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The bubble of American supremacy [George Soros]
The Korea Herald ^ | 12 March 2003 | George Soros

Posted on 03/12/2003 4:12:41 PM PST by AndyJackson

As American and British troops prepare to invade Iraq, public opinion in these countries does not support war without U.N. authorization. The rest of the world is overwhelmingly opposed to war. Yet Saddam Hussein is regarded as a tyrant who needs to be disarmed, and the U.N. Security Council unanimously passed Resolution 1441 which demanded that Saddam destroy his weapons of mass destruction. What caused this disconnect?

Iraq is the first instance when the Bush doctrine is being applied and it is provoking an allergic reaction. The Bush doctrine is built on two pillars: (1) The United States will do everything in its power to maintain its unquestioned military supremacy; and (2) the United States arrogates the right to preemptive action.

These pillars support two classes of sovereignty: American sovereignty, which takes precedence over international treaties and obligations, and the sovereignty of all other states. This is reminiscent of George Orwell's Animal Farm: All animals are equal, but some animals are more equal than others. To be sure, the Bush doctrine is not stated starkly; it is buried in Orwellian doublespeak. The doublespeak is needed because the doctrine contradicts American values.

The Bush administration believes that international relations are relations of power; legality and legitimacy are mere decorations. This belief is not false, but it exaggerates one aspect of reality to the exclusion of others. The aspect it stresses is military power. But no empire could ever be held together by military power alone.

Yet that belief guides the Bush administration. Prime Minister Ariel Sharon of Israel shares the same belief and look where that has led. The idea that might is right cannot be reconciled with the idea of an open society. Hence the need for Orwellian doublespeak.

But nobody is in possession of the ultimate truth. Those who make such claims are bound to be wrong at times, and so can enforce their claims only by coercion and repression. Bush makes no allowance for the possibility that he may be wrong, and he tolerates no dissent. If you are not with us, you are with the terrorists, he proclaims.

Of course, the presence of extremist views in the executive branch does not make America a totalitarian state. The principles of open society are enshrined in the Declaration of Independence and the institutions of American democracy are protected by the Constitution. There are checks and balances, and the President must obtain the support of the people. Nevertheless, the Bush doctrine could do untold harm before it is abandoned - as eventually it will be.

I see parallels between the Bush administration's pursuit of American supremacy and a boom-bust process or bubble in the stock market. Bubbles do not arise out of thin air. They have a solid basis in reality, but misconception distorts reality. Here, the dominant position of the United States is the reality, the pursuit of American supremacy the misconception.

For a while, reality reinforces the misconception, but eventually the gap between reality and its false interpretation becomes unsustainable. During the self-reinforcing phase, the misconception may be tested, and when a test is successful the misconception is reinforced. This widens the gap, leading to an eventual reversal. The later it comes, the more devastating the consequences.

There seems to be an inexorable quality about this, but a boom-bust process can be aborted at any stage. Most stock market booms are aborted long before the extremes reached by the recent bull market. The sooner this happens, the better. That is how I view the Bush administration's pursuit of American supremacy.

The Bush administration came into office with an ideology based on market fundamentalism and military supremacy. Prior to Sept. 11, 2001, it could not make much headway in implementing its ideology because it lacked a clear mandate and defined enemy. Terrorism provided the ideal enemy because it is invisible and never disappears. By declaring war on terrorism, President Bush gained the domestic mandate he lacked.

But his policies have already caused severe unintended consequences. The EU and NATO are divided. The United States is perceived as a giant bully throwing its weight around. Afghanistan has been liberated, but law and order has not been established beyond Kabul. Indeed, President Karzai must be protected by American bodyguards. The Israeli-Palestinian conflict festers.

Beyond Iraq an even more dangerous threat looms in North Korea - a crisis precipitated by President Bush in his eagerness to break with what he deemed to be Clinton's appeasement. Bush repudiated the "sunshine policy" introduced by President Kim Dae-jung of South Korea and included North Korea in the axis of evil.

Rapid victory in Iraq with little loss of life could bring about a dramatic change in the overall situation. Oil prices could fall, stock markets could celebrate, consumers could resume spending, and business could step up capital expenditures. America would end its dependency on Saudi oil, the Israeli-Palestinian conflict could become more tractable, and negotiations could start with North Korea without loss of face. That is what Bush counts on.

But military victory in Iraq is the easy part. It is what comes after that gives pause. In a boom-bust process, passing an early test tends to reinforce the misconception which gave rise to it. That is to be feared here.

It is not too late to prevent the boom-bust process from getting out of hand. The U.N. could accede to chief weapons inspector Hans Blix's request for several months to complete his inspections. America's military presence in the region could be reduced, but it could be beefed up again if Iraq balks. Invasion could take place at summer's end. This would be a victory for the U.N. and for the United States whose prodding made the Security Council act resolutely. That is what the French propose, but that is not what is going to happen. President Bush has practically declared war.

It is to be hoped that Iraq's conquest will be swift and relatively painless. Removing Saddam is a good thing; yet the way President Bush is going about it must be opposed. In the long run, an open society cannot survive unless the people who live in it believe in it.

George Soros is chairman of Soros Fund Management and of the Open Society Institute. - Ed.


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events; War on Terror
KEYWORDS: bushdoctrineunfold
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To: AdamSelene235
That is a good one - totally consistent with his extremely limited intellect. Where is the cite for the statement?
41 posted on 03/12/2003 7:57:38 PM PST by Bedford Forrest (Roger, Contact, Judy, Out. Fox One. Splash one.)
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To: Boot Hill
I wasn't too surprised to see among the chronic members of the NORML Advisory Council, Ron Dellums, a Communist-Democrat.
42 posted on 03/12/2003 8:04:06 PM PST by Cultural Jihad
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To: DoughtyOne
#24 That was the best thing that I have read in a LONG time!
43 posted on 03/12/2003 8:06:05 PM PST by hripka
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To: T. Jefferson
George is still bitter from his little dance with the internet bubble. He waited 3 years and then went long in early 2000, lost several billion in 60 days and if I recall correctly fired the top man and closed the fund. 

That's my recollection too. Fired the honcho and closed the fund is right. Prolly bought a lot of Yahoo and Amazon at 200$

Kind of lost his magic touch without his sleazy palm greasing inside info. 

He and fund managers had the inside track to all kinds of dot bomb crud and lost big

Thanks for playing George, now shut up and go hug a communist.

Let's give him credit. He's greedy bast**d who was smart enough to make no money draining pledges to the UN. Unlike --->>>

 

44 posted on 03/12/2003 8:06:52 PM PST by dennisw ( http://www.littlegreenfootballs.com/weblog/weblog.php)
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To: Numbers Guy
Soros is a brilliant man, however as he has become wealthy he admits to being a classic "limousine liberal." As a philantopist, he is opposed to any nationalist sentiments yet also sees the UN as useless. He discounts certain facts about the US role in maintaining world order. We have reluctantly become the world's police. IMHO the Bush doctrine is just more aggressive crime fighting. He also discounts the fact that We have permitted other nations to become nuclear powers without military intervention. From the first paragraph he uses the word "disconect" to allude to his reflexive theory of the markets and pushes his argument ad absurdum to make it fit.
The real sin of omission is that he fails to support the true Open Society.


45 posted on 03/12/2003 8:08:21 PM PST by ffusco ("Essiri sempri la santu fora la chiesa.")
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To: Numbers Guy
hates the idea of competition because he made his fortune through inside deal-cutting

It would seem that he would feel right at home on Wall Street where the most corrupt criminals in the world find a home.

Richard W.

46 posted on 03/12/2003 8:17:46 PM PST by arete (Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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To: Fractal Trader
Perhaps currency is not the best way to apply the observation. Take two stocks that tend to imitate each other graphically, find the leader in the trend and use it to predict the other.

47 posted on 03/12/2003 8:19:29 PM PST by ffusco ("Essiri sempri la santu fora la chiesa.")
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To: dennisw
He's greedy bast**d who was smart enough to make no money draining pledges to the UN like Turner.

Ted drops out of 90% of his pledges...his $1B pledge over 10 years to the UN was to be paid out of appreciation of his AOL stock. He made one payment, unless they spin off AOL NOW before the indictments come he'll get out of his UN pledge too.

Soros has philanthropy in 50 countries. It was a fascinating attempt to bring capitalism in poor communist countries. However, he's taken a hard left turn in the last few years and bashes Bush vs. Terrorism and anything pro American. Soros Foundation

48 posted on 03/12/2003 8:24:31 PM PST by T. Jefferson
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To: T. Jefferson
Soros has philanthropy in 50 countries. It was a fascinating attempt to bring capitalism in poor communist countries. ......

He did some good. A few years ago I met a Lithuanian who went to a Soros capitalism school in Hungary
49 posted on 03/12/2003 8:27:26 PM PST by dennisw ( http://www.littlegreenfootballs.com/weblog/weblog.php)
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To: AndyJackson
Soros's apparent memory of the peaceful twin Shangri-La's of "Palestine" and Afghanistan before Bush is laughable. When, in all of modern history has there been peace in these troubled lands? Bush wasn't even born when the trouble began. The Middle East will have the best shot it's ever had at real peace, thanks to the guts of our President. A bumpy ride with the EU was inevitable from the beginning. How could it be otherwise?
50 posted on 03/12/2003 11:10:27 PM PST by Colorado Doug
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To: DoughtyOne
That was a very well written counterpoint. I enjoyed it.
51 posted on 03/12/2003 11:21:28 PM PST by Colorado Doug
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To: Fractal Trader
.....(Soros) once made billions on betting that the pound would fall, but has he really done much since then? Is his analysis valid? Or is he a press whore whose reputation is built on luck, past successes, and faded glory?

Hmmmm. Lessee. Tough choice. OK. I'll go with "Soros is a press whore
whose reputation is built on luck, past successes, and faded glory." (/sarcasm off)

52 posted on 03/13/2003 7:46:36 AM PST by Liz
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To: Bedford Forrest
Where is the cite for the statement?

Its at the end of his book "The Alchemy of Finance" (worth reading btw...he's evil not stupid).

53 posted on 03/13/2003 8:39:03 AM PST by AdamSelene235 (Like all the jolly good fellows, I drink my whiskey clear.)
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To: AndyJackson
bttt
54 posted on 08/09/2003 2:30:32 PM PDT by Tailgunner Joe
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To: AndyJackson
Bush's sucess has Soros seeing red:

Democratic group gets a $10 million boost - multibillionaire Soros pledges money to defeat Bush ^

55 posted on 08/10/2003 4:52:40 PM PDT by DPB101
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To: AndyJackson; T. Jefferson; Steven W.; Servant of the Nine; seamole; DoughtyOne; Liz
Check out the similarities between this article and the current feature story in the Atlantic Online. (If at first you don't succeed....)...

http://www.theatlantic.com/issues/2003/12/soros.htm

56 posted on 11/25/2003 10:56:35 AM PST by Fracas
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To: Fracas
Nice find.
57 posted on 11/25/2003 2:02:21 PM PST by Liz
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To: Grampa Dave; SierraWasp; BOBTHENAILER; Flurry; PGalt; cardinal4; martin_fierro; Timesink; ...
Check out the similarities between this article and the current feature story in the Atlantic Online. (If at first you don't succeed....)... http://www.theatlantic.com/issues/2003/12/soros.htm,/I.

How's about that, eh? The Soros drumbeat is getting louder.

58 posted on 11/25/2003 2:10:58 PM PST by Liz
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To: Liz; Grampa Dave; BOBTHENAILER
"(If at first you don't succeed....)" GIVE UP!!!

Hay! The little spell checker button GAVE UP!!!

59 posted on 11/25/2003 2:27:17 PM PST by SierraWasp (Like, hey man, SHIFT_HAPPENS!!! Besides, who wants to be SHIFTLESS???)
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To: Liz; Fracas; AndyJackson; All
Thanks for the ping, current article in Atlantic Monthly, original post, comments.

Tremendous insight into a sinister mind.

60 posted on 11/26/2003 4:42:10 AM PST by PGalt
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