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Soros adds to doubts by shorting dollar
By Simon English in New York (Filed: 21/05/2003)
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2003/05/21/cnsoros21.xml&menuId=242&s....

George Soros, the man who broke the Bank of England, yesterday increased the uncertainty surrounding the US dollar by revealing that he has been selling the currency for some time.

The billionaire financier also chided John Snow, US Treasury Secretary, for his remarks suggesting that the Bush administration was shifting away from a so-called strong dollar policy. In an interview with television channel CNBC, Mr Soros said: "I have to disclose that I now have a short position against the dollar because I listen to what the Secretary of the Treasury is telling me."

The dollar has fallen sharply against major currencies lately, hitting a four-year low this week. Mr Snow unnerved currency traders by appearing unconcerned by recent falls, which he called "fairly modest". Mr Soros declined to speculate how much further the currency had to tumble, saying: "I think the treasury secretary was somewhat irresponsible talking down the dollar, I try to be more responsible."

In 1992 Mr Soros made an estimated $1 billion profit by betting against the pound, a tactic that eventually forced the UK out of the European Exchange Rate Mechanism. He declined to say how long he has been selling the dollar - he predicted it would dramatically weaken a year ago. In an attempt to repair the damage, the White House said yesterday that President Bush remained committed to a strong dollar.

By late afternoon in New York the euro edged up to $1.1712 against the dollar, which also lost ground against the pound, up nearly half a per cent at $1.6403, and the yen.

Mr Soros also joined the criticism of President Bush's plan to end double taxation of share dividends, fearing the effect this will have on government debts. "It is not a very effective way of using a deficit. We need a stimulative monetary policy and a temporary deficit, not a permanent one," he said.

Warren Buffett, the second richest man in the world, repeated his opposition to the dividend scheme in a trenchant editorial for the Washington Post. He called the tax cuts "class welfare, for my class".


(Buffett and Soros don't seem be in sync on economic issues with the establishment...don't hey realize they are sure to lose money by not taking Greenspan's and Snow's pronouncements as gospel? and what imaginary problems do Buffett and Soros find in entirely legitimate instruments like massive amounts of derivatives or the govermental promise to support debt and equity markets by any means necessary...it's all for the greater good, after all, no?...<ggg> )