In Sri Lanka during an economic forum, the prestige wealthy George Soros cautioned investors about the current economic situation.as China tries to get a new way to grow its economy, the rest of the world is feeling its impact. According to Soros, China’s currency is losing its value thus the rest of the paying dearly for it.
George Soros says the current situation is recurrent of the 2008 global market crisis. The developing world has a challenge because of the return of the positive interest in the markets. In the first week of the year, with the devaluing of the Yuan, the world currency, commodity, and stock market were under siege. The economy of China on www.nybooks.com/contributors/george-soros/ changing from manufacturing and investment to service and consumption.
$2.5 trillion was recently lost from the global market and it was worse in Asia and in Chinese, trade come to a stop for almost the whole day. China has to make a major adjustment crisis. According to Bloomberg Billionaires Index, Soros’ hedge fund company had a profit of about 20 percent and its worth is $27.3 billion.
The Communist party in China has promised to raise the value of the Yuan currency by the year 2020. Even after the People’s Bank of China cut the interest rates and hundreds of billions of dollars put in the economy, weakness still remains in China. The data released shows a slow manufacturing sector.
The global market had a prediction that Britain’s currency would lose its value and nothing would change that. The stockholders and Soros had their day when Britain was announced that it would be leaving ERM. George Soros refers to 1992 September 17th as the ”Awesome Wednesday.” This is the financial history of Britain which has been named the ”Black Wednesday.”
When Britain currency was floated, it fell 15% to the Deutschmark and 25% to the US Dollar. George Soros’ Quantum Fund had estimated $15billion on betting, that the British currency would lose its value versus other currencies. The worth of the fund rose from $15BN to $19BN and months later its value was estimated to be almost $22BN. The information was published via Value Walk.
George Soros being a philanthropist, he is the chair and founder of the Open Society Foundations. The foundations are found in more than 100 countries worldwide. His approach to open society is to have a government that is accountable, citizens’ rights respected and no one holding the truth.
Soros began his charity work by giving education opportunities to black South Africans. This was in the year 1979. George Soros extended his humanitarian work in Africa, Asia and United States.