After months on the sidelines, major liberal donors including the financier George Soros are preparing to inject up to $100 million into independent groups to aid Democrats’ chances this fall. But instead of going head to head with the conservative “super PACs” and outside groups that have flooded the presidential and Congressional campaigns with negative advertising, the donors are focusing on grass-roots organizing, voter registration and Democratic turnout.
But in interviews, donors and strategists involved in the effort said they also did not believe they could match advertising spending by leading conservative groups like American Crossroads and Americans for Prosperity, and instead wanted to exploit what they see as the Democrats’ advantage in grass-roots organizing.
…In a move likely to draw in other major donors, Mr. Soros will contribute $1 million each to America Votes, a group that coordinates political activity for left-leaning environmental, abortion rights and civil rights groups, and American Bridge 21st Century, a super PAC that focuses on election-oriented research. The donations will be Mr. Soros’s first major contributions of the 2012 election cycle.
“George Soros believes the Supreme Court’s decision in Citizens United opened the floodgates to special interests’ paying for political ads,” said Michael Vachon, a spokesman for Mr. Soros. “There is no way those concerned with the public interest can compete with them. Soros has always focused his political giving on grass-roots organizing and holding conservatives accountable for the flawed policies they promote. His support of these groups is consistent with those views.”
What a noble, giving guy Mr. Soros is, huh? Wrong.
Two years ago today, I posted an article titled, “Black Thursday…Almost” about an unexpected dive in the Stock Market. Within that post, I included a short summary of how George Soros made his money:
George Soros set up the now famous Quantum Fund as one of the world’s first Hedge Funds. It took money from the wealthy and invested in risky but potentially highly profitable international deals.
It did very well out of the collapse of fixed exchange rates in the 1970s and the deregulation of global capital markets. By 1980, George Soros was worth more than £16.5 million and his fund £67 million. The stage was set for his intervention in the Exchange Rate Mechanism, a system established in 1979 for controlling exchange rates within the European Monetary System of the European Union(EU) that was intended to prepare the way for a single currency.
Around spring 1992, Soros had decided that the pound would have to be devalued because it had been pushed into the Exchange Rate Mechanism at too high a rate.
He knew that the Bundesbank was in favor of a devaluation of both sterling and the Italian lira and believed it would have to happen because of the disastrous impact that high British interest rates were having on asset prices.
Soros spent the next few months in preparation to profit from that devaluation. He borrowed sterling heavily, reportedly to the tune of £6.5 billion, and converted that into a mixture of Deutschmarks and French francs.
On Black Wednesday, September 16, 1992, Soros won his bet. The UK Conservative government was forced to withdraw the Pound from the European Exchange Rate Mechanism (ERM) due to pressure by currency speculators, most notably Soros himself.
In the following days, he took care of business, paying back what he borrowed and ending with a profit of around £1 billion. At the same time, Soros bought as much as £350 million of British shares, gambling that equities often rise after a currency devalues.
He later admitted that his actions had benefited no one but himself.
There are several culprits in the American Stock Market Crash of 2008 that helped cost John McCain the Presidency, but one key source of the problem escaped almost everyone’s attention: an economic index that can be easily manipulated by Hedge Funds and whose erratic movements have shaken the foundation of Wall Street: the ABX index, launched in 2007 by the Markit Group, aLondon-based company that specializes in credit derivative pricing and that administers the index.
The heart of the mortgage mess we are still recovering from was uncertainty regarding the value of subprime securities. The ABX Index is used to determine the value of these securities: it is a benchmark of the market for all the home loans issued to borrowers with weak credit . A collapse of this index led to home loans being marked down in value.
Looking back, it’s pretty clear that the ABX was manipulated by Hedge Funds. As the ABX subprime mortgage index crashed, so did much of our economy.
Some investors made out like bandits. George Soros for one. Soros had become a political powerbroker of unrivaled influence within the Democratic Party (see The Shadow Party: How George Soros, Hillary Clinton and Sixties Radicals Seized Control of the Democratic Party) and, even now, has an empire of politically active 527 groups, of which he is the number one donor, by far, in America.
There is a now infamous lunch whispered about between Soros and John Paulson, a Hedge Fund Manager who made millions during the collapse. Soros invited Paulson for lunch, “asking for details of how he laid his bets, with instruments that didn’t exist a few years ago”.Soros’s Hedge Fund, like most Hedge Funds, is based overseas and escapes much scrutiny and regulation.