Is George Soros to blame for the decline of the dollar.
Columnist Rob Binsrick says it’s the popularity of the “Soros-style” investing that is driving the dollar down. What’s worse, he says, is that speculative investors are damaging the U.S. economy for personal gain.
Binsrick calls the threat of inflation a “utopian situation for those like Soros who enjoy betting against the U.S. dollar (and pretty much everything else to do with the U.S.).”
He might be loosely referring to a Financial Times interview from two weeks ago, where Soros said he’s not too worried about domestic inflation becoming a problem:
“Well, it could be if lending restarts and the balance sheet of the Federal Reserve is not shrunk commensurately, but I think this is something … it’s a delicate manoeuvre, but I think it can be done. So there would be a slow decline in the value of the dollar, a managed decline, and that would be the adjustment that needs to be accomplished.”
Soros says it probably is not in our best interests for the dollar to be the #1 world currency “because as the world economy grows, it needs an additional currency and, if the dollar is that additional currency, it means that the US has to have chronic current account deficit. And that is not appropriate. I think it’s in our interests as well to reform the system.”
So if Binsrick right to criticise Soros?
Well, Soros just told everyone to stop betting on a weak dollar. And it seems a stretch to say that Soros is Anti-American. While it’s true that he might have controversially donated money to NIAC, the pro-Iranian engagement coalition, but Soros’s hedge fund has the 38th largest investment in Ford (F), a very American automaker.