GEORGE Soros, the multi-billionaire ‘vulture’ investor who makes his fortune betting on capitalism’s crisis and who is credited with breaking the pound in the 1990s, is today jumping ship and piling his billions into the safe haven of gold.
In 1992, Soros achieved the status as supreme currency speculator when he bet £7 billion that the pound would sink, hastening its collapse and earning himself a £1 billion fortune along with the title ‘the man who broke the bank of England’.
Today he is taking his billions out of stocks and shares and buying up gold and companies that mine gold in anticipation of the complete collapse of European capitalism, a collapse that will inevitably bring down the entire world banking and financial system in one almighty crash.
Soros and his fellow international investors don’t make their billions out of believing all the upbeat propaganda spouted by bourgeois politicians about how the future for capitalism is rosy, that corners have been turned and that with a few more austerity cuts the system will recover and flourish.
Instead, they make their fortunes looking economic reality in the face and try to work out how they can profit from, or today survive, catastrophic collapse. Soros is pessimistic about the chances of the EU surviving.
Previously, he had warned that the EU is ‘on the verge of collapse’ because of its handling of the Greek debt crisis, while he has voiced his fears that the continued slowdown in China’s economic growth would keep global inflation rates dangerously low.
All this leads Soros to the inescapable conclusion that the EU will collapse with devastating consequences for the world financial markets. Adding to the woes of Soros and his fellow international investors is the prospect of Trump winning the presidency of the US.
Trump has floated the idea of American capitalism solving its insurmountable national debt crisis, standing at $19 trillion, by simply printing tons of worthless paper dollars to pay off its creditors, an idea that is being taken seriously by some economists. The thought that all their holdings in shares could become worthless overnight, along with the collapse of the EU and the general collapse of industry across the world is throwing the speculators into a frenzy.
They are dumping shares and buying either the only commodity that has real value, gold, or ‘safe’ shares in the form of government bonds. The yield on government bonds, the amount of interest paid on what are essentially loans to governments, has fallen dramatically this week to historic lows in both Britain and Germany as more investors snap them up.
The rush to gold and government bonds is a sure sign that Soros and the other giant investment companies have seen the writing on the wall. Whatever happens, the EU and the rest of the world capitalist system are doomed and the best they can do is park their wealth in ‘safe havens’ and hope to weather the impending storm.
For the working class, there are no safe havens, the inevitable storm will break right over their heads. The best thing that the working class of Britain, Europe and the rest of the world can do is to get rid of this rotten, bankrupt capitalist system forever. In Britain, this means voting to leave the EU this month.
This will immediately bring down Cameron and the Tory government and open the gates to bringing in a workers government that will proceed to establishing a socialist society. This will in turn massively hasten the entire collapse of the capitalist EU and throw the doors wide open to British workers joining with the working class of Europe in advancing to the victory of the European socialist revolution and the establishment of a united socialist states of Europe and going forward to the victory of the world socialist revolution.
Soros is right; the EU and world capitalism are finished – time to put it out of its misery with the socialist revolution.