George Soros: "Brexit Makes EU Disintegration Irreversible"

Tyler Durden's picture

Just four days ago, the "big guns" when George Soros wrote a Guardian op-ed titled  "The Brexit crash will make all of you poorer – be warned" in which he said that "as opinion polls on the referendum result fluctuate, I want to offer a clear set of facts, based on my six decades of experience in financial markets, to help voters understand the very real consequences of a vote to leave the EU." We promptly countered that Soros' set of "facts" may be clouded by his far greater equity stake in interests around Europe, and the globe, which would be drastically impacted by not only a Brexit, but by a European Union which is suddenly on the rocks.  That's precisely what happened when, as we wrote earlier, the world’s 400 richest people lost $127.4 billion Friday following the Brexit vote.

Soros was among them.

However, seemingly unhappy that his generously altruistic warning was so roundly ignored by the peasants, not to mention his sudden concern about the future of the European Union whose collapse would also destroy the premise behind Soros' Open Society globalization initiative, the 85-year-old billionaire has decided to follow up with a case of sour grapes and go all in, making another forecast - since his first one was so clearly rejected - and in what may end up roiling markets even more, moments ago Soros said in his second op-ed of the week that the "catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible. Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in the short to medium term. The pound plunged to its lowest level in more than three decades immediately after the vote, and financial markets worldwide are likely to remain in turmoil as the long, complicated process of political and economic divorce from the EU is negotiated. The consequences for the real economy will be comparable only to the financial crisis of 2007-2008."

But while Soros is lukewarm on the UK, his forecast about Europe is far more dire.

But the implications for Europe could be far worse. Tensions among member states have reached a breaking point, not only over refugees, but also as a result of exceptional strains between creditor and debtor countries within the eurozone. At the same time, weakened leaders in France and Germany are now squarely focused on domestic problems. In Italy, a 10% fall in the stock market following the Brexit vote clearly signals the country’s vulnerability to a full-blown banking crisis – which could well bring the populist Five Star Movement, which has just won the mayoralty in Rome, to power as early as next year.

Which, incidentally, is what we warned earlier today when saying that "it appears that the trade now is not to sell Sterling, at least not anymore: one should have done that at 1.50 when everyone was wrong about the Brexit outcome based on manipulated polls as we explained ahead of the event. If anything, sterling will rebound following the positive boost to the UK economy following the devaluation. It's the long EUR trade we would be far more concerned about here."

One can be absolutely confident that Soros, who as revealed earlier this month is short the markets, is very, very short the Euro.

This is what else he said in his Project Syndicate Op-Ed, excerpted:

Brexit and the Future of Europe

 

Britain, I believe, had the best of all possible deals with the European Union, being a member of the common market without belonging to the euro and having secured a number of other opt-outs from EU rules. And yet that was not enough to stop the United Kingdom’s electorate from voting to leave. Why?

 

The answer could be seen in opinion polls in the months leading up to the “Brexit” referendum. The European migration crisis and the Brexit debate fed on each other. The “Leave” campaign exploited the deteriorating refugee situation – symbolized by frightening images of thousands of asylum-seekers concentrating in Calais, desperate to enter Britain by any means necessary – to stoke fear of “uncontrolled” immigration from other EU member states. And the European authorities delayed important decisions on refugee policy in order to avoid a negative effect on the British referendum vote, thereby perpetuating scenes of chaos like the one in Calais.

 

German Chancellor Angela Merkel’s decision to open her country’s doors wide to refugees was an inspiring gesture, but it was not properly thought out, because it ignored the pull factor. A sudden influx of asylum-seekers disrupted people in their everyday lives across the EU.

 

The lack of adequate controls, moreover, created panic, affecting everyone: the local population, the authorities in charge of public safety, and the refugees themselves. It has also paved the way for the rapid rise of xenophobic anti-European parties – such as the UK Independence Party, which spearheaded the Leave campaign – as national governments and European institutions seem incapable of handling the crisis.

 

Now the catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible. Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in the short to medium term. The pound plunged to its lowest level in more than three decades immediately after the vote, and financial markets worldwide are likely to remain in turmoil as the long, complicated process of political and economic divorce from the EU is negotiated. The consequences for the real economy will be comparable only to the financial crisis of 2007-2008.

 

That process is sure to be fraught with further uncertainty and political risk, because what is at stake was never only some real or imaginary advantage for Britain, but the very survival of the European project. Brexit will open the floodgates for other anti-European forces within the Union. Indeed, no sooner was the referendum’s outcome announced than France’s National Front issued a call for “Frexit,” while Dutch populist Geert Wilders promoted “Nexit.”

 

Moreover, the UK itself may not survive. Scotland, which voted overwhelmingly to remain in the EU, can be expected to make another attempt to gain its independence, and some officials in Northern Ireland, where voters also backed Remain, have already called for unification with the Republic of Ireland.

 

The EU’s response to Brexit could well prove to be another pitfall. European leaders, eager to deter other member states from following suit, may be in no mood to offer the UK terms – particularly concerning access to Europe’s single market – that would soften the pain of leaving. With the EU accounting for half of British trade turnover, the impact on exporters could be devastating (despite a more competitive exchange rate). And, with financial institutions relocating their operations and staff to eurozone hubs in the coming years, the City of London (and London’s housing market) will not be spared the pain.

 

But the implications for Europe could be far worse. Tensions among member states have reached a breaking point, not only over refugees, but also as a result of exceptional strains between creditor and debtor countries within the eurozone. At the same time, weakened leaders in France and Germany are now squarely focused on domestic problems. In Italy, a 10% fall in the stock market following the Brexit vote clearly signals the country’s vulnerability to a full-blown banking crisis – which could well bring the populist Five Star Movement, which has just won the mayoralty in Rome, to power as early as next year.

 

That is where we are today. All of Europe, including Britain, would suffer from the loss of the common market and the loss of common values that the EU was designed to protect. Yet the EU truly has broken down and ceased to satisfy its citizens’ needs and aspirations. It is heading for a disorderly disintegration that will leave Europe worse off than where it would have been had the EU not been brought into existence.

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Swamp Yankee's picture

BUILD A BRIDGE OUT OF HIM!

Bumpo's picture

Oh well! Gotta break a few eggs to make an omelette

eatthebanksters's picture

He's an asshole...he's just trying to push the market down more so he can make more money on his shortd...has this guy ever done anything truly benevolent where he didn't personnally reap huge rewards?  He's a fucking creeper...

Boris Alatovkrap's picture

George Soros epidermitological condition is "degredation irreversible"

Boris is suggest Soros is waste of skin, but that analogy is not work when skin is so bad.

Billy the Poet's picture

Britain, I believe, had the best of all possible deals with the European Union, being a member of the common market without belonging to the euro and having secured a number of other opt-outs from EU rules. And yet that was not enough to stop the United Kingdom’s electorate from voting to leave. Why?

If "a number of other opt-outs from EU rules" and not "belonging to the euro" are good things then maybe opting out entirely will be even better.

HowdyDoody's picture

The 'Fuck the EU' process is proceeding nicely. That will teach them to criticise Israel.

knukles's picture

He's a fucking Reptilian
He "supported" stay, his portfolio said he was betting on leave
He won 20 litres of virgin unborn blood.

Billy the Poet's picture

The EU’s response to Brexit could well prove to be another pitfall. European leaders, eager to deter other member states from following suit, may be in no mood to offer the UK terms – particularly concerning access to Europe’s single market – that would soften the pain of leaving. With the EU accounting for half of British trade turnover, the impact on exporters could be devastating (despite a more competitive exchange rate)...That is where we are today. All of Europe, including Britain, would suffer from the loss of the common market."

Does the UK not buy as well as sell? Wouldn't EU exporters also suffer from any spiteful gamesmanship? Why should the market, common or otherwise, need to be disrupted unless powerful forces wanted to disrupt it?

eforce's picture

"We shall create by all the secret subterranean methods open to us and with the aid of gold, which is all in our hands, a universal economic crises whereby we shall throw upon the streets whole mobs of workers simultaneously in all the countries of europe. These mobs will rush delightedly to shed the blood of those whom, in the simplicity of their ignorance, they have envied from their cradles, and whose property they will then be able to loot."

 

-The Protocols.

Pinto Currency's picture

 

 

Rigging interest rates by structuring the LBMA with unallocated gold and silver spot contracts makes bond market and western economic collapse inevitable, Giorgi Schwartz.

Don't blame it on Brexit.

BaBaBouy's picture

How Much$$$ Will He make this time ???

santafe's picture

It's NOT how much, it's what his TRUE GOAL is. Keep his real agenda going.
https://goo.gl/bFYusM

eforce's picture

@Pinto, If they do blame it on Brexit then the UK's future may be quite bleak.

Pinto Currency's picture

 

eforce - it is anyway.  The City of London has hosted a massive fraud on the LBMA with the selling of unbacked gold and silver spot contracts to rig the price of gold and silver since the 1980s in coordination with the Bank of England and the bullion banks.

That metals rig is collapsing and along with it the false Western financial structures built upon this deception.

 

svayambhu108's picture

Nice that they let him out of his formaldehyde at day I guess they found an ointment of a sort to protect him from the sun rays

johngaltfla's picture

I don't know but reports I saw on BBG and Sky said he made 13% on Brexit being short the cable and long gold plus major gold miners.

glenlloyd's picture

He's right about one thing, the disintegration of the EU project will leave everyone worse off than if it had never existed...right, because it should never have existed.

He's such a pompous ass. Now the 'should be dead by now' billionaire gets to wag his finger at all the plebes for voting the opposite of what he said to. Boo Hoo you old sack of shit, go disappear somewhere so we don't have to hear you belly ache about how the Brits are bad for doing this and whine because you lost all this money from wrong way bets.

Any union between sovereigns should never have been so close that to separate would bring about problems. That's the issue in a nutshell, it does no good to be bound to another entity so closely, it makes the divorce messy and near impossible.

OverTheHedge's picture

Hang on - isnt Soros responsible for funding the refugee crisis? Aren't his NGOs helping people to leave the camps?

My reaction is this: he creates a refugee crisis, manipulates to help create brexit,shorts the market, and is now prognosticating disaster. I take it  his shorts are still in place? This guy's planning and creative manipulation is breathtaking. He is truly awesome. Of course, several (thousand) people had to die to get this elegant little play to work, but that's hardly important, is it?

Is it?

I might just change my mind about the existence of Satan, and therefore God, if this is actually what this scumbag has done.

DerdyBulls's picture

Couldn't agree more. If Britian was the glue holding the EU financial system together then it deserves to break apart. As it does, perhaps the people in each respective country will recognize they can't rely on sovereign co-dependency to finance the problem of government idolatry.

Lore's picture

I don't understand his purported concern for the EU, when he, he himself, Mr. Grinch, reportedly helped to poison the "Great Experiment" by financing the transportation of hundreds of thousands of migrants.  Was it supposed to serve as a distraction, a ploy to shift focus away from national concerns?  If so, it seems poorly considered, because nothing so obviously undermines the health of nations and creates fear for one's home as perceived invasion by a bunch of generally useless, unskilled, culturally-alien, economically parasitic bums from, well, wherever.  The priority for nationalist parties should be a plank to SEND 'EM HOME.  Mr. Soros appears to be a hypocrite, having apparently engaged in a strategy that embodies the Cloward-Piven strategy of breaking individual nations by destroying national economies by overwhelming their welfare programs to a point where they buckle, creating an opportunity for globalist banksters to step in and permanently enslave the populace in shackles of debt.  Well, if this is more or less accurate, then Mr. Soros, you need to CLOSE your "Open Society." 

Ghordius's picture

Lore, look again at your own words: "...he helped to poison it..."

why do you believe he ever was a fan of the EU? because he claimed to be a fan of it?

if you believe he is a proponent of "One Rule For All", aka "globalist", why should Soros like a club like the EU... that has an exit door?

neutrino3's picture

Apologies that I used your position in the comment tread.(everybody here are jumpy on that, unless it is somebody well established)

Found your opinion well entangled with common perspective here.

I will only add, that month+ ago Soros was ambushed by a journo ( Romes convention in Brussels) with brazen question: Why are you destroying smaller nations with your branches of Open society? ... and the answer was: I have no clue what the branches do, it is sole their tactic. ... ?????

Witnessing their practice to hire mob goons  in the first and last row, and perzonazz that haven't work a day in their life, still buying flats and houses during "for freedom revolution", in obvious Provoc for physical answer of us, commoners. (one should bare in mind that we all know each other) Just to invoke (ukrainize) firm monitoring hand of EU unelected hired apparatchik asses (hidden aristocrats), with sole unprecedented purpose to change my Name.     

This give me legitimacy to throw a Specul on the table: Soros is only Brand name, for "unknown" subterranean agency  underlying Open society, providing insider political and finance information in return.

Apologies again. There, passed to The Greater Internet Mind.     

Lore's picture

Thank you. I've been asking wrong questions. Got to start somewhere...!

RaceToTheBottom's picture

Just moving the plan of for the worldwide SDR program ahead of original schedule.

DownWithYogaPants's picture

Did he forget to include the explanation why the collapse of EU is inevitable.  Seems like that should be in the first paragraph but no.  God so many extra words I just could not plow through yet another poorly made point.

Bob's picture

The primary mechanism--and that of our real masters--would be the "financial markets." 

Oooooo, markets might revert to some kind of sane mean--OMG, TEOTWAWKI!

Fuck the markets.  And all the parasitic freaks who live in them. 

It's a rabid dog that should be kicked from its throne, dragged out back and put down for good. 

Let the worms pick the bones. 

TahoeBilly2012's picture

Nice folks these "Protocols" people. Warms the heart doesn't it.

nibiru's picture

This is a funny thing because the EU will now block any country trying to leave from leaving with extortion.

 

You leave and we will put custom duties on your goods - making it obvious that the EU will end up being GER+FRA + orbiters with ever increasing mercantilism. China and Russia will be free to trade with those who leave for the better life of those able to stand up and oppose authoritarianism of the EU politburo. 

We started beautifully with negative integration and free market target - the 70's and '80s. Then everything went to crap.

http://independenttrader.org/why-brexit-is-sending-seismic-quakes-all-over-the-world.html

Sirius Wonderblast's picture

Soros comments are laughably skewed (quelle surprise!)

The balance of payments between UK and EU speaks for itself, reinforced by clear comments from Germany and it's business leaders that in more or less so many words they won't let the EU foul or hinder the trading relationship. I susoect that settles that,however piqued Juncker. Tusk etc may be.

In truth, I honestly hope the French, Dutch, Italians and all else get their voice, and pull down the rotten edifice.

Onthe subject of edifices, the BBC has been disgraceful beyond words on the topic, and continues with the most phenomenally skewed coverage. An almighty sulk is being had by them and their little buddies in Westminster. The sooner the BBC goes too, the better.

Rip van Wrinkle's picture

Agree with every word. The BBC is the most disgusting orgainsation in the world. Bar none.

 

Funny enough, I was talking to someone who works in PR for the BBC tonight. Asked her if she had any thoughts of becoming a journalist there as she has the skills to do so. The answer:- 'You've no idea how tyrannical the editorial side of it is. You sell your soul to become a journalist with the BBC'.

DanDaley's picture

Agree with every word. The BBC is the most disgusting orgainsation in the world. Bar none.

 

Hey, don't forget NPR...they're right up there, too.

RaceToTheBottom's picture

There is no Journalism anymore, at least by the original meaning of the world.

I would shudder at the thought of trying to embark on that as a career now.

 

peddling-fiction's picture

This comment by Soros is confirmation that TPTB did want and thus allowed Brexit.

Even Eurobrats want to put speed into article 50.

http://www.euronews.com/2016/06/25/eu-foreign-ministers-demand-quick-div...

eatthebanksters's picture

What is becoming very clear as a result of the Brexit is that the biggest financial institutions in the world have depended on open borders and intertwined financial engneering to make increasing amounts of money off of their exotic securities (derivatives and such).  This basically tells me that the big banks can't make money the old fashioned way and that's why the big money is telling their puppet politicians to stop this anti globalization stuff. Well, the little guy who is benefitting naught from the largess of CB's to the oligarchs and their big money businesses is finally saying enough.  The little guy is tired of watching his rights, wealth and value system wiped away so the big financial institutions can benefit beyond comprhension.  Will the big banks suffer and will the little people lose as a result?  Sure, but way less than the big banks and the oligarchs that control them.  In the end, maybe the big corporate bullshit will hopefully fall apart and we can go back to business where the little guy business owner can once again compete and where the littel guy gets paid for making an honest living and where the behemoth financial institutions have to start making money the old fashioned way...power to the people.

geno-econ's picture

If fear of migration is a major reason for Brexit, then US policy in ME, Ukraine and more recently Syria is the real reason for Brexit, but Soros would never admit to it nor would Neocons.  NATO will also become less relavent, as it should be 

Debt-Is-Not-Money's picture

"NATO will also become less relavent, as it should be "

NATO should have been put out of it's (our) misery 25 years ago!!

U.S. policy in the Ukraine, Syria and Libya were those of Killary Klinton. She wants to do with the planet what she did to Vince Foster.

Pure Evil!

El Vaquero's picture

US policy is certainly a big factor, but EU policy is at least as big.  There is no denying that bombs falling tends to make people want to leave, but when a bunch of third worlders are promised the world if they can just make it to Europe, don't be surprised when people from all over the MENA flock to Europe, and that's exactly what is happening.  People are moving there from both war torn shitholes, as well as places that we haven't bombed or destabilized.  If the EU were to cut a lot of its welfare off to these people, they would stop coming and many who are there would go back.  

Miggy's picture

Man I could only hope this would happen.

ack's picture

The ONLY good banking is COMMUNITY based banking. Where the bank does its primary business in the community where it's management RESIDES. ONLY ZIO-scum JOOS and their shabbos want the kind of NWO GLOBAL banking where there are NO responsibilities to the people who live in the communities around them. Cuz its easier to SCREW people they don't hafta see at the market each week. Fuck them. Fuck them. Fuck them. Notice that was said 3X. Numbers are important to them.    

DizzyFish's picture

Yes we do import. Or at least we want to, but import taxes and ridiculous regluations make it impractical. I'd love to see renegotiation with the US, they have some excellent products that we just couldn't justify the price of getting our hands on for customers. Now we won't be hindered by Eurocratic anticompetitiveness that pushes up prices for what we need if it comes from outwith the EU. My heart bleeds for the faceless, nameless unelected Eurocrats who have lined their pockets making work for themselves whilst destroying industry in the UK with their protectionist stance. Or maybe not. In fact, fuck 'em. I'd rather we fell on our own sharp sword than died a lingering death via their blunt edge.

Ready to roll with these exciting times.

El Vaquero's picture

Exactly Billy.  I don't have the numbers in front of me, but I did look this up a couple of weeks ago.  The UK imports more from the EU than the EU imports from the UK.  This is by a fairly large margin too.  IIRC, something like 1.5x or 2x more goes into the UK from the EU than goes into the EU from the UK.  That was, of course, using dollar values of goods at the pound's exchange rate at the time, which was around $1.45.  Something tells me that Audi and BMW will scream bloody murder if the EU tries to punish the UK.  

Supafly's picture

He's like the Brian Bosworth of the financial world.

 

COSMOS's picture

The British left because they didnt want to have all their women raped by the BASHI-BAZOUK.

https://en.wikipedia.org/wiki/Bashi-bazouk

The rapefugees are just Bashi-bazouk same pattern of rapes and destruction. Also look at the postcard from Constantinople, they are a mix of Arabs/North Africans. Some things NEVER CHANGE !

Miggy's picture

Also it's always about money in these articles. This was a vote clearly against the melting pot of a country through immigration and a people taking their country back.

 

I salute them.

gladih8r's picture

Satan is checking his watch, waiting for George to finally show up in hell.  Don't make him wait George, you'll only piss him off more.  Don't forget to bring some flowers and plenty of ass-lube.

HamFistedIdiot's picture

Satan has a set of rusted steely dans that no lube will ease georgie's pain from.

DosZap's picture

Opting out , is the smartest thing the U.K. has done since inception.(Islam, watch out,of this stands I see you leaving in a hurry.)

Now if Scotland doesn't screw it up, or the U.K. dicks around and lets them have another referendum,their SCREWED.(makes one wonder WHERE where these 2 million WERE  on voting day?.)

Get out asap.While you can, and Soros,I am so pleased ONE thing finally did not go your satanic way.