A mystery investor or hedge fund reportedly made a bet of almost $1billion at odds of 10/1 last month that the U.S. would lose its AAA credit rating.
Now questions are being asked of whether the trader had inside information before placing the $850million bet in the futures market.There are mounting rumours that investor George Soros, 80, famously known as ‘the man who broke the Bank of England’, could be involved.
He made more than $1billion on currency speculation when the British pound left the Exchange Rate Mechanism on Black Wednesday in 1992.The latest bet was made on July 21 on trades of 5,370 ten-year Treasury futures and 3,100 Treasury bond futures, reported ETF Daily News.
Now the investor’s gamble seems to have paid off after Standard and Poor’s issued a credit rating downgrade from AAA to AA+ last Friday.
Whoever it is stands to earn a 1,000 per cent return on their money, with the expectation that interest rates will be going up after the downgrade.
The link has been made to Mr Soros in part because he has been tied to President Obama’s administration since 2008, reported The Examiner.
He also recently stopped managing money for outside investors, meaning he is under less scrutiny from the Securities and Exchange Commision.
Bear in mind that this is the person who wants the dollar to fail and is attempting to take control of critical parts of the government.
Hell of a scam though, all he had to do was instruct his handpuppet to threaten to veto anything that had a remote chance of blowing the bet.
The investment in the nobody who is Barack Hussein Obama is now explained.
It could not have cost him more than $10 million to fake up the background on this dude.
And what a payoff!
Soros will end up the wealthiest man in the world.
Also keep in mind that Eric Cantor made a hedge bet against the US.