Billionaire Soros Sounds Financial Crisis Alarm

Have you ever heard the saying that things just aren’t what they seem? Of course, you have, and that’s just what financial expert and billionaire George Soros is saying to anyone that will listen and there are a lot of people that pay attention to Soros when he talks about finances. Mr. George Soros is a well-known figure not only for his philanthropy work in education but also as the man that made over a billion dollars by shorting the British pound sterling in an investment that came off as more of a coup de grâce against the British empire than an investors financial play.

As evidence of his concern Soros has brought up the fact that as he sees it, China’s economy on and its currency have adjusted downward to a very weak state that is just now beginning to affect global financial markets and the world economy. As Soros tells it much of China’s weakening economy can be contributed to the devaluation of the yuan and to the continued collapse of the price of oil and oil stocks. Soros goes on to say that if this is not slowed it could easily bloom into a crisis larger than the one that occurred worldwide in 2007. Although George Soros is respected he is not without his critics and those that completely disagree with this prediction.

One of these is Jeffrey Saut an investor adviser and financial expert at the Raymond James Company a firm that offers asset and wealth management services, investment banking and financial planning to wealthy individuals, corporations, and municipalities. Saut’s counter to the gloom and doom assessment of Soros is that he believes there is very little risk associated with China because of the fact that all world banks, even China’s, have cleaned up their balance sheets after the Wall Street financial debacle of 2007. He continues by stating that one of the reasons for the Chinese economy slowing is a minor shift in its economic focus as China moves to a more consumer-led economy. 

Even with his critics, Soros is positive that China’s problems are seeping into the world economy. He even states that this is a result of not only China’s currency devaluations this year but also a large amount of worldwide pressure being exerted on the global stock and commodity markets. As a direct result of these pressures, over 2 trillion dollars of value have been erased from the global markets this year. But it’s not just George Soros that is singing this tune. The Chicago Boards Volatility Index, a well-respected and nonbiased organization and a recognized index of consumer uncertainty, is up 13 percent this year. In addition, the Nikkei Stock Average Volatility Index, which charts protection of shares in Japanese companies. rose over 43% in 2016.

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