George Soros Makes "$1b Bet" Against the Aussie Dollar

Billionaire investor George Soros has expanded his bargain-basement shopping spree by reportedly adding a $1 billion short-sold position in the Australian dollar to a basket which last month was loaded with stock in the troubled retailer JC Penney. It would be fanciful to think that Soros, one of the world’s canniest investors with well-honed skill in spotting over-valued currencies, used my March 22 post to add the Aussie currency to his bottom-fishing portfolio. But, anyone who took note back then when the exchange rate was one Australian dollar to $1.04 would now be feeling comfortable with the rate down to $1.01, and looking good for a further fall as the Australian Government cuts interest rates and struggles to reel in a worrisome budget deficit. By U.S. or European standards the Australian financial position is relatively comfortable thanks to the country’s role as a primary supplier of raw materials to China, but that status has helped the currency balloon to an unsustainable level which the country’s central bank is now seeking to burst.

Link To Source; Forbes

As the article says, Soros has a pretty accurate track record when it comes to these type of "investments". There has been talk among most people I have spoken to and know here for about 6-12 months about the lull our currency is in and it's eventual plummet.

I think this is evident in the attempts and initiatives our government has been undertaking getting more closely aligned with China whom, the Australian government sees as the next super power.

Doesn't look good anyway. I wonder what the wider affects may involve?

Keen to hear ideas

reply to post by Pirateofpsychonautics


Greetings friend.

A falling Australian dollar is a must, otherwise Gina Rinehart's prediction just might come true.

Well hello there.

I missed that, what was her prediction?

China is not as rosy as many are led to believe. The economy is slowing down due to lack of sales and the need to try and reduce the housing bubble is taking its toll. This will effect their imports from Australia which in turn will effect the AUD on the forex. Soros knows this so it's not a risky bet, he will make a killing.

Looks like I might want to do a little trading.

Sorros is an evil evil man.......hes been known to hedge against a currency and then crash it to gain a profit....hes bragged about this on national TV......he has lots of power and lots of wealth.....

Its not just his "uncanny ability to predict" the man directly effects the rates through manipulation......

If hes betting against the Aussie dollar, people better be watching what hes doing.....

I hope the best for my friends in Oz.......

Seeing how the Gillard Government has run this Nation into the ground. Soros has a pretty safe bet. If anyone in the last four year's has believed the hype about our economy, then you need to get eye surgery as you must be blind.

I thought George soros was dead. Have I slipped into a parallel dimension?

i just got out of bed and heard that the dollar fell to 97c overnight. will try to confirm.

A falling Aussie dollar is the best thing that can happen at the oment for this country.

Manufacturers have been struggling very very difficultly to make any profits at all on export products, pushing many to close and cut jobs.

Yes, other imported items may cost more in the long run, but its better having a job and paying more than no job and not even being able to afford the cheaper things.


Either way, I foresee out country falling into a deep depression within the next 2 years as mining winds down and theres no manufacturing base like we used to have.

Gonna be hard to get out of this one.

There is no way Soros does not have inside information on these kinds of things. No one in Aus would have betted on the reserve dropping the interest rate, and he makes $60 million from betting that it would? I suppose he just know more about it than all the other people huh?

Gerorge Sorol profits $60 million from falling AUD

reply to post by Cinrad


The currency game is the most easy game of all to fix (if you are a big fish). Most of the moves are coordinated, easily predictable and take some time to implement after planning.

Originally posted by ManBehindTheMask
Sorros is an evil evil man.......hes been known to hedge against a currency and then crash it to gain a profit....hes bragged about this on national TV......he has lots of power and lots of wealth.....

Its not just his "uncanny ability to predict" the man directly effects the rates through manipulation......

Didn't he do exactly this to the British pound several years ago? I seem to remember him saying something along the lines of 'it shouldn't be legal, but it was, so I did it...', referring to a huge investment selling short the British pound.