Guess Who Reportedly Made $1B+ Betting Against the Yen
Feb.
14, 2013 7:45pm
George
Soros, founder of Soros Fund Management LLC, at the World Economic Forum (WEF)
in Davos, Switzerland, on Jan. 25, 2013. (Photographer: Simon
Dawson/Bloomberg).
Has he struck it rich (again)?
Billionaire philanthropist and liberal
activist George Soros has reportedly made $1 billion since November 2012 by
betting against the Japanese yen, Bloomberg reports.
“The Japanese wager helped the firm return
about 10 percent last year and 5 percent so far this year, said the person,”
the report notes, citing a source who spoke on the condition of anonymity
“The yen has weakened 17 percent versus the
dollar since about the start of the fourth quarter, the worst performance over
a similar period since 1985,” the report adds.
If these report are accurate, it means that
Soros has once against benefited from the fall of a nation’s currency (see “Black Wednesday”).
Bloomberg’s source also claims Scott
Bessent, chief investment officer at Soros Fund Management LLC, has about 10
percent of the firm’s portfolio betting on rising shares in Japan.
“Japan’s benchmark Nikkei 225 stock index
has jumped about 28 percent since the end of September,” the report notes.
“Michael Vachon, a spokesman for the firm,
said he couldn’t comment on the trades,” the report ads.
Okay, let’s walk through this, shall we?
Through government-sponsored initiatives, including bond-buying
programs, Japan’s government has contributed to the rapid devaluation of the
yen.
Now we’re not alone when we say government
interference has played a role in the decline of the yen. Indeed, Finance ministers representing the G-7 (the seven economic
powers of the world) on Tuesday warned that exchange rates should be driven by
the market — not government or central bank policies.
So let’s recap: Japan actively intervenes to depress the yen; Soros bets against it; Soros
wins big.
Okay, now let’s rewind to last year when the noted market speculator repeatedly insisted that the European Union form a single
body to control every bank in the 27-member union.
“The situation remains very serious, as
related to the sovereign debt crisis. Bank recapitalization should continue,
and that the European Stability Mechanism may be useful,” Soros said in an
interview with Le Monde.
“It is especially important to introduce a
real European control over banks, because there are too many incestuous
relationships between banks and national governments. Particularly in France,
with the ‘financial inspectors,’” he added.
Soros’ suggested banking union would
presumably have the power to intervene to depress the euro. However, as noted
by the G-7 finance ministers, this sort of action — though popular with certain
governments — can cause serious damage to the value of a nation’s currency.
Surely, Soros is enough of a market pro to
understand this. But then again, who allegedly profited from the devaluation of
the yen?
Getty
Images
Lastly, remember Bessent (Soros Fund
Management’s CIO)? Consider the following (from Bloomberg):
Bessent worked for Soros in 1992 when Soros
and his chief strategist Stan Druckenmiller made a $10 billion bet that the
Bank of England would be forced to devalue the pound. That wager netted $1
billion. At the time Soros’s Quantum fund was $3.3 billion.
Bessent left the firm in 2000, and returned
to be CIO in 2011.
We’ll leave you with this Soros quote from
June 2012: “I am now retired, and my Quantum fund has no position in euro. But
until there is no change among European leaders, if I were to invest, I would
bet against the euro. Or at least, I’d bet on it.”
1 comment:
just look at this demon, pure evil!!!
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