Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

ilene's picture

Michael Snyder tends to be extreme in his pessimism, but he presents arguments that are hard to dismiss. ~ Ilene

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 world’s 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 Paulson’s 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 € sculpture’s 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....



For much more discussion on this, please check out this article.

This is exactly what happened back in the 1930s. The velocity of money absolutely plummeted. 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?


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fredquimby's picture

There is a growing realization in Europe that the euro simply does not work.  

No Madam, there isn't. You are simply telling us how you may feel.

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.

All of which are nothing to do with the EURO itself, and all to do with Governments spending too much money that is given to them by the banksters.

The euro is doomed. The only question is who is going to blink first.

No, some European Govts. are doomed. Not the currency they transact in.

Nobody wants to be the first to leave the euro.

No, nobody CAN leave the EURO. There is no mechanism in place to leave.



Watauga's picture

The removal of the EURO sculpture is fascinating, as its "parts are getting weak."  Hmmm . . .   Maybe the Germans are telling us something?

Cult of Criminality's picture

I thought Grandpa Buffet,would have told those three Gold is just a barbarous relic.

Oh well

supermaxedout's picture

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 € sculpture’s removal from the Frankfurt Airport indicate Germany is preparing for a surprise return to the Deutsche Mark?


You dont know the Germans. Their money is for them not a symbol for something higher. They are cured from all this bullshit having learned there lesson well.

The Germans know exactly that only two things matter in conncetion with their money:

  1) A Euro is a Euro and buys, this and that now without any problems.

2)   A Euro can be used as store of value without having to fear that its value is declining significantly within short time.

Thats it.  Of course people are having doubts now because times are tough and Euroland has to make big choices. Whether to sink back to the old times or to go forward towards the USE. 

The thing is always the same: The Germans might get their way and the USE is forged under the pressure of these crisis times.  But this means USE will only become a reality when also Germany is making huge concessions and gives up a lot of indepedence. Power moves to France to Strasbourg bound to be the capital of Euroland Europe.  This is the price and the Germans are willing to pay this price under conditions of course.  They want to be sure that once the power is in Strasbourg Germany has still a strong influence given its economic importance and its number of people.  But in Strasbourg everything is going to be in checks and balance, guaranteed. Because each member state is going to fight hard within the democratic rules to get the best for his people.  Germany is still an occupied country with a lot of foreign influence, not always for the good. Germany is not comparable with France which is a real independent state having nuclear weapons etc.  Within the USE Germany is going to be a part of a real independent union of nations.  This gives hope for the future not only for Germany but also for the other Euroland countries. The voice of a future USE would have more importance and more influence and Europe would continue to be a safe and stable region.



covert's picture

this has been coming for a long time and has been well known, however, the timing is suprising.



Inthemix96's picture


The "warrior", paulson?????

Hahahaha, put the "warrior" in a ring with me Ilene, he wouldnt last one punch.........


Joe A's picture

How about taking bets on shortening the lifespan of these people, offering huge paybacks on their untimely demise? Would that bring home the message that what they are doing is playing with people's lives and livelihoods?

nscholten's picture

That is the point.  Most people don't remember shit..

silverdragon's picture

Those three evil f*ckers are telegraphing to the Sheeple that paper Gold is OK as evidenced by them grabbing some. Many Sheeple will follow in their footsteps so a reduced amount of fiat will be swapped for the relic.

silverdragon's picture

Silver is rockin on!

DeFeralCat's picture

Soros also just bought 15% of Manchester United so he must be hedging his gold with Wayne Rooney.

Aquaman's picture

Lets see, the Rothschilds have funded both sides (and some, not me of course, say they started) every war since...well going way back. So by my math...subtract 7....carry the two...means his $200million dollars comes out tooooooo .....wait for it.....fucking rounding error.

johnQpublic's picture

rather astute for a man who lives under the sea and talks to fish

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

These are paltry bets by Soros and Rothschild and mean nothing.  The only reason we know about these bets is because they want us to know about these bets.  Probably an ulterior motive here by these two demons!?  The pending collapse is NOT pending!


Yes_Questions's picture

‘the plastic parts are getting weak after 11 years...'


That's the problem right there: plastic.


Shoulda used something a little more metallic.




No Euros please we're British's picture

Germany wanted to use some old barberous relic type metal they had laying around, but the US Fed wouldn't give it back.

rjs's picture

if Jacob Rothschild, John Paulson And George Soros turn out to be all wrong, no one will use their names in a headline ever again...

White.Star.Line's picture

If Jacob Rothschild, John Paulson, and George Soros are making moves and it is publicized, you can bet it is only a herding call.

200 mill investment for a Rothschild?
Yeah, he's all in......

GrinandBearit's picture

All you need to do is buy more PMs on large dips.

All the rest is just noise.

Papasmurf's picture

Soros fund has 2.5 as much Walmart as it holds in gold.  Not much of a story here.  This is a lotto ticket to balance the portfolio, not much more.

TrumpXVI's picture

Going heavily long WalMart is also something of a doomsday bet.

More and more (formerly) middle class people are shopping there now.

surfsup's picture

When they tell you what they are doing you can be sure they are taking the other side...   

Yohimbo's picture


GLD, pfft, its fake.

These guys can create phoney paper bets of 999 trillion $$ (whats comes after trillion) by just writing it on paper, and then shredding the paper when things dont work out.

Besides, its a sham for the sheep "oOooo, the rich rotschild, who I want to be like, cause he's rich an sheeit, placed this bet or that, let me do the same"


note how public this info is,

Its a trap, expect massive opposites.


mkkby's picture

My thoughts exactly. 

If it's in the media (especially CNBS) that a Rothschild and Soros are buying gold, that makes me think they're selling.  And they're supposedly using GLD, which they would know is bullshit -- not a real store of value.

Probably means they want sheeple to think GLD paper is a gold investment, which removes competition for the physical that they really want.  Ignore this misdirection if you think gov's will devalue your fiat -- the only thing they have ever done and is their only way to pay off massive debt.

LithiumWarsWAKEUP's picture

1.2490 TODAY 'broke a short' that we've been in since July 5 by crossing up above the 61.8% level of said level, by 2 pips. The 'H' of the day confirms trend change.

      Does the article say if Turd Rustbucket and his ilk 'covered'? No, it doesn't. Maybe they have been covering their short. If not,they are in do-do, perhaps soon.

       So,,,,we are in 'micro longs' on the Euro now. Aka 'Trend Change'. Trade the trend until it ends. Only problem is, most don't know 'HOW' to trade the Trend. Therein lies most Trader's misfortune... eminiaddict. e mini addict  Oh did I mention the e-mini or euro? oh well. They all trade the same algo, for the most part.

LithiumWarsWAKEUP's picture

IF .2427 holds, the target is .2518. :) 'if, the middle word in life'

slewie the pi-rat's picture

go play with yer pathetic "we" self somewhere else asswipe

bye-- the first syllable of bite me

groundedkiwi's picture

If the system crashes the first thing that will be introduced is rationing as in war time UK. Plan accordingly.

Hohum's picture

So we want the velocity of money to increase, right?  Do we want the hyperinflation that would accompany historic levels of velocity?

BKbroiler's picture

If I can get a Volcker 17% on money in the bank during a depressed RE market, who cares.  Home prices would plummet further and anyone with cash in hand to buy would clean up.  Kind of a larger version of what's happening now.

DeFeralCat's picture

The velocity of money chart is fascinating. There has not been a drop as big as the one we currently see that is not marked by recession. This would indicate we are already in recession. It would be interesting to see this chart over an inflation chart. I think you would need some velocity of money to have true inflation. Does anyone agree or disagree?

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

You must be looking at "establishment" charts.  We are far worse off than some little recession.  Try "shadow statistics" for a dose of reality.  Good day.



DeFeralCat's picture

Yes, I miswrote using recession but wow, the charts coming out are amazing. Industrial production, dry baltic, velocity of money, Japan exports all show a global economy falling off a cliff. The velocity is actually in the drying up of economic activity. And Spain is going to ask Germany to bail it out? Germany may be the smart one in the room and by stalling it is just going to less this tank before they need to act. There is nothing that can be done to stop the momentum at this point. And I am an optimist.

linrom's picture

I think the Velocity of Money is just a function of income. vM rises with rising incomes and falls with falling income.

W10321303's picture

We need more offshore tax havens, cut taxes for the couch potato, computer addicted, SOCIOPATHIC non-working class AND all power to the Military-Industrial-Complex!


A Mathematical Crystal

The authors begin by engaging with the British Post-Keynesian economist Nicholas Kaldor’s critique of neoclassical methodology. Kaldor insisted that in order for economics to progress as a modern science the neoclassical research program had to be completely demolished. The reason for such insistence was because Kaldor was an extremely practical man. He was deeply involved in debates of British economic policy in the post-war years and in his later years, from his perch in the British House of Lords he commented on the economic policy of his day.

Yet at the same time Kaldor was a theoretical economist. Thus, it is not surprising that Kaldor should think that good economic theory should reflect the real world as much as possible. Kaldor thought that neoclassical theory did not do this at all. In one particularly stark passage he wrote that neoclassical economics was “barren and irrelevant as an apparatus of thought to deal with the manner of operation of economic forces.”

Kaldor was particularly concerned that neoclassical economic theory was, for the most part, engaged in trying to construct what he called a “mathematical crystal” that was absolutely perfect and self-contained and had no relation to the real world. Kaldor believed that science, as opposed to a sort of mathematical aesthetics, proceeded in the other direction. Yes, theory should be logically consistent, but first and foremost it should deal with the facts at hand. If it did not do this in any meaningful way then any logical consistency was only so much decoration on an otherwise inedible cake.

Read more at http://www.nakedcapitalism.com/2012/08/philip-pilkington-divine-mathematics-neoclassical-economics-as-spiritual-meditation.html#u43P0ivU7cLbkB9c.99
falak pema's picture

Its ironic this post. In the real world of the 1960s, Kaldor and Balogh were the two key economists that counselled Harold Wilson on how to stop the "stop and go" rot that the british economy was being subjected to.  In total disarray the UK had lost its world influence after the Suez debacle and British industry was suffering both moral and economic decline as a consequence of this traumatic national reset. Nobody bought British anymore! Exports lagged.

Wilson's economic medicine proved an even greater disaster and those two "wizards" took the blame when "the gnomes of Zurich", speculative swiss bankers, brought the UK pound once more to its knees, as a result of Keynesian pumping and socialista government spending that got british industry nowhere. Productivity losses could not be compensated by more fiat pumping into economy. It was a true structural problem. Only the Beatles were selling hot plates and Mary Quant her dresses! 

Kaldor and Balogh went back to playing skittles in the haloed circles of british academia. 

Just saying, not that I support the current Oligarchy run private sector binge! 

Neethgie's picture

soros doesnt even manage that fund anymore.

Heroic Couplet's picture

Republicans want deregulation. Let them live with the financial results of deregulation, starting with the Rothschilds.

XF's picture

That's exactly what I want to do, but fuck-ups like you keeping trying to stop it.

slewie the pi-rat's picture

what did you think of the article?

not what you'd expect from a guy writing for a unit called Economic Collapse  at all, is it?


ilene sez "extreme" and who are we to question?

this fabulous doomer anthem is abt the EUR and i kinda agree w/ tuco_below :>

soros, rothy and jPaul_son?  now there's three guys you can take at face value! 

however, the checks are in the mail and everyone is so amazed!  it's roses roses roses because this can not conceivably work and yet: it is working

hey!  wtf!  drinks all around!  hot nutz?

as a non-paying zeroHead i think what we could have here is an invisible deus ex machina

we knew we needed this, but our paradigms had not yet shifted to where we could actually recognize it's functioning

so:  halleielukelele, BiCheZ!

Kokulakai's picture

Maybe they're wrong.


tradewithdave's picture

Are you willing to bet against the President of the U. S. if he has decided to take down the Comex and these guys with it? Just saying who needs enemies with friends of John Corzine like POTUS.


SwingForce's picture

Uh, huh huh, Beavis! Why doesn't the Euro ever crack 120?

Oh-Globits's picture

you didn't bilderberg that!

Lumberjack's picture

So, they make another bet against the bet. Napolean was victorious according to observers in London who made that determination on the actions of a certain banker on the trading floor. 

spinone's picture

As long as OPEC only takes dollars for oil, no worries.

booboo's picture

The greatest hedges against anything that the world can throw at you are your brain and your hands. Make stuff, hitch a ride with a thumb, caress your wife and children and if you don't have a wife the hand combined with a active mind makes a great imaginary lover.

Aquaman's picture

Rated by Aquaman as Best Post of the Day. Poster is entitled to all accolades and monetary benefit derived from this prestigeous (prestijus prestiguous prestigous i dont have spell check on my phone) award.