Category: Crisis in Global Markets

George Soros predicts the consequences that would follow Brexit

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.

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Beckham, Soros urge Britain to stay in European Union

George Soros – The New York Times

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.

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A Repeat of 2008’s Financial Crisis is looming according to George Soros

With China struggling to discover another growth model as its currency’s worrying rate of devaluation hurting other states, George Soros is predicting a repeat of 2008 in the economic world. Speaking in Sri Lanka, George Soros a hedge fund billionaire predicted that the global financial markets are poised for doom. His comments follows that time-bomb that is the plunging oil prices in Europe, the massive government debts ravaging the US and Japanese economies and the struggling Chinese economy.

The People’s Bank of China recently sent a series of shockwaves across the globe when it decided to sharply cut the Yuan-Dollar offshore exchange. The De Ja vu moment left many banks awed regarding on what they banks wished to achieve. Devaluation will boost their exports and ultimately their manufacturing sector, a move that will leave dire consequences to other countries.
The Chinese financial havoc will particularly trickle down to other economies and will eventually create a repeat of the 2008’s. While his prediction has eventually made many financial institutions agree with him, investors are beginning to see the big picture as well. He, however, has a word of advice for any budding investor out there; invest in those businesses that aren’t affected by the recession, adequately guard yourself from panic sell, and turn the falling sales to your advantage.
George Soros isn’t a typical hedge fund mogul; He was born in Budapest in 1930, fled for England following the infamous Nazi occupation. He graduated from the prestigious London School of Economic before immigrating to the US. Through the international investment fund, he gradually accumulated a fortune. George Soros started small in New York in the 1950s but eventually made a breakthrough in 1992 when he netted $1 billion with a bet that hugely affected the UK’s pound value.
George is famous for his unsurpassed philanthropic works as he funded many black students attending the Cape Town University in apartheid South Africa in as early as 1979. Today, The Open Society Foundations with an annual expenditure of over a billion dollars is operational in over 100 countries all over the world.
George Soros is an astute author with several best seller books under his belt. His books majors primarily on business and investment albeit he gives his unbiased opinion about politics, economics, charities as well as globalization. Additionally, his articles often feature on some of the leading dailies and magazines around the globe. All these aside, whether his words will come to pass or will be treated as among the many half-truths will be judged with time.