Skip to comments.Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming
Posted on 08/20/2012 9:15:09 PM PDT by blam
Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming
Are you willing to bet against three of the wealthiest men in the entire world? Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down. Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter. So will the euro plummet like a rock? Will the price of gold absolutely soar?
Well, if a massive financial disaster does occur both of those two things are likely to happen. The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money. The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions. Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don't. The fact that they are all behaving in a consistent manner right now should be alarming for all of us.
Let's start with Jacob Rothschild. Apparently he believes that the euro is headed for quite a tumble. The following is from a recent CNBC article....
You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild takes a £130 million ($200 million) bet against it. Okay, but the euro has already been falling dramatically. In mid-2011, the EUR/USD was above the 1.40 mark, and right now it is at about 1.23.
Does it really have that much more that it can fall?
If the eurozone ends up breaking apart it sure does.
If there is a Greek default, or if Germany leaves the euro, or if a new currency comes along to replace the euro those currently betting against it will end up looking like geniuses.
Another big name in the financial world that is betting against the euro right now is John Paulson. The following is from a recent Der Spiegel article....
One of these warriors is John Paulson. The hedge fund manager once made billions by betting on a collapse of the American real estate market. Not surprisingly, the financial world sat up and took notice when Paulson, who is now widely despised in America as a crisis profiteer, announced in the spring that he would bet on a collapse of the euro. And as I noted in my last article, Paulson has also been putting billions of dollars into gold.
So just what are Rothschild and Paulson anticipating?
Could we be on the verge of a massive financial collapse in Europe?
According to the Der Spiegel article mentioned above, a lot of investors seem to be preparing for such a possibility right now....
Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.
The financial world is starting to wake up to the fact that the globe is absolutely drowning in debt and it is not really good to be holding fiat currencies when a debt crisis erupts.
When men like John Paulson and George Soros start pouring huge amounts of money into gold, it is time to start becoming alarmed about the state of the global financial system.
The amount of money that these men are investing in gold is staggering....
There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the worlds largest publicly traded physical gold exchange traded fund (ETF).
Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.
At the current price of about $156 a share, these are new investments of about $88m of Mr Soros cash and more than $700m from Mr Paulsons funds. These are significant positions.
And the central banks of the world are certainly buying gold at an unprecedented rate as well. According to the World Gold Council, the central banks of the world added 157.5 metric tons of gold last quarter. That was the biggest move into gold by the central banks of the globe that we have seen in modern financial history.
But that might just be the beginning.
According to a recent Marketwatch article, there are persistent rumors that China has plans to buy thousands of metric tons of gold....
Within the gold market, there is unconfirmed speculation that China plans to buy up to at least 5,000 to 6,000 metric tons of gold and that it will start to buy during this year, according to Kevin Kerr, president of Kerr Trading International.
If China buys this much gold, that would exceed annual, global production of gold, he said. We do not have enough gold for China to buy that much, and it will take China time to purchase this amount of gold. So what comes next?
Nobody is quite sure.
Another major financial crisis could erupt in Europe at any moment.
A major war in the Middle East could start literally at any time.
Renowned investor Jim Rogers believes that things are really going to get "bad after the next election".
Others believe that the action could start even sooner than that.
The truth is that even though we have not seen a "Lehman Brothers moment" yet, things in Europe just continue to get progressively worse. The following is from a recent article by Mark E. Grant....
Whether you turn your attention to Greece, Spain, Italy, Portugal or even Ireland; it is getting worse. Nowhere on the Continent are things improving and even in France and Germany the financial strains are beginning to show. It is not a question of Euro-bear or Euro-bull; it is just the numbers as they come rolling out month after month.
There is a growing realization in Europe that the euro simply does not work. Italy is absolutely drowning in debt, the Spanish economy has basically descended into a depression, and Greece has been experiencing depression-like conditions for years at this point.
The euro is doomed. The only question is who is going to blink first.
Nobody wants to be the first to leave the euro. There are rumblings that it could actually be Finland that leaves the euro first, and that would please Germany just fine because they don't want to look like the bad guys in all of this.
But that doesn't mean that Germany won't eventually pull the trigger if nobody else does. The German public is sick and tired of bailing out the weak sisters of southern Europe, and at this point it looks like it would take perpetual bailouts just to keep the euro together.
And recently there have been lots of little signs that Germany is starting to move slowly toward the exit doors.
In fact, I found it quite interesting that a giant euro sculpture was recently removed from the Frankfurt International Airport....
A massive sculpture (identical to the one in front of the European Central Bank) was dismantled and removed from the Frankfurt International Airport in Germany Thursday.
The official explanation is the plastic parts are getting weak after 11 years and the terminal needed the space.
Does sculptures removal from the Frankfurt Airport indicate Germany is preparing for a surprise return to the Deutsche Mark?
Sure that might just be a coincidence, but it also could be a harbinger of things to come.
Sadly, most average people living in North America and Europe have absolutely no idea what is coming. Most of them just want to be able to get up in the morning and go to work and pay the bills and take care of their families.
Unfortunately, millions upon millions of those hard working individuals are in for a very rude awakening.
A lot of people are about to have their current lifestyles totally turned upside down.
But it doesn't have to be all bad.
In fact, I found it very interesting to read about how some young people are responding to the depression in Greece....
In the spring of 2010, just as the Greek government was embarking on some of its harshest austerity measures, 29-year-old Apostolos Sianos packed in his well-paid job as a website designer, gave up his Athens apartment and walked away from modern civilisation.
In the foothills of Mount Telaithrion on the Greek island of Evia, Mr Sianos and three other like-minded Athenians set up an eco-community.
The idea was to live in an entirely sustainable way, free from the ties of money and cut off from the national electricity grid.
The group sleeps communally in yurts they have built themselves, they grow their own food and exchange the surplus in the nearest village for any necessities they cannot produce.
I think there is a lesson to be learned there.
When the system fails, it is going to be important to be able to live independently of the system.
Governments and big banks all over the world have been rapidly preparing for the coming financial collapse.
Perhaps the rest of us should be too.
If you can believe it, 77 percent of all Americans live paycheck to paycheck at least some of the time.
If another major economic crisis comes along, many of those people are going to be totally wiped out.
And there are already signs that the U.S. economy is basically on life support at this point.
Just look at the velocity of money.
In an economy that is growing and healthy, money tends to circulate very, very quickly.
But when an economy is sick, money tends to circulate very slowly.
And that is exactly what is happening right now. In fact, the velocity of money is currently at the lowest level in modern U.S. history....
This is exactly what happened back in the 1930s. The velocity of money absolutely plummeted.(See the article linked below) When people are scared, credit is tight and times are hard, money does not exchange hands as rapidly.
But this is just the beginning.
What we are experiencing right now is rip-roaring prosperity compared to what is coming.
Jacob Rothschild, John Paulson and George Soros are preparing themselves for the tremendous chaos that is coming.
Are you getting prepared?
Gold bug ping
I don’t know all the reasons these people are being portrayed but I do have a strong opinion that anything that the Rothchilds and their spawned finance agent Soros do is to diminish/change the USA strength.
Kuhn , Loeb
Jacob Schiff was head of the New York investment firm Kuhn, Loeb and Co. He was one of the principal backers of the Bolshevik revolution and personally financed Trotsky's trip from New York to Russia. He was a major contributor to Woodrow Wilson's presidential campaign and an advocate for passage of the Federal Reserve Act. (p. 210)
I have found this website to be a very useful source of information on the economy, gold, and silver.
Is such doom does get near, watch for central bank and government moves toward extreme inflation. There’s a whole lot of debt to repay or repudiate.
Velocity Of Money is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of mens underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what this is and whether or not anybody should be using the word recovery with a straight face:
Soros is worth $20,000,000,000 (per Forbes magazine). Let's put that 130 million investment in perspective:
Assume a person has a net worth of $1,000,000 (I am including house, 401k, savings, investments etc.
That same person then just shifted $6,500 into gold.
Soro's probably has bottles of wine that cost more then $6,500.
That’s mind blowing. Something I never heard of. Where did you get that info? I’d like to learn more. That reminds me of what’s happening today with the Muslim brotherhood.
Great Depression II is coming. Whichever party holds the presidency when it hits, that party will suffer for decades, just like what happened with Great Depression I.
Not only that, but Edward Mandell House was JPM/Rothshilds picked agent/”advisor” to Wilson, some go so far as to say “actual president”. He was instrumental in getting WW to go back on his pledge to keep us out of European war and it was because JPM and City National were going to lose their asses on ~2-3 billion in war loans to the French and British if the Germans won or achieved an armistace with the upper hand.
I used to think of Soros as Ernst Stavro Blofeld.
He more resembles Auric Goldfinger.
Do you know if Soros and company took “Physical” possession of the gold they have purchased? Or is it in certificates?
——if a new currency comes along to replace the euro-—
I made the prediction last week that there would be a replacement backed by gold called the Aureo. It is a near certainty.
There will be a decision for the world........ the US$ or the Aureo? Managing that problem will be top of the new President’s to do list
I read that Soros just bought a bunch of paper gold. Not GLD, one of the other ones.
I read that Soros just bought a bunch of paper gold. Not GLD, one of the other ones.
If it’s paper then he’s just manipulating still. If it was the real thing then I think he was hedging for a real SHTF meltdown.
Soros doesn’t need to worry about the physical side of SHTF. I’m sure he has his own private “Blackwater,” with helos, planes, jets and yachts ready to carry him to secure compounds on every continent. All stocked with generators, fuel for years, etc.
You make a good point. My error for thinking small.
Thanks for the ping.
I’ve been calling him Goldfinger for years - especially when that 20-something woman recently broke off her engagement to him. She escaped out of the “web of sin.” He has been acting like he controls the world for decades, and the misery he has caused has been enormous. The question remains, where is our James Bond?
Wow! Sounds not only like they set up Russia for communism but also the German’s anger and resentment after the war which help get Hitler into power.
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