Tag Archives: George Soros

Guest Post: The Human Stain

Financial Markets, Housing Market, Market Manipulation, U.S. Economy, , ,

I shuddered when it was announced that Stanley Fisher was elevated to co-Chairman of the Fed.  He is a wholly-corrupt representative of the neo-conservative movement that has enveloped this country.   People who consider themselves “liberals” and Democrats are unwittingly supporting a viper’s nest of necon totalitarianists.  Hillary Clinton was the mad-bomber who helped orchestrate the Obama Government’s steamrolling over Libya and the Ukraine and the attempted steamrolling over Syria.  When HRC is in the Oval Office, Stanley Fisher will be elevated to King of the Fed and it’s lights out for the middle class.

One of subscribers has written an excellent of summary of the one aspect of the political and economic drive toward totalitarianism in this country.  Notice how he omits Bernanke and Yellen.  They were mere dishrags for the people behind the scenes who are actively attempting to orchestrate the future of this country (Soros, Gates, Buffet, Rothschilds, Kissinger, etc):

I agree with you, the world’s move away from the fraudulent dollar is bigger than interest rates. My belief is that they are trying to buy two months. All they care about is winning the election, because they can loot like never before … literally trillions of dollars … as the sick, withdrawn witch is under constant medical care within the Imperial Bedroom at the WH.

This is unfolding as some kind of twisted, gothic, Elizabethan drama, with a demented Queen orchestrating State viciousness and lunacy from the privacy of her chambers. If HRC won’t even hold a press conference during her so-called campaign, what will she be like when she gets in?  She will turn her back on the people so fast it will be unprecedented in all of U.S. history. The Invisible, Corrupt, Murderous, Greedy, Thieving Queen: coming soon to the American Theater of the Absurd. And the Court of Sheer, Inexcusable American Stupidity.

There’s an old saying that our faces shed their masks as we grow older. In other words, our faces come to show who we really are. Stanley Fisher is a perfect example … that face literally exudes evil. When his face begins to talk, the situation goes from “mere” evil into depths of the inferno. Lucifer has only rarely had such a talented acolyte.

His voice is a totally contrived, studied, phony blend of arrogance, fake aristocracy, haughtiness, superciliousness, elitism, royal tonality, superiority, and condescension. It is as if he concocts it in front of his bathroom mirror to get it right … it is completely contrived and fake, and self-engineered to make him look superior. I can’t listen to him any more … my gag reflex can’t take it.

[Larry] Summers, another phony and fraud, has imported aspects of the voice from his idol, Stanley Fisher, and he too is impossible to listen to unless a person has some strange desire to vomit.

Speaking of broken masks revealing the true persons, look at Soros and Greenspan. Faces that have become truly grotesque over time, revealing who the persons truly are.

Everything the people need to know stands right before their eyes, but they do not see a thing. They listen to and worship the likes of Stanley Fisher and Greenspan as if they are gods, and not the human wrecking balls they actually are.

The political and economic collapse of the U.S. has long since “crossed the Rubicon.”  The public violence that is spreading like the plague in places like Chicago, Milwaukee and Baltimore is a symptom of this underlying collapse – a collapse that has been covered up with extreme propaganda, shock and false-flag fear events and the glorification of U.S. military imperialism.

SoT – Jeff Brown (in Beijing): China Confronts Western Thieves Led By Soros

Financial Markets, Market Manipulation, , ,

In 1979 the European Exchange Rate Mechanism (ERM) – a precursor to the euro – was established.  The ERM created a semi-fixed currency exchange rate mechanism among the European members of the system which was anchored to the Deutsche Mark.    By 1992, less than two years after England joined the ERM,  it was obvious to interested observers that the British pound had become significantly overvalued relative to the Deutsche Mark.

At the time, England had a large current account deficit and was experiencing a nasty recession. Although he British Government was committed to maintaining the BP’s peg to the Deutsche Mark, George Soros, in what became billed as “the trade of the century,” began to accumulate a large bet against the pound.  After wasting billions in taxpayer funds trying to support the pound, the British Government eventually capitulated by exiting the ERM and the market forced a nasty revaluation of the pound.   Soros ended up netting over a billion dollars in profits.  (For the record,  it has been speculated with valid source documentation that the Rothschild family was behind Soros’ attack on the British Government/Bank of England).

Let this be a lesson in price-fixing, as the only thing accomplished by the British Government’s endeavor was a massive transfer of wealth from taxpayers to George Soros & Co. and likely even more to the Rothschild family.  Price fixing markets always fails eventually.

Fast-forward to the present and we find Soros now attempting to profit from what looks like a methodical, strategic devaluation of the Chinese renminbi (yuan) by the Chinese Government.

But there’s a big difference between England circa 1992 and China 2016.  China is running a massive trade surplus, it’s the world’s largest importer/exporter and likely sports the world’s biggest GDP.  It’s financial condition is reinforced by $3.3 trillion in foreign currency reserves.   It can be argued that China is on the ascent to become the next world superpower.

Perhaps the most interesting “wild card” held by China is its Central Bank hoard of gold. The $3.3 trillion in forex reserves does not include the market value of the China’s State-owned gold.  Alasdair Macleod has produced compelling arguments which suggest that China could hold well in excess of 20,000 tonnes of gold, nothwithstanding the current amount to which China publicly admits.

Most analysts who have been observing China for at least over a decade have been wondering how it would be able to unload its massive Treasury holdings, which at one point were around $1.4 trillion.   The market turmoil surrounding China’s intermittent currency devaluations has stirred up a flight to safety bid for Treasuries in the global markets into which China has already unloaded a couple hundred billion dollars worth of Treasuries.  Is China selling dollars to support its currency or is there a more clever strategy at work?

China likely is not going to wait around to be a bagholder of a trillion dollars in eventually worthless Treasuries.  Enter George Soros who announced recently with much bravado that he was betting big against the yuan.  The Chinese Government, via the State-owned People’s Daily newspaper issued a frank warning to those who are openly speculating against the yuan.  Clear it was a shot across the bow back at Soros.

The Shadow of Truth hosted Jeff Brown (China Rising blog) – who has been living in Beijing for the 5 years and is working on Xi Jinping’s diaries – for an interesting discussion about China’s current affairs as they relate to the attack on its currency by Soros.  At the very least there is a lot more going on behind the scenes with China’s moves in the markets than meets the eye and Jeff helps shine a light some of China’s motives.

How Come No One Will Attack The Comex Gold Short?

Financial Markets, Gold, Market Manipulation, Precious Metals, , , ,

The open interest on the Comex for the December contract is approximately 293 thousand contracts (final number as of Friday is not posted until Monday morning).  That represents  approximately 29 million ounces of gold.

Yet, as of Friday (Oct 2), the Comex vault operators were reporting 161,642 ozs of gold in their “registered” vault accounts, which is the amount of gold that has been declared eligible for delivery.

This means that the ratio of December open interest to deliverable gold is approximately 180:1.   Thismissingbullion is a mind-blowing number.  There’s 180 ounces of long/short positions for every ounce of deliverable gold sitting in Comex vaults.  This ratio of paper gold to “allegedly” available real gold represents the most extreme exploitation of the paper liability fractional reserve banking system in the history of the known universe.  

Of course, history tells us that every fractional banking system throughout the ages has collapsed under the weight of far too many liabilities piled on top of too few assets to back those liabilities.  This one eventually will collapse as well.

In 1992, George Soros attacked the British pound sterling in what was billed at the time as “the trade of the century” (I was a junk bond trader at the time on Wall Street and worshiped Soros’ success (I despise the man now, for the record).

Prior to the implementation of the euro, an European “Exchange Rate Mechanism” was created in 1979 in which the exchange rate value of each European country currency was fixed against each other.   Previously the currencies “floated” and price discovery was set by the market.

In 1990 Britain entered the European ERM and by 1992 the pound had become egregiously overvalued relative to the German mark.  It was pretty obvious to everyone including the British Government, which was spending a fortune to prop up the pound vs. the mark.

Long story short, George Soros via his Quantum Fund had built a $10 billion short position in the the pound.   To put this in proper context, a $10 billion bet in 1992 (using Government calculated inflation) would be a $17 billion bet today.  That one bet against the pound and the British monetary system by George Soros was bigger than the size of most hedge funds in the world today.

On September 17, 1992,  Soros’ gargantuan bet paid off.  Soros and the market ultimately forced the British Government to “reset” its monetary system.   The Quantum Fund is said to have made $7 billion on the trade, or a 47% rate of return unannualized in well under a year.  It’s impossible to know the actual “cash on cash” return because we don’t know to what extent the short-pound bet was leveraged.

This brings us to the situation with paper gold vs. physical gold at the Comex.   If shorting the pound was a quite conspicuous trade opportunity in 1992, then attacking the 180:1 paper:gold ratio on the Comex by going long Comex gold futures and standing for delivery is the most overtly obvious trade opportunity in anyone’s lifetime.

This particular predatory trade would exploit the most imbalanced market condition in the history of mankind.  With only 161,646 ozs of gold declared to be available for delivery, attacking this highly artificial market condition would require only $182.6 million dollars worth of Comex contracts (assume $1130/oz for gold).  This is less than 2% of the size of the bet that Soros made in 1992.

There are several hedge funds that are more than large enough to take on this trade, which is a “lay-up trade” in the purest sense of the definition.  So how come no one will take it on?

The obvious answer is that hedge fund managers point to what happened to the Hunt brothers when they attacked a similar trade set up on the Comex in silver in 1979. Eventually the Comex changed the rules of the game and charges were levied against the Hunts by the CFTC for an attempt at cornering the market.  It was the epitome of Government intervention in a market to protect the Comex bullion banks under the “veil” of market manipulation.  A true tragedy in the history of the financial markets.

But where are the charges of market manipulation against the entities who are selling-short paper gold contracts into the market at a 180:1 paper to gold ratio in order to satisfy the demand of Comex futures buyers?   And better yet, how come the long side of the gold open interest trade never stands for delivery.   A mere $182 million bet that stands for delivery has the potential of a more than doubling or tripling (or more) in a very short period of time.

Concomitantly, if the rules of the game were changed to rules that reflected the true supply and demand of physical gold globally, it would force the mother of all short-covering trades.   In all of the other products with futures markets in the U.S. the ratio of paper to physical is not even remotely close to the 180:1 ratio in gold.  In fact, the CFTC cracks down if when the percentage of paper to deliverable exceeds much more the 20-40% in any other futures market.

It is a riskless bet that no one is willing to take on.  This is because it’s loaded with 100% risk in one aspect.  If someone were to attack the fraud on the Comex in order to make a lot of money on the obvious, the Government would step in and prevent the trade from occurring to completion even though the Government is unwilling to prevent the fraudulent market condition from developing in the first place.

This is a bigger injustice to our country and our financial system than was the Hunt brothers debacle.  And the truth of the matter is that when the Comex finally does crumble under the weight of its own fraudulent, Ponzi scheme grotesque obesity, it will trigger or coincide with the collapse of the entire U.S. systemic Ponzi scheme.