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.
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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