Posted on 02/27/2005 7:59:17 PM PST by jb6
Jeddah: George Soros is warning all oil-producing countries about pegging their currencies and oil revenues to the dollar.
"The US dollar is weak, and is expected to deteriorate more," said Soros.
The famous currency trader and financier warned Russia and other oil-producing countries to sell their oil and price it in euros rather than US dollars, because the US dollar continues to fall against the euro.
The US dollar poses a danger to oil-producing countries and their economies, he said.
Many central banks intend to peg their currencies to the euro and increase their balances of European currency against the dollar.
Soros's remarks came during at a press conference on the sidelines of the Jeddah Economic Forum, which ended on Monday.
Soros rejected allegations by some economists who held him responsible for the collapse of financial markets and creating an economic crisis in South East Asia.
He was accused of leading an international campaign to weaken currencies of a number of South East Asian countries when he withdrew his funds from Asian stock markets in 1997.
Soros said he sold all his Malaysian and Asian currencies six months ahead of the crisis, and has insisted he had nothing to do with the carnage in the markets.
Soros attributed the crisis to short-term investments in stock markets and the property boom as many investors withdrew their funds and pumped them into real estate.
Ironically, Soros's comments about the dollar may find support from at least one of his old antagonists.
In an interview with Gulf News last month, Dr Mahathir Mohammad, former prime minister of Malaysia, also warned against relying too much on the US dollar.
"Why are we clinging to the US dollar when we know we are going to lose money [as it declines in value]?" Dr Mahathir said.
He and Soros clashed in 1997, when Mahathir blamed global currency traders for the decline in the Malaysian currency
Putin raided his offices in Russia.
When I first studied alternatives to the current income tax I was in favor of Steve Forbes' ideas of the flat tax. It seemed so simple.
The flat tax is an income tax and in my study I found that it is flawed because 'income' can be difficult to define. For example. dividends from stocks that are reinvested, etc.
A flat tax would also allow the same tinkering of the definition of taxable income; we would get back to what we have now eventually.
As I studied further I understood that the NRST was best all around as a replacement to the current income tax.
It would be hard at first to pay an NRST of say 22% on a new car. But there would be no FITW for the employed and the 22% NRST could be included in financing a new car. So it would work out to be included in monthly payments.
It would be also difficult to pay 22% tax at the grocery counter but then there is no FITW again. For the poor and elderly, food stamps could still be used with exemptions to the NRST.
One of many benefits would be that everyone understands what the real tax of everything is. Should a Congress or President try to raise the NRST by a percent or two they would have to have a very good reason. We could all debate such things in our elections.
I live in Washington State where there is no income tax, there is a sales tax and property tax. I used to live in California and still own property there. It is so nice not to have to fill out income tax forms in Washington State. Also if the State tries to raise the sales tax, many voters get involved in a real discussion and debate about it.
I don't expect you to jump on any income tax replacement idea but please do study and think what life would be like under any alternatives. Maybe you will come to a different conclusion but in any case it is interesting to discuss.
As for why he's on the street, the Devil takes care of his own.
i just respond to what you say, rather than what you think you said.
Well, I guess if I were not paying any other tax but sales tax (you are getting me confused with all of the abbreviations) I could probably get used to it. They don't have income taxes in Florida. They seem pretty happy about it down there. Their sales tax is not so high down there, but I was shocked at what it was compared to what I pay here in Virginia. Of course, I pay income taxes here. Yes, I guess I can see your point.
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