The View From 1776
Friday, October 22, 2010
Obama Backer Distrusts Obamanomics
Billionaire George Soros made a large part of his billions shorting the British Pound Sterling, the sort of Wall-Street activity denounced by President Obama as anti-social greed.
Soros has made multi-milion-dollar contributions to defeat traditionalist and conservative political candidates and to support liberal-progressive-socialist politicians and left-wing causes.
But apparently far more of his money has been wagered against Obama and liberal-progressive-socialism. Forbes Magazine, in its October 11, 2010, edition, reports that Soros has been cashing out of his holdings in U.S. equity securities and moving into gold. He holds, reportedly, the equivalent of 16 tons of gold through an exchanged-traded fund.
16 tons of gold is roughly a $700 million bet that Obamanomics, coupled with Keynesian economic doctrine followed by the Federal Reserve, bodes ill for the U.S. dollar and U.S. corporate securities. It is also a bet that our already inflated money supply will begin to drive prices upward significantly. In effect, he is shorting the U.S. dollar, anticipating a repeat of his Pound Sterling killing.