Has Soros lost the Plot?

Paul Staines sees the same problem as David Carr… George Soros has gone off the deep end

I have a lot of respect for George Soros, not because he’s a muliti-billionaire, but because of his huge financial support for his Open Society foundations and for his articulating the intriguing concept of ‘reflexivity’ in financial markets. I found the philosophical excursions of the former student of Karl Popper interesting, even if professional philosophers tended to find them embarrassing. But his 2002 book George Soros on Globalization confirmed what was pretty clear from his 1998 The Crisis of Global Capitalism: Open Society Endangered. He was getting messianic and becoming like a bootlegger turned temperance campaigner. Soros would deny that he is anti-capitalist, he is he says against market fundamentalism. Ironic given his phenomenal success in unregulated currency markets.

For the last decade Soros has been preaching a third way for international finance – seeking to update the international financial architecture is an intellectually respectable position. Keynes’ Bretton Woods structures have worked more or less, they may have even prevented a few disasters, but they can definitely be improved upon.  Interventionist multi-lateral institutions intervening in markets to maintain the liberal market order may or may not work. After a little over half a century of experimentation it is hard to tell. The IMF, World Bank et al may have made things worse more often than they have been the cavalry coming into save the global economy. Sometimes, his argument goes, international capitalism gets so manically out of control it needs to be saved from itself. The jury is out on that. Soros is, in the tradition of Keynes, not an enemy of capitalism, but someone who wants to radically temper it.

Fair enough, it’s not crypto-Marxism, he means well, he may even have a point. But now according to the Washington Post, Soros is devoting his efforts to defeating Bush in 2004. So far he has given $15m towards anti-Bush campaigns, “It is the central focus of my life… a matter of life and death.” He goes on to say “America, under Bush, is a danger to the world, and I’m willing to put my money where my mouth is.”

I think at 74, Soros is losing his grip, his self proclaimed ‘Soros Doctrine’ is delusional, his one-man foreign policy was fine when he was promoting democracy but is overstretched trying to re-fashion geo-politics. Now he is getting down and dirty in partisan presidential politics he may come to regret it.

Speculation, philosophy and philanthropy are much more gentlemanly affairs, the Republicans are already claiming he has bought the Democratic party.  Soros is in danger of jeopardising his place in posterity. Shame.

Paul Staines