Recently, in an economic forum in Colombo, Sri Lanka, George Soros said that the current crisis in the global markets mirrored the 2008 crisis. He also added that the rest of the world was hurting from China’s devaluation of its currency. Soros cautioned investors to be wary of the global markets that are facing challenges. According to him, China is still struggling to establish a new growth model.
The sinking Yuan did not help the current concerns on the strength of the Chinese economy. The economy is shifting to consumption and services from its forte in manufacturing and investments. The global currency, stock markets as well as commodity markets had a dismal performance in the first week of the year. Close to $2.5 trillion was eroded from the value of global equities as losses extended in Asia with Chinese equities plunging further. According to Soros, China is facing a crisis that is arising from its adjustment problems.
Weaknesses remain in the second leading economy of the world despite of the authorities flooding the economy with billions of dollars. The People’s Bank of China has slashed interest rates but it has not achieved much from this monetary policy. However, China’s Communist Party has promised to raise the convertibility of the Yuan and continuously remove capital controls by 2020. The move comes as the major measures of volatility across the world surged.
From 1969 to 2011, George Soros’ hedge fund gained a yearly average of 20%. Bloomberg Billionaires Index estimates Soros’ net worth to be $27.3 billion. Soros established his investment career in the 50s in New York City. Over the years, he has earned a reputation due to his investment exploits. This information was reported on Bloomberg as explained in the link below http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says
Soros’ two foundations; Open Society Institute and Open Society Foundation, were banned in Russia after the authorities claimed that the two were a threat to Russian security and the constitution. In a statement, the Office of Russia’s General Prosecutor said the two branches of Soros’ foundation would be put on a stop list. The list comprises of foreign non-governmental organizations whose initiatives are viewed as undesirable by Russia. The two organizations that were founded by billionaire Soros are pro-democracy charities. This information was mentioned on CNBC as highlighted in the following link http://www.cnbc.com/2015/11/30/russia-bans-george-soros-charity-as-security-threat.html
Soros established the Open Society Foundation in 1979 after his success in the investment world. According to him, the foundation is based on the realization that the world is naturally imperfect and improvement has to be made on what is imperfect. Open Society foundation aims to change authoritarian forms of government to open societies. Soros began his philanthropic activities by providing scholarships to black students in South Africa with the view of helping them pursue education at the University of Cape Town. This information was reported on georgesoros.com as elucidated in the link below http://www.georgesoros.com/philanthropy/