In the period of currency wars, Russia and China should band together and stand united against Western economic expansion
Conflict between China and American billionaire George Soros has surfaced and become obvious for the world economic community. Last week George Soros informed Bloomberg TV that he was betting long-term US Treasury bonds against the American index S&P 500, currencies of Asian countries, and raw-material economies. Soros had promised a “hard landing” for Chinese economy, which will be inflicted by increasing capital outflow and massive government debt. Answers to these statements were published on the front of People’s Daily, the official newspaper of the Chinese Communist Party. The article was written by Mei Xinyu, a researcher employed by the Ministry of Commerce of PRC.
Mei Xinyu believes that Soros’ attacks on the yuan and Hong Kong dollar will fail. However, volatility on the international financial markets encouraged by the billionaire has left its mark: the yuan had lost 8% of its value throughout the previous year.
“On the macroeconomic scale, China is much more stable than other members of BRICS and majority of developing countries. Economic turbulence cannot bring China down; our country is still able to exercise economic power globally and without dire consequences,” the article highlights.
Not far away from China, the Russian ruble causes much more anxiety. Currency wars have long ago become reality; many researchers have investigated their nature and results. Russia takes no part in these wars but, still, suffers from the implications. The downfall of China’s economy could lead to the collapse of financial quotas on international stock markets, which would land a hard blow on the enfeebled Russian economy. Besides, the Russian government considers Soros’ activity a threat to society and the state.
The name of Soros has come to be associated with fraud and manipulation. Back in 1990s, Soros’ foundations, charities on the surface, were eroding the Russian economy from the inside. However, the situation is different now. In November, 2015 the Open Society Foundation was included in the list of ‘undesirable’ non-commercial organizations in the Russian Federation. China followed this example: its government initiated the development of a law on non-commercial organizations that will prohibit foreign investments and impose other limitations on their activity.
The post-Soviet states remain playgrounds for the zealous advocate of the “global government” and “open society” theory. For instance, Soros was recently awarded the prestigious Order of Liberty in Ukraine. As for Russia, the billionaire predicted the collapse of its economy in an interview to Bloomberg TV. “Russia’s situation is a treacherous one,” Soros notes. “Like China, it has enough in its reserve to last few more years. In future, we will have to deal with the imminent breakdown of the Russian economy. All the while, we are witnessing the gradual disintegration of the European Union.” His paradigm implies one and only global leader, which is USA.
Soros is highly experienced in the wagering of currency wars. He is a notorious profiteer whose affairs resulted in the collapse of the Bank of England in 1992. The sharp devaluation of the pound let Soros raise more than one billion dollars. For individuals like him, there is a unique economic term, which is plural from ‘Soros’. Soroi are economic masterminds who launch and fuel currency crises for their own enrichment and pleasure.
The Director of the Institute of Globalization and Social Movements Vasily Koltashov reckons that George Soros has recently got another opportunity for currency warfare, and it can turn out to be more disastrous than that of 1992. He presented his view of the situation in an interview to “The Russian Planet”.
“The yuan can lose twice its value, which is why an affair against the yuan can bring astronomic profits, especially if the profiteer receives information from insiders in the political system. George Soros has all it takes to play out this affair. For Russia, it will mean further decrease in oil prices and devaluation of the ruble. The fall of the yuan will lead to decreased prices of raw materials, on which many economies are based upon, including ours. As the result of these events, the second wave of the global crisis will reach its peak. It opens for great opportunities for profiteers.” The expert adds that Soros acts as a person close to the American political establishment.
It is obvious that Russia and many other countries are entering the period of great economic disturbance. One of the answers to this challenge could be Russian-Chinese comprehensive strategic cooperation, the prospect of which is highly appreciated by Sergey Lavrov, Head of the Russian Ministry of Foreign Affairs. The article of Mei Xinyu in People’s Daily reads that Soros’ war on Asian currencies creates new opportunities for countries of the Eastern Asia to develop financial cooperation. Moscow is also interested in this process. Some time before, the Russian Federation and People’s Republic of China agreed on transition to national currencies in mutual transactions.
The situation on the international currency markets is one of the most important agendas in the Russian expert society. On December 9, 2015 the “Russian Planet” and society “Russian Choice” held a discussion titled “Prospects of transformation of the global financial system with new currency zones, particularly the China and South-Eastern Asia zone with the yuan and the Eurasian zone with the ruble.” At this commotion, a bestseller Currency Wars by a famous financial expert Song Hongbing was presented. Mass media can also play their role in the currency warfare. George Soros himself acknowledged that the activity of profiteers is backed up by publications in mass media and analytical editions, which has a psychological effect on national communities.
They say, fight an enemy with his own weapon. Soros employs resources few can boast having, so the only way to fend him off is to form strong partnerships.
Translation by Daniil Yakovenko