George Soros in the News

Billionaire and politician George Soros is making waves in London. In an article published by USA Today on June 21, 2016, Soros and famed soccer star, David Beckham, pledged support for the United Kingdom to remain in the European Union. This effort to prevent the separation is being referred to as the “Remain Campaign”. Soros, a well-known investor and currency trader weighed in on the issue stating “a British vote to leave the 28-nation European Union could severely damage living standards and trigger a plunge in the British pound — more than what happened on Black Wednesday nearly 24 years ago. The pound could fall at least 15% and possibly by more than 20%.”

Considering his reputation and position of power, Soros’ statements are being taken seriously among his peers, politicians, and citizens of the European Union. “My success in the financial markets has given me a greater degree of independence than most other people,” George Soros once wrote. “This allows me to take a stand on controversial issues: In fact, it obliges me to do so because others cannot.” The Financial Times reported that in a survey conducted by the Creative Industries Federation, a lobby group for the arts, 96 percent of its own members are supporters of the Remain Campaign and its efforts. The Financial Times also goes on the say that celebrity endorsements, such as the one made by George Soros are powerful because they can guarantee media coverage and “provide sunny faces for leaflets”.

Read more:
Brexit and the Future of Europe

George Soros – Business Leader, Philanthropist

Soros has become a very common character in the news as of late. In another recent article by the New York Times published earlier this month, George Soros is noted for his liberal political standing and his efforts to fund and encourage Latino voters. The paper reports that he will help to bankroll a campaign to mobilize Latinos, along with other immigrants, to the polls for the upcoming American presidential election. It is reported that the campaign will be worth as much as $15 million.

Aside from his political efforts and wildly-successful career in finance, George Soros is also known for his philanthropic efforts. More than 30 years ago, after deciding he had earned enough money for himself, Soros started the Open Society Foundations. The charity works to provide funding to many groups in need, including black students in need of academic funding in South Africa. “Open society is based on the recognition that our understanding of the world is inherently imperfect,” Soros said. “What is imperfect can be improved.”

Due to his immense wealth, propensity to speak up, and philanthropic efforts, it is clear that George Soros will continue to come up in headlines world-wide.

Learn more about George Soros:

Hedge Fund Investor George Soros Believes A China Driven Economic Meltdown Is Imminent

George Soros doesn’t mince words when he talks about the condition of the global economy. Soros says most of the BRICS emerging markets, Brazil, Russia, China and South Africa have been struggling for the past two years. India is the only member of that union that is still growing at a healthy rate economically speaking. Soros believes there is going to be a global crisis that will be reminiscent of the 2008 meltdown. In fact, Soros thinks this crisis could be worse than the one eight years ago.

Mr. George Soros is basing his prediction on the economic mayhem that is going on in China right now. Recently, Goldman Sachs, the investment bank, cut its forecast for the yuan. China currency is expected to depreciate against the dollar at a faster rate than their previous forecast. One dollar can buy about 6.6 now, but in 12 months that dollar will be able to buy 7.0 yuan. By the end of 2017, the dollar will buy 7.3 yuan, and that is why several hedge fund managers started to short the yuan against the dollar recently.

A weaker yuan means China will continue to suffer from a weak manufacturing base and a consumer base that has lost confidence in the government. Chinese investors are moving money out of the two Chinese stock markets at an accelerated rate even though the government has injected trillions into their markets to keep them stable. The Chinese government has also pumped trillions od dollars into the central bank to keep the value of their offshore and domestic yuan up, but economists believe the government won’t be able to reverse the damage that has been done. Mr. Soros thinks it will take at least three years and more money for China to convert their economy to a consumer-driven economy.

Investors in markets around the world reacted to the weak yuan and the news that China’s manufacturing sector is shrinking faster than expected by selling stocks and investing in safer investment vehicles like gold or silver. Every time there is a devaluation of the yuan, China’s economy gets a little weaker, according to Mr. Soros.

China’s central bank is manipulating the yuan, so hedge fund investors that are taking a short position against the yuan don’t reap the billions they expect to earn at China’s expense. But as Soros points out in a article, the Chinese can’t continue to spend the kind of money it will take to keep their currency in an overvalued position against the dollar.

The bottom line, according to Soros, is the global economy is going to feel the effects of China’s issues and markets around the world will experience a major selloff. Soros thinks all the signs are obvious and by the third quarter of 2016, most of the world will be in a recession.