George Soros was recently offering financial advice to global investors on a Sri Lankan economic forum when he decided to tackle the current economic crisis that’s growing in the world. George Soros, a world famed business person and economic analyst, asked these investors to be cautious on the direction the global market is taking. He said that there is a huge threat on the investments that are currently in the market. The current economic crisis that is looming on the global markets has the potential like that of 2008. This crisis on Bloomberg threatens to collapse global economies and bring down investments all over the world. George Soros says that if the current global crisis takes the direction of the 2008 financial crisis, then the world is heading to dangerous financial times.
George Soros says that the China’s attempts to turn around its economic model that drives its growth is the major problem, and it is what is causing this crisis. George Soros say the largest economy in the world China, has spread its economic influence far much deep into the world. There is a devaluation of its currency as it shifts from the production and manufacturing sector to the new consumption and services sector. This devaluation of the Chinese yuan spreads the nasty economic effects to global stock markets with Chinese equities in them. George Soros points out an example of the Asian situation where its stock markets experienced a $2.5 trillion loss from 2015s the last quarter to 2016s first week. In this same week, this stock markets experience a bad price for Chinese equities, and its markets were forced to stop operations for the rest of that week’s Thursday. George Soros says that the Asian countries are currently swept in this economic crisis that China has started.
George Soros expressed his concerned for the welfare of third world countries which are innocently caught in this crisis. Many third world countries had of late come to depend on China as their trading partners. These countries are now under economic pressure that is pushing their interest rates up. Other world regions like Europe and America are not spared by this economic crisis. In Europe, the situation is worrying considering the that the region is currently under a lot of crises. The Ukrainian crisis seems to be bringing the union down even before the economic one sets in. In America, most stock markets are slowly failing as others struggling to stay sustainable.
George Soros is an American-Hungarian born entrepreneur who started the successful hedge fund firm, Soros Fund Management. He is also a philanthropist working to bring human rights and democracy obligations at the center of every government worldwide. He owns the Open Society Foundation, over 100 countries network of democratic and human rights movements and groups. George Soros has since 1992 been offering economic advice on the oncoming economic situations. He has correctly predicted various economic situations including the nasty 2008 one.