George Soros Believes The Global Markets Are Facing A Serious Crisis

George Soros isn’t the type of man who minces his words. When speaking at the economic forum in Sri Lanka’s capital, he made it very clear that he believes the global markets are heading for a crisis similar to what took place in 2008.

Right now China is really struggling on as far as a new growth model goes. No matter what they do they can’t seem to find one that works. On top of that, their currency devaluation issue is causing problems all throughout the world.

The challenge of returning to positive interest rates is one of the many reasons George Soros believes global markets are headed for a crisis.

The first week of the year was met with the global currency market, the stock market and the commodities market all being under fire. Additionally, the Yuan is still falling in value which brings into question the strength of the Chinese economy. Especially when you consider they are in the process of switching from investment and manufacturing to an economy that is driven by consumption and services.

During the first week of the year $2.5 trillion in global equities was completely wiped out. And with the losses in Asia deepening, things just aren’t looking that good for China.

George Soros was quoted as saying, “China has a major adjustment problem”. In his opinion, the challenges in the Chinese economy are very similar to the challenges that took place right before the 2008 collapse.

This isn’t the first time Soros has warned of a catastrophe on similar to that of 2008. In 2011 Soros served on a panel in Washington. While on that panel he discussed the European debt crunch and how he believes it is far more serious than what the world experienced in 2008.

The issue of volatility continued to surge as the world entered into a new year. The Chicago Board Options Exchange Volatility Index was up 13 percent and the Nikkei Stock Average Volatility Index was up 43 percent. The price of Treasury bonds also rose as 2015 came to an end.

The reality is no one really knows what to do to fix the Chinese economy. However, that hasn’t stopped people from trying. China’s Communist Party agreed to increase the yuan’s convertibility within the next 4 years. They also agreed to slowly relinquish capital controls.

Read more about George at The New York Times.

Even though these are two big steps in the right direction, the world’s second-largest economy still shows signs of weakness due to the manufacturing sector showing very little progress.

Who Is George Soros?

George Soros is a hedge fund billionaire who made his claim to fame in 1992 after betting against the pound and netting $1 billion dollars in the process. He is currently worth over $27 billion and spends a great deal of his time giving back in any way he can.

He runs non profit organization Open Society Foundations which promotes human rights, transparency and the values of an open society. To learn more about George Soros and his various philanthropic endeavors, visit his website at