George Soros Shines Spotlight on Concerns in China

George Soros has made some dire predictions about the current global marketplace, going on record as saying that the current climate as similar to 2008.

Soros made his remarks at an economic forum on held in Sri Lanka. “China has a major adjustment problem,” Soros said, as quoted by Bloomberg. “I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”

China is currently trying to find its footing as it transitions away from a manufacturing-based economy toward a more capitalist-idealized economy based on consumption and the presentation of services. This dramatic shift in economic identity on has put a strain on its currency that has started to have effects on the global marketplace.

This has been the result of China’s Communist Party trying to relinquish control of China’s economy toward the free market, as they’ve promised to slowly phase out their influence over the means of production. China has declared that they will also make conversion of the yuan easier by 2020. These changes have led to uncertainty as it relates to China’s economic stability, and George Soros has expressed his worry.

George Soros, who is worth $27.3 billion according to Bloomberg’s Billionaires Index, has an established eye for market deficiencies. Soros famously made over a billion dollars in 1992 by short selling the pound just before the U.K. had to devalue it. He has also drawn attention to other potential financial calamities, drawing attention to the financial crisis in Greece back in 2011.

George Soros has since established himself as a well-noted philanthropist, donating over $11 billion to various causes. Soros is of the belief that his financial standing compels him to act. “My success in the financial markets has given me a greater degree of independence than most other people. This allows me to take a stand on controversial issues: In fact, it obliges me to do so because others cannot.”

Soros’ observations have been supported by a number of outside economic factors. Bloomberg cites a number of volatility indexes that point toward a general destabilization of the world’s economy:

“The Chicago Board Options Exchange Volatility Index, known as the fear gauge or the VIX, is up 13 percent. The Nikkei Stock Average Volatility Index, which measures the cost of protection on Japanese shares, has climbed 43 percent in 2016 and a Merrill Lynch index of anticipated price swings in Treasury bonds rose 5.7 percent.” Visit Open Society Foundations website to know more about George Soros.