to help black students attend the University of Cape Town in apartheid South Africa. Soros' philanthropic funding in Eastern Europe mostly occurs through the Open Society Institute and national Soros Foundations, which sometimes go under other names, e.g. the Stefan Batory Foundation in Poland. He also pledged an endowment of $250 million to the Central European University (CEU).

He received honorary doctoral degrees from the New School for Social Research (New York), the University of Oxford in 1980, the Budapest University of Economics, and Yale University in 1991. Soros was a student of Karl Popper and says that his investment strategies are based on a Popperian skepticism about the reliability of any one human belief.

Quotes

  • "How can we escape from the trap that the terrorists have set us," he asked. "Only by recognizing that the war on terrorism cannot be won by waging war. We must, of course, protect our security; but we must also correct the grievances on which terrorism feeds....Crime requires police work, not military action."
  • "An open society is a society which allows its members the greatest possible degree of freedom in pursuing their interests compatible with the interests of others," Soros said. "The Bush administration merely has a narrower definition of self-interest. It does not include the interests of others."
  • "The supremacist ideology of the Bush Administration stands in opposition to the principles of an open society, which recognize that people have different views and that nobody is in possession of the ultimate truth. The supremacist ideology postulates that just because we are stronger than others, we know better and have right on our side. The very first sentence of the September 2002 National Security Strategy (the President's annual laying out to Congress of the country's security objectives) reads, 'The great struggles of the twentieth century between liberty and totalitarianism ended with a decisive victory for the forces of freedom and a single sustainable model for national success: freedom, democracy, and free enterprise.'"

Philosophy

Despite his carefully groomed media image, Soros is a controversial figure. Although he has become extremely wealthy as an international investor and currency speculator (his fortune in 2004 was estimated at US$ 7 billion), he freely acknowledges that the current system of financial speculation undermines healthy economic development in many underdeveloped countries.

One could say that Soros is primarily a philosopher, and his successes in business and philanthropy are merely an expression of his views on the world. Certainly Soros sees himself that way, having aspired to be a philosopher since childhood.

Soros periodically has studied under and corresponded with Karl Popper.

He has popularized the concepts of dynamic disequilibrium, static disequilibrium, and near-equilibrium conditions. His writings also focus heavily on the concept of reflexivity.

Soros blames many of the world's problems on the failures inherent in market fundamentalism.

From Victor Niederhoffer (under "external links"): "Most of all, George believed even then in a mixed economy, one with a strong central international government to correct for the excesses of self-interest. I believe in the power of the market to give consumers the quantity and quality they want in timely fashion, in the power of incentive to create a constantly increasing plenty, and in the power of competition to distribute that plenty harmoniously and bountifully to the deserving consumer."

Soros vs. Bush

For many years, Soros did not involve himself greatly in US politics, but that changed under President George W. Bush. In an interview with The Washington Post on November 11, 2003, Soros said that removing Bush from office was the "central focus of my life" and "a matter of life and death" for which he would willingly sacrifice his entire fortune. Soros gave $3 million to the Center for American Progress, committed $5 million to MoveOn.org, while he and his friend Peter Lewis each gave America Coming Together $10 million. (All were groups that worked to support Democrats in the 2004 election.) On September 28, 2004 he dedicated more money to the campaign and kicked off his own multi-state tour with a speech: Why We Must Not Re-elect President Bush http://www.georgesoros.com/index.cfm?Fuseaction=SpeechHTML delivered at the National Press Club in Washington, DC. According to the Center for Responsive Politics, during the 2003-2004 election cycle, Soros donated $23,581,000 to various 527 Groups dedicated to defeating President George Bush.

Soros has been criticized for his large donations, as he also pushed for the Bipartisan Campaign Reform Act of 2002 which was intended to ban "soft money" contributions to federal election campaigns. Soros has responded that his donations to unaffiliated organizations do not raise the same corruption issues as donations directly to the candidates or political parties.

Ironically, Soros's Harken Energy bailed out Bush in 1986 by buying his ailing oil venture, Spectrum 7.

His most recent book, The Bubble of American Supremacy, was published in January 2004 ([5] http://www.washingtonpost.com/ac2/wp-dyn/A24179-2003Nov10?language=printer ).

Books

Authored or co-authored

  • The Bubble of American Supremacy: Correcting the Misuse of American Power (PublicAffairs, 2003) ISBN 1586482173 (paperback; PublicAffairs, 2004; ISBN 1586482920)
  • George Soros on Globalization (PublicAffairs, 2002) ISBN 1586481258 (paperback; PublicAffairs, 2004; ISBN 1586482785)
  • Open Society: Reforming Global Capitalism (PublicAffairs, 2000) ISBN 1586480197
  • Science and the Open Society: The Future of Karl Popper's Philosophy by Mark Amadeus Notturno, George Soros (Central European University Press, 2000) ISBN 9639116696 (paperback: Central European University Press, 2000; ISBN 963911670X)
  • The Crisis of Global Capitalism: Open Society Endangered (PublicAffairs, 1998) ISBN 1891620274
  • Soros on Soros: Staying Ahead of the Curve (John Wiley, 1995) ISBN 0471120146 (paperback; Wiley, 1995; ISBN 0471119776)
  • Underwriting Democracy: Encouraging Free Enterprise and Democratic Reform Among the Soviets and in Eastern Europe (Free Press, 1991) ISBN 0029302854 (paperback; PublicAffairs, 2004; ISBN 1586482270)
  • Opening the Soviet System (Weidenfeld & Nicholson, 1990) ISBN 0297820559 (paperback: Perseus Books, 1996; ISBN 0813312051)
  • The Alchemy of Finance (Simon & Schuster, 1988) ISBN 0671662384 (paperback: Wiley, 2003; ISBN 0471445495)

Biographies

  • Soros: The Life and Times of a Messianic Billionaire by Michael T. Kaufman (Alfred A. Knopf, 2002) ISBN 0375405852
  • Soros: The Unauthorized Biography, the Life, Times and Trading Secrets of the World's Greatest Investor by Robert Slater (McGraw-Hill, 1997) ISBN 0786312475

Contributed

  • MoveOn's 50 Ways to Love Your Country: How to Find Your Political Voice and Become a Catalyst for Change by MoveOn.org (Inner Ocean Publishing, 2004) ISBN 193072229X

External links and references

  • George Soros http://georgesoros.com/ official site and blog
  • Open Society Institute and Soros Foundations Network http://www.soros.org/
  • Project Syndicate http://www.project-syndicate.org/

Bio

  • Forbes.com: Forbes 400 Richest in America http://www.forbes.com/finance/lists/54/2004/LIR.jhtml?passListId=54&passYear=200
    4&passListType=Person&uniqueId=L9II&datatype=Person

About

  • Three Lessons Learned from George Soros http://chinese-school.netfirms.com/articles/George-Soros-interview.html by Victor Niederhoffer and Laurel Kenner from the Speculator.
  • Analysis of Soros' role in Eastern Europe http://www.mindfully.org/WTO/2003/George-Soros-Statesman2jun03.htm
  • Soros viewed as a post-modern philosopher (1) http://www.heise.de/tp/english/inhalt/te/1292/1.html (2) http://www.heise.de/tp/english/inhalt/te/1292/2.html
  • Long article with many references http://la.indymedia.org/news/2003/07/74948.php
  • Laura Blumenfeld, Billionaire Soros Takes On Bush http://www.msnbc.com/news/991865.asp?vts=111120030842&cp1=1 , MSNBC, November 11, 2003.
  • Matt Welch, Open Season on 'Open Society': Why an anti-communist Holocaust survivor is being demonized as a Socialist, Self-hating Jew http://www.reason.com/links/links120803.shtml , Reason magazine, December 8, 2003
  • Articles about George Soros http://campus.fortunecity.com/pot/832/articles.html
  • CLN financier Soros attacked with glue in Ukraine http://www.ucctruths.com/cln.html , UCCTruths.com, April 4, 2004.
  • James O. E. Norell, The Man Who Would Be King, NRA America's 1st Freedom, April 2004, p. 36
  • James O. E. Norell, George Soros's Anti-Gun Vision for America, NRA America Rifleman, April 2004, p. 16

Speech

  • <nettime> testimony of george soros http://www.nettime.org/Lists-Archives/nettime-l-9809/msg00082.html

Writings

  • George Soros, The Bubble of American Supremacy http://www.koreaherald.co.kr/SITE/data/html_dir/2003/03/13/200303130033.asp , editorial in The Korea Herald , March 12, 2003.
  • George Soros, The Bubble of American Supremacy http://www.theatlantic.com/issues/2003/12/soros.htm , column in the Atlantic Monthly, December 2003.
  • Johnson's Russia List Issue - Moskovsky Novosti: George Soros, Bitter Thoughts with Faith in Russia http://www.cdi.org/russia/johnson/4135.html
  • (stop-imf) FT: Soros on Brazil - Aug 13, 2002 http://lists.essential.org/pipermail/stop-imf/2002q3/000687.html

Interviews

  • Interview with George Soros http://www.simulconference.com/clients/sowf/interviews/interview3.html
  • Interview with George Soros, Chairman, Soros Fund Management by ... - September 5, 2000 http://www.geocities.com/ecocorner/intelarea/gs15.html
  • frontline: the crash: interviews: george soros http://www.pbs.org/wgbh/pages/frontline/shows/crash/interviews/soros.html
  • Wall $treet Week with FORTUNE . TV Program | PBS http://www.pbs.org/wsw/tvprogram/sorosinterview.html
  • Challenge: The international financial crisis - International ... http://www.findarticles.com/p/articles/mi_m1093/is_2_42/ai_54259871
  • NOW with Bill Moyers. Transcript. David Brancaccio interviews ... http://www.pbs.org/now/transcript/transcript_soros.html





Last updated: 02-08-2005 16:20:41
Last updated: 05-03-2005 17:50:55