Subscribe to EIR Online
This article appears in the December 12, 2008 issue of Executive Intelligence Review.

Soros, Brits Target Brazil
For Dope, Inc. Takeover

by Dennis Small

[PDF version of this article]

An alarming pattern of recent activities by megaspeculator George Soros and his British financial controllers, indicates that Brazil is being heavily targeted for takeover by Dope, Inc., the international banking interests that run the global drug trade and associated narcoterrorism. Three developments over the course of 2008 stand out.

First: Soros—as renowned for his hyperactive promotion of drug legalization as he is for his defense of his youthful participation in the Waffen SS round-up of fellow Jews in Nazi-occupied Hungary during World War II (see box)—in April of this year bankrolled the formation of a Latin American Commission on Drugs and Democracy to organize and lobby for drug legalization both in Ibero-America and the United States. The three co-chairs of the Soros group are former President of Mexico Ernesto Zedillo, former President of Colombia Cesar Gaviria, and former President of Brazil Fernando Henrique Cardoso. Cardoso is hated by Brazilian patriots for having destroyed Brazil's promising economy with British policies of privatization, free trade, and globalization during his two terms in office (1995-2003).

Cardoso's association with Soros is hardly new: The head of Brazil's Central Bank from 1999-2002, under Cardoso, was Arminio Fraga, who was an executive of Soros's Quantum Fund at the point he was named to head Brazil's Central Bank. It is widely agreed that Soros virtually ran Brazil's Central Bank under Cardoso. It was also Soros who, in late 1998, called for providing a "wall of money" to bail out the threatened blowouts of Brazil, Russia, and other countries—a foretaste of the hyperinflationary lunacy today dominating British and American policy.

The criminal outlook of Soros's trio of Presidential hit men was betrayed in a public exchange between Commission co-chair Ernesto Zedillo, and EIR's Gretchen Small, at an event at the Brookings Institution in Washington, D.C. on Nov. 26, 2008. Pressed by Small on his working on drug legalization with Soros, who unabashedly defended his pro-Nazi activities in a December 1998 interview on CBS's "60 Minutes," ex-President Zedillo angrily retorted: "You raised aspects of Mr. Soros's biography which I would say are of total irrelevance to me to discuss this issue" of drug legalization. "If that's the level of discussion that we are going to have, then we are not going to get anywhere" with the Soros project (see below).

Soros is not only a prominent hedge fund operator, of the sort that has destroyed the world economy with derivatives speculation, but he is also the world's leading promoter of drug legalization, having financed innumerable pro-drug campaigns in the United States and internationally.

Second: British-run banking circles sank their claws deeply into Brazil's banking system with the Aug. 29, 2008 implementation of a 2007 deal in which Spain's Banco Santander strengthened its position in the Brazilian market by taking over Banco Real, at the time owned by the Dutch ABN Amro bank. The combined Santander banking assets now stand at over $170 billion, about 12% of the country's total—making it the fourth-largest financial institution in the country. Santander's partner in the ABN Amro buyout was the Royal Bank of Scotland, bankers to the British monarchy, and Santander's strategic controller.

Soros Apologist Thomas Palley

Third: Soros has also managed to line up one of his American propagandists as a featured speaker at a Dec. 7-11, 2008 international conference in the state of Parana, Brazil, sponsored by the governor of that state, to discuss alternatives to the global financial crisis. Although many of the scheduled participants from Brazil and other South American nations are nationalist economists and political figures, the featured guest from the United States is economist Thomas Palley—who in 2002 and 2003, was the head of the Globalization Reform Project at Soros's Open Society Institute. Palley has written extensively in defense of Soros's "philanthropic" activities, and in defense of Soros's policy prescriptions for Brazil, specifically.

For example, the Oxford-trained Palley wrote a November 2002 essay entitled "Soros on International Capital Markets and Developing Economies," presented at a November 2002 conference in Rio de Janeiro, Brazil, in which he pronounces Soros to be "an impressive person. Not only is he one of the world's most successful financiers ... he is also one of the world's leading philanthropists." Palley fawns that "Soros has become a leading public intellectual," whose "theoretical construction of financial markets is joined with deep political and moral insights, and this has contributed to Soros's standing as a public intellectual."

Palley also marshalled theoretical arguments in support of Soros's proposal that Brazil could bring its domestic interest rates down and avoid default, by getting the International Monetary Fund to guarantee Brazil's debt. No specific quid pro quo was mentioned, but it is well known what conditionalities the IMF and private banks attach to such arrangements.

But then again, Palley also defends the IMF and the World Bank. In a Nov. 13, 2008 interview with Al Jazeera English, Palley—who speaks with a British accent—is asked about President George Bush's apparent criticism of the IMF and the World Bank:

"Q: [Bush] also seemed to criticize the IMF and the World Bank, although those two institutions are wholly controlled by the U.S. and Europe.

"Palley: That's true, but on the other hand, a lot of Republicans don't like those institutions. They think of them as being the long hand of government. And so there's always been a sort of uneasy relationship with them. Those institutions have nothing to do with the current crisis. They do have problems of their own, and I won't deny that; but on the other hand, they're not implicated by the crisis, and right now they may actually be performing a useful role."

(The six-minute interview is available here.)

It is also noteworthy that Palley has written that the greatest American economist was Irving Fisher (1867-1947), who brought the Austrian "marginalist" school into the mainstream of American economics, and pioneered such gems of modern incompetence as the Phillips Curve and the indifference curve. The website of the New School for Social Research reports of Fisher: "His fortune was lost and his reputation was severely marred by the 1929 Wall Street crash, when just days before the crash, he was reassuring investors that stock prices were not overinflated but, rather, had achieved a new, permanent plateau." Sound familiar?

Fisher, it should be noted, was also a defender of the British "race-science" of eugenics, as was his contemporary John Maynard Keynes, whom Palley greatly admires.

One wonders if Parana Gov. Roberto Requiao, the conference sponsor, was even aware that someone had invited a mouthpiece for the Nazi drug-runner George Soros, and a public defender of the IMF, when he told the press: "We are inviting personalities with a heterodox view of economics. I'm not going to invite those who caused the disaster."

EIR has learned that at least some among the conference organizers were totally unaware of the invitation to Palley, and of his connection to Soros—whom they despise.

Also of note, is the inclusion among the participants in the conference of a small group of former associates of Lyndon LaRouche—Paolo Raimondi, Michael Liebig, and Lorenzo Carrasco—who in recent years deserted the LaRouche movement to join the British camp. Over the last year or two, these LaRouche renegades pulled Russian, Italian, and other participants into a series of conferences, including one in July 2008 in Modena, Italy, duping them into discussing a phony New Bretton Woods, along the same Keynesian, anti-Roosevelt lines more recently specified by British Prime Minister Gordon Brown.

U.S. economist Lyndon LaRouche—who uniquely forecast the current systemic international financial crisis, and presented the only viable Roosevelt-style bankruptcy reorganization proposal for solving it—commented on the Soros assault on Brazil, that these Soros circles of British intelligence are the same as the Malloch-Brown operation in the Democratic Republic of Congo (D.R.C.).

Lord Mark Malloch-Brown—until 2007 the vice chairman of Soros's Quantum Fund hedge fund, and vice president of Soros's Open Society Institute—has for years been Soros's British controller, and today is Britain's State Minister for Africa, Asia, and the United Nations, in the Foreign and Commonwealth Office. In that capacity, Malloch-Brown recently called for British military intervention into the ongoing crisis in the D.R.C. province of North Kivu, as a pretext to target the sovereignty of any African nation that stands in the way of Brutish imperial designs. Soros himself has echoed that call. Such an intervention would aggravate the carnage in the region, where millions of people have died since 1998.

"Are Soros and his British allies going to do in Brazil what they did in Congo?" LaRouche asked.

Back to top