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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (6431)	9/15/1998 1:13:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 9980

Ramsey, I hadn't heard of Soros' appearance, but I read his piece in today's Wall Street Journal. It struck me as a piece motivated somewhat by guilt. After all, repentance is big in the news these days. -Robert

To: Ramsey Su who wrote (6431)	9/15/1998 3:21:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 9980

Ramsey, how will history show us if Soros and similars are responsible for Thailand's collapse? I don't quite understand what your'e alluding to. After reading excerpts of his fresh testimony, I disagree with his contention that a new seemingly IMF-ish type of org. should be formed. Just see how the markets will react when the 'IMF Ambulance" arrives at Brazil's door. I also have previously mentioned that Soros should've implored the G7 to fork over the $22B Russia needed at the time he wrote the FT piece. A little to late to correct those mistakes, though. A mistake estimated at $2B to Quantam.

To: Ramsey Su who wrote (6431)	9/16/1998 2:43:00 AM
From: Shawn Donahue	Read Replies (1) \| Respond to of 9980

Ramsey, <<Thread, regarding Soros>> <<Secondly, he is not a neutral party. Is it possible that he wants IMF to fund every economy so that there is some money for him to attack? He is regarded as public enemy #1 in a few Asian countries. In due time, history may show us whether he is indeed responsible for the collapse of Thailand and others. Is this potentially a direct conflict of interest to listen to his opinions?>> You bring up a very timely issue on what may be an underlying reason for IMF funding, and who really benefits...! Here is what I just read yesterday, concerning where IMF money to Russia, may actually be going...Regards, Shawn By Barbara Starr ABCNEWS.com WASHINGTON, Sept 14 -- In addition to all Russia's political and economic troubles, the beleaguered country also suffers from a crime problem the FBI says went out of control long ago. According to the bureau, the number of Russian organized crime groups has reached 12,000 -- nearly triple what it was in 1992 -- with no sign of slowing. The FBI is reporting an "an emerging trend which suggests a growing level of sophistication in the area of large scale financial institution fraud and transnational money laundering." The impact of the Russian Mafia gangs on Russia's economy is getting particular attention from the United States. Worldwide Crime Networks "What we have is an immense country practically controlled by organized crime, says Emilio Viano, professor of Criminology at American University and an expert on Russian organized crime. "These groups are getting stronger and stronger and using Russia as a base for their global ventures -- taking over everything from drugs and prostitution to currency exchange and stealing World Bank and IMF loans." According to the FBI report, different groups "dominate the economic life of Russia, ... exerting control over key economic sectors such as: petroleum distribution, pharmaceuticals and consumer products distribution." And it's not just in Russia, Viano says. "Russian Mafia groups are directly building alliances with Italian, Latin American, Chinese, and Japanese organized crime families. Russian law enforcement sources, the FBI report also reveals, estimate that 550 Russian banks -- about half of the nation's credit and financial organizations -- are now controlled by organized crime groups. Continued on next message!

To: Ramsey Su who wrote (6431)	9/16/1998 2:44:00 AM
From: Shawn Donahue	Read Replies (1) \| Respond to of 9980

Continuation of previous message! Stealing Russia Blind These groups use the banks to launder money and avoid paying the taxes desperately needed by the government to pay salaries and debts. By now, the FBI estimates that Russian mafiosi may have control of banks in Cyprus and Antigua. In the last year, five Russian-owned banks opened branches on the Caribbean island of Aruba. Russian Crime Groups in the U.S. "From these locations they electronically launder large amounts of cash around the world," the FBI said, noting that the men in charge routinely resort to violence to defend their interests. "This transnational banking activity has been accompanied by a high level of violence directed against senior banking officials in Russia." In fact, the bureau noted that these days a Russian banker has the life expectancy of a bomb-disposal specialist. The West Shares The Blame The West, says Viano, is partly responsible. He believes the huge International Monetary Fund loans to Russia are often mismanaged and diverted by the criminals controlling the banks. "The minimum we can do is just stop making huge loans to Russia," argues Viano. "What we are doing at this point is to feed the monsters, since all this aid is being siphoned off by organized crime." The disturbing news doesn't stop there. The report also recounts that many of the highly trained professionals in the Russian Special Forces (and some of those who have mustered out) have been recruited by the Russian Mafia. These tough soldiers, many of them combat veterans, then act as private bodyguards, hit men, debt collectors and security guards for illegal smuggling. The high pay for this "unofficial" work is especially appealing to many soldiers whose regular military wages remain unpaid due to the economic crisis. The bad news goes on and on. Empires of Crime While the state seems to be losing its power to cope, the FBI says, Russian organized crime groups have been building their empires vigorously. Reports say they are recruiting experts in computer software, international law and finance, intelligence gathering, corporate security, international banking, casino gaming operations and hotel and restaurant management. In the face of information like this, Viano says, the international community's first step is simple. "Address the truth," he says. "Organized crime is basically controlling that country."