Notes From Underground

It seems that George Soros is the go-to guy for the media as the G-20 gathers. In an op-ed piece in the Financial Times, the palindrome finds his voice about how the Germans are ruining the European project that has been the paradigm for Soros’s long-desired government–of course with George himself as the philosopher KING. He opines that it would be better if Germany reinstated its D-MARK and the PIIGS keep the EURO and let it devalue so that they can begin to work out of the mess the EU has created.

We bring this up because it has bothered us that Soros gets very opinionated prior to world meetings, and it seems that the U.S. position turns out to be very similar to what George writes. Look back to the G-20 in Pittsburgh and read the opinion piece that he wrote in the Financial Times a day or two prior to the meeting and it almost feels like he wrote the U.S. release on the meeting’s outcome. Make no mistake, Soros was the early big money behind OBAMA and therefore most certainly has the ear of the president. It is no coincidence that he takes on Germany for its austerity and strong anti-inflation stance as at costs. Germany will be the Dr. Evil in the eyes of the U.S. and China will be less then a sideshow. As the FOMC statement clearly showed, Bernanke is very concerned about the lack of growth and austerity measures are not the medicine he wants to consider, and Geithner is certainly in that camp. Germany will be the target of G-20 angst and the Soros piece seals the verdict.

In a very bothersome bit of news yesterday, a New York state pension fund is suing BP over losses in stock investment. The pension fund in the suit is claiming that BP did not live up to its promises of safety, thus resulting in huge losses for the FUND. In our mind if this suit were to prevail, it would be the end of capital markets as investors would demand risk free equity investments based on the best guesses of management and if they guesses were not realized then we should get our money back. Never doubt the absurd views of lawyers looking for work but the destruction that would result to capitalism would make Vladimir Illych smile. Capitalism without risk and loss is like the eunuch with the palace harem. As the Japanese author Kenzaburo Oe wrote, “Teach Us to Outgrow Our Madness.”

Tags: BP, D-mark, EU, Euro, FOMC, George Soros, Obama, pension fund, PIIGS

This entry was posted on June 25, 2010 at 6:20 am and is filed under Currency, G-20. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.