As if the Hindenburg Adani saga isn’t enough for India and Modi, now the famous or infamous (depending on your ideology) Billionaire investor, George Soros, says the Adani affair would “weaken” Modi and spark a democratic “revival” in India. There is nothing “subtle” about Soros’s take and he does mean “business” if one were to be aware of the history of such “targets” of his over the decades.
For instance, the Malaysian leader, Mahatir Mohammed knows very well what Soros can do, having played a major role in the “shorting” of the Ringgit, during the heights of the East Asian Economic Crisis. Indeed, there is not much love lost between the two with the former having accused the latter of “destabilizing” the Malaysian Economy and “forcing” regime change.
So, is this the “toolkit” that George Soros wants to repeat in India? We need to remember that the East Asian Economic Crisis was largely caused by the twin aspects of real estate crash and a currency run, with foreign investors “dumping” assets and “fleeing” the East Asian economies, thereby causing a crash of “historic” proportions.
While the Indian Economy does have a real estate “problem”, thank goodness that the Indian Rupee is not fully convertible. Moreover, we also don’t have full Capital Account Convertibility, another “buffer” against “sudden” flight of money out of India. However, there is cause for concern as our Equity/Bond/Futures markets are “vulnerable” and can witness a mega crash if George Soros “takes on” Midi with a la Hindenburg shorting strategy.
Having said that Soros is not as “invincible” as earlier with our Foreign Minister’s description of him being “old, rich, and opionated” hitting home well. Indeed, India and Modi don’t have much to “fear” here as long as we exorcize the “chinks” in our armor. I use this term in both a literal and figurative sense as Soros can “expolit” our Chinese “weakness” along with profiting (again both senses of the word) from the very “real” shortcomings in our economic and financial systems.
So, there we are and the “enemy” is us. Much like the colonial model of “divide and rule”, modern day buccaneers like George Soros thrive on spotting and playing on our failings and pitting one against the other. Having a strongman as our leader, as Modi portrays himself, is a blessing and a shortcoming as he can “crush” opposition and dissent, but at the same time, get them energized with some (considerable??) “support” from the likes of Soros.
To wrap up, one has to see this as a broader “disaffection” amongst many about the direction that India under Modi is going. Moreover, money knows no morality and Western capital is too “eager” to embrace Modi. On the other hand, what happens if a member of the same “club” of capitalists decides to target Modi? This is the “rub” of the whole “threat” and where the danger (or opportunity) lies for the future of the Indian Economy and more importantly, its polity, when Parliamentary Elections loom in the next year.