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Soros: “Financial System Remains Extremely Vulnerable… We Are On The Verge Of An Economic Collapse”

Tyler Durden's picture




 

From Gold Core

Soros: “Financial system remains extremely vulnerable  …  We are on the verge of an economic collapse”

Gold is mixed today after last week’s 2.4% fall. The short term trend remains negative but medium and long fundamentals remain supportive as do the very challenging and risky macro, sovereign debt and currency environment. Physical buying remains strong at the $1500 level with premiums for gold bullion bars higher in Singapore and Hong Kong.

The risk of contagion in the Eurozone and indeed a global financial contagion remains real. Peripheral European bond markets are under pressure again today with 10 year bond yields in Ireland rising to over 12.1% and to over 11.65% in Portugal.

Cross Currency Rates

European leaders are preparing for a default by Greece. The German finance minister, Wolfgang Schaeuble, said yesterday that Europe is preparing "for the worst".

George Soros, Chairman of Soros Fund Management and famous for breaking the Bank of England in 1992, has warned that "we are on the verge of an economic collapse which starts, let's say, in Greece but it could easily spread."

Gold in Euros – 1 Year (Daily)

The 80-year-old investor said that the “financial system remains extremely vulnerable."

Soros added that "there are fundamental flaws that need to be corrected."  The core flaw, says Soros, is that the euro is not backed by a political union or joint treasury, so when something goes wrong with a participating country, there is "no provision for correction."

Soros said that it is "probably inevitable" that highly indebted countries will be given a way to quit the euro.

Gold has been the strongest currency in the world in recent years and all major fiat currencies, including the Swiss franc, have fallen against it. Should Greece revert to drachmas, Ireland to punts, Spain to pesetas, Italy to lira and Portugal to escudos, these countries would suffer massive inflation and the price of gold would surge in terms of these local currencies.

PORTUGUESE GOVERNMENT BONDS 10YR NOTE – 1 Year (Daily)

The assertion that gold is a bubble may soon be seen as silly as gold increasingly reasserts itself as a safe haven asset and currency.

Gold’s primary advantage is that it protects against currency devaluation – this will be realized again in the coming weeks and months.

The very strong demand for gold seen in Greece in recent days will likely soon be experienced in other peripheral Eurozone countries It will likely be replicated internationally as concerns mount about currency debasement and currencies in general including the euro, the British pound and the U.S. dollar.

Soros Gold ETF Sale - Well Publicized but Poorly Analyzed

Soros’ recent sale of his gold ETF holdings made headline news internationally with much commentary claiming that Soros sale of his gold ETF holdings means that gold has “peaked” and the “bubble” may soon burst.

However, what was less reported was the fact that Soros maintained very significant positions in gold mining companies.

It is highly unlikely that Soros Fund Management would maintain significant allocation to gold mining companies if there was a belief that gold was a bubble that was soon to burst.

Indeed, if his hedge fund truly believed that gold was a bubble and significantly overvalued, it would seem sensible of them to have shorted the gold ETF and not have added to gold mining positions.

More plausible is that Soros, given his political activism, may have decided that he did not want continuing publicity regarding his large ETF gold holding. ETF gold holdings like all securities must be declared in SEC filings.

Given Soros view that “we are on the verge of an economic collapse” and his oft repeated deep concerns about the U.S. dollar, it is very possible that he is accumulating gold in allocated accounts away from the spotlight of the media and the public.

London Good Delivery gold bars (400 oz) can be bought in volume at much the same prices as the gold ETF. They can be stored at a cheaper cost but have the added advantage of not having to be declared.

Importantly,  London Good Delivery gold bars are highly liquid and would be more liquid than ETFs in the event of a systemic crash and or currency crisis. This is one of the reasons that increasingly respected hedge fund manager, David Einhorn, has opted for gold bars in allocated accounts in specialist depositories.

Counter party risk is also one of the reasons that the University of Texas Investment Management Co., the second-largest U.S. academic endowment, said April 14 that it has taken delivery of about $1 billion worth of gold bullion bars.

NEWS

(Reuters) -- Gold steady on Asian physical buying; dollar weighs
http://www.reuters.com/article/2011/06/27/us-markets-precious-idUSTRE7592IU20110627

(Bloomberg) -- Gold May Drop as Greek Rescue Plan, Crude-Oil Decline Erodes Haven Demand
http://www.bloomberg.com/news/2011-06-27/gold-may-drop-as-greek-rescue-plan-crude-oil-decline-erodes-haven-demand.html

(Bloomberg) -- BIS Says Gold Held in Swap Contracts Rose 18% as of March 31
http://www.bloomberg.com/news/2011-06-26/bis-says-gold-held-in-swap-contracts-rose-18-as-of-march-31.html

(The Telegraph) -- European leaders prepare for a Greek default
http://www.telegraph.co.uk/finance/financialcrisis/8600016/European-leaders-prepare-for-a-Greek-default.html

COMMENTARY

(The Daily Mail) -- Lord Rees Mogg: The Greeks are buying gold - so should you
http://www.dailymail.co.uk/debate/article-2008068/WILLIAM-REES-MOGG-The-Greeks-buying-gold--you.html#ixzz1QSfFIhai

(Financial Times) -- The UK can learn from Greece’s tragic loss of faith
http://www.ft.com/cms/s/0/795e17fa-9daa-11e0-b30c-00144feabdc0.html#axzz1QSdCUWeE

(ZeroHedge) -- What If Greece Says No?
http://www.zerohedge.com/article/what-if-greece-says-no

(CommodityOnline) -- US Middle Class nears extinction, Looks for gold,silver to rescue
http://www.commodityonline.com/news/US-Middle-Class-nears-extinction-Looks-for-goldsilver-to-rescue-40310-2-1.html

(The Telegraph) -- Where Greece goes now, we will soon follow
http://www.telegraph.co.uk/comment/columnists/christopherbooker/8598664/Where-Greece-goes-now-we-will-soon-follow.html

(King World News) -- Rickards: Fiat system's abuse will force world back to gold standard
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/25_Jim_Rickards.html

 

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Mon, 06/27/2011 - 07:34 | 1404944 doomandbloom
doomandbloom's picture

Senator Palpatine speaks.. formation of the empire is near..

Mon, 06/27/2011 - 07:44 | 1404951 achmachat
achmachat's picture

Dellow Felegates....!

Mon, 06/27/2011 - 08:27 | 1405006 TheEmperor
TheEmperor's picture

Wipe them out...all of them.

Mon, 06/27/2011 - 09:35 | 1405153 curbyourrisk
curbyourrisk's picture

Economy on brink of collapse.

 

Soros should know, he bet it would!

Mon, 06/27/2011 - 10:01 | 1405191 WaterWings
WaterWings's picture

Our society's crack-riddled brain wants to stop, but we still listen to this pusher, Soros.

It's madness that anyone trusts this guy after making a cool billion on the crash of the Pound. Madness!

Mon, 06/27/2011 - 10:33 | 1405294 Pegasus Muse
Pegasus Muse's picture

Bankers Declare War on Commodities by Jeff Nielson, Friday, 24 June 2011 11:59

"Some may suggest that my choice of subject for this commentary is misplaced, given that the “reason” why the oil market plummeted yesterday was the big oil-dump of 60 million barrels by the International Energy Agency (IEA). My reply to that is that the response of all of the commodities markets to that news demonstrates conclusively that the bankers are attacking all commodities."

http://www.bullionbullscanada.com/index.php?option=com_content&view=arti...

Mon, 06/27/2011 - 07:36 | 1404946 overmedicatedun...
overmedicatedundersexed's picture

so Soros sold his gold recently as has been rumored..one lie after another has worked for a very long time. I bet even Soros gets confused as to which lie he is promoting at the moment.

PM's are getting stronger against paper  who knew?

Mon, 06/27/2011 - 08:27 | 1405005 Going Loco
Going Loco's picture

Er, no. Not at the moment they are not.

Read around a bit and what do you find? Liquidity is a problem. Cash (ie: instant access to computerised credits) is in short supply.

Nobody knows for certain, and those like Soros who might have a better chance of knowing will only tell you the things that will help them achieve their own objectives. But right now the squeeze seems to be on. If so, I think we are moving into Ruffer's "moment of deflationary fear" and it is only after we have experienced that phase that the "inflation of currency compromise" will make PMs the safe haven.

Meanwhile my most reliable source in the UK has issued a red alert to subscribers - ensure your bank deposits are below the (alleged) guaranteed deposit scheme, and he has listed the Uk banks in order of safety - some surprises for me in that list.

Mon, 06/27/2011 - 08:42 | 1405030 cahadjis
cahadjis's picture

Interesting... Natwest anywhere there? Just asking, or maybe you can help us by saying who is this source? Thanks.

Mon, 06/27/2011 - 10:18 | 1405252 fiddler_on_the_roof
fiddler_on_the_roof's picture

Nadeem walayat has given a list of UK banks which are safe in decreasing order. Goto walayatstreet.com

Mon, 06/27/2011 - 12:10 | 1405634 Going Loco
Going Loco's picture

Yes, it's Nadeem. That man has been the most consistently accurate forecaster of Uk financial affairs since I started reading him 3 years ago. Not sure I agree with his forecast for the Dow at the moment. Anyway, banks:

"The following table lists Britain's major retail banking groups (separate licences) in terms of the percentage probability that your deposits above the UK compensation limit of £85k and Euro-zone banks 100,000 (current £/E £86k) would be secure in the event of a series of euro-zone debt defaults starting with Greece and that the crisis is contained to these smaller peripheral euro-zone countries i.e. Greece, Portugal and Ireland, if Spain comes under real risk of default then that would require a revaluation of this list as banks such as Santander would come under far greater pressure given exposure to Spanish government debt."

NatWest is down at the bottom. 5%  probability Deposits over £85k are Safe

 

http://www.marketoracle.co.uk/Article28905.html

Mon, 06/27/2011 - 13:47 | 1405927 eureka
eureka's picture

"Not sure I agree with his forecast for the Dow at the moment."

All technical, chartist, cycle "analysis" exist in "naturalistic" - i.e. romantic vacuums; there are no natural laws governing leveraged, manipulated finance - rather, one must consider political power games and popular perception as co-forces of globalist, casino-capitalism.

US Republicans will lose the next election if they do not get sufficient US budget cuts in return for continuous incrementally raised US budget ceilings, which govern the amount of issuable US debt. Consequently US debt issuance, and thus US equities-pump, will subside.

Mon, 06/27/2011 - 08:45 | 1405035 Iam_Silverman
Iam_Silverman's picture

"so Soros sold his gold recently as has been rumored"

Here, I'll edit that for you....

So, Soros sold his soon to be worthless ETF shares recently, as has been rumored.

Doesn't that make it more accurate?

Mon, 06/27/2011 - 09:04 | 1405068 White.Star.Line
White.Star.Line's picture

Soros did not sell any gold.
He did sell a substantial amount of gold shares, however.

Mon, 06/27/2011 - 07:47 | 1404954 King_of_simpletons
King_of_simpletons's picture

*clap clap clap*......

Mon, 06/27/2011 - 07:48 | 1404955 hungarianboy
hungarianboy's picture

Problem is that when Soros starts to talk, position is always going the opposite direction.

Also the fact that GS Tech is saying short EU could implicate that to many are on the short side and a snap back could be expected.

Mon, 06/27/2011 - 07:51 | 1404958 PaperBear
PaperBear's picture

Do ZH readers still say "buying gold" or "buying silver" ?

The act of "buying gold/silver" is actually EXCHANGING toilet paper for gold/silver.

Mon, 06/27/2011 - 08:48 | 1405040 Iam_Silverman
Iam_Silverman's picture

"Do ZH readers still say "buying gold" or "buying silver" ?"

I always say that I'm going down to the coin shop to get some change.  Isn't that what it's called when you hand someone paper bills and get coins in return?

Mon, 06/27/2011 - 11:42 | 1405563 bagpiper
bagpiper's picture

Yup....lol...wish ZH had some good smilies...

;-)

 

Mon, 06/27/2011 - 07:58 | 1404964 Zero Govt
Zero Govt's picture

got a feeling George will do well in riding out the approaching (fast) Hell Storm but despite being a sharp cookie he still talks some rubbish:

the Euro is not backed by a political union or joint treasury, so when something goes wrong with a participating country, there is "no provision for correction."

The Euro as a patent fact has out-preformed both the US Dollar and Sterling over the past decade, both of whom have his beloved central banks. It seems having a central bank is not an advantage over a rag-bag de-centralised system such as Europe has, indeed both have under-performed the disparate Euro system

And will the US and UK's central banks save or resolve anything better in the coming Depression? Absolutely unequivicably not. All 3 zones will suffer the exact same economic turmoil, central banks proving once again their worthlessness and absolute uselessness both in rising and declining economies.

Sorry George, State monopolies are under-performing garbage, you're talking complete crap (again)

Mon, 06/27/2011 - 07:56 | 1404966 QuantTrader
QuantTrader's picture

After partying with his son in the hamptons this past weekend, I wouldn't beleive anything the old man says

Mon, 06/27/2011 - 08:18 | 1404991 oddjob
oddjob's picture

If the Hamptons is a gay bar, I believe you.

Mon, 06/27/2011 - 10:08 | 1405203 WaterWings
WaterWings's picture

Worse.

"Okay, close your eyes, and just pretend it's the Hamptons."

Mon, 06/27/2011 - 07:54 | 1404968 Coffin Dodger
Coffin Dodger's picture

To anyone who hasn't already: MAKE PLANS

1) Stockpile food and water NOW

2) Select a house to all meet at as far from cities as possible, from amongst your circle of trusted friends/relatives

3) Convince anyone you trust to accept your plan. Sell it as a 'worst-case scenario'. Numbers will be VERY important

4) Ensure EVERYONE has enough gasoline stored to reach the chosen destination

5) Ensure you have means to defend yourselves

6) Tell NO ONE outside your circle what your plans are

You'll know the time has come when you turn on your TV and the gov't has bugged out.

Mon, 06/27/2011 - 07:58 | 1404972 Greeny
Greeny's picture

Buy bomb-proof Nuclear bunker and hide there for

the rest of your miserable live, like a rat, what a freak.

Mon, 06/27/2011 - 08:08 | 1404976 Zero Govt
Zero Govt's picture

Coffin Dodger

You're almost as hysterical as Timmay on the deficit ceiling! Are you preparing for an asteroid attack, super-tsunami or a nuclear war?

Check the last Great Depression, 1929-34, and you'll see all sectors of business stayed open including water, food retailers, clothes and pretty much everything. There will be no shortage of anything, in fact businesses will be keen as mustard for your custom. Be prepared only for a culling of the business sector, not a killing. So relax. . .

Mon, 06/27/2011 - 08:37 | 1405014 moonstears
moonstears's picture

Kinda true. Vast numbers didn't use city/state services, at that time(water from wells, minimal electricity, say just 6 lights and a few plugs for the radio). I've told my loved ones, this is how it works...currency breaks down goods and services remain, but for at LEAST a few weeks the object of desired trade or barter for those goods goes out the window..."Dollars? Give me something I can use!".

Mon, 06/27/2011 - 08:41 | 1405026 TheDriver
TheDriver's picture

I have no issues with people preparing but this line of thinking always cracks me up: "4) Ensure EVERYONE has enough gasoline stored to reach the chosen destination". No one will be driving anywhere if TSHTF. This is what I-95 looks like on a good day in DC -- http://imgur.com/MWpeC

Mon, 06/27/2011 - 11:50 | 1405583 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Some of us live in what you in the East call "fly over country" and we actually have room to breathe.

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/27/2011 - 08:43 | 1405031 knowless
knowless's picture

i don't know how many times i've said this; but during the last great depression 97% of the population didn't live in global import dependant cities.

Mon, 06/27/2011 - 09:14 | 1405087 ibjamming
ibjamming's picture

Government dependent cities...

Without SNAP, section 8, and general welfare...the cities would already look like the pictures of the great depression.  Bread lines, people living in tents in the parks...we'd have all that now without the government programs.

Mon, 06/27/2011 - 09:31 | 1405142 Silver Dreamer
Silver Dreamer's picture

Exactly. Comparing the coming collapse to the Great Depression is foolishness.  Back then 90% of the population lived in rural areas and was NOT dependent on the government for anything.  Now consider today's exact opposite scenario of 90% in urban areas.  That retreat or bunker is beginning to look like a good idea, not a paranoid one.

Mon, 06/27/2011 - 09:53 | 1405171 Zero Govt
Zero Govt's picture

i agree this will be worse than the 1929 Great Depression but for every benefit they had in their day and for every Govt dependency we have today there's still technological advancement for our better keeping ...the Web should prove a real boon to sharing ideas, barter and trade etc ...regards Cities being dependent on international trade what's wrong with that? It's unlikely to break down, just contract, in fact it's a productive bonus (flexibility of supply etc) over 1929... as for us huddled in suburbia instead of out in the sticks again human interaction is always a positive not a negative, that's why towns and Cities and got larger in the first place, the opportunities of so much more on offer in urban areas for comfort and quaility of life

No need to add lots more negatives to a dire economic situation, we can prepare without need of bunkers, bullets and storing oil in drums 

Mon, 06/27/2011 - 10:00 | 1405187 ibjamming
ibjamming's picture

Huh?  Did you forget that half the people living in the cities are going to suddenly be broke and starving?  It's good for YOU...but not for them.  Riots WILL ensure.  The cities won't be safe.

Mon, 06/27/2011 - 11:34 | 1405535 Monedas
Monedas's picture

No one ever starved in Kansas ! Your bomb shelter can double as a tornado shelter ? Monedas 2011 Digging for the Truth !

Mon, 06/27/2011 - 10:48 | 1405395 Captain Planet
Captain Planet's picture

i'm concerned they're going to outlaw farming in the northeast, on grounds of public health, so i'm a little hesitant to start there.

Mon, 06/27/2011 - 11:49 | 1405572 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

7,000,000 Americans died of malnutrition/starvation in the Great Depression!  Given your attitutde, you would have been amongst them.  Have fun!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/27/2011 - 07:55 | 1404969 Greeny
Greeny's picture

Well, Soros full of S**, as month ago he reported that he sold all his GOLD, and now he's probably shorting EUR, Good luck, old fart, betting against China, which are buying EUR debt.

Mon, 06/27/2011 - 07:55 | 1404970 anony
anony's picture

Soros didn't become a multibillionaire by giving away his moves.

His public credibility is worthless.  Until he publishes his Trade confirmations, so are his public utterances.

This informatino is null. Unless filtered thru a Soros decoder ring.

Mon, 06/27/2011 - 08:01 | 1404974 Ghordius
Ghordius's picture

Hemm... what is the best way to get at large quantities of physical gold? If I could, this would be my way:

1. buy ETF's
2. wait
3. redeem ETF's with physical gold
4. tell everybody my gold ETF position has decreased
5. wait and see

Mon, 06/27/2011 - 08:05 | 1404978 Temporalist
Temporalist's picture
Ron Paul on the Gold Standard – June 26th 2011

http://ronpaulflix.com/2011/06/ron-paul-on-the-gold-standard-june-26th-2...

 

China's Move Away from the U.S. Dollar Means You Need to Invest in the Yuan

""China admits to buying small quantities of gold - about $50 billion in the last year. But it may be buying a lot more gold - and silver, as Imperial China was on a silver standard, not a gold standard," said Money Morning Contributing Editor Martin Hutchinson."

http://moneymorning.com/2011/06/27/invest-in-the-yuan/


Can Gold Save the Euro?

"Professor Robert Mundell urges gold convertibility for the euro, the currency which he fathered, as well as for the dollar."

"Mundell: [T]here could be a kind of Bretton Woods type of gold standard where the price of gold was fixed for central banks and they could use gold as an asset to trade central banks.

The great advantage of that was that gold is nobody’s liability and it can’t be printed. So it has a strength and confidence that people trust. So If you had not just the United States but the United States and the euro tied together to each other and to gold, gold might be the intermediary and then with the other important currencies like the yen and Chinese yuan and British pound all tied together as a kind of new SDR that could be one way the world could move forward on a better monetary system."

http://www.midasletter.com/index.php/can-gold-save-the-euro/

 

Mon, 06/27/2011 - 11:42 | 1405549 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

It is my understanding that the Euro is backed 15% by gold!?

 

Tuco

Mon, 06/27/2011 - 08:10 | 1404980 falak pema
falak pema's picture

if you want gold buy lead...if you want lead buy Land...if you want land buy a cow...if you want a cow buy a calf...if you want a calf buy  a half moon...if you want a half moon buy a laugh... Then you'll know that the best things in life are free...

Mon, 06/27/2011 - 08:10 | 1404981 Tater Salad
Tater Salad's picture

Soros sold his ETF holdings as this is public knowledge.  However, he reinvested the proceeds in a manager that buys nothing but gold and gold stocks.  So much for "selling" gold.

He just repositioned so that the public couldn't follow his each and every move through the 13F.

 

 

Mon, 06/27/2011 - 08:11 | 1404983 Pseudo Anonym
Pseudo Anonym's picture

Soros, given his political activism, may have decided that he did not want continuing publicity regarding his large ETF gold holding.

and therefore, the treacherous jew who sent many of other jews into gas chambers, took delivery on his ETF's and stores his bullion now in hofjuden vaults.

Mon, 06/27/2011 - 08:11 | 1404988 tradewithdave
tradewithdave's picture

The probable inevitability of Soros agenda of libertarian paternalism and the new and improved gold backed SDR has the surprising plot twist of "End The Fed."

Dave Harrison
www.tradewithdave.com

Mon, 06/27/2011 - 08:17 | 1404989 Yen Cross
Yen Cross's picture

 The last Bastian of Rusky Liberalism!

Mon, 06/27/2011 - 08:31 | 1405008 Temporalist
Temporalist's picture

Soros is not Russian...

Mon, 06/27/2011 - 11:31 | 1405527 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Right!  He came to this earth straight from the bowels of hell!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/27/2011 - 08:14 | 1404990 ivana
ivana's picture

he's not investor

he's corrupt insider and bankster "facility"

Mon, 06/27/2011 - 08:20 | 1404999 Yen Cross
Yen Cross's picture

+1

Mon, 06/27/2011 - 08:21 | 1404997 steve.stuart
steve.stuart's picture

Soros needs to be tried in court for insider and illegal trading ..corrupt bstard

Mon, 06/27/2011 - 08:25 | 1405002 Everybodys All ...
Everybodys All American's picture

Soros is a jerk who in this case is probably right. Dollar and Euro could eventually collapse and his "new world" order comes into view. It is wrong to wish ill on anyone except Soros.

Mon, 06/27/2011 - 08:40 | 1405019 The Swedish Chef
The Swedish Chef's picture

Oh, So Soros thinks we should have a fiscal union in Europe as well. That was unexpected... At least the consipracy homepages get something to write about.

 

What was it that Einstein said was the definition of insanity?

Mon, 06/27/2011 - 08:41 | 1405020 MiningJunkie
MiningJunkie's picture

Soros is a Hungarian Jew that masqueraded as a Gentile during WWII in order to save his ass. He is also extremely bright and knows how to game the system in order to relieve all you 35-year-old hedge fund managers of your money.

Mon, 06/27/2011 - 08:51 | 1405045 Yen Cross
Yen Cross's picture

 Thanks for the intel! You learn something new every day!  ~  Yen

Mon, 06/27/2011 - 08:40 | 1405023 abemko
abemko's picture

The only system that is in real danger of collapse is the corrupt banking system with $600T in derivatives waging war on the real economy. I say, good riddance. The world consists of a tiny minority living in a virtual world skimming resources from the vast majority living in the real world. With the banking system gone, we can quickly and intelligently replace it with a banking system which is simply a utility, like the water company, with strict quality regulations and answerable to the PUBLIC. Banking should be not for profit. Its responsibility is to provide a service for commodity transactions and to facility truly socially creative people who provide a real service. BANKING COLLAPSE = ANARCHY = BULLSHIT. Most people are far more caring and honest than any banker and will quickly reorganize once the bankers are out of the way.

Mon, 06/27/2011 - 09:33 | 1405148 Silver Dreamer
Silver Dreamer's picture

Tell that to the looting mobs in IL and NJ.

Mon, 06/27/2011 - 09:58 | 1405183 Ima anal sphincter
Ima anal sphincter's picture

+1...Great thinking.....but, Mister banker isn't going down easy. If "their" system fails, I wouldn't put it past the assholes to bring everything down with it.

 

Simple answer....KTB

Mon, 06/27/2011 - 10:22 | 1405269 MobBarley
MobBarley's picture

Where you went wrong is trying to uphold a pure altruistic moral imperative 'banking should not be for profit'

with judgements : 'truly socially creative people'.

Allow me to judge you worthless and recommend your erradication from the earth along

with the rest of your 'PUBLIC' you sought refuge amongst.

Allow me to also remind you that the purpose of your life was to grow

as a spiritual entity and you failed in that you dismissed the idea

outright due to operant conditioning much as Pavlov's dog.

Because you never had the ability to 'think for yourself' as you

have touted as some kind of disassociated advertising byline

you now stand 6 feet deep in the apocolypse.

Ps. 'most people are far more caring' than any banker, until they become the banker.

An ass for every seat. 'but for the grace of God go I' ?

or how about 'Butt for the Grace of God go I' ?

a little humor then.

 

Mon, 06/27/2011 - 08:45 | 1405027 the not so migh...
the not so mighty maximiza's picture

I never agree with Larouche but Soros should be tried for war crimes committed in WWII.  Giving tickets to other jews to go to concentration camps is bad.  

Mon, 06/27/2011 - 08:42 | 1405029 darkpool2
darkpool2's picture

Soros says Euro is flawed because " no provision for correction". Well not strictly true IMO. There is internal deflation and if countries/ regions were not bailed out or otherwise funded, they could be denied access to new funds and therfore forced to internally adjust. Its just another political issue. No one seems willing to leave things to the market adjustment mechanisms. You dont " have" to purchase or rollover Greek bonds!

Mon, 06/27/2011 - 08:53 | 1405041 Pure Evil
Pure Evil's picture

Of course Soros sold his GLD positions, after he announced his intentions to invest in the ETF, the mindless zombies followed him into the fund like lemmings into the sea.

Once the last lemming jumped over the edge, he sold off his holdings before everyone had a chance to catch on.

Now, he lets everyone know that he's investing in miners, just waiting for a new set of mindless zombies to follow him to the edge of the abyss while he stands there pushing them into the nether regions, only to jump out again at a later date all the while stealing all the money they invested that help pump up the stocks value.

I think its called "pump and dump", Soros style.

Mon, 06/27/2011 - 09:34 | 1405047 Mercury
Mercury's picture

 Soros added that "there are fundamental flaws that need to be corrected." The core flaw, says Soros, is that the euro is not backed by a political union or joint treasury, so when something goes wrong with a participating country, there is "no provision for correction."

Remember, he "broke" The BOE (and made a bundle) in 1992 by essentially betting that one European country (England actually) would be forced into a corner and not honor an obligation (the European Exchange Rate Mechanism) to other European countries.

Also remember that he is old, smart and probably has a pretty good memory. 

Hmmmmmmmm.

 

Mon, 06/27/2011 - 08:58 | 1405051 MFL8240
MFL8240's picture

George Soros sold Gold and bought miners?  So lets see if I understand this.  He is claiming Gold is in a "bubble", and that the dollar is ready to collapse yet he bought miners that are denominated in dollars on a commodity that he claims will fall?? 

Mon, 06/27/2011 - 09:51 | 1405170 Bob Paulson
Bob Paulson's picture

calling gold the 'ultimate bubble' isn't the same as saying it's about to burst. read between the lines. in all likelihood it is the ultimate bubble, it's just got a long, long way to go.

i know of several miners he has bought that are not denominated in dollars. he has invested in numerous canadian and australian gold miners.

guys like soros don't make mistakes.

Mon, 06/27/2011 - 11:22 | 1405499 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, and for the same reason JPM can go a full quarter with zero losing trading days!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/27/2011 - 09:01 | 1405058 rsnoble
rsnoble's picture

Who knows, perhaps gold and such are in a bubble.  All that stuff crashed pretty well in '08.  I see it as insurance policy if you can afford it.  I understand all the reasons why people say you need it.  I'm just pointing out no one has a crystal ball.  I'm sure the gov't also has dirty tricks up their sleeves, oh we'll just put a 75% tax on it or some crap.

Mon, 06/27/2011 - 09:06 | 1405071 nathan1234
nathan1234's picture

What I would love to hear! Soros is behind bars and his wealth has been wiped out.

For the manipulations he has done this would be real justice

Mon, 06/27/2011 - 09:06 | 1405077 White.Star.Line
White.Star.Line's picture

Mr Soros is right about the possibility of economic collapse.
After all, he has worked his ass off for his boss to make sure it happens.

Mon, 06/27/2011 - 09:19 | 1405082 gwar5
gwar5's picture

Does Soros really think he and his multi-Trillion dollar debasement protege', Barack Hussein Obama, are invisible?

George....Hellooo! Everyone with internet can watch see them destroy the USD so a NWO currency can succeed.

80 yo Soros, NWO criminal and former happy Nazi collaborator, is an atheist these days because worms up his snout for the rest of eternity is looking much better than his only other alternative.

 

Mon, 06/27/2011 - 09:19 | 1405104 The Alarmist
The Alarmist's picture

Good old George, talking his book, just wants to buy up Europe and the rest of the western world on the cheap.

Mon, 06/27/2011 - 09:29 | 1405136 Itsalie
Itsalie's picture

So what if gold in drachmas or pesetas/lira watever is infinity, at least the Greeks and Spanish/Italians will get to export their wares to germany or china for a change, just like uncle sam has forced the chinese to buy lousy boeing planes (aka outdated 737 vs the Airbus) by devaluation. Now even spanish cucumbers are too expensive in neighboring France (especially  after the e-coli bad-mouthing by the friendly Germans). In the 1980s everything from spain was cheap, vegetables, wool sweaters, skis, Ford cars. Even holidays in italy were affordable even though the crooks in napoli add 30% to every foreigner's restaurant cheque! Now when a backpacker tries to order a cafe in a bistro in Nice, he/she might end up having to wash the dishes - blame the stoopid eurocrats for inventing this economists' wetdream called EURO!

Mon, 06/27/2011 - 10:02 | 1405169 Founders Keeper
Founders Keeper's picture

Let's just try something here...

"The assertion that gold (LEADis a bubble may soon be seen as silly as LEAD increasingly reasserts itself as a safe haven asset and currency.

LEAD's primary advantage is that it protects against currency devaluation – this will be realized again in the coming weeks and months.

The very strong demand for LEAD seen in Greece in recent days will likely soon be experienced in other peripheral Eurozone countries It will likely be replicated internationally as concerns mount about currency debasement and currencies in general including the euro, the British pound and the U.S. dollar."

Interesting.

 

Mon, 06/27/2011 - 10:08 | 1405216 Coldfire
Coldfire's picture

When Dorian Gray Eyebags talks his book, the world listens... But he's just like any other high-ranking demon; he puts his trousers on one cloven hoof at a time.

Mon, 06/27/2011 - 10:15 | 1405244 vegas
vegas's picture

Every time this fascist liberal puke opens his mouth the world's media machine gobbles up his every word. Except for one trade - ONE TRADE - that of course the infamous insider short Sterling long D-Mark spread in '92 that made him a billion or so, this guy has been wrong on so many trades.

 

Anybody remember his long Nikkie at 32,000 short SP500 at 300 in 1987? Well. I do, and the list is a lot longer than that. The guy is nothing more than a well connected shill.

Mon, 06/27/2011 - 10:20 | 1405264 Dr Hackenbush
Dr Hackenbush's picture

seems to be posturing for a global gold standard -who knew? 

Mon, 06/27/2011 - 11:17 | 1405491 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

He more than bet on it.  He is helping cause it.  He wants a New World Order with a one world currency.  "Eugenics" is the end game for this tyrant and his ilk!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Mon, 06/27/2011 - 11:57 | 1405602 amanfromMars
amanfromMars's picture

"Soros’ recent sale of his gold ETF holdings made headline news internationally with much commentary claiming that Soros sale of his gold ETF holdings means that gold has “peaked” and the “bubble” may soon burst.

However, what was less reported was the fact that Soros maintained very significant positions in gold mining companies.

It is highly unlikely that Soros Fund Management would maintain significant allocation to gold mining companies if there was a belief that gold was a bubble that was soon to burst."

The bubble is only burst at George Soros financial shenanigans level. For all others is it still produced as an artificial hare to chase with the pack and dogs of war leading the blind charge. Hence still the mining rather than ownership of gold rearrangement of priorities.

Mon, 06/27/2011 - 12:50 | 1405726 Jovil
Mon, 06/27/2011 - 13:32 | 1405893 Chuck Walla
Chuck Walla's picture

When will that monster, the tyrannoSoros, ever die?  His Astro-turfed Bretton Woods thing gives the lie to his "fears". He's going to make big money from this and he is telling us how.

Mon, 06/27/2011 - 16:18 | 1406428 pcrs
pcrs's picture

thank you Soros, we need a fascist EUSSR super state, with central bureaucrats backed by strong armies to dictate where your money is going. That will keep them honest.

Mon, 06/27/2011 - 18:02 | 1406682 Feel the flow
Feel the flow's picture

I'm currently living in Mallorca, Spain and things are changing.  Protests are becoming more and more commonplace.  20 and 30 somethings are living back home with Madre and Padre.  After Greece, Spain is next.  The Gold and Silver coin shops are experiencing record sales here.  As my local shop owner says, "Who wants their money in the bank?"  Let alone in a dying political experiement: the EURO. 

Feel The Flow:  http://www.guidetosilver.com

Ahoy!

Mon, 06/27/2011 - 18:07 | 1406698 Feel the flow
Feel the flow's picture

I'm currently living in Mallorca, Spain and things are changing.  Protests are becoming more and more commonplace.  20 and 30 somethings are living back home with Madre and Padre.  After Greece, Spain is next.  The Gold and Silver coin shops are experiencing record sales here.  As my local shop owner says, "Who wants their money in the bank?"  Let alone in a dying political experiement: the EURO. 

Feel The Flow:  http://www.guidetosilver.com

Ahoy!

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