As Bloomberg Business News reported earlier this year, Billionaire investor, George Soros foresees chaos in today’s global money markets on nybooks.com. In fact, he’s warned investors to exercise absolute caution as there’s no guaranteed measure of security in global markets today. Already, China is nearing the darkest hours as currency devaluation and growing economic woes increase the struggle. George Soros explained this in Sri Lanka at the world economic forum. It’s been a tough ride as China navigates vertical markets discovering potential growth opportunities for a model. Soros speculated that the trends observed in today’s developing economic crisis are fairly similar to 2008.
With the pillars of economic growth yielding returns slowly, manufacturing and investment weakening, Chinese yuan continues an aggressive devaluation. As Asian economy deepens in titanic debt, businesses face higher consumption and rising operating cost. In fact, financial market analysts report losses estimated at over $2.5 trillion. With this reality, Chinese equities trading was put off temporarily as economists revised global markets position. Additionally, Soros blames this chaotic revelation on the Chinese nation’s inability to adjust as global markets shift course. Apparently, it’s on the same course as in 2008, and their failure to redress the situation amounts to nothing short of a global economic crisis. Even after interest rates dropped, an actionable measure China’s People’s Bank initiated in response to the worsening financial chaos; Soros opinion remains unchanged. The CP (Communist Party) of China promised progressive currency improvements by 2020, but reports tell a different tale.
A prolific hedge-fund investor on marketwatch.com, Soros predictions carry weight as he’s made his fortune doing just that. The liberal political conservative began investing in the 50s. Today, he’s the principal of numerous investment banking boutiques and organizations. In fact, the latest BBI (Bloomberg Billionaires Index) estimates his empire at an approximate $27. 3 billion. Infamously known for netting a generous billion off of a prediction that the GBP (Great British Pound) would devalue in 1992, George Soros became a legend. A CNBC article released recently remarked on OSF (Open Society Foundations) and OSI (Open Society Institute) picking up Russian ban. The two pro-democracy organizations owned by George Soros have been labeled undesirable by the Russian government. George Soros organizations under the Open Society umbrella are both respected brands infamously recognized for improving global communities. He chairs both organizations which operate a massive global network in 100+ countries.
In 1979, George Soros OSF funded apartheid black South African students on theatlantic.com. In addition, his foundation played an instrumental role in undermining Eastern Bloc Communism by supporting cultural exchanges and the use of modern technology in the Western regions. He’s a profound sense of intelligence on politics, economics, liberalism, philanthropy among other realities affecting society today. He often takes to his blog Georgesoros.com expressing deep thoughts of how influences imprint on nations causing global conflicts. Soros is originally from Budapest Hungary. He relocated to England as communism dominated Hungary, an order he later challenged as he was in a capacity to contest oppressors. He studied Economics in England and later migrated to the U.S. where he advanced his career as an investor. He’s an author of fourteen published books focused on various issues, including economics, investment strategies, societal woes and politics. Some months ago Soros endorsed two presidential candidates and he’s getting ready to sponsor Latinos another $15 million, an NY Times article reports.
Change is difficult. Man naturally has a predisposition towards continuing on the same path. Thus, in order for the European Union (EU) to justify its creation in 1992, it needed to offer ample benefits. The centralized European bureaucrats in Belgium argued that all would benefit financially.
The cost savings from merging redundant French and German bureaucracies would be passed on to the European citizens. From 1992 to 2008, the standard of living for Europeans increased. But George Soros 2008 prediction showed that something changed and the world will never be the same.
“What Happened in 2008?”
In his book, The New Paradigm for Financial Markets, Billionaire George Soros has discussed the Theory of Reflexivity. In many ways, this is similar to Plato’s concept of shadows being part of our perception of reality.
George Soros describes on Bloomberg the facts that lead to the collapse of 2008: “On August 6 , American Home Mortgage, one of the largest U.S. independent home loan providers, filed for bankruptcy after laying off the majority of its staff.” In the United States, the crisis focused on Lehman Brothers. In the United Kingdom, the financial problems were labeled as the “Credit Crunch.”
In Europe, the bellwether may have been the following: “On August 9, , short-term credit markets froze up after a large French bank, BNP Paribas, suspended three of its investment funds worth 2 billion euros, citing problems in the U.S. subprime mortgage sector.” George Soros connected EU and American sub-prime mortgage problems.
Basically, the sub-prime mortgage industry collapse, with its primary lenders being located in the United States, caused worldwide credit markets to seize up. The Credit Crunch threatened the very foundation of the global capitalistic system. Some analysts believe that sophisticated derivatives connect all global banking systems and that the sub-prime crisis threatened the insolvency of all the banking partners.
“Europe is No Longer Growing”
George Soros 2008 prediction was that the European Union faced serious long-term problems that could tear it asunder. In 2016, George Soros sees many of the same problems that had arisen in 2008. One of the key problems is that some European nations are not growing.
In fact, in 2015, CNN compared Greece’s economy to the Great Depression. Of course, throughout 2015, the world watched as Greece continually missed sovereign debt repayments and Germany threatened to kick Greece out of the EU.
George Soros wonders if the European Union experiment has already failed. From 2008 to 2016, more Greeks are seeing their living standards decline. Instead of uniting, the European countries are starting to divide. The European Union may be on a path to self-destruction if the George Soros 2008 prediction rings true.