George Soros has affirmed his worries about the world economy with bearish investments. Before the recent investments, he had taken a long break from trading according to people close to the matter. Currently, Soros Fund Management manages about $30 billion dollars on behalf of George Soros after he had refunded all the third party investors share and left Soros Fund Management to manage only his investments. The most recent bearish investments include selling stocks for buying gold and shares in gold miners citing future economic crisis caused by the current China’s problems.
Before going bearish, George Soros cited that China was going through hard economic times and the problems have just started for China. As the government of China implements modalities to drive the next economic giant, Soros cited adjustment problems experienced by the authorities due to the rising debt problem. China’s government is trying to change the growth of the Chain’s economy from manufacturing and investment generated by the growth driven by consumer spending and service industry.
With many of the industries using debt to finance their start-up companies and businesses, the debt problem according to Soros is a serious concern for China and the world as a whole. He believes that The current debt problem in China significantly reflects what caused the economic crisis of 2007/2008 in the U.S., and China cannot avoid a hard landing when the bubble bursts. China’s has however been angered by remarks by George Soros saying that Soros has no basis on his comments and that he had predicted similar economic crisis before that never happened.
The point is, Soros may not be perfect but considering his most predictions in the past, one cannot ignore the fact that he might be right in China and then he ends up making a fortune out of the global economic problems. In a recent interview by email with Wall Street Journal, George Soros expressed particular concerns over capital outflows from China as well as how the China’s government are ignoring the rising debt problem in the country.
Soros is also very concerned about the state of Europe and the pending Britain referendum to stay or exit the European Union. He has in the past expressed concerns that, if Britain exits from the European Union, the stability of the Union will be affected and prompt other countries to follow the exit. Soros has even written an article about Britain’s coming referendum urging the country to unite with other European countries and avoid a messy break-up.
According to Soros, the EU is a project of European states that have sacrificed part of their sovereignty to form an ever-closer union based on shared ideals and values. He believes that those shared values are under attack and its time for Britain to realize that. Reflecting on the problems facing Europe such as Russian aggression and refugees, Soros believes it is time to unite.
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