George Soros is an American investor, author, and philanthropist who has a Jewish-Hungarian ancestry and holds dual citizenship of Hungary and United States. He is the current Chairman and founder of Soros Fund Management and Open Society Foundation. Soros broke the Bank of England on http://www.georgesoros.com/essays/ with short sales of US$10 billion worth of British Pounds that enabled him to make an enormous profit of $1 billion in 1992 UK currency crisis.
Soros is also known for his involvement in politics as a known supporter of American liberal and American progressive political causes. Soros has donated more than $11 billion from 1979 to 2015. He has contributed to political organizations on http://www.biography.com/people/george-soros-20926527 supporting Hilary Clinton in her bid to become US president. Soros is also known for making controversial statements that spike reactions from various parties including the government, media and organizations.
One of the recent opinions was about the state of the China’s economy which he claim is headed for a collapse following resemblance to the U.S. debt-fueled economy in 2007-08 which later led to the global financial crisis. George Soros believes that the current hike in credit growth figures should be taken as a warning of what is about to happen to China’s economy in the future with similar impacts to the world. Currently, Bloomberg survey shows the credit growth is unsustainable with figures surpassing the forecasted 1.4 trillion yuan and hitting 2.34 trillion yuan in the month of March.
Soros has already made a fortune of $24 billion through savvy wagers in the market showing how much investors cannot ignore his knowledge. During a world Economic Forum in Davos in January on http://www.profitconfidential.com/economy/economic-collapse-george-soros-delivers-grim-warning-for-investors/, he made his sentiments clear when he disclosed to have placed a bet on some of the Asian currency as a way of expressing confidence that some countries in the region’s economy would have to experience a hard landing. However, China responded to his through the state media agency Xinhua that he has made similar predictions in the past, and this one is no different.
George Soros continued to insist that the reason the problem has affected China in a big way is because interbank lending is still small. However, he said that as the credit market surges, interbank lending will increase and eventually because a source of uncertainty and instability. The China’s economy is already experiencing soaring housing values with new home prices rising approximately 62 percent per year.
Soros also expressed positive indication about China’s foreign exchange saying that the strategy to link the yuan to a basket of various currencies was better than just linking it to the dollar to minimize the risk of devaluation. He also expressed confidence in the strengthened relationship between China and U.S. saying that it is good for calming the markets.
Read more: China’s Debt-fueled Economy Similar to U.S. in 2007-08 Warns George Soros