The American business magnate and philanthropist has developed a great interest in matters of public policies and governance. Soros has been quoted on several occasions giving his opinions on various issues concerning politics and policies. George Soros is a strong supporter of the American progressive and American Liberal political movements. As one of his philanthropic activities, Soros has donated more than 11 billion U.S Dollars fund various activities. Soros also oversaw the peaceful transition from communism to capitalism in Eastern Europe. The entrepreneur has enabled communist societies in Eastern Europe to acquire knowledge and scientific ideas from the rest of the world.
Recently, Soros took, time to explain on why the United Kingdom would create a disaster by moving out of the European Union. According to the billionaire investor, exiting the European Union would lead a big decline in the household income and a recession. The billionaire warned the Europeans of dire consequences that would befall them just ahead of the voting day by the Britons. George Soros states that leaving the European Union is wishful thinking that would not have any effect on the Britons’ personal financial position. Soros also went ahead to cite estimates from multiple institutions including the Bank of England to illustrate the average income loss per household. The entrepreneur stated that the average income loss per household would be between 3,000 Euros to 5,000 Euros due to the British Currency losing its value.
Soros is well-known to understand the fluctuations in the British currency based on the correct betting he made against the pound back in 1992. Based on his accurate prediction, nobody would want to take his assertions about Brexit for granted. The philanthropist believes that exiting the European Union would cause the British currency to drop by 15 to 20 percent.
George Soros explains three reasons why Brexit success would cause a disaster to Britain. One of the reasons is that the Bank of England cannot cut rates from the already low levels. He also cites that currently the United Kingdom is faced with a massive current account deficit and exiting the European Union would affect the inflow of cash. Lastly, Soros states that exiting the European Union would not help exports because of the decline in the currency. Brexit would trigger some of the uncertainty in trading relations with other countries.
According to his writing in the Guardian, Soros states that Brexit would spark a “Black Friday” for the United Kingdom. The sterling devaluation would not bring any positive impact on the economy of the United Kingdom. The financial markets, the jobs, and investment sectors would all be affected by the exit from the European Union. Soros says that the effect of the British exit would be more detrimental than what was experienced during in 1992.
Learn more about George Soros: http://www.nybooks.com/articles/2016/02/11/europe-verge-collapse-interview/