Has George Soros Broken the Fed?

This is how the Rich stay Rich...They trade with inside information. They trades, stock purchases, money market bets are always made with insider information that the honest, hard working, tax-paying American citizens will never be privy too. This is why the wealth is concentrated in very few hands, because it is all a SCAM.  It is all scales which are tipped in their favor.  there is never any risk in their trades because the whole system is rigged.  Read this little spoken of, but very well known in finical circles, story which just happened to NEVER be seen on any major media network...

 

ON July 25th 2011 An unknown trader dropped a bomb on the bond market Thursday - a $1 billion Armageddon trade betting the United States will lose its AAA credit rating.

In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world.

The massive trade wasn't placed in bonds themselves; it was placed in the futures market.

The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.

The value of the trade was about $850 million dollars. In simple terms, if that was a direct bond buy, no one would be talking about it.

However, with the use of futures, you have to... ... have margin capacity behind the trade. That means with a single push of a button someone was willing to commit more than $1 billion of real capital to this trade with expectations of a 10-to-1 return ratio.

You only do this if you see an edge.

And would'nt you know it

Credit rating agency Standard & Poor's (S&P) downgraded its credit rating of the U.S. federal government from AAA (outstanding) to AA+ (excellent) on August 5, 2011.

This was the first time the government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011.

Who was it you ask? Who stands to make 100 BILLION dollars on this INSIDE INFORMATION?

“There are mounting rumors that investor George Soros, 80, famously known as ‘the man who broke the Bank of England’, maybe be involved.

He made more than $1billion on currency speculation when the British pound left the Exchange Rate Mechanism on Black Wednesday in 1992.

The latest bet was made on July 21 on trades of 5,370 ten-year Treasury futures and 3,100 Treasury bond futures, reported ETF Daily News.

Now the investor’s gamble seems to have paid off after Standard and Poor’s issued a credit rating downgrade from AAA to AA+ last Friday.

Whoever it is stands to earn a 1,000 per cent return on their money, with the expectation that interest rates will be going up after the downgrade.”

The deal was made around the same time Soros dissolved the non-family aspect of his hedge fund, returning money to outside investors while freeing his fund from adhering to SEC reporting mandates. Barnes asserted in July that whoever made the deal must have been a major proprietary trader who had an ear to someone first aware of when a debt-cieling deal was made between major leaders in Washington. Kenneth Schortgen connects the dots to Soros’s possible involvement:

“While the identity of the ‘mystery investor’ remains unknown, many indicators do point to George Soros as the principal benefactor.  First, Soros has been tied to the Obama administration since the 2008 elections.  In February of this year in fact, a Soros investment fund profited well on President Obama’s new green energy policies. Secondly, right about the exact same time as the $1 Billion bet took place on the US credit rating downgrade, Soros made public the move to divest his management fund of outside investors, and quietly go private.  This move allows him to make trades and investments without being required to notify the SEC under the new Dodd-Frank act passed in Congress last year.

Of course, this mystery bet could have been made by any Hedge Fund that followed Soro’s course of action, and went private on their own.  However, very few people have the inside contacts with the Treasury Department and Obama administration that Soros does, and the historical evidence does point strongly to this bet being one that he has done in the past.”

In 1992 Soros nearly destroyed the British Pound, and made a profit of $1 Billion, by betting against the currency and borrowing sterling heavily, converting that into a mixture of Deutschmarks and French francs. On “Black Wednesday,” Soros’s bet paid off, and he has since been called the man “who broke the Bank of England.” Many see “eerie similarities” between the breaking of the Bank of England, and the investor who made big when betting on the first S & P downgrade to U.S. credit in the agency’s history.