Hedge fund billionaire George Soros has recently been looking into the problems facing the global economy on project-syndicate.org in the wake of escalating problems in the Chinese economy. George Soros has become well known for his ability to predict the success and failure of particular areas of the world based upon their financial and political state; perhaps the most famous time George Soros used his skills was in the breaking of the Bank of England in 1992, which the Hungarian born former refugee is reported to have obtained $1 billion from after gambling on the fate of the currency of the U.K.
George Soros turned his attention to the problems facing the Chinese economy at a forum looking into the financial future of Asia that was the second time he has warned of problems about to strike the global economy. The hedge fund manager stated his belief that the conditions in the global economy on bloomberg.com being created by issues within the second largest economy in the world are similar to those causing the 2008 economic slowdown that still causes repercussions to the present day. Unlike the 2008 slowdown, which has been blamed on issues in the U.S. economy, China is now the focus of attention for Soros and its problems coping with the changes in its own country.
Earlier in the year George Soros attended another financial forum in Colombo, Sri Lanka and stated his belief the Chinese economy is being mishandled by government officials; Soros explained his belief that the changing focus of the economy was shifting towards consumption and away from investing. The Chinese economy on http://www.georgesoros.com/ is facing a crisis in terms of the levels of credit being accepted by financial institutions within the country that are now outweighing deposits to banks in China.
The current trend for increased levels of credit follows the problems the country has faced with a growing middle class looking for greater levels of consumption and services that have reduced the ability of China to continue manufacturing at earlier levels. George Soros has already stated his belief that the world markets are struggling to stay afloat as a number of problems erupt around the world, which could result in a crash as great as that of 2008. Among these issues are the growing refugee crisis in Europe that Soros believes has the ability to cause the collapse of the political group if it is not handled correctly.