The European Union will face a major financial crisis, believes billionaire George Soros, according to recent statements he gave to Bloomberg. In the opinion of the financier, the crisis may be triggered by the rise of the dollar exchange rate and the outflow of capital from emerging markets.
Among the potential causes of such disruptions, the businessman also listed the breakdown of the Iranian agreement and the destruction of the transatlantic alliance between the EU and the US. This development of a growing rift between the US and EU has been noted by FRN editors through any number of public statements to Iranian and Russian media made since 2014.
The investor also highlighted the “territorial disintegration” of the European Union, with Brexit being one of the manifestations of this process.
These should be read as threats, not forecasts.
The Brexit story itself, was noted by FRN’s parent organization, CSS, as being a complex maneuver which in fact involved a pro US point of interest – to weaken the EU if it continues an independent course from the US, and/or if the EU continues to look for an angle towards rapprochement with the Russian Federation. The Iranian nuclear deal rift parallels the Russia rift, in terms of EU/US relations.
Other reasons for the crisis, in Soros’ opinion, are the migratory crisis and the arrival of “populists” to power.
“It’s no longer a rhetorical figure to say that Europe is in existential danger, it’s a hard reality,” Soros was quoted as saying by Bloomberg .
In an interview, the head of the Center for Political-Economic Research, Vasily Koltashov , suggests what the billionaire actually meant by such statements.
“Soros wants to show that the EU is not moving in the direction that the US thinks is correct and that being closer to the US would lead the EU to economic stability, protecting it from this crisis, which, according to Soros, can be avoided through a whole series of actions, including policies, which does not seem very convincing. It turns out that the European Union is increasingly far from the US,” says the expert.
“On the contrary, we believe that if the EU were to follow the Soros and Transatlantic Partnership guidelines today (the conclusion of this agreement was planned for 2014, it should link the EU closely with the US and create unprecedented privileges for US companies in Europe), the crisis would have already happened.”
According to Koltashov, Soros’ statements show concern about the possible crisis, first in the US itself.
Koltashov then explains that these “bubbles” do not burst, and thus the US “has to steal” the other countries, including the EU, by calling it their “partner and friend”.
The recent economic history of the EU and US over the past decade show a different trend. It is the US which, in its deregulatory model, allowed for a stock market and real-estate bubble to form. These unstable debts were then repackaged with stable debts, and sold to EU banks, the same which form the basis of the EU. This created the EU’s so-called ‘Greek solvency crisis’ which in fact nothing to do with Greece’s economy or the spending and earning capacity of Greeks. It was entirely managed economically in Germany, engineered in the US, and politicized through Brussels as somehow relating to Greece. There were no actual Euros or US dollars which were somehow ‘mismanaged’ by Greek technocrats, outside of the usual debates over infrastructure spending and health and human welfare services, themselves already budgeted for and managed before the crises was imported into Europe from the US.