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Fortune Magazine & The Men Who Really Cost America A Fortune

April 15th, 2010 · 1 Comment · Politics, Money and Markets

Both CNN Money and Real Clear Markets featured a story this morning from Fortune Magazine’s William D. Cohan, titled, “The Man Who Cost Merrill Shareholders $50 Billion.” And perhaps no single story since the financial meltdown of 2008, better communicates the complete disconnect between Wall Street and Main Street than this one…

“The Man Who Cost Merrill Shareholders $50 Billion.”

First, there’s the headline: “The Man Who Cost Merrill Shareholders $50 Billion,” which refers to Alberto Cribiore, an investment banking, opera aficionado, who also happened to be the Merrill board member who stopped CEO Stan O’Neal from selling a sinking Mother Merrill… mortally wounded in Stan O’Neal’s opinion, by a $45 billion dollar toxic CDO time bomb.

In 2007, O’Neal who was increasingly worried about Merrill’s toxic CDO’s, twice tried to finalize deals to offload Merrill Lynch, including a deal with Bank of America for $100 billion, only to be stymied each time by Cribiore

A year later, at the peak of the financial crisis, Merrill was finally offloaded to Bank of America for $50 billion, with the takeaway for Mr. Cohan of Fortune Magazine and those on Wall Street being…

“Alberto Cribiore cost Merrill shareholders $50 billion.”

Talk about not getting it

Stan O’Neal and his Wall Street cohort’s unbridled greed, toxic derivatives, and Enron-style accounting, cost taxpayers $700 billion dollars in TARP bailouts alone, including $45 billion dollars that went to Merill’s buyer—Bank of America.

And what did Stan O’Neal receive in return for bankrupting a near 100 year old icon that had weathered two World Wars and the Great Depression? A golden parachute worth a reported $161 million dollars.

And what did America get?

– 39 million Americans on Food Stamps.

– 8 million foreclosures.

– A 17% real (U6) unemployment rate.

– A bill for $23.7 trillion dollars in bank bailouts, backstops, and guarantees.

– And a Fed Chairman now telling America that “modifications” need to be made to Social Security.

And Fortune Magazine’s William D. Cohan thinks “the story” is Merrill shareholders being short-changed out of $50 billion?

William D. Cohan thinks “the story” is Alberto Cribiore costing Merrill Lynch shareholders $50 billion, not Stan O’Neal and his fellow Wall Street Bankster-Gangsters costing America $23.7 trillion.

Talk about being completely out of touch with reality.

What planet are these people living on?

And what are they smoking?

This administration is now talking about converting private 401K’s and IRA retirement accounts into government annuities. And they’re strong-arming pension funds to prop up insolvent banks because the FDIC is broke. And now Fed Chairman Ben Bernanke is talking about the need to make “modifications” (read: cuts) to Social Security.

If this isn’t final confirmation that those inside the beltway and on Wall Street still don’t get it, and never will—nothing is.

America, they don’t care that you line the steps of the Capitol in protest to them ignoring the will of the people. Nancy Pelosi and the Democrat’s “in your face” arm in arm march through the Tea Party crowd proved that.

Wall Street just looted the U.S. Treasury, and Congress long ago looted the Social Security lockbox, and now they’re trying to stick you with the bill.

Please tell me you’re not this stupid America.

Please tell me you won’t rollover on this.

Please tell me you’ll take your protest to a whole new level.

And please, do not let them get away with this.


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George Bernard Shaw Explains Obamacare…

March 29th, 2010 · No Comments · Politics, Money and Markets

Fabian Socialist, George Bernard Shaw conceptualized it…

And Marxist-Socialist, Barack H. Obama refined it…

George Bernhard Shaw explained Obamacare in one simple sentence:

You must come to us to justify your existence, and if you are not producing more than you consume, then your life is not benefiting us.

Remember those words America.


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Is Obama Channeling Lenin?

March 25th, 2010 · No Comments · Politics, Money and Markets

Is Barack Obama channeling his Marxist vision for America through Lenin?

While most American’s have made the connection between Lenin’s view that “socialized health care is the keystone to the arch of the socialist state,” and Obamacare; few have connected the dots between Lenin and Obama on economics and military imperialism.

The Marxist-Communist, Vladimir Ilych Lenin wrote

“Imperialism is capitalism at that stage of development at which the dominance of monopolies and finance capital is established; in which the export of capital has acquired pronounced importance; in which the division of the world among the international trusts has begun, in which the division of all territories of the globe among the biggest capitalist powers has been completed.”

“Capitalism in its imperialist stage leads right up to the most comprehensive socialisation of production; it drags the capitalists, against their will and consciousness [GM & Chrysler], into some sort of a new social order, a transitional one from complete free competition to complete socialisation
[Say hello to Obama's America].”

“A handful of monopolists [Goldman Sachs] subordinate to their will all the operations both commercial and industrial, of the whole of capitalist society; for they obtain the opportunity – by means of their banking [and political] connections, their current accounts and other financial operations – first, to ascertain exactly the financial position of the various capitalists, then to control them, to influence them by restricting or enlarging, facilitating or hindering credits, and finally entirely determine their fate, determine their income, deprive them of capital, or permit them to increase their capital rapidly and to enormous dimensions etc.”

“Added to this is the role, is state officials and ex-state officials on the boards of banks and industry, [Obama's Czars] creating a direct means for the banks and industry to gain political influence.”

Lenin also argued that imperialism would not lead to stability, but to increasing instability and a greater tendency towards war and economic crises. He predicted a tendency of the imperialist nations to become ever more parasitic on the rest of the world as usurers and loan sharks [IMF, BIS, World Bank], bullying less powerful nations to give up their goods and raw materials.”

Tell me that’s not exactly what’s unfolding in the world today.

Marxism, Imperialism, and Monopoly Capitalism
—sound familiar America?

It should…

MARXISM:The government now controls over 40% of America’s formerly free market, capitalist economy. An economy that has been socialized and is now controlled by government bureaucrats and unelected Czars who adore Alinksy, Marx, and Mao. The same bureaucrats who looted the U.S. Treasury by handing the criminal, fat cats on Wall Street, $27 trillion dollars in bailouts, backstops, and guarantees. The same bureaucracy who long ago raided the Social Security and Medicare lockbox. And now you America, are being told that Social Security is an “entitlement” that you should have never really expected to collect upon, as your Medicare is cut, your taxes raised, and your health care rationed by the state… all because the bankers and bureaucrats have robbed America blind, to the tune of over $100 trillion dollars in debt, deficits, and unfunded liabilities.

IMPERIALISM: America is fighting wars on two fronts in Iraq and Afghanistan, with the drums of war being pounded to start a third in Iran. If you subtract Latin America, America’s defense budget is greater than all the other nations of the world combined. We spend nearly 2 1/2 times on defense, as does the whole of Europe. We spend nearly 8 times what China spends. We spend 9 1/2 times what Russia spends. The U.S. Department of Defense has over 307,295 buildings on 29 million acres worldwide, and is the world’s single largest consumer of oil in the world—using over 320,000 barrels of oil per day.

MONOPOLY CAPITALISM: Americans are now forced to purchase health insurance under the penalty of law. Law to be enforced and monitored by 16,500 new IRS agents who will have 24/7 x 365 “live” access to your bank account. Many Americans were forced to choose between taking a Swine Flu shot and keeping their jobs, in what turned out to be a Level 6 hoax, instead of a pandemic. A hoax that generated a billion dollar windfall for Big Pharma. And America’s stimulus spending didn’t go towards creating jobs, it went towards creating bigger government, as well as to companies like Whirlpool, which was given millions in stimulus money to close a plant in Evansville, Indiana, so it could move it’s new green appliance manufacturing capacity to a plant in Mexico. Billions in carbon credits for Big Business, and billions in carbon taxes for you. Billions in bailouts for bankers, and billions in new taxes, and rationed health care for you.

“Monopoly Capitalism Has Always Been The Driving Force
Behind Socialism And Communism”

Given everything that is rapidly unfolding in the world today, perhaps the single most difficult issue for the average man on the street to get his head around, is the question of… Why would fat cat, capitalist Wall Street bankers, politicians in democratic nation states, and the CEO’s of multi-billion dollar corporations ever join together to support socialism over democracy and capitalism?

Gary Allen in his masterpiece book “None Dare Call It Conspiracy” [click here to read] answered that question…

“Communism, or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite—because communism, is about monopoly capitalism.”

John D. Rockefeller, perhaps the most well known capitalist in American history, [click here to read - "The Rockefeller Files"] endorsed Gary Allen’s thesis about the power elite’s support of fascism, communism, and socialism, with this simple four word quote:

“Competition is a sin.”

In the simplest of terms, what we are seeing unfold in America today is the rapid consolidation of power by government, by international finance capital, and by multi-national corporations. All three are uniting to eliminate political dissent, economic competition, and to consolidate both power and wealth.

Lenin once said that “Communism is merely socialism in a hurry.” And in case you haven’t noticed, there’s a Marxist-Leninist in the White House today, who seems to be in a helluva hurry to “change” America. And sadly, as has happened throughout all of history, it will not be the downtrodden masses who will benefit in the end, but the monopoly capitalists.

For those who still refuse to believe that Barack H. Obama is a Marxist-Socialist, and that Marxism, communism, and socialism has always been alive and well in America, I encourage you to read Trevor Loudon’s “New Zeal” blog, which is the definitive source on the political indoctrination, education, and philosophy of Barack H. Obama, as well as an unparalleled documentation of his lifelong relationship with fellow Marxists and socialists.

Click on the link below and head on over to Trevor’s blog. “The Obama Files” links can be found on the right hand side of his blog.

Or, you can start at Obama File #100, and start working yourself backwards from this link:

I’ve always believed the key to understanding the future, lies in understanding the past. History has always been re-written by the victors. And ever since the coup d’état of America by international finance capital, with the implementation of “The Federal Reserve Act of 1913″ [see G. Edward Griffin's "The Creature From Jekyll Island"] the historic link between the bankers on Wall Street and fascism, communism, and socialism has been censored and covered up by American academia.

To anyone who still doubts the power elite in this country and Barack H.Obama are purposefully marching America headlong into the shackles of socialism and monopoly capitalism (billions in bailouts and record bonuses for bankers, rationed health care and higher taxes for you), please read Anthony Sutton’s Wall Street trilogy, and those doubts will be forever removed.

Sutton’s trilogy exposes the role of Wall Street’s financial elite, also known as “the Eastern Liberal Establishment,” in three significant twentieth-century historical events: the 1917 Lenin-Trotsky Revolution in Russia, the 1933 election of Franklin D. Roosevelt in the United States, and the 1933 seizure of power by Adolf Hitler in Germany.

Each of these events introduced some variant of socialism into a major country — Bolshevik socialism in Russia, New Deal socialism in the United States, and National socialism in Germany.

If you want to understand who’s behind Barack H. Obama and the push towards socialism, as well as what lies ahead for America, you need to read Anthony Sutton’s Wall Street trilogy.

And it doesn’t get any easier than this…

Here’s the links to Sutton’s books online. You can read these within your browser window, or download them as PDF, or MS Word files to your hard drive, and share them with friends.

“Wall Street And The Bolshevik Revolution” [click here to read].

“Wall Street And FDR” [click here to read].

“Wall Street And The Rise Of Hitler” [click here to read].

A little background on Dr. Sutton…

Dr. Anthony Sutton was an economics professor at California State University Los Angeles, and was a research fellow at Stanford University’s Hoover Institution from 1968 to 1973. While at the Hoover Institute, Sutton wrote a blockbuster expose “Western Technology and Soviet Economic Development,” detailing how the West played a major role in developing Soviet Union from its very beginnings, up until the then, present time (1970). He was forced out of the Hoover Institute after publishing another expose titled, “National Suicide: Military Aid to the Soviet Union” in 1973. Hoover Institute Director Glenn Campbell threatened Sutton saying, “you will not survive,” (ostensibly referring to his academic and professional career, not his life).

Sutton’s famous “Wall Street” trilogy exposed the international bankers involvement in the rise of the Bolshevik Revolution, Adolf Hitler and Franklin Delano Roosevelt. He turned his focus to exposing the so-called secret societies, focusing mainly on the Trilateral Commission and the Skull & Bones Society with his book, “The Brotherhood of Death.” Sutton considered his book “America’s Secret Establishment: An Introduction to the Order of Skull & Bones,” to be his most important work.

While Sutton’s historic documentation on Wall Street’s role in the formation of the major socialist movements of the early 20th century was largely censored and blacklisted by the mainstream media and academia, his work is certainly well known and respected within the upper circles of the intelligence community, the military, and American academics involved with the NSC, NSA, and the CIA.

Professor Richard Pipes of Harvard, a member of the National Security Council and consultant to the CIA, wrote about Sutton: “In his three-volume detailed account of Soviet Purchases of Western Equipment and Technology …” Sutton comes to conclusions that are uncomfortable for many businessmen and economists. For this reason his work tends to be either dismissed out of hand as ‘extreme’ or, more often, simply ignored.”

The co-founder of the Trilateral Commission and national security advisor to Jimmy Carter, Zbigniew Brzezinski wrote: “For impressive evidence of Western participation in the early phase of Soviet economic growth, see Antony C. Sutton’s Western Technology and Soviet Economic Development: 1917-1930, which argues that ‘Soviet economic development for 1917-1930 was essentially dependent on Western technological aid’ (p.283), and that ‘at least 95 per cent of the industrial structure received this assistance.’ (p. 348).”

In a 2000 interview Sutton was asked about his success. “Judge a man by his enemies,” Sutton explains, “William Buckley called me a “jerk,” and Glenn Campbell, the former Director of the Hoover Institution at Stanford, called me “a problem”

For those who are familiar with President’s John F. Kennedy, and Dwight D. Eisenhower’s warnings to the American people about those who pose a grave danger to America’s freedom, Sutton’s trilogy connects all the dots and fills in all the blanks.

JFK’s warning to America about secret societies (Skull & Bones) and the Round Table-shadow government groups (Bilderberg/Trilateralists/CFR).

Eisenhower’s warning about the military-industrial complex:

“The Planned Merger Of Communism And Capitalism”

So what does America’s future hold?

Professor Carroll Quigley, the official historian of the CFR (and President Bill Clinton’s mentor at Georgetown), laid out the long range plans of America’s Power Elite in his book, “Tragedy And Hope: A History Of The World In Our Time.”

“The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements, arrived at in frequent private meetings and conferences. The apex of the system was the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the worlds’ central banks which were themselves private corporations. The growth of financial capitalism made possible a centralization of world economic control and use of this power for the direct benefit of financiers and the indirect injury of all other economic groups.”

– Professor Carroll Quigley, in “Tragedy and Hope: A History of The World in Our Time”

Quigley’s near 1,000 page book [read, or download here] was not written for the public, but rather as a training manual for elite academics, government bureaucrats, and politicians who were brought into the CFR and the various Think Tanks, Round Table groups, and Tax Exempt Foundations controlled by the CFR.

Quigley also talked about the charade of America’s two party system…

The Quigley Formula:

“The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to the doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can “throw the rascals out” at any election without leading to any profound or extreme shifts in policy.”

– Professor Carrol Quigley, in “Tragedy and Hope: A History of The World in Our Time”

Here’s a rare public interview with Carroll Quigley from 1974.

Part 1 of 5:

And here’s G. Edward Griffin giving a lecture on “The Quigley Formula” at the University of Texas.

“A Conspiratorial View Of History,
Explained By The Conspirators Themselves”

Part 1 of 13:

Key points from Griffin’s lecture:

– The elites firmly believe the masses are an inferior class, and intellectually incapable of governing themselves.

– They will use democracy against the people (as is presently being done).

– Quigley’s book, “Tragedy & Hope” was never meant to be a public offering, rather a primer for new members of the CFR.

– Macmillan & Co, the original publisher would not do a reprint, even though the book immediately sold out. The CIA bought up most publicly available copies.

– A rogue printer from L.A. bootlegged and published thousands of unauthorized copies of the book that immediately sold out, wherein Macmillian finally acquiesced to a public reprint.

– Quigley was given full access to all CFR archives and records over a two year period.

– The Cecil Rhodes Society (his secret trusts, and wills), including the purpose of the “Rhodes Scholarships.”

– The Milner Group (mainly International Banking Families) and the formation of the RIIA/Chatham House.

– The formation of the RIIA (Royal Institute of International Affairs), Europe’s older sister to the CFR.

– Col. Edward Mandell House, a key handler of U.S. politician’s (including President Wilson).

– The Rothschild Banking Family and their involvement in the Milner Group, the RIIA, and the role of “secret societies.”

– Explains the birth of “the new world order” and explains their desired form of future government will be “collectivism.”

– Collectivism combines bits and pieces of all the “ism’s” communism, socialism, fascism, statism, corporatism, nazism, and is based on a world government, sitting stop new regional governments which rule by totalitarian control, with layer upon layer of new predatory, soviet style bureaucracies
(think Obamacare and 16,500 new IRS Agents with live 24 x 7 access to your bank accounts).

– Covers the long ago planned method of infiltrating and then controlling all major governments by using tax exempt foundations and trusts to fund the infiltration and domination of the educational system, medical and scientific societies, corporations, the banking system, mainstream media, and government agencies.

– Describes their concept compartmentalization, using “rings within rings, within rings” where RIIA and CFR members and various Think Tanks, and Foundation members would be given projects and tasks without knowing the larger agenda (The Green Agenda is a prime example where the bankers were setting up a monopoly capitalism system of trading carbon credits, and where scientists and academics were bribed with private and government grants to come up with pre-determined findings).

– The goal of the inner circle/ring members was to be invisible, and unknown to the general public, and outer circle members. (Green Agenda academics did not know they were working for Rothschild banking interests who were setting up a monopoly on carbon trading.)

– The “Inner Circle” unofficially refers to themselves as “the society of the elect” although that name is never used in print, or public reference.

– Below the Society of the Elect, is found key “Round Table” groups such as the Club of Rome (who came up with the green agenda as the vehicle in which to implement global government).

– Below the key Round Table Groups are the Bilderberg Group, the Trilateral Commission, and the RIIA/CFR.

– Quigley while a Professor at Georgetown University studied these secret societies for over 20 years prior to being given two full years of total access to their records and tasked with writing their official history, and “manuals” for future members.

– Quigley was President Bill Clinton’s main mentor at Georgetown and was instrumental in his selection as a “Rhodes Scholar” and being groomed as a future globalist leader.

– Quigley covered in detail early founders such as William Stead, the executor of the secret Cecil Rhodes Trusts, economist Arnold Toynbee, and Lord Milner, whose young academic and political recruits who were to be molded into future leaders were called, “Milner’s Kindergarten.”

– Explains that their goal was nothing less than the total economic control of all nation states via central banking, and total infiltration of the political class, ultimately leading to the return of a feudal system run by international bankers and an international ruling elite.

– Reveals their number one tool was simply to lie. Promise one thing while doing the exact opposite. Any means, justifies the desired end. Promise anything to seize power [ A script Barck Obama has followed perfectly].

– Talks about the importance of the people believing they are steering their own destiny via elections from the two party system, both of which they control.

– The ultimate illusion is that people believe they have a say in modern government.

– At the end of the videos G. Edward Griffin shares his ideas on how American’s can regain control of their political system and their government. You can access that information at Griffin’s “Freedom Force International” web site here:

Every major socialist, fascist, and communist regime of the 20th century was financed and supported by the international bankers and the Power Elite, including Trotsky, Hitler, Mussolini, and Mao.

And Socialism has been alive and well in America since the early 1900’s. Presently it hides behind the cloak of “progressivism.”

The American Socialist Party’s presidential candidate Norman Thomas predicted in 1927, “that America wouldn’t vote for socialism, but would adopt every aspect of socialism if it were presented under the banner of liberalism.” And that’s exactly what’s happened from FDR’s “New Deal,” to LBJ’s “Great Society,” to Obama’s “Hope & Change.”

Antony Sutton, Carroll Quigley, and G. Edward Griffin are great historians. If you want to understand what’s unfolding in the world today as America is being dismantled, and as communism and capitalism are being merged by the Power Elite, read their work.

Start with Sutton’s Wall Street trilogy. You can read each of the three books in a single day, or easily over a weekend. In less than a month, you’ll know more about what’s unfolding in the world today than 95% of America.


PS: Here’s an interesting series quotes from the 1930’s through the 1990’s, detailing the unfolding of the Power Elite’s ultimate goal: “The planned merger of the East & West, and Communism & Capitalism, into a New World Order.”

“This regionalization is in keeping with the Tri-Lateral Plan which calls for a gradual convergence of East and West, (the USA and the Soviet Union) ultimately leading toward the goal of one world government. National sovereignty is no longer a viable concept.”

– Zbignew Brzezinski, while National Security Advisor to President Jimmy Carter, and who was Barack H. Obama’s mentor at Colombia, and a current National Security advisor.

“In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn’t such a great idea after all.”

– Strobe Talbot, President Clinton’s Deputy Secretary of State, as quoted in Time, July 20th, l992.

“We believe we are creating the beginning of a new world order coming out of the collapse of the U.S.-Soviet antagonisms. A colossal event is upon us, the birth of a New World Order.”

– NSC, Gen. Brent Scowcroft (August 1990), quoted in The Washington Post (May 1991)

“The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power political, monetary, intellectual and ecclesiastical. What the Trilateral Commission intends is to create a worldwide economic power superior to the political governments of the nationstates involved. As managers and creators of the system ,they will rule the future.”

– U.S. Senator Barry Goldwater in his l964 book: With No Apologies

“For a long time I felt that FDR had developed many thoughts and ideas that were his own to benefit this country, the United States. But, he didn’t. Most of his thoughts, his political ammunition, as it were, were carefully manufactured for him in advanced by the Council on Foreign Relations-One World Money group. Brilliantly, with great gusto, like a fine piece of artillery, he exploded that prepared “ammunition” in the middle of an unsuspecting target, the American people, and thus paid off and returned his internationalist political support. “The UN is but a long-range, international banking apparatus clearly set up for financial and economic profit by a small group of powerful One-World revolutionaries, hungry for profit and power. “The depression was the calculated ’shearing’ of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market….The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.”

– Curtis Dall, FDR’s son-in-law as quoted in his book, “My Exploited Father-in-Law.”

“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”

–Pres. Franklin Delano Roosevelt in a letter written to Colonel Edward Mandell House, Nov. 21st, l933

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Gold: First Soros, Now SEC Sr. Policy Adviser Is Trying To Silence The Canary In The Coal Mine

March 9th, 2010 · No Comments · Gold and Silver Trading, Research & Analysis

Our suspicions were confirmed in Davos, when George Soros told the world that Gold was “the ultimate bubble,” only to find out weeks later that Soros had been buying gold hand over fist…

Soros fund has $663 million in SPDR gold ETF

Posted: Wednesday , 17 Feb 2010

BOSTON (Reuters)

Billionaire investor George Soros’ hedge fund more than doubled its bet on the price of gold during the fourth quarter, a portion of the firm’s total U.S.-listed equity holdings of $8.8 billion at the end of 2009.

And not only did Soros double his bet on the GLD ETF, it’s now his fund’s largest holding, at nearly 10% of his entire portfolio.

George Soros’ Top 5 Holdings:

1.Spider Gold Shares (GLD) - 6,178,342 shares, 9.54% of the total portfolio
2.Petroleo Brasileiro S.A.Petrobras (PBR) - 7,732,197 shares, 5.3% of the total portfolio
3.Hess Corp. (HES) - 5,763,463 shares, 5.02% of the total portfolio
4.Monsanto Company (MON) - 3,879,900 shares, 4.56% of the total portfolio
5.Citigroup Inc. (C) - 94,697,095 shares, 4.51% of the total portfolio

Soros was also substantially adding positons in gold shares during the 4th quarter…

New Purchase: Kinross Gold Corp. (KGC)
George Soros initiated holdings in Kinross Gold Corp.. His purchase prices were between $17.92 and $23.32, with an estimated average price of $19.77. The impact to his portfolio due to this purchase was 0.74%. His holdings were 2,777,000 shares as of 12/31/2009.

New Purchase: Barrick Gold Corp. (ABX)
George Soros initiated holdings in Barrick Gold Corp.. His purchase prices were between $34.58 and $47.93, with an estimated average price of $40.59. The impact to his portfolio due to this purchase was 0.01%. His holdings were 18,300 shares as of 12/31/2009.

New Purchase: Golden Star Resources Ltd (GSS)
George Soros initiated holdings in Golden Star Resources Ltd. His purchase prices were between $3.04 and $4.23, with an estimated average price of $3.48. The impact to his portfolio due to this purchase was 0.07%. His holdings were 1,550,000 shares as of 12/31/2009.

Added: Yamana Gold Inc. (AUY)
George Soros added to his holdings in Yamana Gold Inc. by 243.52%. His purchase prices were between $10.05 and $14.07, with an estimated average price of $12.17. The impact to his portfolio due to this purchase was 0.01%. His holdings were 85,880 shares as of 12/31/2009.

Added: Novagold Resources Inc (NG)
George Soros added to his holdings in Novagold Resources Inc by 33.02%. His purchase prices were between $4.13 and $6.58, with an estimated average price of $5.39. The impact to his portfolio due to this purchase was 0.08%. His holdings were 3,489,988 shares as of 12/31/2009.

Added: Great Basin Gold Ltd. (GBG)
George Soros added to his holdings in Great Basin Gold Ltd. by 70%. His purchase prices were between $1.42 and $1.78, with an estimated average price of $1.62. The impact to his portfolio due to this purchase was 0.05%. His holdings were 5,100,000 shares as of 12/31/2009.

Now why would George Soros suddenly talk down the price of gold, after just having added nearly half a billion dollars to his gold positions?

I think we all know the answer to that. And so does Nobel Prize winning economist Paul Krugman who calls these blatant market manipulations “Soroi,” coining the term in honor of George Soros & Co’s well known market manipulations in a paper he wrote in 1996 while at MIT.

“Scenarios in which crises are generated either by self-fulfilling rational expectations or by irrational herding behavior imply at least the possibility of profitable market manipulation by large speculators.”
(Krugman proposes that such hypothetical agents be referred to as “Soroi”).”

Here’s legendary trader Vic Sperandeo with a more politically correct explanation for Soros’ “Davos diss” of gold…

And now Rick Bookstaber, a senior policy adviser for the SEC, is trying to publicly silence the canary in the coal mine…

From his personal blog (where he makes it clear his opinion is personal, and not the position of the SEC):

I am not going to spend time here talking about how the price of gold is off-the-wall, that it is not just a bubble in the making, but a bubble waiting to burst. I don’t want to waste your time on that point.We all know it is a bubble.

George Soros has said “The ultimate asset bubble is gold”. Many of the top asset managers, such as Tudor and Paulson, are piling on; Paul Tudor Jones recently said gold “has its time and place, and now is that time.” The banks are echoing this view with their research. Goldman has a research piece that looks for gold to approach $1,400 in the next year. The more ebullient Charles Morris of HSBC has said, “I absolutely believe it’s heading into a bubble, but that’s why you buy it. ” He, along with a number of other professional and otherwise rational managers, looks for gold to move as high as $5,000 an ounce.

More interesting than this almost universal agreement is what that agreement tells us about the dynamics of the market.

The Naked Bubble

Usually the markets have the courtesy of giving cover for bubbles. We adorn the bubbles with some justification. Even if a guy is just after sex, he at least has the decency to act like there is some substance behind his interest. For the Internet bubble, it was that fundamental analysis based on the brick and mortar world did not bear relevance in the New Paradigm. For the Nikkei bubble, it was that the crazy P/E ratios were not considering one subtlety or another in the Japanese accounting system.

But with gold, no one seems even to care about giving a justification, other than “gold has been a store of value throughout 5,000 years of monetary history”. Which is fine as far as it goes, but that doesn’t say anything about what the price of that store of value should be.

Pump and Dump

Given that “hedge fund” and “highly secretive” are usually said in the same breath, don’t you get suspicious when so many of the top managers are so vocally out there about their gold investments? And when their positions are structured in a way that make them open to view? Paulson and Soros have huge positions in gold ETFs. We know that, because if you buy ETFs, they show up in your 13-F filing. Granted, with an equity investment you can’t help putting that information out into the market, but with an asset there are plenty of ways to take the position without signaling it.

That they are taking a highly visible route to their positions suggests the game that is being played is one of leading the herd. The 13-F reports positions with a big lag, so no one will notice if they quietly slip out the side door while the party is still hopping. And how about when the view is backed up by none other than Goldman Sachs? Will they let everyone know when they think it has gone too far before they get out. Or before they go short? Maybe they already have.

Herds, crowds, mobs, and the Top Ten

And yet, we follow the herd, as we have countless times in the past. Herding is a timeless and universal market behavior, but one that seems less than rational. It is broader than markets; think of the Top Ten phenomenon. We feel better if a lot of other people think that our favorite artist or actor is The Best. We like a song better if we know a lot of other people are liking it as well. Thus our love affair with lists. Magazines featuring the Ten Sexiest, the Five Best, the 100 Whatever are all best sellers, even if the list is the product of a story meeting between an editor and five reporters.

Herding can be explained as an artifact of what was rational behavior in earlier times, when we were running around as hunter gatherers. Back then, mob and herding behavior made sense. Mob behavior if attacking a competitive group or killing a large animal; herding behavior if protecting against predators or uprooting to a new location. Whatever it was that got started, you could be pretty sure there was safety in having a crowd on hand to finish it.

The very notion of mobs and herds evokes a certain spontaneity. But with the gold bubble, we are moving on to a concept of herding by appointment. Everyone seems to be happy in agreeing that this is a bubble, and we are all going to participate in this bubble in a rational, genteel way. We have all decided that this is going to be a number one hit, a Top Ten. Though we might want to ask who is leading this herd, because my bet is they will be stepping aside and cheering us over the cliff.

I think Rick Bookstaber needs to read Mr. Krugman’s MIT paper on “Soroi” and then listen to “Trader Vic’s” thoughts in the video below, on why Mr. Soros is talking down the price of gold while buying it hand over fist…

Here’s a free preview of Peter Bernholz’s book “Monetary Regimes And Inflation” mentioned by Sperandeo. It’s known as “the bible” on hyperinflation and includes detailed analysis on 29 hyperinflations dating back to 4th century Rome.

“Monetary Regimes and Inflation: History, Economic and Political Relationships”


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Ron Paul vs. Sarah Palin: Principles vs. Party …. The Highjacking Of The Tea Party Movement

February 11th, 2010 · 4 Comments · Gold and Silver Trading, Research & Analysis, Politics, Money and Markets

So what happened in Nashville, Tennessee? Has the Tea Party movement founded by Ron Paul been hijacked by Sarah Palin? Or, was the so-called National Tea Party convention, just much ado about nothing?

First off, it drew only 600 attendees.

Yes, you read that right… six h-u-n-d-r-e-d.

As opposed to the 15,000 faithful who converged in Atlanta, the 18,000 who flocked to Cincinnati, and the tens of thousands who marched on Washington D.C.

National polls reflect that between 23% and 35% of Americans now identify themselves with the Tea Party movement. That means between 50 and 75 million voters have revolted against the political charade known as “the two party system.”

And in a recent Rasmussen poll using a three-way generic ballot test, 36% of Americans supported the Democrat party, 23% the Tea Party, 18% the Republican party, and 22% were still undecided.

Bottom line: I wouldn’t worry too much about a convention with 600 attendees, with a potential Tea Party support base of between 50 and 75 million voters.

Principles vs. Party

However, the issue of the Tea Party movement being co-opted and hijacked by the Republican Party is a very real one. As I see it, it’s going to be a battle of principles vs. party.

It’s going to be a battle between the founder of the Tea Party movement, Ron Paul, and the front runner for the 2012 Republican Party nomination, Sarah Palin.

And this battle brings up what I feel is the single most important issue for those in the Tea Party movement — “political reality.” And that reality is how our election process works.

What’s accomplished if Tea Party candidates run as independents, split the vote with Republicans, and hand elections to progressive Democrats?

What’s accomplished by independent Tea Party candidates being barred from the major political debates, and punished by campaign finance laws?

A New Independent 3rd Party vs. Taking Over The Republican Party
From Within

I believe the Tea Party movement needs to steal the tactics used by the Alinskyites in the progressive wing of the Democrat party, and take over the Republican party from within.

And that means replacing party driven incumbents and candidates, with principle driven candidates. And that means Tea Party supporters need to rally behind Ron Paul and stop the Tea Party movement from being hijacked by Sarah Palin.

Why not run against and beat party driven Republicans in the primaries, with principle driven Tea Party candidates in the first place?

Why should supporters of the Tea Party movement run independent candidates and end up splitting the vote with Sarah Palin in 2012, or other Republican candidates in 2010?

That’s why the godfather of the Tea Party movement - Ron Paul, now runs as a Republican instead of a Libertarian, or an Independent.

In order for the supporters of the Tea Party movement to take back their country, first they must win elections. And they’re going to have to win elections within a political framework that is unfriendly, if not unforgiving, to third party candidates.

I believe the path to victory for principle driven Tea Party supporters is behind Ron Paul and within the Republican Party. And if the first battle is to push aside Sarah Palin and take back the Tea Party movement with principle, not party driven politics, so be it.

What do you think?

Should those who support the principles behind the Tea Party movement push candidates they support to run as independents, under a new 3rd party, or as Republicans, while taking over the party from within?


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