George Soros: Eurozone Crisis, 'Similar To Soviet Union,' Has Potential To Destroy European Union

Billionaire investor George Soros is sounding the European alarm again.

“Europe is similar to the Soviet Union in the way that the euro crisis has the potential of destroying, undermining the European Union,” he said during a debate on Tuesday, according to the Wall Street Journal. “With the profound social, economic and moral crisis that Europe is in, we can see a similar process of disintegration.”

With the rise of mass unemployment and decline of consumer purchasing power, the eurozone crisis remains alive and well. European countries have been cutting down on government spending to deal with prolonged debts loads, but these new austerity measures have in part led to further contraction of some European economies. Riots have subsequently erupted in multiple countries, most notably Greece, one of the hardest hit by the debt crisis.

The Soviet Union collapsed about two decades ago, after corruption and deep-seated economic problems that were long denied and covered up by the Communist Party became exposed. These revelations undermined the public's confidence in the system, ultimately leading to its demise.

Soros' most recent remarks echo sentiments he voiced during a Newsweek interview earlier this year when he similarly compared the increasing lack of faith in the world markets' ability to regulate themselves to the decline of communism.

The billionaire investor, who also delivers lectures and writes books about financial markets, has decried for months now the fiscal policies of government leaders and warned against impending class warfare, particularly in Europe. Austerity measures at a time of low demand, he has said, will deflate wages and increase unemployment, the consequence of which could be the repression of angry masses at the hands of political leaders.

"The deflationary debt trap threatens to destroy a still-incomplete political union," Soros wrote in the Financial Times about two weeks ago.

Comments

[Warren Yuill]

07:55 AM on 04/29/2012

When things fall you expect to hear some kinda thud.
Thats if you make the assumption there is a bottom.
All we seem to be hearing is the wind rushing past our ears.
Like when you ar diving down the road with all the windows down.
It's easy to get comfortable with that rushing whistling sound.
But we all know there is a bottom just waiting to make an appearance and bring that ride to an end.
Italy Greece Spain and Portugal are all getting comfortable with that rushing whistling noise.
Hopefuly the thuds we are soon to hear won't be of the military grade HE variety.

[Phil Waste]

01:07 PM on 04/26/2012

The right is always complaining about Government and trying to limit our Government.

Our Government is doing a good job where they can in spite of the rights assertions. They keep the highway system intact, the railroad system running and make the airways the safest they have ever been. The military is top notch but because of the politicians it is misused. The Government tries to keep the job site safe and protect Americas workers even though many agencies have been gutted by the right so they can make even more money.

I think the Government that the right is complaining about is really very small compared to the Government that is doing the job we pay them to do.

What needs to be changed is the Government of professional office holders in the House and Senate. They all need to be sent home as they are owned lock, stock and barrel by big money and corporations.

Here I will make it simple for you.... Government good, Politicians bad!

Time to go to Washington and demonstrate! Go to Washington and take your country back, but, and this is a big but, don’t be misled by paid mouthpieces of the right.

[Larry Mutter]

12:47 PM on 04/26/2012

Soros is astute in his analysis,the question is twofold,when are we going to recognize that our economic system is no longer viable and start to seriously question it? The second issue,how much tolerance does the working class have,and what are the social ramifications from same?

[Phil Waste]

12:38 PM on 04/26/2012

quote "Austerity measures at a time of low demand, he has said, will deflate wages and increase unemployment, the consequence of which could be the repression of angry masses at the hands of political leaders."

When will we see this happen in the United States? We have OWS but they are treated like homeless and not respected. When are the masses in the United States going to get angry about the banks and investors ripping us off and our politicians selling us out?

I certainly hope this is a long hot summer and the people right here at home put the fatcats in the hot seat...

[STOP THE WARS]

10:49 AM on 04/26/2012

I am from Spain. We actually want it destroyed, so that people like you don't have control of our lives.

[Norma Ward]

09:48 AM on 04/26/2012

Here is a summary showing how much Europe's fiscal situation has worsened over the last year:

http://viableopposition.blogspot.ca/2012/04/eurozone-debt-summary.html

Europe is now responsible for more than one-third of the world's entire stock of sovereign debt.

[anoxic]

10:38 PM on 04/25/2012

Soros the person who gave us Obama to kill our economy so he could make money betting against us.

[Hannibal55]

10:56 AM on 04/26/2012

A Glen Beck fan!

Didn't know there were any left!

[Linda from Deerfield]

12:34 PM on 04/26/2012

You guys are so confusing -- your lives are dedicated to transferring Americans' money and opportunity to the very rich, and then when one of them finally does something good, you have a hissy fit.

[James Swick]

06:58 PM on 04/25/2012

Good man. Got his money by robbing a bank (legally).

[Alux]

09:41 PM on 04/25/2012

Well, except for that little insider trading conviction in 2005, but why quibble.

[kickserv]

06:57 PM on 04/25/2012

What ever this man says public you can be assured behind closed doors he's finding ways to make money off of it.

[Raccoon1]

07:42 PM on 04/25/2012

What's the name of that guy funding Gingrich again?

[free reign]

10:07 AM on 04/26/2012

"Sum Gai", Addelson's silent Asian partner.

[gofsunoles]

06:48 PM on 04/25/2012

Hey georgie my favorite socialist! Wake up and admit the potential failure of EU has been on your socialist table and well planned for sometime. What you thought the EU would accomplish has not and will never reach that goal; ONE ruler/ONE currency for the world. Guess you can't pull the strings on all of EU, i.e., Germany, like you do the socialist muslim leader trying to bankrupt our country. This is my opinion so don't waste time rebutting it.

[free reign]

10:12 AM on 04/26/2012

After he bankrolled breaking up the fascists, where do you want him to put his money? Rebuild the Berlin Wall, & send the intl bankers $30 trillion to match OUR loan? HE wants independent and viable sovereign states, protected under a EU umbrella. FORGET that. It aint the US. The bankers had a feeding frenzy on the more outsource/inflation scourged economies. The govts. that offered up their citizen's property ARE getting punished.

[aforbes808]

06:17 PM on 04/25/2012

No light = No life. Honestly, why are we so afraid of reality? Prolonging the inevitable just makes the pain last longer. Peace be upon you humans.