George Soros, the billionaire hedge fund investor, has been talking about a global recession for a couple of years. Soros is worth more than $32 billion, and he is number 32 on the Forbes list of the wealthiest people in the world. Mr. Soros wasn’t born rich. He was born in Hungary and became a refugee when the Nazi took control of his town. He made his way to London and took a job as a waiter while he studied at the London School of Economics on http://www.nytimes.com/topic/person/george-soros. George earned a degree in philosophy, and in 1956, George decided to move to the United States. He found a job on Wall Street and learned how to invest. The rest of the story is a simple one. Soros had the brains and the desire to become one of the top hedge fund managers in the investment business.
In the early 1990s, Soros made $1 billion when he decided to short the pound sterling. Soros believed that the pound would have to be devalued, and he was right. Soros became an international investment superstar because of that transaction, and George Soros hasn’t made too many investment mistakes since then. He attended the economic summit in Sri Lanka recently, and he told that group what he had been telling other people for the last four years.
The world is on the verge of a global recession, and he believes the signs have been obvious. The fact that Mr. Soros thinks there will be a recession is not as alarming as what he says about this new worldwide recession. George Soros claims this new economic downturn could be worse than the sub-prime mortgage motivated Great Recession that started in 2008.
Bloomberg.com post an article about the Soros prediction recently. That article on https://www.project-syndicate.org/columnist/george-soros listed most of the reasons why Soros believes the world in entering a major economic debacle. Soros points to China as well as Europe when he talks about the signs of a meltdown. China is using their capital reserves to keep the value of their yuan stable on the foreign exchange, and the Chinese are also using an incredible amount of their capital reserves to keep their stock market open.
George Soros believes the Chinese can’t continue to burn through their reserves at the same rate this year, but they may be forced to since their manufacturing base is not producing gross domestic product growth. The manufacturing sector of the Chinese economy is in recession mode. The amount of debt that China has now is unsustainable. Soros thinks debt will continue to pull all sectors of the economy into a recession.
Spain, Portugal, Ireland, Greece and several other European countries have financial issues, and the European Union has been piling up debt because of those free-spending nations. The European Union has several issues, and Soros thinks those issues can’t be resolved because of lack of leadership, and the infighting that goes on between member nations. The migration crisis, terrorism, and the debt-ridden euro are all signs that point to a global recession. The next global recession is a fact that many economists in the United States are ignoring, according to Mr. Soros.
Read more about George’s life story at biography.com