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In a harbinger of what may be coming our way in the Fall
of 2012, billionaire financier George Soros has sold all of his equity
positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.
Soros, who manages funds through various accounts in
the US and the Cayman Islands, has reportedly unloaded over one million
shares of stock in financial companies and banks that include Citigroup
(420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000
shares). The total value of the stock sales amounts to nearly $50 million.
What’s equally as interesting as his sale of
major financials is where Soros has shifted his money. At the same time he
was selling bank stocks, he was
acquiring some
884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.
When a major global player with direct ties to the
White House, Wall Street, and the banking system starts off-loading stocks
and starts stacking gold, it suggests a very serious market move is set to
happen.
While often lambasted for his calls to centralize
global banking, increase government intervention in the economy and his
support of what he has called an “emergence of the new world
order,” if there’s anyone with an inside track of where things
are headed next it’s Soros.
Soros, who has written extensively of a coming
global paradigm shift in his book The Crash of 2008 and What It Means,
calling the current economic and political model ”an end of an
era,” has recently suggested that the financial and economic
situation across the world is so serious that Europe could soon descend into
chaos and conflict. He also notes that the world is entering “one of
the most dangerous periods in modern history”, and foresees violent
riots in America and a brutal clamp-down by the government that will dramatically curtail
civil liberties.
This is an individual who not only predicted the
collapse of 2008 and took action to insulate himself,
he also proposed the various fixes that governments in Europe and the US
would eventually implement in order to stave off a deflationary depression.
In his aforementioned book he suggested that central banks infuse the system
with massive amounts of monetary expansion, but also warned that not
injecting enough money would simply extend the onset of deflation and
printing too much could lead to hyperinflationary currency collapse.
Based on recent activity in Soros’ US held
accounts, it seems that governments and central banks have failed at those
efforts to stabilize the system. As such, Soros is getting out of those
companies which are most at risk should the financial system buckle like it
did in 2008 and he’s shifting his assets into what may be the only
asset class left standing when it’s all said and done
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