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.
