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Subject:
George Soros - Part 1
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Subject: The Secret Financial Network Behind "Wizard" George
Soros - Part 1 of 2
From: [EMAIL PROTECTED] (stefan lemieszewski)
Date of posting: 12 Nov 1996 09:36:05 GMT
The following text has been sent to the following newsgroups on
the Internet:
soc.culture.ukrainian,soc.culture.russian,soc.culture.polish,
soc.culture.magyar,soc.culture.croatia, soc.culture.slovenia,
soc.culture.yugoslavia,
soc.culture.swiss,alt.conspiracy,soc.culture.usa
This is another post in the series along the theme that: " Corrupt
elites prosper at the people's expense with the aid of the IMF,
World Bank and 'shock therapy' policies of Western advisors
under the guise of free-trade or democratic or market-reforms."
I.
In his article, "Communique of American-Ukrainian Advisory
Committee," in the Dec.10/1995 issue of The Ukrainian Weekly,
Eugene M. Iwanciw wrote:
"The American-Ukrainian Advisory Committee met in New
York on November 17-18 and reiterated its strong
conviction that a resilient Ukraine is in the interest of
European stability and thus also American security. It
welcomed the evident improvement in the
American-Ukrainian relationship, especially the recognition
by the U.S. government of Ukraine's geopolitical
significance. It also endorsed strongly the reform efforts
being pursued by the Ukrainian government in order to
transform Ukraine into a stable democracy based on a free
market economy."
The American participants of the American-Ukrainian Advisory
Committee (AUAC) sponsored by the Center for Strategic and
International Studies (CSIS) included:
Zbigniew Brzezinski (CSIS counselor), Richard Burt
(chairman, International Equity Partners), Frank Carlucci
(chairman, Carlyle Group), Gen. John Galvin (dean,
Fletcher School of International Law and Diplomacy),
Michael Jordan (chairman and CEO, Westinghouse Electric
Corp), Henry Kissinger (chairman, Kissinger Associates)
and George Soros (chairman, Soros Foundations).
Previous American advisers of AUAC included Malcolm Steve
Forbes, Jr. (editor-in-chief, Forbes magazine), whose magazine
gained some notoriety recently for publishing the "Tinderbox" article
by Paul Klebnikov, and Dwayne Orville Andreas (chairman and CEO,
Archer Daniels Midland Co.), whose company pleaded guilty last
month for anti-trust and price-fixing violations and agreed to pay a
$100 million fine---the largest fine of its kind ever.
Also in a previous post it was indicated that at least six of the
current seven American members of AUAC are also members of the
Council of Foreign Relations (CFR), including George Soros.
Previous posts included excerpts on Soros from the 23-page article
titled, "The world according to Soros" written by Connie Bruck in the
Jan. 23, 1995 issue of The New Yorker. It has also been reported
that Soros has contributed $15 million to groups advocating an
array of alternatives to the Clinton administration's "War on Drugs,"
including a personal donation of $350,000 to fund a "medical
marijuana" ballot initiative in California and a personal donation of
$100,000 for a similar ballot initiative in Arizona. The following Nov.
1, 1996 article by the Executive Intelligence Review (EIR) provides
additional background information on George Soros, one of the
American members of AUAC. Stefan Lemieszewski
*
The Secret Financial Network
Behind "Wizard" George Soros
by William Engdahl
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 "hit-and-run capitalism."
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 prices.
The man who broke the Bank of
England?
An examination of Soros' secretive financial network is vital to
understand the true dimension of the "Soros problem" in Eastern
Europe and other nations.
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
he is.
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 speculator.
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 War II.
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 Revolution.
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 the Netherlands.
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 family.
>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 Quantum Fund.
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
Contras.
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 ---
