Is Soros trying to collapse the dollar? As usual, we won’t learn all of the story until after the fact, but all signs are pointing in that direction. The duck is quacking as I look into the question, is Soros trying to break the buck?
The 30 year Treasury auction is in trouble!
Last week the U.S. Government came very close to having a “failed” auction of 30 year treasuries. This would be catastrophic for the value of the dollar and would unhinge the “full faith and credit of the U.S. Government” pledge which is the foundation of the dollar.
There are two types of buyers that fund the U.S. debt at these auctions. The first are the “indirect buyers” who are made up of foreign Central Banks. They normally purchase around 40% of the treasury issue. Last week, they reduced their purchases to 28% of the issue. That is really bad news for this budget busting government!
It looks like the Chinese and other central banks are making good on their threats to reduce their treasury purchases until the U.S. Government returns to fiscal sanity. They are reducing their paper holdings of U.S. dollars and moving into hard assets like GOLD!
The second group of buyers is the “direct buyers” who increased their buying at the auction to a record level of 24%! How convenient was that? The only thing that stopped a “failed” auction of U.S. debt was the “direct buyers” whose identity is unknown. Because their identity is secret it is not a long step to assume that the “Fed” stepped in and purchased the debt in order to avoid the “failure” of the auction.
Is the “change” that we were promised by the “Community Organizer In Chief”? The Fed is purchasing the debt that the government is creating! You can kiss the dollar goodbye, because it is only a matter of time before this ponzi scheme implodes. The times, they are a changing, and not for the better.
Is Soros Trying To Break The Buck?
I can’t definitively answer that question at this time, but all signs are pointing in that direction. I can unequivocally state that he will profit from the dollar’s decline and the resulting shift in power that it will bring. George Soros is the penultimate investor who almost broke the Bank of England in the early 90′s. Soros is a huge proponent of sharing the wealth (along with “The Community Organizer In Chief”), as long as the largest share of it ends up in his coffers.
With Soros, it is key to watch what he does, not what he says. Misdirection is a tool that he often employs when trying to destroy something in order to profit from its demise. If it looks like a rat, smells like a rat and talks like a rat, more often than not, it’s George Soros!
George Soros is not a compassionate “progressive”, but rather a ruthless financial pirate willing to wreak havoc at the drop of a hat in order to increase his wealth. The peasants whose lives are ruined when he raids a currency are of no concern to him. He is a financial parasite who pushes his “progressive” form of Marxist/Socialism for personal profit.
A couple of weeks ago at Davos, Soros said “The ultimate asset bubble is gold”. He was also quoted as saying, “stimulus could not be removed too early”, without risking a global double dip recession. On the one hand he is warning of a gold bubble and on the other he is urging that the printing presses keep rolling. Which is it?
Well, as it is with most things, actions speak louder than words. It is quite apparent that “Progressive Georgie” was jawboning the gold price down while he was buying!
Soros More Than Doubled Gold ETF Stake in 4th Quarter (Update1)
February 17, 2010, 03:17 AM EST
By Katherine Burton and Glenys Sim
Feb. 17 (Bloomberg) — Billionaire George Sorosâ€™s Soros Fund Management LLC more than doubled its holding in the biggest gold exchange-traded fund in the fourth quarter after bullion advanced 8.9 percent to a record.
The $25 billion New York-based firm became the fourth- largest holder in the SPDR Gold Trust, adding 3.728 million shares valued at $421 million, according to a filing with the U.S. Securities and Exchange Commission yesterday. Its investment was worth about $663 million, the fund’s largest single investment, as of Dec. 31.
Soros joined China Investment Corp. and central banks including those in China and India in acquiring gold. China Investment, the $300 billion sovereign wealth fund based in Beijing, took a 1.45 million-share stake in the SPDR Gold Trust worth $155.6 million, according to a SEC 13F filing posted on Feb. 5.
The dollar is weak and people are just shifting their money into a safer haven, Tetsuya Yoshii, vice president for derivative products at Mizuho Corporate Bank Ltd., said from Tokyo today. â€œCentral banks are adding gold to their reserves and were going to see more people adding gold to their investment portfolio as they shift into safer stuff.
Gold for immediate delivery traded little changed at $1,118.35 an ounce at 2:48 p.m. in Singapore. It rose for a ninth straight year in 2009, reaching a record $1,226.56 an ounce on Dec. 3, as the dollar dropped 4.2 percent against a basket of six major currencies.
India bought 200 metric tons from the International Monetary Fund in October, while China’s holdings have expanded 76 percent to 1,054 tons since 2003, it said in April.
SEC filings are done quarterly, with a 45-day lag, so Soros could have sold some or all of the position since then. Soros, speaking last month at the World Economic Forum in Davos, called gold the â€œultimate asset bubble and said the price could tumble, according to a report in the U.K.’s Daily Telegraph newspaper.
Money managers who oversee more than $100 million in equities must file a Form 13F listing their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
Michael Vachon, a spokesman for Soros, declined to comment on Soros’s investments.
Assets held by the SPDR Gold Trust have expanded 2.2 percent this year after surging 24 percent in 2009. They stood at 1,109.42 metric tons yesterday.
Institutional investor Paulson & Co. held the largest number of shares in the fund as of Dec. 31, with 8.65 percent, or 31.5 million shares.
Gold demand grew 2.6 percent in the fourth quarter from the previous three months as investment and jewelry consumption climbed amid record prices, the World Gold Council said in a report today. Global consumption increased to 819.7 metric tons as prices averaged 15 percent more than the third quarter, the London-based industry group said.
Gold is now the single largest investment in Soros’s multi-billion dollar fund. What does that tell you? It should tell you that one of the world’s richest money manipulators knows that the dollar is imploding and he is buying gold in order to profit from the event! If that does not spell out the future of the dollar for you, I don’t know what will.
The Fed Sees The Light In The Tunnel And Knows It Is A Train!
Why did the Fed raise the discount rate from 1/2% to 3/4%? They are terrified by what is about to happen to the dollar and the only tool that they have is to raise rates sooner rather than later. This first shot across the bow in the form of an increase in the discount rate is just the precursor to raises in the Fed funds rates that are on the way.
The Fed knows it has to sell an estimated $5,000 billion in new and old debt this year while it is looking at rising inflation. They are caught between a rock and a hard place.Â One the one hand they have a progressive administration that won’t stop spending and a dollar that is about to implode after this relief rally fizzles.
Here is another look at the debt that “change” is bringing to the U.S.
Drowning in Debt: What the Nation’s Budget Woes Mean for You
Most Republicans don’t want to raise taxes; most Democrats don’t want to cut spending. The result is a stalemate on how to put America back in the black.
Economists Predict Cutbacks, Tax Increases That ‘Aren’t Even Imaginable’
But public dissatisfaction has not proven enough to compel members of Congress or current and previous Administrations to set aside their partisan differences to achieve a balanced budget.
By DEVIN DWYER
WASHINGTON, Feb. 17, 2010
But now the problem of mounting national debt, is worse than it ever has been before with — potentially dire consequences for taxpayers, according to a report by the nonpartisan Peterson-Pew Commission on Budget reform.
“It keeps me awake at night, looking at all that red ink,” said President Obama in Nashua N.H., on Feb. 2. “Most of it is structural and we inherited it. The only way that we are going to fix it is if both parties come together and start making some tough decisions about our long-term priorities.”
Obama will sign an executive order tomorrow that establishes a bipartisan National Commission on Fiscal Responsibility and Reform to make recommendations on how to reduce the country’s debt.
Over the past year alone, the amount the U.S. government owes its lenders has grown to more than half the country’s entire economic output, or gross domestic product.
Even more alarming, experts say, is that those figures will climb to an unprecedented 200 percent of GDP by 2038 without a dramatic shift in course.
“Within 12 yearsthe largest item in the federal budget will be interest payments on the national debt,” said former U.S. Comptroller General David Walker. “[They are] payments for which we get nothing.”
Economic forecasters say future generations of Americans could have a substantially lower standard of living than their predecessors’ for the first time in the country’s history if the debt is not brought under control.
Government debt, which fuels the risk of inflation, could make everyday Americans’ savings worth less. Higher interest rates would make it harder for consumers and businesses to borrow. Wages would remain stagnant and fewer jobs would be created. The government’s ability to cut taxes or provide a safety net would also be weakened, economists say.
While much attention has been focused on the government’s deficit-spending surge during the recession, many economists agree short-term budget overruns — as ominous as they may seem — are not particularly problematic.
“What threatens the ship are large, known and growing structural deficits,” said Walker, a problem that few politicians seem eager and readily able to fix.
In a recent ABC News poll, 87 percent of Americans said they are concerned about the federal budget deficit and national debt, and most strongly disapprove of how their political leaders are handling the situation.
I noticed that the “red ink” keeps the “Community Organizer In Chief” up at night, but it doesn’t bother him enough to slow the spending. George Soros is loving this administration because it provides him with yet another opportunity to raid a currency and reap massive profits.
Is Soros trying to break the buck? The answer is yes, but we won’t get all the details until after the fact, and you can take that to the bank. Stay the course and accumulate both gold and silver while you still can.
Till next time, good luck and good trading!
More Gold Market Analysis:
- George Soros Is Not Worried About Junior Minors, Why Should You?
- George Soros & $1,500 Gold
- Soros Warns Gold Is The Ultimate Bubble
- Soros Sold Gold, Did You?
- Buy Gold Coins, Bullion to Hedge Dollar Drop