Hedge Fund's Record Bet Against Euro

Hedge funds are taking increasingly larger bets against the euro, as the debt crisis in Europe continues to heat up.

A record number of hedge funds made so-called short bets, or wagers that the euro would weaken, according to the latest report from the Commodities 
Future Trading Commission that tallied the data for the week ended May 29.

Citigroup's foreign exchange analysts said hedge funds spent nearly $36 billion betting against the euro during that week. Only $11.8 billion went toward bets on a stronger euro.

The euro is down 7% from April, currently trading around $1.24.

The euro will most likely continue to trend lower, but most experts don't expect a free fall. "It will drip lower [but] there will be no overnight collapse," said Douglas Borthwick, head of trading at currency trading firm Faros Trading.
Hedge funds and other investors are capping their bets on the euro's decline because they could get burned if European leaders intervene, according to analysts and traders.

Corn Shortage: The Next Big Crisis

By now you know we're experiencing the worst drought in over 50 years which has sent corn prices soaring to record highs. With over 60% of the US in the midst of drought conditions, the USDA has said that 50% of America's corn crop will be in poor to very poor condition.

With corn supplies are at their lowest levels in 17 years and with corn being such a large part of the industrial food chain, we have the 'perfect storm' for serious food shortages.

Corn feeds the chickens that provide us with eggs. Corn feeds the cows that provide us with beef and dairy products. Nearly all soda contain high fructose corn syrup. Even beer is fermented from glucose that originated in corn.

Corn is in margarine, coffee sweetener, icing, gravy, hot sauce, mayonnaise, soups, cake mixes, snacks foods, salad dressings, frozen waffles, and on and on. If you eat produce in any form, it’s likely got corn in or on it: corn was in the pesticide, the cardboard in which it was shipped, even the wax applied to its surface to give it a sheen.

Corn is in toothpaste, disposable diapers, matches, trash bags, disposable batteries, make up, even magazines covers.

Corn in approximately 25% of all items located in your local grocery store. And of course, all the fuel for our cars and trucks contain ethanol which is made from, you guessed it, corn.

And the situation is equally bad for soybeans, the second largest produced crop in the US: today inventories are at their lowest levels in 32 years. And the current drought has resulted in 39% of this year’s soybean crop being in poor to very poor condition.

Forget about Europe and the imminent global financial collaspe, the corn (and soybean) shortages is the REAL CRISIS.

Betting On A Financial Collapse

Lord Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down.  Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. George Soros, chairman of Soros Fund Management, has put approximately 130 million more dollars into gold last quarter.

If a massive financial disaster occurs, two things are likely to happen: the euro will plummet like a rock and the price of gold soar. With the European economy is becoming more unstable with each passing day, investors all over the globe are looking for safe places to put their money.  The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much different message by their actions.  

You know the euro is in deep water when a icon of the banking industry, Lord Jacob Rothschild, takes $200 million bet against it.

Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar’s structure isn’t in doubt.

There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF). Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m. At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.

Within the gold market, there is unconfirmed speculation that China plans to buy up to at least 5,000 to 6,000 metric tons of gold and that it will start to buy during this year, according to Kevin Kerr, president of Kerr Trading International. If China buys this much gold, that would exceed annual, global production of gold, he said. “We do not have enough gold for China to buy that much, and it will take China time to purchase this amount of gold.

Whether you turn your attention to Greece, Spain, Italy, Portugal or even Ireland; it is getting worse. Nowhere on the Continent are things improving and even in France and Germany the financial strains are beginning to show. It is not a question of Euro-bear or Euro-bull; it is just the numbers as they come rolling out month after month.

Governments and big banks all over the world have been rapidly preparing for the coming financial collapse. 77 percent of all Americans live paycheck to paycheck at least some of the time. If another major economic crisis comes along, many of those people are going to be totally wiped out.

The U.S. economy is basically on life support. Look at the velocity of money. In an economy that is growing and healthy, money tends to circulate very, very quickly. But when an economy is sick, money tends to circulate very slowly. And that is exactly what is happening right now. The velocity of money is currently at the lowest level in modern U.S. history.

This is exactly what happened back in the 1930s.  The velocity of money absolutely plummeted.  When people are scared, credit is tight and times are hard, money does not exchange hands as rapidly.

This is just the beginning.

Governments And Big Banks Preparing For Financial Collapse

All over the world, governments and big banks are preparing for imminent financial collapse. Hushed conversations are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London. The clues are all around us. 


It is now known that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" since 2010.  

U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

When combined with the dozens of other clues of imminent collapse, a very troubling picture begins to emerge.  Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and a significant number of Wall Street bankers have been shopping for properties in rural areas this summer to escape urban war zones.


The U.S. government has been stockpiling food and ammunition. President Obama has signed executive orders that would potentially be implemented in the event of a major meltdown of society.  

So what does all of this mean?  That a financial collapse is coming. Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars.  That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.


The situation in Europe continues to get worse and worse.  The authorities in Europe have come out with "solution" after "solution", and yet unemployment continues to skyrocket and economic conditions in the EU have deteriorated very steadily over the past 12 months.

Of course the historic drought that is ravaging food production in the United States this summer is not helping matters either.  Another summer or two like this one and we could be looking at a return of Dust Bowl conditions.

Our resources are dwindling, war in the Middle East could erupt at any moment and our planet is becoming increasingly unstable.  The following is from a recent article by Paul B. Farrell on Marketwatch.com....

Fasten your seat belts, soon we’ll all be shocked out of denial. Some unpredictable black swan. A global wake-up call will trigger the Pentagon’s prediction in Fortune a decade ago at the launch of the Iraq War: “By 2020 ... an ancient pattern of desperate, all-out wars over food, water, and energy supplies is emerging ... warfare defining human life.”

A "perfect storm" is brewing. Prepare yourself.