It is credit that matters, not money (in other words, monetarism is a false ideology).
Interpretation
The importance of credit surpasses that of money itself, suggesting value is rooted in trust and borrowing power.
In this quote, George Soros emphasizes that credit is a more significant factor in economic systems than the actual currency in circulation. He argues that the ability to lend and borrow impacts economic activity and individual prosperity more profoundly than the mere presence of money, challenging the validity of monetarist theories that prioritize money supply over credit dynamics.
In practice
In a financial seminar discussing the role of credit in economic stability.
The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike.
The collapse of the global marketplace would be a traumatic event with unimaginable consequences. Yet I find it easier to imagine than the continuation of the present regime.
Regulating and taxing marijuana would simultaneously save taxpayers billions of dollars in enforcement and incarceration costs, while providing many billions of dollars in revenue annually.
We are the most powerful nation on earth. No external power, no terrorist organization can defeat us. But we can defeat ourselves by getting caught in a quagmire.
My foundations support people in the country who care about an open society. It's their work that I'm supporting. So it's not me doing it. But I can empower them. I can support them, and I can help them.
The criminalization of marijuana did not prevent marijuana from becoming the most widely used illegal substance in the United States and many other countries. But it did result in extensive costs and negative consequences.
The modern corporation must manufacture not only goods but the desire for the goods it manufactures.
The gap between rich and poor is widening dramatically. There's a hangar at the Cairo airport for private jets, billionaires are on the Forbes list, and Egypt's annual per-capita income is two thousand dollars. How can you sustain that?
Eviction is part of a business model at the bottom of the market.
The rich do not have to invest enough in the poorest countries to make them rich; they need to invest enough so that these countries can get their foot on the economic ladder . . . Economic development works. It can be successful. It tends to build on itself. But it must get started.
Cutting government spending and government intrusion in the economy will almost surely involve immediate gain for the many, short-term pain for the few, and long-term gain for all.
What I did not know yet about hunger, but would find out over the next twenty-one years, was that brilliant theorists of economics do not find it worthwhile to spend time discussing issues of poverty and hunger. They believe that these will be resolved when general economic prosperity increases. These economists spend all their talents detailing the process of development and prosperity, but rarely reflect on the origin and development of poverty and hunger. A a result, poverty continues.
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