In today’s troubled times, the worldwide markets face several monetary crises, which means that investors should be extremely careful. So says George Soros, billionaire, philanthropist and founder and chair of the Soros Fund Management and the Open Society Foundations. George Soros has a hedge fund worth over $27 billion that is listed in the Bloomberg Billionaires Index.
He recently spoke on the topic in Sri Lanka at an economic forum. According to Soros, China is trying hard to discover a new model of growth, while its money has been devalued and that is affecting the rest of the world. This, along with rising interest rates, is becoming a challenge for the world, especially since it reminds financial people of things that happened in 2008.
There are sinking money values with the yuan on bloomberg.com, and things like stocks and commodities are in trouble as well. China has lost trillions as losses worsen in Asia and things like Greece’s debt in Europe make Soros worry that a problem like the financial issues in 2008 will occur again. In fact, he thinks it could be worse.
For instance, the Chicago Board Options Exchange Volatility Index, otherwise known as a fear gauge, has gone up 13 percent. Plus, The Nikkei Stock Average Volatility Index went up 43 percent and Merrill Lynch showed that Treasury bonds went up almost six percent. All of these heights in numbers worries people like Soros about the world’s financial future.
China itself is trying to change their monetary problem. The Communist Party has vowed to increase the convertibility of their yuan by 2020 and to progressively disassemble capital controls. They are the second biggest world economy and they are very weak, even though the People’s Bank of China cut interest rates to record lows and specialists put hundreds of billions of dollars into their economy. Still yet, recent information showed the market was remaining slow and sluggish.
So, it’s time for experts in finance to be very concerned about worldwide economy and how it might be helped. As such, Soros works with a network of one hundred nations to run the Open Society Foundation and to use it to help others learn the truth. Soros uses the Open Society to help undermine communism, promote critical thinking, and do philanthropy overseas and in the US via giving money for schools, machines, etc. to help with world’s resources and make things more even for others in today’s financial troubled world.
So, with that knowledge and experience, if george Soros says there could be even more financial issues in the coming future, he is a man that people around the world should listen to very closely and take heed.