George Soros China Might Be Able To Defer Its Economic Situation Just Like The US In 2005-2006

George Soros is of the opinion that China is undergoing an instability situation, especially with the banks and creditors. How most of the investors are asking for more loans and making few or no deposits. This has been a situation that has resulted even in a great rise in the value of new homes in the cities such as Shenzen. There are great uncertainties in the Chinas market which according to Soros, China has been deferring. The case is similar to what the United States underwent through before experiencing the crisis. Back in 2005- 2006, the United States deferred most of the instability problems to the climax in 2007 when the crisis came to be.

To Soros, Chinas performance in the economy on nytimes.com is no longer strong as it was before. Weakening of the value of Yuan, banks borrowing from other banks, other banks with more liabilities than assets; this situation is not good at all from Soros perspective. Despite Chinas defense in that George Soros has made such predictions long ago but they never came to be, the country’s economy is slowing. The instability problem from Soros is growing at an exponential rate and in two years could lead to a problem, a crisis just like the 2008 crisis in the United States. Continued growth in credit is related to the 2008 growth in credit, which in the end was a great instability in addition to increased collapsing of banks.

Probably George Soros is right about this because based on his history in investment on http://www.nybooks.com/contributors/george-soros/ most of his predictions have come true. The 2008 crisis was one of his predictions in addition to the prediction of the dropping in the value of the British Pound. This in return earned him a fortune; Soros founded Soros Hedge Fund Management in the 1970s. His firm has been very successful with the European market trade; in addition, he is the founder of Open Society Foundations. George Soros’ major object with Open Society Foundation is to promote respect to human rights, discourage independence ownership of truth and promote respect to human rights. As a Democrat, he has been a great supporter of politicians vying with the Democrat Party.

Soros was born in Hungary but flew from the country during the Nazi Holocaust. He studied in New York and has also been the initiator of the Central European University which offers lectures on right citizenship and creative thinking. His views on biography.com of investments are independent, and he regards this to being independently wealthy. Soros is one of the best writers and a philanthropist; with Open Society Foundations, he has advocated for the removal of apartheid policy in South Africa. Most of his books have been a great asset to many investors in the European market trade.

Director Philip Diehl Answers Your Questions about Gold and George Soros on a Recent US Money Reserve Podcast

 

One of the most well-respected gold market organizations in the United States would the U.S. Money Reserve. This company was founded by gold market veterans who had a vision to create a gold exchange that would eventually become renowned for its customer service and expert market knowledge. Even the most junior sales staffers at the U.S. Money Reserve are dedicated to providing investors with only the most expert guidance at diversifying their investment portfolio.

Phlip Diehl, who is the current director of the U.S. Money Reserve, is also world renowned for his expert guidance on the precious metals markets in this present day and time. During a recent podcast, he was interviewed and offered his thoughts on a number of the present issues in this market. Like billionaire hedge fund manager George Soros, he pointed out his analysis that uncertainty in the world markets could affect the world economy. He also pointed out a number of other important factors about the market and their company, including the following:

1. They have garned a great deal of respect.

Mr. Diehl’s first point was that the U.S. Money Reserve has literally traded in precious metals on every continent, including Antarctica. The reason they have been able to trade in literally every corner of the globe would be because they continue to be committed to helping all of their clients with their investments. To that end they recently unveiled their new Gold-backed I.R.A program for individuals to utilize.

2. Gold continues to be high in demand.

Diehl also commented on the 2008 crisis and on the fact that gold continues to be in demand for a number of reasons. There is a great deal of uncertainty in the Federal Reserve and there is an increased demand for gold in China and India.

3. Gold coins are better than gold bars.

Diehl also made the argument during this podcast that owning gold coins are better than owning gold bars. He said that gold bars are not considered legal tender and they are easier to counterfeit than gold coins. Diehl also stated during the podcast that dollar might be close to a peak status and so now is the prime time to invest in gold, because when the dollar goes down gold will go up.

 

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Current Market a Repeat of 2008 Crisis According to Famed Investor George Soros

 

We are only a few days in to 2016 and it already looks like it will be a rocky year. Famed billionaire investor George Soros is proclaiming that he sees echos of the 2008 crisis in the current market. At an investment event in Sri Lanka recently, Soros mentioned that the extreme debt levels in China, Europe and the US, along with collapsing commodity prices, spelled potential doom for global economy.

According to Soros and most other investors, the 2008 crisis occurred due to sub-prime debt, over investment in the housing market and too much investment in exotic securitized financial products. Today, the greatest risk is also in bad debt. However, this time the debt is much larger and issue by governments so the risk is much greater.

That is especially true in China. AFter the 2008 crisis, exports to Europe and the US went down dramatically. To boost the economy, the government unleashed a massive amount of lending and fiscal stimulus in to the economy. In fact, the banking system grew to three times the size of the economy whereas the US banking system is one times the economy. At the same time, the growth rate in China is beginning to slow naturally as the population growth slows and incremental technology improvements slow. As a result, it is becoming tougher and tougher to pay off the huge debts that government issued in 2008. Now, new debt growth is slowing and the economy is at a stand still. The stock market already crashed in 2015 and is now crashing again. Unless the government gets a handle on its debt loan, it could spark a contagion around the world.

As debt growth slows around the world and economies put on the breaks, the price of commodities is also collapsing. Many countries that depend on commodities (especially oil and gas) are now have trouble financing their daily operations. Even worse, some of the debt they have issued is in danger.

The countries with the greatest risk of debt default include Venezuela, Zimbabwe and Argentina. However, other much larger countries are showing signs of strains. Brazil contracted 3.5% in 2015 due to the decrease in commodity prices. Also, the fallout from a bribery scandal and massive wasted investment in a major potential oil field by government energy giant Petrobras is giving investors concern about the country’s ability to pay back loans. At a minimum, interest rates are rapidly increasing, causing huge strains in the economy.

Other major oil exporters such as Russia, Saudi Arabia, Kuwait, Norway and Angola have seen massive setbacks in their revenue and are struggling to meet basic needs. These companies may need to issue additional debt to get back on track.

Together, the world is showing increasing strains that Soros warns could lead to another major crisis like 2008. Hopefully, governments can avoid the fallout.