"Ils ne se servent de la pensée que pour autoriser leurs injustices, et emploient les paroles que pour déguiser leurs pensées"—François-Marie Arouet--'Voltaire', Dialogue xiv. Le Chapon et la Poularde (1766).
"Men use thought only to justify their wrong doings, and employ speech only to conceal their thoughts"From the Feb. 11 issue of New York Review of Books:
The following is a revised version of an interview between George Soros and Gregor Peter Schmitz of the German magazine WirtschaftsWoche.
Gregor Peter Schmitz: When Time put German Chancellor Angela Merkel on its cover, it called her the “Chancellor of the Free World.” Do you think that is justified?
George Soros: Yes. As you know, I have been critical of the chancellor in the past and I remain very critical of her austerity policy. But after Russian President Vladimir Putin attacked Ukraine, she became the leader of the European Union and therefore, indirectly, of the Free World. Until then, she was a gifted politician who could read the mood of the public and cater to it. But in resisting Russian aggression, she became a leader who stuck her neck out in opposition to prevailing opinion.
She was perhaps even more farsighted when she recognized that the migration crisis had the potential to destroy the European Union, first by causing a breakdown of the Schengen system of open borders and, eventually, by undermining the common market. She took a bold initiative to change the attitude of the public. Unfortunately, the plan was not properly prepared. The crisis is far from resolved and her leadership position—not only in Europe but also in Germany and even in her own party—is under attack.
Schmitz: Merkel used to be very cautious and deliberate. People could trust her. But in the migration crisis, she acted impulsively and took a big risk. Her leadership style has changed and that makes people nervous.
Soros: That’s true, but I welcome the change. There is plenty to be nervous about. As she correctly predicted, the EU is on the verge of collapse. The Greek crisis taught the European authorities the art of muddling through one crisis after another. This practice is popularly known as kicking the can down the road, although it would be more accurate to describe it as kicking a ball uphill so that it keeps rolling back down. The EU now is confronted with not one but five or six crises at the same time.
Schmitz: To be specific, are you referring to Greece, Russia, Ukraine, the coming British referendum, and the migration crisis?
Soros: Yes. And you haven’t even mentioned the root cause of the migration crisis: the conflict in Syria. Nor have you mentioned the unfortunate effect that the terrorist attacks in Paris and elsewhere have had on European public opinion.
Merkel correctly foresaw the potential of the migration crisis to destroy the European Union. What was a prediction has become the reality. The European Union badly needs fixing. This is a fact but it is not irreversible. And the people who can stop Merkel’s dire prediction from coming true are actually the German people. I think the Germans, under the leadership of Merkel, have achieved a position of hegemony. But they achieved it very cheaply. Normally hegemons have to look out not only for their own interests, but also for the interests of those who are under their protection. Now it’s time for Germans to decide: Do they want to accept the responsibilities and the liabilities involved in being the dominant power in Europe?HT: FT Alphaville's Further Reading post, Jan. 21, 2016.
Schmitz: Would you say that Merkel’s leadership in the refugee crisis is different from her leadership in the euro crisis? Do you think she’s more willing to become a benevolent hegemon?
Soros: That would be asking too much. I have no reason to change my critical views on her leadership in the euro crisis. Europe could have used the kind of leadership she is showing now much earlier. It is unfortunate that when Lehman Brothers went bankrupt in 2008, she was not willing to allow the rescue of the European banking system to be guaranteed on a Europe-wide basis because she felt that the prevailing German public opinion would be opposed to it. If she had tried to change public opinion instead of following it, the tragedy of the European Union could have been avoided.
Schmitz: But she wouldn’t have remained chancellor of Germany for ten years.
Soros: You are right. She was very good at satisfying the requirements and aspirations of a broad range of the German public. She had the support of both those who wanted to be good Europeans and those who wanted her to protect German national interest. That was no mean feat. She was reelected with an increased majority. But in the case of the migration issue, she did act on principle, and she was willing to risk her leadership position. She deserves the support of those who share her principles.
I take this very personally. I am a strong supporter of the values and principles of an open society because of my personal history, surviving the Holocaust as a Jew under the Nazi occupation of Hungary. And I believe that she shares those values because of her personal history, growing up under Communist rule in East Germany under the influence of her father, who was a pastor. That makes me her supporter although we disagree on a number of important issues....MORE
Not to put too fine a point on it but:
The true use of speech is not so much to express our wants as to conceal them.
—Oliver Goldsmith, The Bee, No. 3. (Oct. 20, 1759.)
On the other hand, since he retired from active management his pronouncements on investing seem more transparent.
From Barron's Stocks to Watch:
DAVOS: Soros Shares Investment Ideas for Deflationary Environment
Billionaire philanthropist George Soros has an investment strategy for the upheaval in financial markets.
“The one big idea is deflation,” Soros told guests over dinner on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland, on Thursday.
He recommends investors short the S&P 500, short currencies against the dollar, and go long on government bonds.
Soros, 85 years old, hasn’t actively managed money in years, so his strategy may be only theoretical.
Nonetheless, he doesn’t think that markets have bottomed out yet.If gentle reader is interested, here's another interview Mr. Soros did with Gregor Schmitz in 2014:
Answering questions from Bloomberg Television’s editor-at-large and presenter Francine Lacqua, Soros shared his opinions on a wide range of topics.
He admitted bias in saying Hillary Clinton was the “most qualified” candidate in the U.S. presidential election and added, “Donald Trump is doing the work of ISIS.”...MORE