Monday, March 1, 2010

An impertinent question for George Soros: Did you short the dollar while supporting Obama?

Through campaign contributions and public lobbying campaigns, George Soros made a big investment in Barack Obama.

Now he says he isn't satisfied with the results. He wanted the banks nationalized, but Obama “made the political decision that that is un-American, will not be accepted.”

Trouble is, CNN's Fareed Zakaria apparently asked the wrong questions. What he should have asked Soros is this: "Was your investment in Obama a political decision? Or, was it a business decision?"

If Soros had answered "business," he would have no reason to be dissatisfied. As president, Obama promptly laid out an agenda - government takeover of health care, cap and trade, government ownership of corporations - that were at odds with the founding spirit of America as well as the nation's history.

As the national deficit and cumulative debt mounted, and Americans began to protest, the dollar began a steady fall.

It was in unsettling circumstances like this that Soros began shorting the English pound, betting that its value would continue to fall. The result: headlines that said Soros had broken the Bank of England.

Now that Greece has become a potential failed state, because of its unpayable debt, Soros is shorting the Euro. He is betting on a default by Greece, and resulting chaos in the European currency.

What we don't know is this: If Soros is shorting the American dollar, when did he start doing it? Is he still shorting the dollar? How much has he made from shorting the dollar at a time when Obama was clearly pursuing an agenda opposed by most Americans, as shown by polls?

Let's assume that Soros shorted the dollar on Obama's inauguration day. The U.S. dollar was then worth $1.27 Canadian. Now, the U.S. dollar buys just $1.06 Canadian, a drop of 17 percent in little more than one year.

Here, the headlines use phrases such as "Death of the dollar."

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