Billionaire George Soros warns the economic forum in Sri Lanka that international markets are facing a crisis and should take caution with investments and money markets. Countries, such as China, are struggling to find a model of new growth. Without new growth, it trickles down to the economic crisis handed to the rest of the world. The ultimate goal would be to return the interest rates to a positive standing, however, that is hard to do right now with the way the developing world is as well as the current environmental similarities compared to 2008.
The first week of the new year lead to global currency and stocks taking a negative impact in the commodity markets. China’s economy continues to take a plunge from investments and manufacturing services which is an added major concern for the communities as well as the government officials. Approximately $2.5 trillion was demolished from the value of global monies. Asia also experienced losses that reduced and stopped trading commodities for the rest of the day on Thursday.
George Soros feels that China has a major investment problem and that because of that, they are facing a crisis in the financial markets. It will pose a serious challenge when it comes to building and rebuilding certain global strategies. The crisis, Soros feels, is similar to what they faced in 2008. He warned of the same crisis happening in 2008, happening now, and wants to evaluate the markets and ensure that they can overcome some of the negative impacts that have caused such an outbreak.
Soros has an estimated net worth of $27.3 billion on theatlantic.com, and is responsible for a 20 percent increase of income from 1969-2011. His hedge-fund firm has gained funds through proper investments and economic positive decision. His career began in the 1950s and his reputation continued to increase throughout the years with his investing powers.
China’s economy seems to be suffering with the economic loss of funds, however, China’s Communist Party has agreed to increase the Yuan’s convertibility by 2020. Weakness in the world’s second-largest economy remains a problem for the world, as certain business practices as well as outcomes filter through the rest of the world. George Soros feels that the economic costs and decline can be salvaged, but it will take a lot to overcome the necessary work needed to perform such services. The sluggish manufacturing issues are at hand hard not to blame, but should be increased over time and allowed to raise their trading throughout the rest of the world. Interest rates in China have also been cut which has increased the government funding that needed to be placed in the economy. Soros predictions are valued and his suggestions are taken into great consideration. For more information on the article, click here.