Soros and China: Fears of a 2008 market repeat

George Soros made a bold statement to the press recently, stating that he believed the volatility of the current global market could end in a snafu just as severe as the 2008 economic collapse. A January article from Bloomberg News states that China’s shift from a manufacturing to a more consumerist economy has spelled disaster for the yuan, which has lowered in value since the new year. As the second largest economy in the world on http://www.nybooks.com/contributors/george-soros/, this has created the beginnings of a potentially serious crisis, with a plunge in Chinese equities causing the complete standstill of trade for a day in early January.

Read more at The New York Times about George.

Soros is known for giving quite accurate predictions on global trends, famously winning a bet in 1992 that Britain would be forced to devalue the Pound, netting him $1 billion. George Soros also stated in 2011 that the Greek economic crisis was “more serious than the crisis of 2008”. To many, his more recent statement about the current economy, considering his immense success in predicting trends, rings some alarm bells. “China has a major adjustment problem,” George Soros stated. “I would say it amounts to a crisis”.

Soros, a well known progressive democrat, was a key player in assisting formerly Communist Eastern European countries on http://www.investopedia.com/university/greatest/georgesoros.asp with their transition to democracies. Russia views his Open Society Foundations as a threat to their state and rightly so, considering the Foundation’s seminal work in opening up the formerly iron shut Eastern bloc. While some may question his meddling in other countries’ affairs, his work in Eastern Europe helped open up the region to intellectual freedoms that were unknown during communism. This is the extent of his global status, which makes George Soros expertise greatly valued in business circles and his recent quotes about the current market so potent.

In addition to the lessened value of the Chinese yuan, multiple volatility reports have surged in 2016, including The Chicago Board Options Exchange Volatility Index, which is up 13 percent. With all of these signs pointing to the fact that something is amiss globally, maybe it doesn’t take an investment genius like Soros to realize that something is very wrong in the economic sector. Learn more about his profile at forbes.com

Economic Indicators Show Serious Crisis says George Soros

The year 2008 proved to be one of the worst in history for the economy of the world especially the United States. The crash of the stock market left many investors holding what was their depleted accounts. In an economic forum in Sri Lanka yesterday, George Soros warned investors on Bloomberg to be very cautious because he detects similar characteristics emerging between the economy of today and that of 2008.

George Soros in an international investor who claims his hedge-fund firm progressively gained 20 percent every year from 1969 to 2011, and today he reports a net worth of over $27.3 billion. His career began in the 1950s in NYC, and his reputation was established on his incredible investing prowess. Soros has over 50 years of experience in the stock market, and he points out that a crisis may well be in the future by these eight identifiers.

Learn more about his profile at Forbes.com.

1. China has adjustment issues, and they had a $2.5 trillion loss that displayed serious challenges; China halted trade after the announcement. They have a devaluation of their currency, which is transmitting problems to the rest of the world. Soros replied that positive interest across the globe is a necessity.
2. The decreasing value of the yuan is affecting China’s economy, global currency, stocks and commodities since the beginning of 2016 because of the shift from investment to consumption and services.
3. Soros commented on the Greece-born European debt decline in 2011 saying that it was more serious than the crisis of 2008.
4. The Chicago Board Options Exchange Volatility Index or the VIX, affectionately known as a fear gauge, is up 13 percent.
5. The Nikkei Stock Average Volatility Index escalated to 43 percent this year. This index recognizes the cost of protection on Japanese shares, which involves the yuan
6. The Merrill Lynch Index of price alterations in Treasury bonds rose 5.7 percent.
7. Investment data reinforced a slow manufacturing sector.
8. The People’s Bank of China cut interest rates to record lows while the government authorities added billions of dollars to their weakened economy.

These indicators all point to global markets falling into a crisis very soon says George Soros. He reminds investors to be extremely cautious. Skyrocketing gold prices is another sign that the world’s economy is headed towards a crisis situation.