Category Archives: Global Markets Crisis

George Soros Offers a Ukraine Rescue Plan

George Soros, financial guru, hedge fund owner, political analyst and philanthropist, is a man concerned about the fate of the EU and of the “new” Ukraine in particular. In a recent article published in NY Books, George Soros outlines a suggestion for a rescue package from the European Union, given in the interest of stabilizing the Ukraine. Though this package would be expensive, it’s worth considering as the value in averting a major debt crisis in the Ukraine is enormous.

Soros is very quick to point out that the EU leadership is already facing many challenges, with crisis after crisis vying for their attention. Right now the EU is having to deal with the ongoing migration crisis, questions about the fate of the euro, and the issue of whether or not Britain will even stay in the EU. Yet Soros stresses that helping to bring stability to the new Ukraine is crucial for the stability of the EU overall.

Read more:
Save the New Ukraine

Europe’s Ukrainian Lifeline

The “new” Ukraine began in 2014, in the spirit of the Maidan revolution. This Ukraine is freer and more stable, but it needs support to continue its progress and avoid falling into a Greece-like debt situation.

The package Soros proposes for the Ukraine would include substantial financial support as well as as political crisis insurance, offered affordably. There would also be incentives for investors. George Soros Ukraine makes the point that a more stable Ukraine will become an attractive place for investors, which in turn would help the region stabilize even more. An end to the state run gas monopoly is also part of Soros’ proposal.

Right now the EU leadership certainly has more on its plate than it should have to deal with, but the reality is that the Ukraine must become more stable in order to avoid a larger crisis for the country itself, and the EU as a whole.

Learn more about George Soros:

https://www.project-syndicate.org/columnist/george-soros

http://www.forbes.com/profile/george-soros/

Chinese Economy Adds To The Concerns Of George Soros

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.

George Soros Predicts that China could Trigger another Recession Similar to 2008

Global investor and business mogul George Soros warned an economic forum about the coming crises that is about to impact the world. George Soros is a very knowledgeable and insightful businessman who has the ability to figure out how situations are going turn out. Soros is known for his bold predictions about specific events that impact the global economy and independent nations. His prediction about another coming global recession has been triggered by the economic situation that is taking place in China.

China has the second best economy within the world. This country has been growing very strongly for many years but they are now facing some challenges that could impede their development. For years the country experienced a phenomenal growth rate that was backed by plenty of investors who were willing to risk their money with the nation’s economic progress.

China’s growth was stimulated by its ability to output products. This nation was making everything imaginable and then shipping it to other parts of the world. Much of China’s economic development and growth was fueled between outside investors and businesses that used China’s relatively cheap labor force to manufacture a whole lot world of products. This all changed by the end of 2013.

When 2013 rolled around the nation started to consume more than it produced. Traditionally, the Chinese people were not a big consumer of goods like many western countries and Japan. As a lot of goods started to become cheaper and more available in China this allowed many consumers within the nation to buy them up. China’s GDP is now the second highest on the planet.

Soros said on Bloomberg Business he is afraid that China’s currency (the yuan) is starting to weaken because its people are spending so much money. This spending is starting to overtake China’s output and as a result the nation is no longer exporting as many goods as it did in the past. Do not forget that China is the world’s largest trader of international goods. This country relies on its position as a major trade partner to stimulate economic growth. While China still retains their spot as the number one trader there is evidence that shows that they are not as strong as they used to be in this regard.

The yuan is being overvalued against the US dollar. When trade takes place between these two types of currencies the yuan is doing so at a higher rate than what it should be valued at. In other words people can pay more money for Chinese products and goods than what they are worth. If they are exchanging goods for more than what they are worth this too can cause a disruption in the market. The bottom line is that Soros is not speaking absurdly about what is happening with this country. To find out more about George Soros’s views you can read the article George Soros Sees Crisis in Global Markets That Echoes 2008